<PAGE>
[REPRESENTATION OF GRAPHIC IMAGE]
NAVELLIER
PERFORMANCE FUNDS
AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
AGGRESSIVE GROWTH PORTFOLIO
MID CAP GROWTH PORTFOLIO
AGGRESSIVE MICRO CAP PORTFOLIO
SMALL CAP VALUE PORTFOLIO
LARGE CAP GROWTH PORTFOLIO
LARGE CAP VALUE PORTFOLIO
INTERNATIONAL EQUITY PORTFOLIO
ANNUAL REPORT
DECEMBER 31, 1998
<PAGE>
ANNUAL REPORT, December 31, 1998
NAVELLIER PERFORMANCE FUNDS
1 East Liberty, Third Floor
Reno, NV 89501
(800) 887-8671
- --------------------------------------------------------------------------------
February 24, 1999
Dear Shareholder:
1998 was the most volatile year for the stock market since 1987. The broad
markets finished strongly despite early predictions that the stock market would
cool off. Large cap stocks led the market as evidenced by the S&P 500 return of
over 26%, whereas small caps continued to lag, as shown by the Russell 2000,
down (2.55)%. After a robust first quarter, the stock market faltered a bit in
the second quarter. There was major concern that the third quarter sell off
would accelerate in the fourth quarter, but the doomsayers were proved wrong
again when the stock market caught fire in the last quarter of 1998. The
stunning fourth quarter surge in the market was broad based. As strong as the
rally in large cap stocks was, it was the small and mid cap issues that stole
the show in the last quarter. These small and mid cap stocks had been greatly
neglected for many months as investors continued to focus on large cap issues.
When investors decided to reallocate some of their profits from their large cap
investments into these neglected smaller issues they generated strong buy side
volume.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH PORTFOLIO
<S> <C> <C> <C>
Aggressive Growth Russell 2000 Russell 2000 Growth
12/31/95 $10,000 $10,000 $10,000
1/31/96 $9,640 $9,989 $9,917
2/29/96 $10,631 $10,301 $10,369
3/31/96 $11,341 $10,511 $10,575
4/30/96 $13,033 $11,073 $11,387
5/31/96 $14,054 $11,509 $11,971
6/30/96 $13,063 $11,036 $11,193
7/31/96 $11,191 $10,073 $9,826
8/31/96 $11,862 $10,658 $10,553
9/30/96 $12,743 $11,075 $11,097
10/31/96 $12,162 $10,904 $10,618
11/30/96 $12,232 $11,354 $10,914
12/31/96 $12,262 $11,651 $11,126
1/31/97 $12,452 $11,884 $11,405
2/28/97 $10,891 $11,596 $10,716
3/31/97 $10,681 $11,049 $9,959
4/30/97 $10,541 $11,080 $9,844
5/31/97 $11,301 $12,312 $11,323
6/30/97 $12,052 $12,840 $11,707
7/31/97 $13,213 $13,437 $12,306
8/31/97 $13,293 $13,745 $12,676
9/30/97 $14,575 $14,751 $13,687
10/31/97 $14,024 $14,104 $12,865
11/30/97 $13,514 $14,012 $12,558
12/31/97 $13,460 $14,257 $12,566
1/31/98 $13,005 $14,032 $12,399
2/28/98 $13,936 $15,069 $13,494
3/31/98 $14,686 $15,690 $14,060
4/30/98 $14,706 $15,776 $14,146
5/31/98 $13,906 $14,926 $13,118
6/30/98 $14,149 $14,957 $13,251
7/31/98 $13,673 $13,746 $12,145
8/31/98 $10,827 $11,076 $9,342
9/30/98 $11,728 $11,943 $10,289
10/31/98 $11,688 $12,431 $10,826
