<PAGE>
SEMIANNUAL REPORT, June 30, 1998
NAVELLIER PERFORMANCE FUNDS
1 East Liberty, Third Floor
Reno, NV 89501
(800) 887-8671
- --------------------------------------------------------------------------------
July 31, 1998
Dear Shareholder:
The first half of 1998 was a turbulent period for the market. First quarter
returns for virtually all sectors of the market were very strong. Then in the
second quarter the markets began to sag and posted relatively disappointing
returns in spite of a brief rally during the last part of June. The S&P 500
refused to take a breather from its long upward climb and posted a return of
17.63% for the first six months of 1998. The same can not be said about the
broader market indices such as the Russell 2000, which was up a scant 4.93%. Mid
cap stocks fared slightly better with the S&P Mid Cap Index returning 8.80%.
Overall the international markets fared surprisingly well with the Morgan
Stanley EAFE (Europe, Australia and Far East) returning 15.10%. Naturally, the
big economic news during the period was the Asian currency problems and the
unknown impact of these devaluations on our own markets.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH PORTFOLIO
<S> <C> <C> <C>
Aggressive Growth Russell 2000 NASDAQ Composite
12/31/95 $10,000 $10,000 $10,000
Jan-96 $9,640 $9,989 $10,073
Feb-96 $10,631 $10,301 $10,455
Mar-96 $11,341 $10,511 $10,468
Apr-96 $13,033 $11,073 $11,315
May-96 $14,054 $11,509 $11,818
Jun-96 $13,063 $11,036 $11,263
Jul-96 $11,191 $10,073 $10,270
Aug-96 $11,862 $10,658 $10,849
Sep-96 $12,743 $11,075 $11,661
Oct-96 $12,162 $10,904 $11,610
Nov-96 $12,232 $11,354 $12,286
Dec-96 $12,262 $11,651 $12,271
Jan-97 $12,452 $11,884 $13,115
Feb-97 $10,891 $11,596 $12,441
Mar-97 $10,681 $11,049 $11,612
Apr-97 $10,541 $11,080 $11,983
May-97 $11,301 $12,312 $13,309
Jun-97 $12,052 $12,840 $13,706
Jul-97 $13,213 $13,437 $15,148
Aug-97 $13,293 $13,745 $15,087
Sep-97 $14,575 $14,751 $16,022
Oct-97 $14,024 $14,104 $15,147
Nov-97 $13,514 $14,012 $15,212
Dec-97 $13,460 $14,257 $14,925
Jan-98 $13,005 $14,032 $15,391
Feb-98 $13,936 $15,069 $16,828
Mar-98 $14,686 $15,690 $17,447
Apr-98 $14,706 $15,776 $17,758
May-98 $13,906 $14,926 $16,907
Jun-98 $14,149 $14,957 $18,009
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH PORTFOLIO
TOTAL RETURNS FOR PERIODS NASDAQ
ENDED JUNE 30, 1998 FUND RUSSELL 2000 COMPOSITE
- ----------------------------- --------- ------------- ---------------
<S> <C> <C> <C>
Six Months 5.12% 4.93% 20.66%
Twelve Months 17.40% 16.50% 31.39%
Since Inception* 41.49% 49.57% 80.09%
Annualized Since Inception* 14.90% 17.48% 26.55%
Value of a $10,000 investment
over Life of Fund* $ 14,149 $ 14,957 $ 18,009
*Inception December 29, 1995
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MID CAP GROWTH PORTFOLIO
<S> <C> <C> <C>
Mid Cap Growth Portfolio Russell 2000 NASDAQ Composite
11/27/96 $10,000 $10,000 $10,000
Dec-96 $10,270 $10,262 $9,988
Jan-97 $10,460 $10,467 $10,675
Feb-97 $10,290 $10,214 $10,127
Mar-97 $9,980 $9,732 $9,451
Apr-97 $10,270 $9,759 $9,754
May-97 $10,830 $10,844 $10,833
Jun-97 $11,380 $11,310 $11,156
Jul-97 $12,500 $11,835 $12,330
Aug-97 $12,460 $12,106 $12,280
Sep-97 $13,380 $12,993 $13,041
Oct-97 $12,760 $12,422 $12,329
Nov-97 $12,770 $12,342 $12,382
Dec-97 $12,960 $12,557 $12,149
Jan-98 $12,720 $12,359 $12,528
Feb-98 $13,690 $13,272 $13,697
Mar-98 $14,659 $13,819 $14,201
Apr-98 $14,628 $13,895 $14,455
May-98 $14,034 $13,146 $13,762
Jun-98 $14,399 $13,174 $14,658
</TABLE>
<TABLE>
<CAPTION>
MID CAP GROWTH PORTFOLIO
TOTAL RETURNS FOR PERIODS NASDAQ
ENDED JUNE 30, 1998 FUND RUSSELL 2000 COMPOSITE
- ----------------------------- --------- ------------- ---------------
<S> <C> <C> <C>
Six Months 11.10% 4.93% 20.66%
Twelve Months 26.52% 16.50% 31.39%
Since Inception* 44.04% 31.74% 46.58%
Annualized Since Inception* 25.82% 18.94% 27.21%
Value of a $10,000 investment
over Life of Fund* $ 14,404 $ 13,174 $ 14,658
*Inception November 27, 1996
</TABLE>
<PAGE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AGGRESSIVE MICRO CAP PORTFOLIO
<S> <C> <C> <C>
Micro Cap Russell 2000 NASDAQ Composite
3/17/97 $10,000 $10,000 $10,000
Mar-97 $9,859 $9,592 $9,333
Apr-97 $9,872 $9,619 $9,631
May-97 $10,691 $10,688 $10,698
Jun-97 $11,432 $11,147 $11,016
Jul-97 $12,423 $11,665 $12,176
Aug-97 $12,679 $11,932 $12,126
Sep-97 $13,593 $12,806 $12,878
Oct-97 $13,434 $12,244 $12,174
Nov-97 $13,459 $12,164 $12,227
Dec-97 $13,274 $12,377 $11,996
Jan-98 $12,817 $12,181 $12,371
Feb-98 $13,604 $13,082 $13,526
Mar-98 $13,910 $13,621 $14,023
Apr-98 $14,080 $13,696 $14,273
May-98 $13,722 $12,957 $13,589
Jun-98 $14,093 $12,985 $14,475
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE MICRO CAP PORTFOLIO
TOTAL RETURNS FOR PERIODS NASDAQ
ENDED JUNE 30, 1998 FUND RUSSELL 2000 COMPOSITE
- ----------------------------- --------- ------------- ---------------
<S> <C> <C> <C>
Six Months 6.13% 4.93% 20.66%
Twelve Months 23.25% 16.50% 31.39%
Since Inception* 40.90% 29.86% 44.75%
Annualized Since Inception* 30.51% 22.50% 35.27%
Value of a $10,000 investment
over Life of Fund* $ 14,093 $ 12,985 $ 14,475
*Inception March 17, 1997
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
SMALL CAP VALUE PORTFOLIO
<S> <C> <C> <C>
Small Cap Value Portfolio Russell 2000 Russell 2000 Value
12/19/97 $10,000 $10,000 $10,000
Dec-97 $10,120 $10,410 $10,363
Jan-98 $9,880 $10,246 $10,175
Feb-98 $10,400 $11,003 $10,791
Mar-98 $10,940 $11,456 $11,229
Apr-98 $11,115 $11,519 $11,284
May-98 $10,705 $10,898 $10,885
Jun-98 $10,324 $10,921 $10,823
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP VALUE PORTFOLIO
TOTAL RETURNS FOR PERIODS RUSSELL 2000
ENDED JUNE 30, 1998 FUND RUSSELL 2000 VALUE
- -------------------------------- --------- ------------- -------------
<S> <C> <C> <C>
Six Months 1.88% 4.93% 4.44%
Since Inception* 3.15% 9.15% 8.23%
Annualized Since Inception* 6.04% 18.01% 16.13%
Value of a $10,000 investment
over Life of Fund* $ 10,324 $ 10,915 $ 10,823
*Inception December 19, 1997
</TABLE>
The first half of 1998 was very favorable to U.S. large cap investors. Two
contributing factors to the superior performance of the S&P 500 were, stronger
than expected earnings reports and the continued inflow of capital from domestic
investors. These investors have tended to invest in well-recognized companies
such as those in the S&P 500. The Navellier Large Cap Growth Portfolio, was a
direct beneficiary of the S&P 500's popularity and delivered a very strong
return of 20.60% for the first half of 1998. Growth strategies were clearly in
favor during the period as evidenced by the Russell 1000 Growth Index return of
20.38% versus the Russell 1000 Value Index return of 12.16%. The Navellier Large
Cap Value Portfolio posted a respectable return of 12.36%.
The first half of 1998 has been highlighted by the continued
under-performance of the small-cap sector. Despite superior fundamental
valuations and stronger relative price to earnings (p/e) ratios, the small cap
sector continues to be plagued by a serious lack of liquidity. Without the
required liquidity and rising trading volume to drive these stocks higher,
investors continue to turn towards large cap stocks and index funds with their
investment dollars. The period was characterized by very narrow market
leadership, which of course, consisted of primarily the mega-cap stocks.
According to Ned Davis Research, there has not been a period (going back to
1980) where so few stocks (only 29%) have outperformed the S&P 500. Relative
valuation levels have only been this low on two occasions over the past 20
years; 1987 and 1990. On both occasions, these sectors of the market rallied
strongly. Earnings strength also favors small and mid cap stocks. These sectors
of the market have exhibited stronger earnings growth than the large cap stocks
for six consecutive quarters. This combination of historic low relative
valuations and relative earnings strength has led to dramatic gains in the past,
and this cycle should prove to be no different.
2
<PAGE>
The recent U.S. economic slowdown to 1.4% annual growth in the second
quarter down from 5.5% annual growth in the first quarter caught many economists
by surprise. However, the slowdown is not as bad as it may appear, since the
first quarter's economic growth was unquestionably artificially distorted upward
by the mild winter weather that bolstered housing and consumer spending patterns
relative to the same period one year earlier. Furthermore, much of the slowdown
in the second quarter is attributable to inventory reduction, which reduced
second quarter growth by 2.3%. In other words, had inventories held steady, the
U.S. economy would have had 3.7% annual growth in the second quarter. The
consumer continues to carry the entire U.S. economy. Although consumer spending
slowed down in June, it re-accelerated in July, which is a very good omen for
economic growth in the third quarter. As long as retail sales and housing sales
remain strong, the U.S. economy will continue to experience healthy economic
growth.