11/30/98 $13,369 $13,082 $11,666
12/31/98 $15,010 $13,892 $12,722
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH PORTFOLIO
AVERAGE ANNUAL TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 2000
DECEMBER 31, 1998 FUND RUSSELL 2000 GROWTH
- ------------------------------- --------- ------------- -------------
<S> <C> <C> <C>
One Year 11.51% (2.55)% 1.23%
Since Inception* 14.48% 11.57% 8.35%
Value of a $10,000 investment
over Life of Fund* $ 15,010 $ 13,892 $ 12,722
*Inception December 28, 1995
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MID CAP GROWTH PORTFOLIO
<S> <C> <C> <C>
Mid Cap Growth Russell 2000 Russell 2000 Growth
11/27/96 10,000 $10,000 $10,000
12/31/96 10,275 $10,262 $9,988
1/31/97 10,465 $10,467 $10,675
2/28/97 10,295 $10,214 $10,127
3/31/97 9,985 $9,732 $9,451
4/30/97 10,275 $9,759 $9,754
5/31/97 10,835 $10,844 $10,833
6/30/97 11,385 $11,310 $11,156
7/31/97 12,506 $11,835 $12,330
8/31/97 12,426 $12,106 $12,280
9/30/97 13,386 $12,993 $13,041
10/31/97 12,766 $12,422 $12,329
11/30/97 12,776 $12,342 $12,382
12/31/97 12,965 $12,557 $12,149
1/31/98 12,725 $12,359 $11,987
2/28/98 13,695 $13,272 $13,046
3/31/98 14,665 $13,819 $13,593
4/30/98 14,634 $13,895 $13,676
5/31/98 14,039 $13,146 $12,682
6/30/98 14,404 $13,174 $12,811
7/31/98 13,768 $12,107 $11,742
8/31/98 11,651 $9,756 $9,032
9/30/98 12,485 $10,520 $9,948
10/31/98 12,110 $10,949 $10,467
11/30/98 12,944 $11,522 $11,279
12/31/98 14,561 $12,236 $12,300
</TABLE>
<TABLE>
<CAPTION>
MID CAP GROWTH PORTFOLIO
AVERAGE ANNUAL TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 2000
DECEMBER 31, 1998 FUND RUSSELL 2000 GROWTH
- ----------------------------- --------- ------------- ---------------
<S> <C> <C> <C>
One Year 12.31% (2.55)% 1.23%
Since Inception* 17.66% 10.33% 14.80%
Value of a $10,000 investment
over Life of Fund* $ 14,561 $ 12,236 $ 12,300
*Inception November 26, 1996
</TABLE>
Some of the Navellier micro to mid cap funds were down over twenty percent
during the year, but many of these funds ended the year on the positive side,
with most of the gains being made in the last few weeks of the year. Two of the
newest Navellier funds, the Large Cap Growth Portfolio and the Large Cap Value
Portfolio, performed exceptionally well during 1998 capturing annual returns of
41.17% and 20.48%, respectively.
Many shareholders want to know our opinion of the high flying internet
stocks. Many of these stocks have extreme valuations and display excessive
volatility. We believe the best way to participate in the boom in the World Wide
Web is to invest in those companies that are deriving their revenue from
building the infrastructure of the internet. For example, Cisco is one of the
companies that is providing high-speed hardware to transmit vast amounts of data
available via the internet. It is likely that a select few of these high flying
internet stocks may live up to their lofty expectations but many will fall by
the way side.
<PAGE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AGGRESSIVE MICRO CAP PORTFOLIO
<S> <C> <C> <C>
Aggressive
Micro Cap Russell 2000 Russell 2000 Growth
3/17/97 $10,000.00 $10,000.00 $10,000.00
3/31/97 $9,859.34 $9,592.00 $9,500.00
4/30/97 $9,872.12 $9,618.86 $9,389.80
5/31/97 $10,690.54 $10,688.47 $10,801.09
6/30/97 $11,432.23 $11,147.01 $11,167.24
7/31/97 $12,423.27 $11,665.35 $11,739.01
8/31/97 $12,679.03 $11,932.48 $12,091.18
9/30/97 $13,593.35 $12,805.94 $13,056.05
10/31/97 $13,433.50 $12,243.76 $12,271.38
11/30/97 $13,459.08 $12,164.18 $11,979.33
12/31/97 $13,276.45 $12,377.05 $11,986.51
1/31/98 $12,820.88 $12,181.49 $11,827.09
2/28/98 $13,608.36 $13,081.70 $12,871.42
3/31/98 $13,914.24 $13,620.67 $13,412.02
4/30/98 $14,083.45 $13,695.58 $13,493.84
5/31/98 $13,718.99 $12,957.39 $12,512.84
6/30/98 $14,089.95 $12,984.60 $12,640.47
7/31/98 $13,282.95 $11,932.85 $11,584.99
8/31/98 $10,699.25 $9,615.49 $8,911.17
9/30/98 $11,441.17 $10,368.38 $9,814.77
10/31/98 $11,083.23 $10,791.41 $10,327.10
11/30/98 $12,228.65 $11,356.88 $11,128.48
12/31/98 $13,289.46 $12,059.87 $12,135.61
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE MICRO CAP PORTFOLIO
AVERAGE ANNUAL TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 2000
DECEMBER 31, 1998 FUND RUSSELL 2000 GROWTH
- ----------------------------- --------- ------------- ---------------
<S> <C> <C> <C>
One Year 0.10% (2.55)% 1.23%
Since Inception* 17.20% 11.03% 11.40%
Value of a $10,000 investment
over Life of Fund* $ 13,289 $ 12,060 $ 12,136
*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 Russell 2000 Russell 2000 Value
12/19/97 $10,000 $10,000 $10,000
12/31/97 $10,125 $10,410 $10,363
1/31/98 $9,885 $10,246 $10,175
2/28/98 $10,405 $11,003 $10,791
3/31/98 $10,945 $11,456 $11,229
4/30/98 $11,105 $11,519 $11,284
5/31/98 $10,695 $10,898 $10,885
6/30/98 $10,315 $10,921 $10,823
7/31/98 $9,625 $10,036 $9,975
8/31/98 $8,244 $8,087 $8,413
9/30/98 $8,384 $8,721 $8,888
10/31/98 $8,514 $9,076 $9,152
11/30/98 $8,894 $9,552 $9,400
12/31/98 $9,286 $10,143 $9,696
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP VALUE PORTFOLIO
AVERAGE ANNUAL TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 2000
DECEMBER 31, 1998 FUND RUSSELL 2000 VALUE
- -------------------------------- --------- ------------- -------------
<S> <C> <C> <C>
One Year (8.28)% (2.55)% (6.45)%
Since Inception* (6.92)% 1.45% (2.96)%
Value of a $10,000 investment
over Life of Fund* $9,286 $ 10,143 $9,696
*Inception December 19, 1997
</TABLE>
One industry that continues to fire on all cylinders is the discount
retailers. Retail sales continued to soar during the recent holiday season.
Despite pessimistic forecasts, the 1998 holiday shopping season was phenomenal.