Outside of the U.S. things are not so bright. There is no doubt that many
economies, such as in Canada, have slowed down due to the Asian crisis. The
bottom line is that when Asia got sick, many other economies caught a cold. The
manufacturing sector within the U.S. has also slowed precipitously, especially
for those companies that export internationally. Over 40% of U.S. manufacturers
that export recently reported that demand is declining, compared to less than
10% that reported declining export demand several months ago. Despite the
slowdown in the U.S. manufacturing sector, the primary reason that the U.S.
economy appears largely immune to the Asian crisis is that the U.S. consumer is
too busy spending money to worry about the Asian crisis. In fact, now that the
prices of many popular Asian imported goods are cheaper, U.S. consumers will
likely continue spending. Overall, we expect that the consumer will continue to
carry the U.S. economy and that predominately consumer-related stocks will
prosper.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LARGE CAP GROWTH PORTFOLIO
<S> <C> <C> <C>
Large Cap Growth Portfolio S&P 500 Russell 1000 Growth
12/19/97 $10,000 $10,000 $10,000
Dec-97 $10,250 $10,252 $10,300
Jan-98 $10,100 $10,370 $10,608
Feb-98 $10,851 $11,111 $11,406
Mar-98 $11,571 $11,681 $11,861
Apr-98 $11,531 $11,798 $12,024
May-98 $11,511 $11,588 $11,683
Jun-98 $12,262 $12,060 $12,398
</TABLE>
<TABLE>
<CAPTION>
LARGE CAP GROWTH PORTFOLIO
TOTAL RETURNS FOR PERIODS RUSSELL 1000
ENDED JUNE 30, 1998 FUND GROWTH S&P 500
- ----------------------------------- --------- ------------- -----------
<S> <C> <C> <C>
Six Months 19.61% 20.38% 17.63%
Since Inception* 22.67% 24.00% 20.60%
Annualized Since Inception* 47.10% 50.19% 42.51%
Value of a $10,000 investment over
Life of Fund* $ 12,267 $ 12,398 $ 12,060
*Inception December 10, 1997
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LARGE CAP VALUE PORTFOLIO
<S> <C> <C> <C>
Large Cap Value Portfolio S&P 500 Russell 1000 Value
12/19/97 $10,000 $10,000 $10,000
Dec-97 $10,110 $10,252 $10,237
Jan-98 $9,990 $10,370 $10,093
Feb-98 $10,800 $11,111 $10,772
Mar-98 $11,469 $11,681 $11,431
Apr-98 $11,489 $11,798 $11,508
May-98 $11,238 $11,588 $11,337
Jun-98 $11,359 $12,060 $11,483
</TABLE>
<TABLE>
<CAPTION>
LARGE CAP VALUE PORTFOLIO
TOTAL RETURNS FOR PERIODS RUSSELL 1000
ENDED JUNE 30, 1998 FUND VALUE S&P 500
- ----------------------------------- --------- ------------- -----------
<S> <C> <C> <C>
Six Months 12.36% 12.16% 17.63%
Since Inception* 13.69% 14.81% 20.60%
Annualized Since Inception* 27.45% 29.85% 42.51%
Value of a $10,000 investment over
Life of Fund* $ 11,369 $ 11,483 $ 12,060
*Inception December 19, 1997
</TABLE>
3
<PAGE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO
<S> <C> <C>
International Equity Portfolio EAFE
12/19/97 $10,000 $10,000
Dec-97 $10,000 $10,190
Jan-98 $10,020 $10,642
Feb-98 $10,120 $11,312
Mar-98 $10,790 $11,647
Apr-98 $10,800 $11,725
May-98 $11,080 $11,653
Jun-98 $10,950 $11,728
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO
TOTAL RETURNS FOR PERIODS
ENDED JUNE 30, 1998 FUND EAFE INDEX
- ---------------------------------------- --------- -------------
<S> <C> <C>
Six Months 9.50% 15.10%
Since Inception* 9.50% 17.28%
Annualized Since Inception* 19.49% 36.72%
Value of a $10,000 investment
over Life of Fund* $ 10,950 $ 11,728
*Inception December 19, 1997
</TABLE>
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 original cost.
"Developed international equity markets turned in a mixed performance during
the first half of 1998. The Navellier International Equity Portfolio returned
9.50% during the period even though the portfolio was not invested until early
March. Europe continued its euphoric upward ride supported by a confirmed
economic recovery and low interest rates. However, this rally in European stock
prices was tempered by lingering concerns of the Asian economic slowdown, and
its effect on corporate profits. In the Asia - Pacific region, stocks continued
their slide as economic recovery in the region remained elusive. Japan, in
particular, slipped into the first quarterly decline in its Gross Domestic
Product since 1984. At this point world capital markets concerns relating to
Japan's economic recovery and its impact on the multinational corporate earnings
have now taken a front and center seat. However, we believe that Japan's
economic recovery will take some time, before the country sorts out its internal
problems. Similarly, the Pacific Rim countries such as Indonesia, Malaysia, and
Thailand continue to be mired in major economic problems. For instance, nine out
of the thirteen economies in the region are now considered to be in various
degrees of a major recession. The process of recovery for these areas might take
anywhere from one to two years, before we could see some results. Taken
together, the Asian economic crises and its impact on the corporate earnings via
slowing trade into the region is resulting in heightened volatility in the
developed country equity markets. In this scenario, selling pressure is often
indiscriminate and irrational, even pummeling stocks with good earning prospects
such as the European blue chips. The Navellier International Equity Portfolio at
the moment has no exposure to the Pacific Region. It holds blue chip equities in
Europe that it considers undervalued relative to their earning potential in the
coming quarters. These earnings are anticipated to be derived primarily from the
European economic recovery that is currently underway. The fund, as a policy,
takes a buy and hold approach and avoids market timing during the times of
volatility."-- Ram Kolluri, Advisor, Navellier International Equity Portfolio.
With interest rates still remaining extremely favorable, and signs of
inflation non-existent, the long-term market outlook remains positive. The
short-term picture is not quite as clear. For the second half of the year, we
should continue to see a volatile equity environment. With the effect of any
future Asian
4
<PAGE>
currency devaluations on the U.S. economy unknown, the stocks of large
multi-national companies will struggle to post any further gains. The
fundamental picture still favors small and mid-cap stocks outperforming the
general market. As the fourth quarter nears, many vacationers will return to the
equity markets and inject the needed liquidity into the mid-cap and small-cap
sectors, driving valuations back in line towards historic norms.
Please call our new Navellier Marketline for the latest fund prices and
weekly market commentary at (800) 730-9005 and look for our new website at
www.navellier.com.
Once again, thank you for allowing us to manage some of your assets. We are
strongly committed to our shareholders and promise to make every effort to
maintain our high performance standards. As always, please feel free to contact
us if you have any questions or if we can help you in any way.
Sincerely,
<TABLE>
<S> <C>
[SIGNATURE] [SIGNATURE]
LOUIS G. NAVELLIER ALAN ALPERS
</TABLE>
THIS MATERIAL HAS BEEN PRECEDED BY A NAVELLIER PERFORMANCE FUNDS PROSPECTUS.
* THE RUSSELL 2000 INDEX IS AN UNMANAGED INDEX CONSISTING OF THE SMALLEST 2000
STOCKS IN THE RUSSELL 3000 INDEX. THE NASDAQ COMPOSITE IS AN UNMANAGED INDEX
CONSISTING OF APPROXIMATELY 5,500 STOCKS AND IS CONSIDERED REPRESENTATIVE OF
THE STOCK MARKET AS A WHOLE. THE S&P 500 IS AN UNMANAGED INDEX CONSISTING OF
500 LARGE CAP STOCKS AND IS ALSO CONSIDERED REPRESENTATIVE OF THE STOCK MARKET
AS A WHOLE. THE RUSSELL 1000 GROWTH INDEX CONSISTS OF THE 1000 LARGEST GROWTH
STOCKS AND THE RUSSELL 1000 VALUE INDEX CONSISTS OF THE 1000 LARGEST VALUE
STOCKS. THE S&P MID CAP INDEX CONSISTS OF 400 MID CAP STOCKS. THESE INDEXES
ARE CONSIDERED REPRESENTATIVE OF PERTINENT MARKET SECTORS IN GENERAL. NONE ARE
INVESTMENT PRODUCTS AVAILABLE FOR SALE.
5
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
AGGRESSIVE GROWTH PORTFOLIO
<TABLE>
<CAPTION>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 92.8%
AEROSPACE -- 4.4%
40,000 Cordant Technologies, Inc. $1,845,000
30,000 Heico Corp. 795,000
50,000 Kellstrom Industries, Inc.* 1,448,440
------------
4,088,440
------------
AIRLINES -- 4.8%
50,000 Alaska Air Group, Inc.* 2,728,125
60,000 SkyWest, Inc. 1,680,000
------------
4,408,125
------------
APPAREL -- 10.6%
75,000 American Eagle Outfitters* 2,892,187
100,000 Ashworth, Inc.* 1,387,500
30,000 Buckle, Inc.* 885,000
57,500 Oshkosh B Gosh, Inc. 2,558,750
40,000 V.F. Corp. 2,060,000
------------
9,783,437
------------
BANKS -- 3.2%
38,100 Northern Trust Corp. 2,905,125
------------
BIOTECHNOLOGY -- 4.4%
60,000 Genentech, Inc.* 4,072,500
------------
COMMERCIAL SERVICES -- 7.5%
150,000 Automobile Protection Corp.* 1,490,625
100,000 Electronic Processing, Inc.* 1,200,000
138,750 Labor Ready, Inc.* 4,188,516
------------
6,879,141
------------
COMPUTER AND VIDEO CHAINS -- 8.0%
105,000 Best Buy, Inc.* 3,793,125
82,000 Trans World Entertainment Corp.* 3,536,250
------------
7,329,375
------------
CONSUMER APPLIANCES -- 3.1%
58,300 Maytag Corp. 2,878,563
------------
ELECTRONICS DISTRIBUTORS -- 1.8%
100,000 Miami Computer Supply Corp.* 1,612,500
------------
<CAPTION>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
ENVIRONMENTAL SERVICES -- 1.3%
50,000 Allied Waste Industries, Inc.* $1,200,000
------------
FINANCIAL SERVICES -- 2.5%
60,000 Doral Financial Corp. 1,050,000
20,000 SEI Investment Co. 1,240,000
------------
2,290,000
------------
FOOD AND VITAMIN
SUPPLEMENTS -- 2.4%
70,000 General Nutrition Companies, Inc.* 2,178,750
------------
INDUSTRIAL MACHINERY -- 5.3%
100,300 Gencor Industries, Inc. 2,018,537
100,000 Terex Corp.* 2,850,000
------------
4,868,537
------------
INSURANCE -- 2.5%
56,700 Fidelity National Financial, Inc. 2,257,369
------------
INVESTMENT MANAGERS -- 2.8%
101,900 Alliance Capital Management L.P. 2,579,344
------------
MANUFACTURING -- 0.9%
10,000 Tredegar Industries, Inc. 848,750
------------
MEDICAL SPECIALTIES -- 3.7%
75,000 D&K Healthcare Resources, Inc.* 1,612,500
100,000 Osteotech, Inc.* 1,775,000
------------
3,387,500
------------
NEWSPAPERS -- 3.2%
41,600 Gannett, Inc. 2,956,200
------------
OILFIELD SERVICES AND
EQUIPMENT -- 2.3%
97,400 Core Laboratories* 2,106,275
------------
PRINTING -- 2.4%
100,000 Mail-Well, Inc.* 2,168,750
------------
</TABLE>
6
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED) (CONTINUED)
AGGRESSIVE GROWTH PORTFOLIO
COMMON STOCKS (CONTINUED)
<TABLE>
<CAPTION>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
RAILROADS -- 1.9%
35,000 Kansas City Southern Industries, Inc. $ 1,736,875
------------
RECREATIONAL ACTIVITES -- 2.4%
60,000 Bally Total Fitness Holding Corp.* 2,160,000
------------
RESTAURANTS -- 4.1%
240,000 Darden Restaurants 3,810,000
------------
TELECOMMUNICATIONS -- 5.9%
78,700 Century Telephone Enterprises 3,610,362
40,000 Tekelec* 1,790,000
------------
5,400,362
------------
TRUCKING -- 1.4%
44,700 Landair Services, Inc.* 1,329,825
------------
TOTAL COMMON STOCKS
(COST $75,526,388) 85,235,743
------------
MONEY MARKET FUNDS -- 7.2%
6,650,065 Fund for Government Investors
(Cost $6,650,065) $ 6,650,065
------------
TOTAL INVESTMENTS -- 100.00%
(COST $82,176,453) $ 91,885,808
------------
------------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
MID CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 83.3%
AIRLINES -- 9.4%
6,000 Alaska Air Group, Inc.* $327,375
5,000 Continental Airlines, Inc.