This robust growth was the best in several years. The best real-wage growth for
the consumer since 1985 and an impressive rebound by the stock market, all
helped to bolster consumer confidence. In fact, consumer confidence is now at
the highest level ever, which is a testament to both low unemployment and a
strong U.S. economy. As you might expect with record consumer confidence, new
housing sales are also breaking records.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LARGE CAP GROWTH PORTFOLIO
<S> <C> <C> <C>
Large Cap Growth S&P 500 Russell 1000 Growth
12/19/97 $10,000 $10,000 $10,000
12/31/97 $10,256 $10,252 $10,300
1/31/98 $10,106 $10,370 $10,608
2/28/98 $10,856 $11,111 $11,406
3/31/98 $11,577 $11,681 $11,861
4/30/98 $11,537 $11,798 $12,024
5/31/98 $11,517 $11,588 $11,683
6/30/98 $12,267 $12,060 $12,398
7/31/98 $12,167 $11,932 $12,316
8/30/98 $10,756 $10,207 $10,467
9/30/98 $11,336 $10,861 $11,271
10/31/98 $12,127 $11,744 $12,178
11/30/98 $12,777 $12,456 $13,103
12/31/98 $14,478 $13,173 $14,285
</TABLE>
<TABLE>
<CAPTION>
LARGE CAP GROWTH PORTFOLIO
AVERAGE ANNUAL TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 1000
DECEMBER 31, 1998 FUND S&P 500 GROWTH
- ----------------------------------- --------- ----------- -------------
<S> <C> <C> <C>
One Year 41.17% 28.49% 38.69%
Since Inception* 43.09% 30.68% 41.37%
Value of a $10,000 investment over
Life of Fund* $ 14,478 $ 13,173 $ 14,285
*Inception December 19, 1997
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LARGE CAP VALUE PORTFOLIO
<S> <C> <C> <C>
Large Cap Value Russell 1000 Russell 1000 Value
12/19/97 $10,000 $10,000 $10,000
12/31/97 $10,118 $10,091 $10,237
1/31/98 $9,998 $10,166 $10,093
2/28/98 $10,808 $10,890 $10,772
3/31/98 $11,369 $11,439 $11,431
4/30/98 $11,499 $11,557 $11,508
5/31/98 $11,249 $11,308 $11,337
6/30/98 $11,369 $11,726 $11,483
7/31/98 $11,249 $11,585 $11,280
8/31/98 $10,218 $9,853 $9,602
9/30/98 $10,538 $10,516 $10,153
10/31/98 $11,489 $11,347 $10,940
11/30/98 $12,029 $12,050 $11,450
12/31/98 $12,190 $12,817 $11,839
</TABLE>
<TABLE>
<CAPTION>
LARGE CAP VALUE PORTFOLIO
AVERAGE ANNUAL TOTAL RUSSELL
RETURNS FOR PERIODS ENDED 1000
DECEMBER 31, 1998 FUND RUSSELL 1000 VALUE
- ----------------------------------- --------- ------------- -----------
<S> <C> <C> <C>
One Year 20.48% 27.02% 15.63%
Since Inception* 21.13% 27.25% 17.81%
Value of a $10,000 investment over
Life of Fund* $ 12,190 $ 12,817 $ 11,839
*Inception December 19, 1997
</TABLE>
2
<PAGE>
The outlook for 1999 remains very promising. The U.S. economy is currently
in economic nirvana with strong growth signals all around. However, as the stock
market climbs higher, it is becoming increasingly overbought and will likely
become more volatile on a day-to-day basis. The stock market can remain
overbought and continue to drift higher for several months, but experienced
investors know that this is no time to be overly confident. The flow of funds
into the stock market has been erratic lately, so the stock market will likely
remain volatile for quite some time. As always, an investors best defense is a
strong offense of fundamentally superior stocks. Our focus will remain on those
stocks that demonstrate strong sales growth, positive analysts' earnings
forecasts and continued profit margin expansion. It appears that institutional
investors are beginning to focus their attention on small-to-mid capitalization
stocks due to their superior fundamental characteristics. These stocks will
likely continue to benefit from rapid institutional accumulation in the months
ahead.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO
<S> <C> <C>
International Equity EAFE
12/31/97 $10,000 $10,000
1/31/97 $10,000 $10,190
1/31/98 $10,020 $10,642
2/28/98 $10,120 $11,312
3/31/98 $10,790 $11,647
4/30/98 $10,800 $11,725
5/31/98 $11,080 $11,653
6/30/98 $10,950 $11,728
7/31/98 $11,420 $12,032
8/31/98 $9,780 $10,429
9/30/98 $8,910 $10,393
10/31/98 $9,620 $11,042
11/30/98 $10,280 $11,905
12/31/98 $10,664 $12,119
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO
AVERAGE ANNUAL TOTAL
RETURNS FOR PERIODS ENDED
DECEMBER 31, 1998 FUND EAFE INDEX
- ---------------------------------------- --------- -------------
<S> <C> <C>
One Year 6.64% 18.93%
Since Inception* 6.55% 20.96%
Value of a $10,000 investment
over Life of Fund* $ 10,664 $ 12,119
*Inception December 26, 1997
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
<S> <C> <C> <C>
Aggressive Small Russell 2000
Cap Equity Russell 2000 Growth
4/1/94 $10,000 $10,000 $10,000
4/30/94 $10,229 $10,059 $10,015.00
5/31/94 $9,750 $9,946 $9,791.67
6/30/94 $9,521 $9,608 $9,369.64
7/31/94 $9,719 $9,766 $9,503.63
8/31/94 $9,906 $10,310 $10,202.15
9/30/94 $10,427 $10,276 $10,246.02
10/31/94 $10,770 $10,236 $10,356.67
11/30/94 $10,957 $9,822 $9,937.23
12/31/94 $11,426 $10,086 $10,172.74
1/31/95 $10,614 $9,959 $9,966.23
2/28/95 $11,124 $10,374 $10,425.68
3/31/95 $11,655 $10,552 $10,731.15
4/30/95 $12,258 $10,786 $10,893.19
5/31/95 $12,341 $10,972 $11,035.89
6/30/95 $14,048 $11,541 $11,796.26
7/31/95 $16,306 $12,206 $12,715.19
8/31/95 $15,682 $12,459 $12,871.59
9/30/95 $16,514 $12,682 $13,136.74
10/31/95 $15,619 $12,115 $12,490.42
11/30/95 $16,348 $12,624 $13,041.24
12/31/95 $16,429 $12,957 $13,330.76
1/31/96 $15,481 $12,943 $13,220.11
2/29/96 $16,760 $13,346 $13,822.95
3/31/96 $18,007 $13,619 $14,096.65
4/30/96 $20,939 $14,347 $15,179.27
5/31/96 $22,816 $14,912 $15,957.96
6/30/96 $20,971 $14,300 $14,920.70
7/31/96 $17,656 $13,051 $13,098.88
8/31/96 $18,839 $13,810 $14,068.20
9/30/96 $20,321 $14,349 $14,792.71
10/31/96 $19,308 $14,128 $14,155.14
11/30/96 $19,287 $14,711 $14,548.66
12/31/96 $18,967 $15,096 $14,832.36
1/31/97 $18,935 $15,398 $15,203.16
2/28/97 $17,165 $15,025 $14,284.89
3/31/97 $16,014 $14,316 $13,276.38
4/30/97 $16,024 $14,356 $13,122.37
5/31/97 $18,114 $15,953 $15,094.67
6/30/97 $19,255 $16,637 $15,606.38
7/31/97 $20,428 $17,411 $16,405.42
8/31/97 $20,726 $17,809 $16,897.58
9/30/97 $22,027 $19,113 $18,246.01
10/31/97 $21,536 $18,274 $17,149.43
11/30/97 $21,579 $18,155 $16,741.27
12/31/97 $21,099 $18,473 $16,751.31
1/31/98 $20,097 $18,181 $16,528.52
2/28/98 $21,231 $19,524 $17,987.99
3/31/98 $21,798 $20,329 $18,743.49
4/30/98 $22,035 $20,441 $18,857.82
5/31/98 $21,389 $19,339 $17,486.86
6/30/98 $21,890 $19,380 $17,665.22
7/31/98 $20,822 $17,810 $16,190.18
8/31/98 $16,312 $14,351 $12,453.48
9/30/98 $17,222 $15,475 $13,716.27
10/31/98 $17,394 $16,106 $14,432.26
11/30/98 $18,673 $16,950 $15,552.20
12/31/98 $21,086 $17,999 $16,959.67
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
AVERAGE ANNUAL TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 2000
DECEMBER 31, 1998 FUND RUSSELL 2000 GROWTH
- ------------------------------- --------- ------------- -------------
<S> <C> <C> <C>
One Year (0.06)% (2.55)% 1.23%
Since Inception* 16.99% 13.55% 12.18%
Value of a $10,000 investment
over Life of Fund* $ 21,086 $ 17,999 $ 16,960
*Inception April 1, 1994
</TABLE>
Please call us if we can address any questions or concerns for you at
1.800.887.8671 or visit our website at www.navellier.com. The web site includes
the current weekly market commentary which we will be happy to e-mail to you at
your request.