Class B 304,375
4,000 US Airways Group, Inc.* 317,000
-------------
948,750
-------------
APPAREL -- 3.0%
7,000 Abercrobie & Fitch Co.* 308,000
-------------
BANKS -- 8.5%
2,500 Commerce Bancshares, Inc. 122,031
9,000 Banco Central HispanAmer 281,250
500 M&T Bank Corp. 277,000
2,900 Star Banc Corp. 185,237
-------------
865,518
-------------
BUILDING MATERIALS -- 8.2%
3,500 Southdown, Inc. 249,813
5,000 Texas Industries, Inc. 265,000
3,000 Vulcan Materials Co. 320,062
-------------
834,875
-------------
CABLE TELEVISION -- 2.3%
6,000 United Video Satellite
Group, Inc.* 237,750
-------------
COMPUTER AND VIDEO CHAINS -- 3.2%
9,000 Best Buy, Inc.* 325,125
-------------
CONSUMER APPLIANCES -- 2.4%
4,900 Maytag Corp. 241,938
-------------
CONTAINERS AND PACKAGING -- 2.9%
6,500 Owens Illinois, Inc.* 290,875
-------------
ELECTRIC UTILITIES -- 2.0%
4,500 Pinnacle West Capital
Corp. 202,500
-------------
FINANCIAL SERVICES -- 2.8%
4,500 SEI Investment Co. 279,000
-------------
INDUSTRIAL MACHINERY-- 5.7%
10,500 Chart Industries, Inc. 250,687
2,500 NACCO Industries, Inc. 323,125
-------------
573,812
-------------
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
INSURANCE -- 17.1%
7,500 ACE, Ltd. $ 292,500
3,000 Exel, Ltd. 233,438
4,000 Financial Security
Assurance Holding, Ltd. 235,000
3,100 First American Financial,
Corp. 279,000
3,500 Mercury General Corp. 225,531
7,500 Old Republic International
Corp. 219,844
4,600 Orion Capital Corp. 257,025
-------------
1,742,338
-------------
INVESTMENT BANKERS AND BROKER
SERVICES -- 5.8%
7,000 AG Edwards, Inc. 298,812
5,600 Donaldson, Lufkin &
Jenrette 284,550
-------------
583,362
-------------
MEDICAL SPECIALTIES -- 2.4%
6,000 Safeskin Corp. 246,750
-------------
NEWSPAPERS -- 2.3%
400 Washington Post Co., Class
B 230,400
-------------
REAL ESTATE INVESTMENT TRUST -- 2.7%
15,000 Monterey Homes Corp. 273,750
-------------
TELECOMMUNICATIONS -- 2.6%
5,850 Century Telephone
Enterprises 268,370
-------------
TOTAL COMMON STOCKS
(COST $7,285,310) 8,453,113
-------------
MONEY MARKET FUNDS -- 16.7%
1,689,830 Fund for Government
Investors
(Cost $1,689,830) 1,689,830
-------------
TOTAL INVESTMENTS -- 100.00%
(COST $8,975,140) $ 10,142,943
-------------
-------------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
AGGRESSIVE MICRO CAP PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 88.8%
AIRLINES -- 4.9%
4,000 Alaska Air Group, Inc.* $218,250
10,200 SkyWest, Inc. 285,600
-------------
503,850
-------------
APPAREL -- 5.0%
8,250 Buckle, Inc.* 243,375
6,100 Oshkosh B Gosh, Inc. 271,450
-------------
514,825
-------------
BANKS -- 3.4%
603 Fifth Third Bancorp 37,989
247 M&T Bank Corp. 136,838
8,000 United Security Bancorp* 172,000
-------------
346,827
-------------
BUILDING MATERIALS -- 4.6%
9,500 Centex Construction
Products, Inc. 365,750
1,500 Southdown, Inc. 107,062
-------------
472,812
-------------
COMMERCIAL SERVICES -- 11.1%
17,000 Automobile Protection
Corp.* 168,938
4,000 Duff and Phelps Credit
Rating Co. 223,000
11,700 Labor Ready, Inc.* 353,194
4,400 Market Facts, Inc. 95,700
11,800 PDS Financial Corp.* 103,250
11,000 Western Staff Services,
Inc.* 203,500
-------------
1,147,582
-------------
CONSUMER SERVICES -- 1.3%
4,300 Ambassadors International,
Inc.* 130,344
-------------
CONTAINERS AND PACKAGING -- 1.9%
9,000 BWAY Corp.* 193,500
-------------
EDP PERIPHERALS -- 1.9%
17,000 Rimage Corp. * 199,750
-------------
ELECTRONICS -- 1.2%
9,300 EFTC Corp.* 120,900
-------------
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
FLUID CONTROLS -- 1.1%
5,720 ESSEF Corp.* $117,618
-------------
INDUSTRIAL MACHINERY -- 7.3%
6,200 Astec Industries, Inc.* 213,900
7,100 Chart Industries, Inc. 169,513
8,000 Gencor Industries, Inc. 161,000
7,000 Terex Corp.* 199,500
-------------
743,913
-------------
HOMEBUILDING -- 7.7%
9,500 M I Schottenstein Homes,
Inc. 205,437
6,000 NVR, Inc.* 246,375
7,000 Nobility Homes, Inc. 138,250
7,400 Ryland Group, Inc. 194,250
-------------
784,312
-------------
INDUSTRIAL SPECIALTIES -- 1.6%
11,700 Chase Corp. 159,413
-------------
INSURANCE -- 10.2%
5,000 Enhance Financial Services
Group 168,750
5,000 Farm Family Holdings,
Inc.* 194,688
5,700 Fidelity National
Financial, Inc. 226,931
10,000 Hoopers Holmes, Inc. 210,000
5,000 Stewart Information
Services Corp. 242,812
-------------
1,043,181
-------------
MANUFACTURING -- 1.7%
2,000 Tredegar Industries, Inc. 169,750
-------------
MEDICAL SPECIALTIES -- 3.6%
8,000 Resmed, Inc.* 364,500
-------------
METAL FABRICATIONS -- 3.7%
19,000 Mobile Mini, Inc.* 190,000
4,800 Reliance Steel & Aluminum
Co. 185,400
-------------
375,400
-------------
</TABLE>
9
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED) (CONTINUED)
AGGRESSIVE MICRO CAP PORTFOLIO
COMMON STOCKS (CONTINUED)
<TABLE>
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
MILITARY/GOVERNMENT/TECHNICAL -- 1.0%
8,900 Applied Signal Technology,
Inc.* $105,688
-------------
RECREATIONAL PRODUCTS -- 2.6%
6,000 National RV Holdings,
Inc.* 270,750
-------------
RETAIL -- 1.8%
7,800 Finlay Enterprises, Inc.* 188,175
-------------
SAVINGS AND LOAN ASSOCIATIONS -- 9.5%
2,500 Affiliated Community
Bancorp, Inc. 90,936
5,400 Calumet Bancorp, Inc.* 180,900
4,950 CFSB Bancorp, Inc. 142,313
6,000 Columbia Banking System,
Inc.* 119,250
10,000 First Federal Capital
Corp. 179,375
6,200 TR Financial Corp. 259,625
-------------
972,399
-------------
TRUCKING -- 1.7%
5,900 Landair Services, Inc.* $ 175,525
-------------
TOTAL COMMON STOCKS
(COST $7,916,899) 9,101,014
-------------
MONEY MARKET FUNDS -- 11.2%
1,144,080 Fund for Government
Investors
(Cost $1,144,080) 1,144,080
-------------
TOTAL INVESTMENTS -- 100.0%
(COST $9,060,979) $ 10,245,094
-------------
-------------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
SMALL CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 94.4%
AEROSPACE -- 1.9%
500 Gencorp, Inc. $12,625
------------
APPAREL -- 4.2%
600 Kellwood Co. 21,450
200 Oxford Industries, Inc. 6,988
------------
28,438
------------
AUTO PARTS -- 2.9%
300 Arvin Industries, Inc. 10,894
300 Standard Products Co. 8,438
------------
19,332
------------
BASIC MATERIALS -- 1.8%
450 Barnes Group, Inc. 12,178
------------
CATALOG AND SPECIALTY
DISTRIBUTION -- 2.8%
600 Blair Corp. 19,200
------------
CHEMICALS -- 3.9%
800 Lawter International, Inc. 8,700
2,000 Terra Industries, Inc. 18,000
------------
26,700
------------
COAL MINING -- 2.5%
1,000 Zeigler Coal Holdings Co. 17,125
------------
CONTAINERS AND PACKAGING -- 2.4%
1,300 Rock-Tenn Co. 16,331
------------
CONTRACT DRILLING -- 2.0%
2,800 Petroleum Development Corp.* 13,563
------------
ELECTRIC UTILITIES -- 6.0%
150 Central Hudson Gas & Electric
Corp. 6,863
400 CLECO Corp.* 11,900
300 Public Service Company of New
Mexico 6,806
300 United Illuminating Co. 15,188
------------
40,757
------------
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
ELECTRONICS -- 1.5%
600 Elron Electronic Industries,
Ltd. $10,462
------------
ENGINEERING AND CONSTRUCTION -- 5.2%
1,000 Chicago Bridge & Iron Co. 15,500
500 Stone & Weber, Inc. 19,813
------------
35,313
------------
FINANCIAL SERVICES -- 1.0%
400 Doral Financial Corp. 7,000
------------
FOOD AND RELATED PRODUCTS -- 3.5%
800 Fleming Companies, Inc. 14,050
400 Herbalife International, Inc. 9,850
------------
23,900
------------
INDUSTRIAL MACHINERY -- 5.5%
600 Ampco-Pittsburgh Corp. 9,225
800 Cascade Corp. 14,600
600 Lincoln Electric Holdings Co. 13,275
------------
37,100
------------
INDUSTRIAL SPECIALTIES -- 2.7%
900 Bairnco Corp. 8,100
625 Deswell Industries, Inc. 9,844
------------
17,944
------------
INSURANCE -- 2.9%
350 IPC Holdings, Ltd. 10,609
200 Renaissance Holdings, Ltd. 9,263
------------
19,872
------------
MARINE TRANSPORTATION -- 1.1%
300 Teekay Shipping Corp. 7,519
------------
MEDICAL SERVICES -- 2.6%
1,500 NovaCare Corp.* 17,625
------------
METAL AND MINERAL -- 3.6%
1,200 LTV Corp. 11,475
1,000 Southern Peru Copper Corp. 13,000
------------
24,475
------------
</TABLE>
11
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED) (CONTINUED)
SMALL CAP VALUE PORTFOLIO
COMMON STOCKS (CONTINUED)
<TABLE>
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
MILITARY/GOVERNMENT/TECHNICAL -- 1.9%
1,000 United Industrial Corp. $13,000
------------
NATURAL GAS DISTRIBUTION -- 1.3%
250 New Jersey Resources Corp. 8,922
------------
PRECISION INSTRUMENTS -- 0.8%
600 Spectra-Physics Lasers, Inc.* 5,475
------------
REAL ESTATE -- 6.5%
600 American Real Estate
Investment Co. 10,350
600 Bedford Property Investment,
Inc. 10,950
250 Inversiones y
Representaciones, SA 7,281
600 MGI Properties 15,712
------------
44,293
------------
RECREATIONAL PRODUCTS -- 1.7%
1,200 Arctic Cat, Inc. 11,850
------------
RESTAURANTS -- 2.3%
1,000 Buffets, Inc. 15,687
------------
RETAIL -- 5.5%
900 Haverty Furniture Companies,
Inc. 19,912
800 Signet Group PLC ADR 17,050
------------
36,962
------------
SAVINGS AND LOAN ASSOCIATIONS -- 3.0%
225 Dime Financial Corp. $ 8,016
300 TR Financial Corp. 12,562
------------
20,578
------------
SEMICONDUCTORS -- 4.7%
2,100 Oak Technology, Inc.* 9,581
2,800 Tower Semiconductor, Ltd.* 22,400
------------
31,981
------------
TOOLS AND HARDWARE -- 1.2%
200 Starrett (LS) Co. 7,900
------------
TRUCKING -- 5.5%
900 Arnold Industries, Inc. 13,275
1,300 Yellow Corp.* 24,131
------------
37,406
------------
TOTAL COMMON STOCKS
(COST $663,591) 641,513
------------
MONEY MARKET FUNDS -- 5.6%
37,995 Fund for Government Investors
(Cost $37,995) 37,995
------------
TOTAL INVESTMENTS -- 100.0%
(COST $701,586) $ 679,508
------------
------------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
ADR AMERICAN DEPOSITORY RECEIPTS
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
LARGE CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 95.3%
ADVERTISING -- 2.6%
300 Omnicom Group, Inc. $ 14,963
------------
AIRLINES -- 3.4%
250 US Airways Group, Inc. * 19,812
------------
APPAREL -- 8.0%
325 Gap, Inc. 20,028
500 TJX Companies, Inc. 12,063
275 V.F. Corp. 14,162
------------
46,253
------------
BUILDING PRODUCTS -- 6.0%
225 Masco Corp. 13,613
250 Home Depot, Inc. 20,766
------------
34,379
------------
CELLULAR TELEPHONE -- 3.8%
175 Vodafone Group ADR 22,061
------------
COMPUTERS -- 4.0%
250 Dell Computer Corp.* 23,203
------------
CONSUMER APPLIANCES -- 3.6%
425 Maytag Corp. 20,984
------------
DEPARTMENT STORES -- 3.6%
400 Kohls Corp. 20,750
------------
DISCOUNT STORES -- 3.4%
400 Dayton Hudson Corp. 19,400
------------
DRUG STORE CHAINS -- 2.3%
325 Walgreen Co. 13,427
------------
FINANCIAL SERVICES -- 4.3%
200 Capital One Financial Corp. 24,837
------------
FOOD DISTRIBUTORS -- 3.6%
800 SYSCO Corp. 20,500
------------
HOTELS AND RESORTS -- 3.8%
550 Carnival Corp. 21,794
------------
INSURANCE -- 7.9%
325 ACE Ltd. 12,675
150 Exel Ltd. 11,672
150 Progressive Corp. 21,150
------------
45,497
------------
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
INVESTMENT BANKERS AND BROKERS
SERVICES -- 2.4%
150 Morgan Stanley Dean
Witter & Co. $ 13,706
------------
MOTOR VEHICLES -- 3.8%
375 Ford Motor Co. 22,125
------------
OFFICE EQUIPMENT AND SUPPLIES -- 4.1%
275 Pitney Bowes 13,234
100 Xerox Corp. 10,163
------------
23,397
------------
PACKAGE GOODS AND COSMETICS -- 1.7%
100 Clorox Co. 9,538
------------
PHARMACEUTICALS -- 5.5%
100 Pfizer, Inc. 10,869
225 Schering-Plough Corp. 20,616
------------
31,485
------------
PUBLISHING -- 8.7%
275 McGraw Hill Companies, Inc. 22,430
100 Ganett, Inc. 7,106
300 Tribune Co. 20,643
------------
50,179
------------
SOFT DRINKS -- 4.0%
375 Cadbury Schweppes PLC 23,109
------------
TELECOMMUNICATIONS -- 4.8%
225 Ameritech Corp. 10,097
400 Century Telephone Enterprises 18,350
------------
28,447
------------
TOTAL COMMON STOCKS
(COST $482,689) 549,846
------------
MONEY MARKET FUNDS -- 4.7%
26,880 Fund for Government Investors
(Cost $26,880) 26,880
------------
TOTAL INVESTMENTS -- 100%
(COST $509,569) $ 576,726
------------
------------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
ADR AMERICAN DEPOSITORY RECEIPTS
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
LARGE CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 93.4%
APPAREL -- 0.1%
9 Abercrombie & Fitch Co.* $ 396
------------
AUTO PARTS -- 2.6%
350 Dana Corp. 18,725
------------
BANKS -- 3.5%
50 Republic of New York Corp. 3,147
225 Union BanCal Corp. 21,713
------------
24,860
------------
BUILDING MATERIALS AND PRODUCTS -- 5.4%
75 Armstrong World, Inc. 5,053
300 Lafarge Corp. 11,794
200 Vulcan Materials Co. 21,337
------------
38,184
------------
CHEMICALS -- 3.5%
175 Eastman Chemical Co. 10,498
275 Millennium Chemicals, Inc. 9,316
50 Rohm & Hass Co. 5,197
------------
25,011
------------
FINANCIAL SERVICES -- 1.6%
1 Associates First Capital 77
100 TransAmerica Corp. 11,512
------------
11,589
------------
FLUID CONTROLS -- 0.5%
100 Parker Hannifin Corp. 3,812
------------
INSURANCE -- 6.6%
300 Mid Ocean, Ltd. 23,550
225 Reliastar Financial Corp. 10,800
300 St. Paul Companies, Inc. 12,618
------------
46,968
------------
INVESTMENT BANKERS AND
BROKER SERVICES -- 10.2%
600 AG Edwards, Inc. 25,613
250 Merrill Lynch and Co., Inc. 23,063
550 PaineWebber Group, Inc. 23,650
------------
72,326
------------
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
MANUFACTURING -- 3.1%
175 Cooper Industries, Inc. $ 9,614
150 Cummins Engine Company, Inc. 7,688
225 Tomkins F H PLC ADR 5,147
------------
22,449
------------
METALS AND MINERALS -- 13.1%
200 Aluminum Co. of America 13,188
200 Phelps Dodge Corp. 11,438
1,800 Pohang Iron & Steel Ltd. 21,600
1,000 SKF AG. ADR 18,187
300 Timken Co. 9,244
600 USX-US Steel Group 19,800
------------
93,457
------------
MILITARY/GOVERNMENT/TECHNICAL -- 1.3%
200 General Dynamics 9,300
------------
MOTOR VEHICLES -- 3.7%
450 Ford Motor Co. 26,550
------------
NEWSPAPERS -- 1.4%
175 Knight Ridder, Inc. 9,636
------------
OIL COMPANIES -- 6.8%
500 Ashland, Inc. 25,812
575 Sun Company 22,317
------------
48,129
------------
PAINTS AND COATINGS -- 1.5%
150 PPG Industries, Inc. 10,434
------------
RAILROADS -- 1.1%
150 Canadian National Railway
Corp. 7,969
------------
RETAIL -- 3.5%
600 Coles Myer Ltd. 18,487
100 Sears Roebuck & Co. 6,106
------------
24,593
------------
</TABLE>
14
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED) (CONTINUED)
LARGE CAP VALUE PORTFOLIO
COMMON STOCKS (CONTINUED)
<TABLE>
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
TOBACCO -- 1.7%
200 Gallaher Group $ 4,375
275 UST, Inc. 7,425
------------
11,800
------------
UTILITIES -- 20.3%
150 Ameren Corp. 5,963
525 Consolidated Edison 24,183
575 Energy East Corp. 23,934
800 FirstEnergy Corp. 24,600
2,000 Korea Electric Power ADR 14,250
44 Marketspan Corp. 1,317
200 MidAmerican Energy Holdings
Co. 4,325
900 NIPSCO Industries, Inc. 25,200
600 Companhia Paranaense Energy
Corp. ADR 5,550
400 Utilicorp United, Inc. 15,075
------------
144,397
------------
WATER SUPPLY -- 1.1%
250 American Water Works Co.,
Inc. $ 7,750
------------
WHOLESALE DISTRIBUTORS -- 0.8%
300 Pameco Corp. 6,000
------------
TOTAL COMMON STOCKS
(COST $652,280) 664,335
------------
MONEY MARKET FUNDS -- 6.6%
46,753 Fund for Government Investors
(Cost $46,753) 46,753
------------
TOTAL INVESTMENTS -- 100.0%
(COST $699,033) $ 711,088
------------
------------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
ADR AMERICAN DEPOSITORY RECEIPTS
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
INTERNATIONAL EQUITY PORTFOLIO
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
MARKET VALUE
SHARES COUNTRY (NOTE 1)
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS -- 94.3%
AIRLINES -- 3.0%
8,180 Deutsche Lufthansa Germany $ 205,969
2,540 Konin Luchtvaart Mij NV Netherlands 103,137
------------
309,106
------------
APPAREL -- 1.4%
71,700 Bennetton Group SPA Italy 148,690
------------
AUTOMOBILE MANUFACTURERS -- 13.8%
410 Bayerische Motoren Werke AG Germany 256,671
2,320 Daimler-Benz AG Germany 228,140
66,910 Fiat SPA Italy 292,555
920 PSA Peugeot Citroen France 197,815
1,460 Renault SA France 83,044
380 Volkswagen AG Germany 366,940
------------
1,425,165
------------
AUTOMOBILE PARTS AND EQUIPMENT -- 1.3%
100 Fischer (Georg) Switzerland 38,897
950 Valeo France 97,105
------------
136,002
------------
BANKS -- 16.4%
8,080 ABN Amro Holding NV Netherlands 189,069
18,830 Banca Commerciale Italiana Italy 112,492
10,950 Banca Popolare di Milano Italy 87,078
1,470 Banque Nationale de Paris France 120,108
1,470 Bayer Hypoth-Und Wechsel Bank Germany 93,166
1,600 Bayerische Vereinsbank AG Germany 135,621
3,370 Commerzbank AG Germany 128,263
510 Credit Suisse Group Switzerland 113,478
19,020 Credito Italiano SPA Italy 99,463
3,800 Ing Groep N.V. Netherlands 248,822
780 Societe Generale France 162,165
530 UBS AG Switzerland 204,409
------------
1,694,134
------------
BEVERAGES -- 0.6%
1,610 Heineken NV Netherlands 63,237
------------
</TABLE>
16
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED) (CONTINUED)
INTERNATIONAL EQUITY PORTFOLIO
COMMON STOCKS (CONTINUED)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
MARKET VALUE
SHARES COUNTRY (NOTE 1)
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
BUILDING MATERIALS -- 1.0%
950 Lafarge France $98,204
------------
CHEMICALS -- 4.5%
530 Akzo Nobel NV Netherlands 117,817
3,220 BASF AG Germany 152,969
2,110 Bayer AG Germany 109,180
1,600 Hoechst AG Germany 80,442
------------
460,408
------------
COMPUTERS -- 1.1%
2,260 Getronics NV Netherlands 117,209
------------
COMPUTERS SOFTWARE -- 2.9%
500 SAP AG Germany 303,318
------------
COSMETICS/PERSONAL CARE -- 2.7%
260 L'oreal France 144,620
130 Wella AG Germany 128,917
------------
273,537
------------
ELECTRONICS -- 1.2%
1,470 Philips Electronics Netherlands 123,570
------------
ENGINEERING AND CONSTRUCTION -- 1.1%
660 Suez Lyonnaise des Eaux France 108,616
------------
FINANCIAL SERVICES -- 1.0%
6,790 Istituto Mobiliare Italiano Italy 106,847
------------
FOOD -- 4.4%
520 Groupe Danone France 143,372
1,620 Koninklijke Ahold NV Netherlands 52,003
120 Nestle SA Switzerland 256,802
------------
452,177
------------
HOUSEHOLD PRODUCTS -- 1.5%
1,980 Unilever NV Netherlands 157,098
------------
INSURANCE -- 13.1%
930 Allianz AG Germany 309,908
1,580 Asr Verzekerings Groep NV Netherlands 134,060
4,270 Assicurazioni Generali Italy 138,705
1,350 AXA-UAP France 151,834
49,970 Institut Naz Assicur Italy 141,820
90 Schweiz-Reuckversicherungs Switzerland 227,609
390 Zuerich Versicherungs Switzerland 248,890
------------
1,352,826
------------
</TABLE>
17
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED) (CONTINUED)
INTERNATIONAL EQUITY PORTFOLIO
COMMON STOCKS (CONTINUED)
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------
MARKET VALUE
SHARES COUNTRY (NOTE 1)
- --------------------------------------------------------------------------------------
<C> <S> <C> <C>
LODGING -- 1.8%
670 Accor SA France $ 187,501
------------
OIL AND GAS -- 2.6%
15,420 Eni SPA Italy 100,959
3,110 Royal Dutch Petroleum Netherlands 172,453
------------
273,412
------------
PHARMACEUTICALS -- 5.1%
210 Novartis AG Switzerland 349,444
1,480 Rhone-Poulenc SA France 83,473
790 Schering AG Germany 93,004
------------
525,921
------------
RETAIL -- 2.3%
140 Jelmoli Switzerland 35,166
240 Pinault-Printemps France 200,858
------------
236,024
------------
TELECOMMUNICATION EQUIPMENT -- 1.3%
660 Alcatel Alsthom France 134,378
------------
TELECOMMUNICATIONS -- 10.2%
9,080 Deutsche Telekom AG Germany 248,502
2,740 France Telecom SA France 188,979
51,500 T.I.M. SPA Italy 314,610
40,160 Telecom Italia SPA Italy 295,327
------------
1,047,418
------------
TOTAL COMMON STOCKS
(COST $9,725,488) 9,734,798
------------
MONEY MARKET FUNDS -- 5.7%
584,077 Fund for Government Investors
(Cost $584,077) United States 584,077
------------
TOTAL INVESTMENTS -- 100.00%
(COST $10,309,565) $ 10,318,875
------------
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
AGGRESSIVE MID CAP AGGRESSIVE
GROWTH GROWTH MICRO CAP
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS
Securities at Cost................................................... $ 82,176,453 $ 8,975,140 $ 9,060,979
------------ ------------ ------------
------------ ------------ ------------
Securities at Value (Note 1)......................................... $ 91,885,808 $ 10,142,943 $ 10,245,094
Receivable for Shares Sold........................................... 48,060 6,172 3,536
Interest Receivable.................................................. 24,172 5,064 2,558
Dividends Receivable................................................. 20,105 3,200 2,865
Other Receivables.................................................... 162 -- --
Unamortized Organizational Costs (Note 1)............................ 62,790 -- --
------------ ------------ ------------
Total Assets....................................................... 92,041,097 10,157,379 10,254,053
------------ ------------ ------------
LIABILITIES
Payable for Shares Redeemed.......................................... 944,528 -- 88,355
Investment Advisory Fee Payable (Note 2)............................. 62,394 6,719 6,733
Administrative Fee Payable (Note 2).................................. 18,570 2,000 2,004
Distribution Plan Fee Payable (Note 4)............................... 18,570 2,000 2,004
Other Payables and Accrued Expenses.................................. 11,158 1,200 1,207
Organizational Expense Payable to Advisor (Note 1)................... 62,790 -- --
------------ ------------ ------------
Total Liabilities.................................................. 1,118,010 11,919 100,303
------------ ------------ ------------
NET ASSETS............................................................. $ 90,923,087 $ 10,145,460 $ 10,153,750
------------ ------------ ------------
------------ ------------ ------------
SHARES OUTSTANDING..................................................... 6,507,817 734,739 469,063
------------ ------------ ------------
------------ ------------ ------------
NET ASSET VALUE PER SHARE.............................................. $13.97 $13.81 $21.65
------ ------ ------
------ ------ ------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
SMALL CAP LARGE CAP LARGE CAP INTERNATIONAL
VALUE GROWTH VALUE EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
ASSETS
Securities at Cost........................................ $ 701,586 $ 509,569 $ 699,033 $10,309,565
----------- ----------- ----------- -------------
----------- ----------- ----------- -------------
Securities at Value (Note 1).............................. $ 679,508 $ 576,726 $ 711,088 $10,318,875
Receivable for Securities Sold............................ -- -- 69,539 10,059
Interest Receivable....................................... 157 133 210 11,009
Dividends Receivable...................................... 1,042 483 693 19,485
Other Receivables......................................... -- 88 -- 79
Unamortized Organizational Costs (Note 1)................. 82,620 82,620 82,620 82,620
----------- ----------- ----------- -------------
Total Assets............................................ 763,327 660,050 864,150 10,442,127
----------- ----------- ----------- -------------
LIABILITIES
Payable for Securities Purchased.......................... -- -- 143,749 --
Investment Advisory Fee Payable (Note 2).................. 475 380 388 6,885
Administrative Fee Payable (Note 2)....................... 142 113 129 1,721
Distribution Plan Fee Payable (Note 4).................... 142 113 129 1,721