Thank you for allowing us to manage some of your assets. We feel very
obligated to our shareholders and promise to make every effort to manage them
efficiently and ambitiously.
Sincerely,
<TABLE>
<S> <C>
[SIGNATURE] [SIGNATURE]
LOUIS G. NAVELLIER ALAN ALPERS
</TABLE>
3
<PAGE>
This material has been preceded by a Navellier Performance Funds prospectus.
RUSSELL 3000-REGISTERED TRADEMARK- INDEX measures the performance of the 3,000
largest US companies based on TOTAL MARKET CAPITALIZATION, which represents
approximately 98% of the investable US equity market.
RUSSELL 1000-REGISTERED TRADEMARK- INDEX measures the performance of the 1,000
largest companies in the Russell 3000 Index, which represents approximately 89%
of the total market capitalization of the Russell 3000 Index.
RUSSELL 2000-REGISTERED TRADEMARK- INDEX measures the performance of the 2,000
smallest companies in the Russell 3000 Index, which represents approximately 11%
of the total market capitalization of the Russell 3000 Index.
RUSSELL 1000-REGISTERED TRADEMARK- GROWTH INDEX measures the performance of
those Russell 1000 companies with higher price-to-book ratios and higher
forecasted growth values.
RUSSELL 1000-REGISTERED TRADEMARK- VALUE INDEX measures the performance of those
Russell 1000 companies with lower price-to-book ratios and lower forecasted
growth values.
RUSSELL 2000-REGISTERED TRADEMARK- GROWTH INDEX measures the performance of
those Russell 2000 companies with higher price-to-book ratios and higher
forecasted growth values.
RUSSELL 2000-REGISTERED TRADEMARK- VALUE INDEX measures the performance of those
Russell 2000 companies with lower price-to-book ratios and lower forecasted
growth values.
MORGAN STANLEY EAFE INDEX (Europe, Australasia and Far East) is an unmanaged
index consisting of approximately 1000 companies listed on stock exchanges in
the twenty countries that make up the MSCI National Indices.
These indices are considered representative of pertinent market sectors in
general. None are investment products available for sale.
The preceding charts and performance numbers assume reinvestment of all
distributions.
Please be aware that past performance is no indication of future performance.
The investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than their
original cost.
4
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
<TABLE>
<CAPTION>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 92.5%
AIRLINES -- 4.2%
25,000 Amtran, Inc.* $ 678,125
40,000 SkyWest, Inc. 1,307,500
------------
1,985,625
------------
APPAREL -- 14.9%
25,000 American Eagle Outfitters, Inc.* 1,665,625
50,000 AnnTaylor Stores Corp.* 1,971,875
72,200 Children's Place Retail Stores, Inc.* 1,814,025
40,000 Tarrant Apparel Group* 1,590,000
------------
7,041,525
------------
COMMERCIAL SERVICES -- 4.2%
80,000 Dendrite International, Inc.* 1,997,504
------------
COMMUNICATION EQUIPMENT AND
SERVICES -- 4.6%
25,000 Plantronics, Inc.* 2,150,000
------------
COMPUTER NETWORKS -- 3.7%
35,000 Jack Henry & Associates, Inc. 1,741,250
------------
COMPUTER HARDWARE AND
PERIPHERALS -- 6.9%
12,000 QLogic Corp.* 1,570,500