Other Fees Payable........................................ 85 68 78 1,721
Organizational Expense Payable to Advisor (Note 1)........ 82,620 82,620 82,620 82,620
----------- ----------- ----------- -------------
Total Liabilities....................................... 83,464 83,294 227,093 94,668
----------- ----------- ----------- -------------
NET ASSETS.................................................. $ 679,863 $ 576,756 $ 637,057 $10,347,459
----------- ----------- ----------- -------------
----------- ----------- ----------- -------------
SHARES OUTSTANDING.......................................... 65,948 47,053 56,067 945,395
----------- ----------- ----------- -------------
----------- ----------- ----------- -------------
NET ASSET VALUE PER SHARE................................... $10.31 $12.26 $11.36 $10.95
----------- ----------- ----------- ------
----------- ----------- ----------- ------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
AGGRESSIVE AGGRESSIVE
GROWTH MID CAP GROWTH MICRO CAP
PORTFOLIO PORTFOLIO PORTFOLIO
--------------- --------------- ---------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest (Note 1)........................................... $ 146,855 $ 51,438 $ 26,375
Dividends (Note 1).......................................... 224,886 17,755 15,467
--------------- --------------- ---------------
Total Investment Income................................... 371,741 69,193 41,842
--------------- --------------- ---------------
EXPENSES
Investment Advisory Fee (Note 2)............................ 541,466 53,483 53,728
Administrative Fee (Note 2)................................. 121,010 12,061 12,571
Distribution Plan Fees (Note 4)............................. 120,881 12,112 3,306
Transfer Agent and Custodian Fee (Note 3)................... 88,757 37,445 37,703
Shareholder Reports and Notices............................. 31,239 3,486 4,904
Organizational Expense (Note 1)............................. 12,600 -- --
Registration Fees........................................... 8,044 8,586 14,102
Trustees' Fees (Note 2)..................................... 1,607 1,607 1,607
Other Expenses.............................................. 14,290 1,451 1,546
--------------- --------------- ---------------
Total Expenses............................................ 939,894 130,231 129,467
Less Expenses Reimbursed by Investment Adviser (Note 2)... (51,035) (42,178) (52,519)
--------------- --------------- ---------------
Net Expenses............................................ 888,859 88,053 76,948
--------------- --------------- ---------------
NET INVESTMENT LOSS........................................... (517,118) (18,860) (35,106)
--------------- --------------- ---------------
Net Realized Gain on Investment Transactions.................. 6,331,710 1,099,826 535,246
Net Change in Unrealized Appreciation/Depreciation of
Investments................................................. (440,051) (76,523) 153,750
--------------- --------------- ---------------
NET GAIN ON INVESTMENTS....................................... 5,891,659 1,023,303 688,996
--------------- --------------- ---------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......... $ 5,374,541 $ 1,004,443 $ 653,890
--------------- --------------- ---------------
--------------- --------------- ---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SMALL CAP LARGE CAP LARGE CAP INTERNATIONAL
VALUE GROWTH VALUE EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest (Note 1)............................ $ 5,056 $ 1,723 $ 3,357 $ 18,244
Dividends (Note 1)........................... 1,601 801 1,268 50,310
--------------- --------------- --------------- ---------------
Total Investment Income.................... 6,657 2,524 4,625 68,554
--------------- --------------- --------------- ---------------
EXPENSES
Investment Advisory Fee (Note 2)............. 1,809 1,706 1,291 16,686
Administrative Fee (Note 2).................. 494 425 429 4,172
Distribution Plan Fees (Note 4).............. 463 425 429 4,172
Transfer Agent and Custodian Fee (Note 3).... 8,597 8,607 8,258 29,502
Organizational Expense (Note 1).............. 9,180 9,180 9,180 9,180
Trustees' Fees (Note 2)...................... 1,607 1,607 1,607 1,607
Shareholder Reports and Notices.............. 1,069 1,003 1,017 1,021
Registration Fees............................ 1,029 1,029 1,123 1,009
Other Expenses............................... 5 13 16 --
--------------- --------------- --------------- ---------------
Total Expenses............................. 24,253 23,995 23,350 67,349
Less Expenses Reimbursed by Investment
Adviser (Note 2)......................... (21,097) (21,096) (20,860) (38,099)
--------------- --------------- --------------- ---------------
Net Expenses............................. 3,156 2,899 2,490 29,250
--------------- --------------- --------------- ---------------
NET INVESTMENT INCOME (LOSS)................... 3,501 (375) 2,135 39,304
--------------- --------------- --------------- ---------------
Net Realized Gain (Loss) on Investment
Transactions................................. 2,232 (2,017) 13,462 235,246
Net Realized Loss on Foreign Currency
Transactions................................. -- -- -- (220)
Net Change in Unrealized Appreciation/
Depreciation of Investments and Foreign
Currency Transactions........................ (23,288) 64,675 10,918 9,297
--------------- --------------- --------------- ---------------
NET GAIN (LOSS) ON INVESTMENTS................. (21,056) 62,658 24,380 244,323
--------------- --------------- --------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS.............................. $ (17,555) $ 62,283 $ 26,515 $ 283,627
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH
PORTFOLIO
-----------------------------
FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED
JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997
------------- -------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Loss................... $ (517,118) $ (1,040,691)
Net Realized Gain on Investment
Transactions........................ 6,331,710 11,968,088
Net Change in Unrealized Appreciation
of Investments...................... (440,051) 321,088
------------- -------------
Net Increase in Net Assets Resulting
from Operations................... 5,374,541 11,248,485
------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Realized Gain................ -- (1,178,202)
------------- -------------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares..... 131,709,370 148,051,404
Reinvestment of Distributions......... -- 1,148,045
Cost of Shares Redeemed............... (147,907,132) (152,769,712)
------------- -------------
Net Decrease in Net Assets Resulting
from Share Transactions........... (16,197,762) (3,570,263)
------------- -------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS............................ (10,823,221) 6,500,020
NET ASSETS -- Beginning of Period....... 101,746,308 95,246,288
------------- -------------
NET ASSETS -- End of Period............. $ 90,923,087 $ 101,746,308
------------- -------------
------------- -------------
SHARES
Sold.................................. 9,529,550 11,764,667
Issued in Reinvestment of
Distributions....................... -- 86,384
Redeemed.............................. (10,678,326) (11,968,178)
------------- -------------
Net Decrease in Shares.............. (1,148,776) (117,127)
------------- -------------
------------- -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MID CAP GROWTH AGGRESSIVE MICRO CAP
PORTFOLIO PORTFOLIO
----------------------------- ---------------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE PERIOD
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, 1998 DECEMBER 31, JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997 (UNAUDITED) 1997*
------------- ------------- -------------- ----------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Loss................... $ (18,860) $ (41,193) $ (35,106) $ (26,415)
Net Realized Gain on Investment
Transactions........................ 1,099,826 317,596 535,246 415,737
Net Change in Unrealized Appreciation
of Investments...................... (76,523) 1,208,882 153,750 1,030,365
------------- ------------- -------------- ----------------
Net Increase in Net Assets Resulting
from Operations................... 1,004,443 1,485,285 653,890 1,419,687
------------- ------------- -------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Realized Gain................ -- (341,588) -- (180,781)
------------- ------------- -------------- ----------------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares..... 8,884,193 7,858,965 8,910,613 13,757,919
Reinvestment of Distributions......... -- 336,620 -- 176,182
Cost of Shares Redeemed............... (8,115,766) (2,608,712) (9,601,148) (4,982,612)
------------- ------------- -------------- ----------------
Net Increase (Decrease) in Net
Assets Resulting from Share
Transactions...................... 768,427 5,586,873 (690,535) 8,951,489
------------- ------------- -------------- ----------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS............................ 1,772,870 6,730,570 (36,645) 10,190,395
NET ASSETS -- Beginning of Period....... 8,372,590 1,642,020 10,190,395 --
------------- ------------- -------------- ----------------
NET ASSETS -- End of Period............. $ 10,145,460 $ 8,372,590 $10,153,750 $10,190,395
------------- ------------- -------------- ----------------
------------- ------------- -------------- ----------------
SHARES
Sold.................................. 672,769 711,277 425,302 741,820
Issued in Reinvestment of
Distributions....................... -- 27,081 -- 8,636
Redeemed.............................. (611,424) (224,912) (455,873) (250,822)
------------- ------------- -------------- ----------------
Net Increase (Decrease) in Shares... 61,345 513,446 (30,571) 499,634
------------- ------------- -------------- ----------------
------------- ------------- -------------- ----------------
</TABLE>
* FROM COMMENCEMENT OF OPERATIONS MARCH 17, 1997
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SMALL CAP
VALUE PORTFOLIO LARGE CAP
----------------------------- GROWTH PORTFOLIO
FOR THE ---------------------------------
FOR THE SIX PERIOD FOR THE SIX FOR THE PERIOD
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, 1998 DECEMBER 31, JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997* (UNAUDITED) 1997*
------------- ------------- -------------- ----------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Income (Loss).......... $ 3,501 $ 48 $ (375) $ 59
Net Realized Gain (Loss) on Investment
Transactions........................ 2,232 (49) (2,017) --
Net Change in Unrealized
Appreciation/Depreciation of
Investments......................... (23,288) 1,209 64,675 2,482
------------- ------------- -------------- --------
Net Increase (Decrease) in Net
Assets Resulting from
Operations........................ (17,555) 1,208 62,283 2,541
------------- ------------- -------------- --------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Investment Income............ -- (48) -- (59)
------------- ------------- -------------- --------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares..... 700,806 100,000 633,035 100,000
Reinvestment of Distributions......... -- 48 -- 59
Cost of Shares Redeemed............... (104,596) -- (221,103) --
------------- ------------- -------------- --------
Net Increase in Net Assets Resulting
from Share Transactions........... 596,210 100,048 411,932 100,059
------------- ------------- -------------- --------
TOTAL INCREASE IN NET ASSETS........ 578,655 101,208 474,215 102,541
NET ASSETS -- Beginning of Period....... 101,208 -- 102,541 --
------------- ------------- -------------- --------
NET ASSETS -- End of Period............. $ 679,863 $ 101,208 $ 576,756 $ 102,541
------------- ------------- -------------- --------
------------- ------------- -------------- --------
SHARES
Sold.................................. 65,770 10,000 56,110 10,000
Issued in Reinvestment of
Distributions....................... -- 5 -- 6
Redeemed.............................. (9,827) -- (19,063) --
------------- ------------- -------------- --------
Net Increase in Shares.............. 55,943 10,005 37,047 10,006
------------- ------------- -------------- --------
------------- ------------- -------------- --------
</TABLE>
* FROM COMMENCEMENT OF OPERATION DECEMBER 19, 1997
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LARGE CAP
VALUE PORTFOLIO INTERNATIONAL
----------------------------- EQUITY PORTFOLIO
FOR THE ---------------------------------
FOR THE SIX PERIOD FOR THE SIX FOR THE PERIOD
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, 1998 DECEMBER 31, JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997* (UNAUDITED) 1997**
------------- ------------- -------------- ----------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Income (Loss).......... $ 2,135 $ 76 $ 39,304 $ (1)
Net Realized Gain on Investment
Transactions........................ 13,462 -- 235,246 --
Net Realized Loss on Foreign Currency
Transactions........................ -- -- (220) --
Net Change in Unrealized Appreciation
of Investments and Foreign Currency
Transactions........................ 10,918 1,138 9,297 --
------------- ------------- -------------- -------
Net Increase (Decrease) in Net
Assets Resulting from
Operations........................ 26,515 1,214 283,627 (1)
------------- ------------- -------------- -------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Investment Income............ -- (76) -- --
------------- ------------- -------------- -------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares..... 682,736 100,000 10,096,035 10,000
Reinvestment of Distributions......... -- 76 -- --
Cost of Shares Redeemed............... (173,408) -- (42,202) --
------------- ------------- -------------- -------
Net Increase in Net Assets Resulting
from Share Transactions........... 509,328 100,076 10,053,833 10,000
------------- ------------- -------------- -------
TOTAL INCREASE IN NET ASSETS........ 535,843 101,214 10,337,460 9,999
NET ASSETS -- Beginning of Period....... 101,214 -- 9,999 --
------------- ------------- -------------- -------
NET ASSETS -- End of Period............. $ 637,057 $ 101,214 $10,347,459 $ 9,999
------------- ------------- -------------- -------
------------- ------------- -------------- -------
SHARES
Sold.................................. 61,161 10,000 948,282 1,000
Issued in Reinvestment of
Distributions....................... -- 8 -- --
Redeemed.............................. (15,102) -- (3,887) --
------------- ------------- -------------- -------
Net Increase in Shares.............. 46,059 10,008 944,395 1,000
------------- ------------- -------------- -------
------------- ------------- -------------- -------
</TABLE>
* FROM COMMENCEMENT OF OPERATION DECEMBER 19, 1997
** FROM COMMENCEMENT OF OPERATION DECEMBER 26, 1997
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH
PORTFOLIO
----------------------------------------------------------------
FOR THE FOR THE YEARS ENDED DECEMBER FOR THE
SIX MONTHS ENDED 31, PERIOD ENDED
JUNE 30, 1998 ----------------------------- DECEMBER 31,
(UNAUDITED) 1997 1996 1995*
---------------- ------------- ------------- -------------
PER SHARE OPERATING PERFORMANCE:
<S> <C> <C> <C> <C>
Net Asset Value -- Beginning of
Period.............................. $13.29 $12.25 $9.99 $10.00
------- ------------- ------------- -------------
Income from Investment Operations:
Net Investment Loss................. (0.08) (0.14) (0.12) --
Net Realized and Unrealized Gain
(Loss) on Investments............. 0.76 1.34 2.38(C) (0.01)
------- ------------- ------------- -------------
Total from Investment
Operations...................... 0.68 1.20 2.26 (0.01)
------- ------------- ------------- -------------
Distributions to Shareholders:
From Net Realized Gains............. -- (0.16) -- --
------- ------------- ------------- -------------
Net Increase (Decrease) in Net Asset
Value............................... 0.68 1.04 2.26 (0.01)
------- ------------- ------------- -------------
Net Asset Value -- End of Period...... $13.97 $13.29 $12.25 $9.99
------- ------------- ------------- -------------
------- ------------- ------------- -------------
TOTAL INVESTMENT RETURN(A).............. 5.12% 9.77% 22.62% (0.10)%
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.84%(B) 2.00% 2.00% 2.00%(B)
Expenses Before Reimbursement (Note
2).................................. 1.94%(B) 2.15% 2.22% 27.25%(B)
Net Investment Income (Loss).......... (1.07)%(B) (1.07)% (1.57)% 2.59%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 74% 247% 169% --
Net Assets at End of Period (000's
omitted)............................ $90,923 $101,746 $95,246 $300
Number of Shares Outstanding at End of
Period (000's omitted).............. 6,508 7,657 7,774 30
</TABLE>
- -------------------------------------------
(A) Total returns for periods of less than one year are not annualized.
(B) Annualized
(C) The per share amount does not coincide with the net realized and unrealized
loss for the period because of timing of sales and redemptions of Fund
shares and the amount of per share realized and unrealized gain and loss at
such time.
* FROM COMMENCEMENT OF OPERATIONS DECEMBER 28, 1995
SEE NOTES TO FINANCIAL STATEMENTS.
27
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MID CAP GROWTH
PORTFOLIO
------------------------------------------------
FOR THE SIX FOR THE FOR THE
MONTHS ENDED YEAR ENDED PERIOD ENDED
JUNE 30, 1998 DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1997 1996*
---------------- ------------- -------------
PER SHARE OPERATING PERFORMANCE:
<S> <C> <C> <C>
Net Asset Value -- Beginning of
Period.............................. $12.43 $10.27 $10.00
------- ------------- -------------
Income from Investment Operations:
Net Investment Income (Loss)........ (0.03) (0.06) 0.01
Net Realized and Unrealized Gain on
Investments....................... 1.41 2.75 0.27
------- ------------- -------------
Total from Investment
Operations...................... 1.38 2.69 0.28
------- ------------- -------------
Distributions to Shareholders:
From Net Investment Income.......... -- -- (0.01)
From Net Realized Gain.............. -- (0.53) --
------- ------------- -------------
Total Distributions to
Shareholders.................... -- (0.53) (0.01)
------- ------------- -------------
Net Increase in Net Asset Value....... 1.38 2.16 0.27
------- ------------- -------------
Net Asset Value -- End of Period...... $13.81 $12.43 $10.27
------- ------------- -------------
------- ------------- -------------
TOTAL INVESTMENT RETURN(A).............. 11.10% 26.18% 2.75%
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.83%(B) 2.00% 2.00%(B)
Expenses Before Reimbursement (Note
2).................................. 2.70%(B) 3.27% 113.02%(B)
Net Investment Income (Loss).......... (0.39)%(B) (0.69)% 0.87%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 70% 163% --
Net Assets at End of Period (000's
omitted)............................ $10,145 $ 8,373 $ 1,642
Number of Shares Outstanding at End of
Period (000's omitted).............. 735 673 160
</TABLE>
- -------------------------------------------
(A) Total returns for periods of less than one year are not annualized.
(B) Annualized
* FROM COMMENCEMENT OF OPERATIONS NOVEMBER 26, 1996
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
AGGRESSIVE MICRO CAP
PORTFOLIO
--------------------------------
FOR THE SIX FOR THE
MONTHS ENDED PERIOD ENDED
JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997*
---------------- -------------
PER SHARE OPERATING PERFORMANCE:
<S> <C> <C>
Net Asset Value -- Beginning of
Period.............................. $20.40 $15.64
------- -------------
Income from Investment Operations:
Net Investment Loss................. (0.07) (0.05)
Net Realized and Unrealized Gain on
Investments....................... 1.32 5.17
------- -------------
Total from Investment
Operations...................... 1.25 5.12
------- -------------
Distributions to Shareholders:
From Net Realized Gain.............. -- (0.36)
------- -------------
Net Increase in Net Asset Value....... 1.25 4.76
------- -------------
Net Asset Value -- End of Period...... $21.65 $20.40
------- -------------
------- -------------
TOTAL INVESTMENT RETURN(A).............. 6.13% 32.76%
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.53%(B) 1.55%(B)
Expenses Before Reimbursement (Note
2).................................. 2.57%(B) 3.21%(B)
Net Investment Loss................... (0.70)%(B) (0.54)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 78% 86%
Net Assets at End of Period (000's
omitted)............................ $10,154 $10,190
Number of Shares Outstanding at End of
Period (000's omitted).............. 469 500
</TABLE>
- -------------------------------------------
(A) Total returns for periods of less than one year are not annualized.
(B) Annualized
* FROM COMMENCEMENT OF OPERATIONS MARCH 17, 1997
SEE NOTES TO FINANCIAL STATEMENTS.
29
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SMALL CAP VALUE LARGE CAP GROWTH
PORTFOLIO PORTFOLIO
-------------------------------- ---------------------------------
FOR THE SIX FOR THE FOR THE SIX
MONTHS PERIOD MONTHS FOR THE PERIOD
ENDED ENDED ENDED ENDED
JUNE 30, 1998 DECEMBER 31, JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997* (UNAUDITED) 1997*
---------------- ------------- --------------- ---------------
PER SHARE OPERATING PERFORMANCE:
<S> <C> <C> <C> <C>
Net Asset Value -- Beginning of
Period.............................. $10.12 $10.00 $10.25 $10.00
------- ------------- ------- -------
Income from Investment Operations:
Net Investment Income (Loss)........ 0.05 0.01 (0.01) 0.01
Net Realized and Unrealized Gain on
Investments....................... 0.14(C) 0.12 2.02 0.25
------- ------------- ------- -------
Total from Investment
Operations...................... 0.19 0.13 2.01 0.26
------- ------------- ------- -------
Distributions to Shareholders:
From Net Investment Income.......... -- (0.01) -- (0.01)
------- ------------- ------- -------
Net Increase in Net Asset Value....... 0.19 0.12 2.01 0.25
------- ------------- ------- -------
Net Asset Value -- End of Period...... $10.31 $10.12 $12.26 $10.25
------- ------------- ------- -------
------- ------------- ------- -------
TOTAL INVESTMENT RETURN(A) ............. 1.88% 1.25% 19.61% 2.56%
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.62%(B) 1.75%(B) 1.73%(B) 1.90%(B)
Expenses Before Reimbursement (Note
2).................................. 12.43%(B) 7.74%(B) 14.32%(B) 6.66%(B)
Net Investment Income (Loss).......... 1.79%(B) 1.94%(B) (0.22)%(B) 2.40%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 32% 2% 50% --
Net Assets at End of Period (000's
omitted)............................ $680 $101 $577 $103
Number of Shares Outstanding at End of
Period (000's omitted).............. 66 10 47 10
</TABLE>
- -------------------------------------------------
(A) Total returns for periods of less than one year are not annualized.
(B) Annualized
(C) The per share amount does not coincide with the net realized and unrealized
loss for the period because of timing of sales and redemptions of Fund
shares and the amount of per share realized and unrealized gain and loss at
such time.
* FROM COMMENCEMENT OF OPERATION DECEMBER 19, 1997
SEE NOTES TO FINANCIAL STATEMENTS.