50,000 Xircom, Inc.* 1,700,000
------------
3,270,500
------------
COMPUTER SOFTWARE -- 5.4%
40,000 Mercury Interactive Corp.* 2,530,000
------------
COMPUTER AND VIDEO CHAINS -- 3.0%
75,000 Trans World Entertainment Corp.* 1,429,688
------------
ENGINEERING AND
CONSTRUCTIONS -- 8.4%
35,000 Astec Industries, Inc.* 1,946,875
60,000 Granite Construction, Inc. 2,013,750
------------
3,960,625
------------
HOMEBUILDING -- 4.0%
40,000 NVR, Inc.* 1,907,500
------------
<CAPTION>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
INSURANCE -- 11.5%
40,000 Hoopers Holmes, Inc. $ 1,160,000
35,000 LandAmerica Financial Group 1,953,437
40,000 Stewart Information Services Corp. 2,320,000
------------
5,433,437
------------
MEDICAL EQUIPMENT AND
SUPPLIES -- 3.8%
40,000 ResMed, Inc.* 1,815,000
------------
OFFICE EQUIPMENT AND
SUPPLIES -- 4.7%
100,000 Polycom, Inc.* 2,225,000
------------
PHARMACEUTICALS -- 3.0%
65,000 Roberts Pharmaceutical, Inc.* 1,413,750
------------
RECREATIONAL PRODUCTS -- 5.2%
200,000 Acclaim Entertainment, Inc.* 2,450,000
------------
RENTAL AND LEASINGS -- 0.7%
101,400 PDS Financial Corp.* 316,876
------------
WATER SUPPLY -- 4.3%
18,000 Consumers Water Co. 565,875
50,000 Philadelphia Suburban Corp. 1,478,125
------------
2,044,000
------------
TOTAL COMMON STOCKS
(COST $35,088,015) 43,712,280
------------
MONEY MARKET FUNDS -- 7.5%
3,520,830 Fund for Government Investors
(Cost $3,520,830) 3,520,830
------------
TOTAL INVESTMENTS -- 100.0%
(COST $38,608,845) $ 47,233,110
------------
------------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
AGGRESSIVE GROWTH PORTFOLIO
<TABLE>
<CAPTION>
- -----------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- -----------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 90.5%
APPAREL -- 4.5%
30,000 American Eagle
Outfitters, Inc.* $1,998,750
45,000 Tarrant Apparel Group* 1,788,750
-------------
3,787,500
-------------
BIOTECHNOLOGY -- 3.0%
25,000 MedImmune, Inc.* 2,485,937
-------------
CABLE TELEVISION -- 1.7%
20,000 Cox Communication, Inc.* 1,382,500
-------------
COMMERCIAL SERVICES -- 4.3%
185,000 Labor Ready, Inc.* 3,642,187
-------------
COMMUNICATION EQUIPMENT AND
SERVICES -- 12.8%
50,000 RF Micro Devices, Inc.* 2,318,750
80,000 SBC Communications, Inc. 4,290,000
65,000 US West, Inc. 4,200,625
-------------
10,809,375
-------------
COMPUTER HARDWARE AND
PERIPHERALS -- 12.1%
36,200 Cybex Computer Products
Corp.* 1,063,375
70,000 Intervoice, Inc.* 2,415,000
35,000 Symbol Technologies, Inc. 2,237,813
130,000 Xircom, Inc.* 4,420,000
-------------
10,136,188
-------------
COMPUTER SOFTWARES -- 11.2%
48,700 Legato Systems, Inc.* 3,211,156
60,000 New Era of Networks,
Inc.* 2,640,000
172,800 Segue Software, Inc.* 3,499,200
-------------
9,350,356
-------------
COMPUTER AND VIDEO CHAINS -- 2.8%
123,000 Trans World Entertainment
Corp.* 2,344,687
-------------
<CAPTION>
- -----------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- -----------------------------------------------------
<C> <S> <C>
ELECTRONICS DISTRIBUTORS -- 2.9%
100,000 Miami Computer Supply
Corp.* $ 2,462,500
-------------
ENGINEERING AND
CONSTRUCTIONS -- 5.5%