30
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE CAP VALUE INTERNATIONAL EQUITY
PORTFOLIO PORTFOLIO
-------------------------------- ---------------------------------
FOR THE SIX FOR THE FOR THE SIX
MONTHS PERIOD MONTHS FOR THE PERIOD
ENDED ENDED ENDED ENDED
JUNE 30, 1998 DECEMBER 31, JUNE 30, 1998 DECEMBER 31,
(UNAUDITED) 1997* (UNAUDITED) 1997**
---------------- ------------- --------------- ---------------
PER SHARE OPERATING PERFORMANCE:
<S> <C> <C> <C> <C>
Net Asset Value -- Beginning of
Period.............................. $10.11 $10.00 $10.00 $10.00
------ ------ ------- -------
Income from Investment Operations:
Net Investment Income............... 0.04 0.01 0.04 --
Net Realized and Unrealized Gain on
Securities........................ 1.21 0.11 0.91 --
------ ------ ------- -------
Total from Investment
Operations...................... 1.25 0.12 0.95 --
------ ------ ------- -------
Distributions to Shareholders:
From Net Investment Income.......... -- 0.01 -- --
------ ------ ------- -------
Net Increase in Net Asset Value....... 1.25 0.11 0.95 --
------ ------ ------- -------
Net Asset Value -- End of Period...... $11.36 $10.11 $10.95 $10.00
------ ------ ------- -------
------ ------ ------- -------
TOTAL INVESTMENT RETURN(A).............. 12.36% 1.18% 9.50% --
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.47%(B) 1.50%(B) 1.75%(B) 1.75%(B)
Expenses Before Reimbursement (Note
2).................................. 13.77%(B) 5.03%(B) 4.05%(B) 5.48%(B)
Net Investment Income (Loss).......... 1.26%(B) 3.09%(B) 2.36%(B) (1.75)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 79% -- 84% --
Net Assets at End of Period (000's
omitted)............................ $637 $101 $10,347 $10
Number of Shares Outstanding at End of
Period (000's omitted).............. 56 10 945 1
</TABLE>
- -------------------------------------------------
(A) Total returns for periods of less than one year are not annualized.
(B) Annualized
* FROM COMMENCEMENT OF OPERATION DECEMBER 19, 1997
** FROM COMMENCEMENT OF OPERATION DECEMBER 26, 1997
SEE NOTES TO FINANCIAL STATEMENTS.
31
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998 (UNAUDITED)
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 currently consists of of eight separate portfolios
each with its own investment objectives and policies. These financial statements
report on seven of the eight 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, the Aggressive
Micro Cap Portfolio (formerly Aggressive Small Cap Portfolio), a diversified
open-end management company portfolio, the Small Cap Value Portfolio, a
diversified open-end management company, the Large Cap Growth Portfolio, a
non-diversified open-end management company portfolio, the Large Cap Value
Portfolio, a diversified open-end management company portfolio, and the
International Equity Portfolio, a diversified open-end management company
portfolio. 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 and net capital gains to its shareholders. Therefore, no
Federal income tax provision is required.
(e) Organizational expenses of the Aggressive Growth Portfolio, the Small
Cap Value Portfolio, the Large Cap Growth Portfolio, the Large Cap Value
Portfolio, and the International Equity Portfolio totaling $126,000, $91,800,
$91,800, $91,800, and $91,800, respectively, are being deferred and amortized
over 60 months beginning with public offering of shares in the portfolios. 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, 1998, the unamortized organization costs of the
Aggressive Growth Portfolio, the Small Cap Value Portfolio, the Large Cap
Growth Portfolio, the Large Cap Value Portfolio, and the International Equity
Portfolio were $62,790, $82,620, $82,620, $82,620 and $82,620 respectively.
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 0.84% of the daily net assets of the Aggressive Growth Portfolio,
the Mid Cap Growth Portfolio, the Aggressive Micro Cap Portfolio, the Small Cap
Value Portfolio, and the
32
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
Large Cap Growth Portfolio, 0.75% of the daily net assets of the Large Cap Value
Portfolio, and 1.00% of the daily net assets of the International Equity
Portfolio. The Adviser has retained Global Value Investors, Inc. as a
sub-adviser with respect to the International Equity 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 period ended June 30, 1998,
the Adviser paid operating expenses of the Aggressive Growth Portfolio, the Mid
Cap Growth Portfolio, the Aggressive Micro Cap Portfolio, the Small Cap Value
Portfolio, the Large Cap Growth Portfolio, the Large Cap Value Portfolio and the
International Equity Portfolio totaling $156,537, $52,576, $59,863, $21,486,
$21,441, $21,201, and $42,319, respectively. Under the operating expense
agreement, the Adviser requested, and the Aggressive Growth Portfolio, the Mid
Cap Growth Portfolio, the Aggressive Micro Cap Portfolio, the Small Cap Value
Portfolio, the Large Cap Growth Portfolio, the Large Cap Value Portfolio and the
International Equity Portfolio reimbursed, $105,502, $10,397, $7,344, $390,
$345, $341, and $4,220 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 period ended June 30, 1998, Trustees' fees totaled $11,250.
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, the Mid Cap Growth Portfolio, the Aggressive Micro Cap
Portfolio, the Small Cap Value Portfolio, the Large Cap Growth Portfolio, the
Large Cap Value Portfolio, and the International Equity 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.
33
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
5. Securities Transactions
For the six months ended June 30, 1998, purchases and sales (including
maturities) of securities (excluding short-term securities) were as follows:
<TABLE>
<CAPTION>
AGGRESSIVE MID CAP AGGRESSIVE
GROWTH GROWTH MICRO CAP
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ----------- -----------
<S> <C> <C> <C> <C>
Purchases............................................... $ 66,479,597 $ 6,221,336 $ 7,271,045
------------ ----------- -----------
------------ ----------- -----------
Sales................................................... $ 82,804,927 $ 6,565,071 $ 8,312,825
------------ ----------- -----------
------------ ----------- -----------
<CAPTION>
SMALL CAP LARGE CAP LARGE CAP INTERNATIONAL
VALUE GROWTH VALUE EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------ ----------- ----------- -------------
<S> <C> <C> <C> <C>
Purchases............................................... $ 682,522 $ 558,647 $ 785,292 $12,348,687
------------ ----------- ----------- -------------
------------ ----------- ----------- -------------
Sales................................................... $ 107,769 $ 157,376 $ 236,577 $ 2,751,726
------------ ----------- ----------- -------------
------------ ----------- ----------- -------------
</TABLE>
6. Net Unrealized Appreciation/Depreciation of Investments
Net unrealized appreciation (depreciation) as of June 30, 1998, based on the
cost for Federal income tax purposes is as follows:
<TABLE>
<CAPTION>
AGGRESSIVE MID CAP AGGRESSIVE
GROWTH GROWTH MICRO CAP
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ----------- -----------
<S> <C> <C> <C> <C>
Gross Unrealized Appreciation........................... $ 13,320,995 $ 1,320,899 $ 1,563,013
Gross Unrealized Depreciation........................... (3,763,595) (153,096) (388,490)
------------ ----------- -----------
Net Unrealized Appreciation (Depreciation).............. $ 9,557,400 $ 1,167,803 $ 1,174,523
------------ ----------- -----------
------------ ----------- -----------
Cost of Investments for Federal Income Tax Purposes..... $ 82,328,908 $ 8,975,140 $ 9,070,571
------------ ----------- -----------
------------ ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP LARGE CAP LARGE CAP INTERNATIONAL
VALUE GROWTH VALUE EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- --------- ----------- -------------
<S> <C> <C> <C> <C>
Gross Unrealized Appreciation............................... $ 27,645 $ 68,095 $ 28,209 $ 295,445
Gross Unrealized Depreciation............................... (49,723) (2,347) (16,376) (289,920)
----------- --------- ----------- -------------
Net Unrealized Appreciation (Depreciation).................. $ (22,078) $ 65,748 $ 11,833 $ 5,525
----------- --------- ----------- -------------
----------- --------- ----------- -------------
Cost of Investments for Federal Income Tax Purposes......... $ 701,586 $ 510,978 $ 699,255 $10,313,350
----------- --------- ----------- -------------
----------- --------- ----------- -------------
</TABLE>
34
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
7. Net Assets
At June 30, 1998, net assets consisted of the following:
<TABLE>
<CAPTION>
AGGRESSIVE MID CAP AGGRESSIVE
GROWTH GROWTH MICRO CAP
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------
<S> <C> <C> <C> <C>
Paid-in-Capital....................................... $ 76,664,850 $ 7,961,876 $ 8,260,953
Undistributed Net Investment Loss..................... (517,118) (18,860) (35,106)
Accumulated Net Realized Gain on Investment
Transactions......................................... 5,066,000 1,034,641 743,788
Net Unrealized Appreciation of Investments............ 9,709,355 1,167,803 1,184,115
------------ ------------ ------------
NET ASSETS............................................ $ 90,923,087 $ 10,145,460 $ 10,153,750
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP LARGE CAP LARGE CAP INTERNATIONAL
VALUE GROWTH VALUE EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- --------- ----------- -------------
<S> <C> <C> <C> <C>
Paid-in-Capital............................................. $ 696,257 $ 511,990 $ 609,405 $10,063,832
Undistributed Net Investment Income (Loss).................. 3,501 (374) 2,135 39,304
Accumulated Net Realized Gain (Loss) on Investment and
Foreign Currency Transactions.............................. 2,183 (2,017) 13,462 235,026
Net Unrealized Appreciation (Depreciation) of Investments
and Foreign Currency Transactions.......................... (22,078) 67,157 12,055 9,297
----------- --------- ----------- -------------
NET ASSETS.................................................. $ 679,863 $ 576,756 $ 637,057 $10,347,459
----------- --------- ----------- -------------
----------- --------- ----------- -------------
</TABLE>
8. Federal Income Tax
At December 31, 1997, for Federal income tax purposes, the following
portfolio had capital loss carryovers which may be applied against future net
taxable realized gain of each succeeding year until the earlier of its
utilization or its expiration:
<TABLE>
<CAPTION>
SMALL CAP VALUE
EXPIRES DECEMBER 31, PORTFOLIO
- ------------------------------------------------------------ ---------------
<S> <C> <C> <C> <C>
2005........................................................ $ 50
</TABLE>
9. Special Information
On May 12, 1998, a Special Meeting of Shareholders of the Navellier
Aggressive Small Cap Portfolio ("the Portfolio"), a series of the Navellier
Performance Funds was held. At the meeting the shareholders voted and approved
three (3) proposals: 1) To approve an annual 0.25% 12b-1 Plan of Distribution,
2) to lower the annual management fee paid by the Portfolio from 1.15% to 0.90%
of the Portfolio's average daily net assets, and 3) to change the name of the
Portfolio to The Navellier Aggressive Micro Cap Growth Portfolio and to change
the investment policy of the Portfolio to investing primarily in equity
securities of micro cap companies (companies with a market capitalization of
less than $300 million).
35
<PAGE>
SEMIANNUAL REPORT, June 30, 1998
NAVELLIER PERFORMANCE FUNDS
1 East Liberty, Third Floor
Reno, NV 89501
(800) 887-8671
- --------------------------------------------------------------------------------
July 31, 1998
Dear Shareholder:
The first half of 1998 was a turbulent period for the market. First quarter
returns for virtually all sectors of the market were very strong. Then in the
second quarter the markets began to sag and posted relatively disappointing
returns in spite of a brief rally during the last part of June. The S&P 500
refused to take a breather from its long upward climb and posted a return of
17.63% for the first six months of 1998. The same can not be said about the
broader market indices such as the Russell 2000, which was up a scant 4.93%. Mid
cap stocks fared slightly better with the S&P Mid Cap Index returning 8.80%.
Overall the international markets fared surprisingly well with the Morgan
Stanley EAFE (Europe, Australia and Far East) returning 15.10%. Naturally, the
big economic news during the period was the Asian currency problems and the
unknown impact of these devaluations on our own markets.
The first half of 1998 was very favorable to U.S. large cap investors. Two
contributing factors to the superior performance of the S&P 500 were, stronger
than expected earnings reports and the continued inflow of capital from domestic
investors. These investors have tended to invest in well-recognized companies
such as those in the S&P 500. The Navellier Large Cap Growth Portfolio, was a
direct beneficiary of the S&P 500's popularity and delivered a very strong
return of 20.60% for the first half of 1998. Growth strategies were clearly in
favor during the period as evidenced by the Russell 1000 Growth Index return of
20.38% versus the Russell 1000 Value Index return of 12.16%. The Navellier Large
Cap Value Portfolio posted a respectable return of 12.36%.
The first half of 1998 has been highlighted by the continued under-performance
of the small-cap sector. Despite superior fundamental valuations and stronger
relative price to earnings (p/e) ratios, the small cap sector continues to be
plagued by a serious lack of liquidity. Without the required liquidity and
rising trading volume to drive these stocks higher, investors continue to turn
towards large cap stocks and index funds with their investment dollars. The
period was characterized by very narrow market leadership, which of course,
consisted of primarily the mega-cap stocks. According to Ned Davis Research,
there has not been a period (going back to 1980) where so few stocks (only 29%)
have outperformed the S&P 500. Relative valuation levels have only been this low
on two occasions over the past 20 years; 1987 and 1990. On both occasions, these
sectors of the market rallied strongly. Earnings strength also favors small and
mid cap stocks. These sectors of the market have exhibited stronger earnings
growth than the large cap stocks for six consecutive quarters. This combination
of historic low relative valuations and relative earnings strength has led to
dramatic gains in the past, and this cycle should prove to be no different.
The recent U.S. economic slowdown to 1.4% annual growth in the second quarter
down from 5.5% annual growth in the first quarter caught many economists by
surprise. However, the slowdown is not as bad as it may appear, since the first
quarter's economic growth was unquestionably artificially distorted upward by
the mild winter weather that bolstered housing and consumer spending patterns
relative to the same period one year earlier. Furthermore, much of the slowdown
in the second quarter is attributable to inventory reduction, which reduced
second quarter growth by 2.3%. In other words, had inventories held steady, the
U.S. economy would have had 3.7% annual growth in the second quarter. The
consumer continues to carry the entire U.S. economy. Although consumer spending
slowed down in June, it re-
<PAGE>
accelerated in July, which is a very good omen for economic growth in the third
quarter. As long as retail sales and housing sales remain strong, the U.S.
economy will continue to experience healthy economic growth.
Outside of the U.S. things are not so bright. There is no doubt that many
economies, such as in Canada, have slowed down due to the Asian crisis. The
bottom line is that when Asia got sick, many other economies caught a cold. The
manufacturing sector within the U.S. has also slowed precipitously, especially
for those companies that export internationally. Over 40% of U.S. manufacturers
that export recently reported that demand is declining, compared to less than
10% that reported declining export demand several months ago. Despite the
slowdown in the U.S. manufacturing sector, the primary reason that the U.S.
economy appears largely immune to the Asian crisis is that the U.S. consumer is
too busy spending money to worry about the Asian crisis. In fact, now that the
prices of many popular Asian imported goods are cheaper, U.S. consumers will
likely continue spending! Overall, we expect that the consumer will continue to
carry the U.S. economy and that predominately consumer-related stocks will
prosper.
"Developed international equity markets turned in a mixed performance during the
first half of 1998. The Navellier International Equity Portfolio returned 9.50%
during the period even though the portfolio was not invested until early March.
Europe continued its euphoric upward ride supported by a confirmed economic
recovery and low interest rates. However, this rally in European stock prices
was tempered by lingering concerns of the Asian economic slowdown, and its
effect on corporate profits. In the Asia - Pacific region, stocks continued
their slide as economic recovery in the region remained elusive. Japan, in
particular, slipped into the first quarterly decline in its Gross Domestic
Product since 1984. At this point world capital markets concerns relating to
Japan's economic recovery and its impact on the multinational corporate earnings
have now taken a front and center seat. However, we believe that Japan's
economic recovery will take some time, before the country sorts out its internal
problems. Similarly, the Pacific Rim countries such as Indonesia, Malaysia, and
Thailand continue to be mired in major economic problems. For instance, nine out
of the thirteen economies in the region are now considered to be in various
degrees of a major recession. The process of recovery for these areas might take
anywhere from one to two years, before we could see some results. Taken
together, the Asian economic crises and its impact on the corporate earnings via
slowing trade into the region is resulting in heightened volatility in the
developed country equity markets. In this scenario, selling pressure is often
indiscriminate and irrational, even pummeling stocks with good earning prospects
such as the European blue chips. The Navellier International Equity Portfolio at
the moment has no exposure to the Pacific Region. It holds blue chip equities in
Europe that it considers undervalued relative to their earning potential in the
coming quarters. These earnings are anticipated to be derived primarily from the
European economic recovery that is currently underway. The fund, as a policy,
takes a buy and hold approach and avoids market timing during the times of
volatility."-- Ram Kolluri, Advisor, Navellier International Equity Portfolio.
With interest rates still remaining extremely favorable, and signs of inflation
non-existent, the long-term market outlook remains positive. The short-term
picture is not quite as clear. For the second half of the year, we should
continue to see a volatile equity environment. With the effect of any future
Asian currency devaluations on the U.S. economy unknown, the stocks of large
multi-national companies will struggle to post any further gains. The
fundamental picture still favors small and mid-cap stocks outperforming the
general market. As the fourth quarter nears, many vacationers will return to the
equity markets and inject the needed liquidity into the mid-cap and small-cap
sectors, driving valuations back in line towards historic norms.
2
<PAGE>
Please call our new Navellier Marketline for the latest fund prices and weekly
market commentary at (800) 730-9005 and look for our new website at
www.navellier.com.
Once again, thank you for allowing us to manage some of your assets. We are
strongly committed to our shareholders and promise to make every effort to
maintain our high performance standards. As always, please feel free to contact
us if you have any questions or if we can help you in any way.
Sincerely,
<TABLE>
<S> <C>
[SIGNATURE] [SIGNATURE]
LOUIS G. NAVELLIER ALAN ALPERS
</TABLE>
THIS MATERIAL HAS BEEN PRECEDED BY A NAVELLIER PERFORMANCE FUNDS PROSPECTUS.
* THE RUSSELL 2000 INDEX IS AN UNMANAGED INDEX CONSISTING OF THE SMALLEST 2000
STOCKS IN THE RUSSELL 3000 INDEX. THE S&P 500 IS AN UNMANAGED INDEX CONSISTING
OF 500 LARGE CAP STOCKS. IT IS CONSIDERED REPRESENTATIVE OF THE STOCK MARKET
AS A WHOLE. THE RUSSELL 1000 GROWTH INDEX CONSISTS OF THE 1000 LARGEST GROWTH
STOCKS AND THE RUSSELL 1000 VALUE INDEX CONSISTS OF THE 1000 LARGEST VALUE
STOCKS. THE S&P MID CAP INDEX CONSISTS OF 400 MID CAP STOCKS. THESE INDEXES
ARE CONSIDERED REPRESENTATIVE OF PERTINENT MARKET SECTORS IN GENERAL. NONE ARE
INVESTMENT PRODUCTS AVAILABLE FOR SALE.
3
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
<TABLE>
<CAPTION>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
MONEY MARKET FUND -- 100.0%
1,337,879 Fund for Government Investors
(Cost $1,337,879) $ 1,337,879
------------
TOTAL INVESTMENTS -- 100.0%
(COST $1,337,879) $ 1,337,879
------------
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
AGGRESSIVE
SMALL CAP
EQUITY
PORTFOLIO
-----------
<S> <C>
ASSETS
Securities at Value (Note 1) (Cost $1,337,879)..................................................... $ 1,337,879
Interest Receivable................................................................................ 355
-----------
Total Assets..................................................................................... 1,338,234
-----------
LIABILITIES
Payable for Shares Redeemed........................................................................ 1,327,830
Investment Advisory Fee Payable (Note 2)........................................................... 40
Administrative Fee Payable (Note 2)................................................................ 11
Other Payables and Accrued Expenses................................................................ 18
-----------
Total Liabilities................................................................................ 1,327,899
-----------
NET ASSETS........................................................................................... $ 10,335
-----------
-----------
SHARES OUTSTANDING................................................................................... 625
-----------
-----------
NET ASSET VALUE PER SHARE............................................................................ $16.54
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE PERIOD ENDED JUNE 30, 1998* (UNAUDITED)
<TABLE>
<CAPTION>
AGGRESSIVE
SMALL CAP
EQUITY
PORTFOLIO
------------
<S> <C>
INVESTMENT INCOME
Interest (Note 1)................ $ 430
------
Total Investment Income........ 430
------
EXPENSES
Investment Advisory Fee (Note
2)............................. 56
Administrative Fee (Note 2)...... 16
Registration Fees................ 1,000
------
Total Expenses................. 1,072
Less Expenses Reimbursed by
Investment Adviser (Note 2)... (977)
------
Net Expenses................. 95
------
NET INVESTMENT INCOME.............. 335
------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS........ $ 335
------
------
</TABLE>
*FROM COMMENCEMENT OF OPERATIONS MARCH 30, 1998
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED JUNE 30, 1998* (UNAUDITED)
<TABLE>
<CAPTION>
AGGRESSIVE
SMALL CAP
EQUITY
PORTFOLIO
--------------------
<S> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Income................. $ 335
--------------------
Net Increase in Net Assets Resulting
from Operations..................... 335
--------------------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares..... 1,337,831
Cost of Shares Redeemed............... (1,327,831)
--------------------
Net Increase in Net Assets Resulting
from Share Transactions............ 10,000
--------------------
TOTAL INCREASE IN NET ASSETS........ 10,335
NET ASSETS -- Beginning of Period....... --
--------------------
NET ASSETS -- End of Period............. $ 10,335
--------------------
--------------------
SHARES
Sold.................................. 83,048
Redeemed.............................. (82,423)
--------------------
Net Increase in Shares.............. 625
--------------------
--------------------
</TABLE>
*FROM COMMENCEMENT OF OPERATIONS MARCH 30, 1998
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR THE PERIOD ENDED JUNE 30, 1998* (UNAUDITED)
<TABLE>
<CAPTION>
AGGRESSIVE
SMALL CAP
EQUITY
PORTFOLIO
----------------
<S> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $16.00
-------
Income from Investment Operations:
Net Investment Income............... 0.54
-------
Net Increase in Net Asset Value....... 0.54
-------
Net Asset Value -- End of Period...... $16.54
-------
-------
TOTAL INVESTMENT RETURN(A).............. 3.38%
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.55%(B)
Expenses Before Reimbursement (Note
2).................................. 17.44%(B)
Net Investment Income................. 5.46%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... --
Net Assets at End of Period........... $10,335
Number of Shares Outstanding at End of
Period.............................. 625
</TABLE>
- --------------------------------------------------------------------------------
(A) Total returns for periods of less than one year are not annualized.
(B) Annualized
* FROM COMMENCEMENT OF OPERATIONS MARCH 30, 1998
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998 (UNAUDITED)
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 currently consists of eight separate portfolios each
with its own investment objectives and policies. These financial statements
report on one of the eight portfolios: the Aggressive Small Cap Equity Portfolio
(the "Portfolio"), a diversified open-end management company. 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 re-invested 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 and net capital gains to its shareholders. Therefore, no
Federal income tax provision is required.
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 1.15% of the daily net assets of the 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. During the period ended June 30, 1998, the
Adviser paid operating expenses of the Portfolio, totaling $1,000. Under the
operating expense agreement, the Adviser requested, and the Portfolio,
reimbursed $23 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.
9
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
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 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, 1998, purchases and sales (including
maturities) of securities (excluding short-term securities) were as follows:
<TABLE>
<CAPTION>
AGGRESSIVE
SMALL CAP EQUITY
PORTFOLIO
---------------------
<S> <C>
Purchases..................................................................................... $ --
---
---
Sales......................................................................................... $ --
---
---
</TABLE>
6. Net Unrealized Appreciation/Depreciation of Investments
Unrealized appreciation as of June 30, 1998, based on the cost for Federal
income tax purposes is as follows:
<TABLE>
<CAPTION>
AGGRESSIVE
SMALL CAP EQUITY
PORTFOLIO
-----------------
<S> <C>
Gross Unrealized Appreciation................................................................. $ --
Gross Unrealized Depreciation................................................................. --
-----------------
Net Unrealized Appreciation................................................................... $ --
-----------------
-----------------
Cost of Investments for Federal Income Tax Purposes........................................... $ 1,337,879
-----------------
-----------------
</TABLE>
10
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ------------------------------------------------------------------
7. Net Assets
At June 30, 1998, net assets consisted of the following:
<TABLE>
<CAPTION>
AGGRESSIVE
SMALL CAP EQUITY
PORTFOLIO
-----------------
<S> <C>
Paid-in-Capital............................................................................... $ 10,000
Undistributed Net Investment Income........................................................... 335
-----------------
NET ASSETS.................................................................................... $ 10,335
-----------------
-----------------
</TABLE>
11