50,000 Astec Industries, Inc. * 2,781,250
54,100 Granite Construction,
Inc. 1,815,733
-------------
4,596,983
-------------
ENVIRONMENTAL SERVICES -- 2.3%
105,000 Catalytica Inc.* 1,890,000
-------------
FINANCIAL SERVICES -- 4.8%
40,200 SEI Investment Co. 3,994,875
-------------
MEDICAL DISTRIBUTORS -- 2.4%
75,000 D&K Healthcare Resources,
Inc.* 2,043,750
-------------
MEDICAL EQUIPMENT AND
SUPPLIES -- 7.7%
45,000 ResMed, Inc.* 2,041,875
50,000 VISX, Inc.* 4,371,875
-------------
6,413,750
-------------
PHARMACEUTICALS -- 6.2%
80,000 Allergan, Inc. 5,180,000
-------------
PRECISION INSTRUMENTS -- 6.3%
60,000 Waters Corp.* 5,235,000
-------------
TOTAL COMMON STOCKS
(COST $65,343,592) 75,755,588
-------------
MONEY MARKET FUNDS -- 9.5%
7,984,395 Fund for Government
Investors
(Cost $7,984,395) 7,984,395
-------------
TOTAL INVESTMENTS -- 100.0%
(COST $73,327,987) $ 83,739,983
-------------
-------------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
MID CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
- -----------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- -----------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 94.6%
APPAREL -- 4.2%
5,200 American Eagle Outfitters,
Inc.* $ 346,450
------------
BANKS -- 2.6%
3,900 Old National Bancorp. 217,425
------------
BIOTECHNOLOGY -- 7.0%
5,100 ALZA Corp., Class A* 266,475
3,700 Biogen, Inc.* 307,100
------------
573,575
------------
BUILDING MATERIALS -- 7.0%
5,000 Martin Marietta Materials,
Inc. 310,937
2,000 Vulcan Materials Co. 263,125
------------
574,062
------------
COMMERCIAL SERVICES -- 4.7%
3,600 CMGI, Inc.* 383,400
------------
COMMUNICATION EQUIPMENT AND
SERVICES -- 3.9%
4,800 Century Telephone
Enterprises 324,000
------------
COMPUTER HARDWARE AND
PERIPHERALS -- 3.9%
5,000 Symbol Technologies, Inc. 319,688
------------
COMPUTER SOFTWARE -- 7.3%
5,000 Legato Systems, Inc.* 329,688
8,000 Macromedia, Inc.* 269,500
------------
599,188
------------
COMPUTER AND VIDEO CHAINS -- 3.4%
4,500 Best Buy, Inc.* 276,187
------------
CONSUMER APPLIANCES -- 3.0%
4,000 Maytag Corp. 249,000
------------
ELECTRICAL UTILITIES -- 11.8%
11,000 Conectiv, Inc. 269,500
4,300 Energy East Corp. 242,950
4,500 IPALCO Enterprises, Inc. 249,470
7,400 PP&L Resources, Inc. 206,275
------------
968,195
------------
<CAPTION>
- -----------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- -----------------------------------------------------
<C> <S> <C>
ENGINEERING AND
CONSTRUCTION -- 4.3%
10,600 Metromedia Fiber Network,
Inc.* $ 355,100
------------
FINANCIAL SERVICES -- 3.9%
3,200 SEI Investment Co. 318,000
------------
FOOD DISTRIBUTORS -- 4.5%
7,600 U.S. Foodservice, Inc.* 372,400
------------
INSURANCE -- 3.3%
8,400 First American Financial
Corp. 269,850
------------
INTERNET SERVICES -- 4.4%
6,000 Mindspring Enterprises,
Inc.* 366,375
------------
MEDICAL EQUIPMENT AND
SUPPLIES -- 2.7%
4,500 C.R. Bard, Inc. 222,750
------------
MEDICAL SERVICES -- 3.4%
7,000 MedQuist, Inc.* 276,500
------------
PRECISION INSTRUMENTS -- 3.6%
3,400 Waters Corp.* 296,650
------------
PUBLISHING -- 4.6%
8,000 John Wiley & Sons, Inc. 386,500
------------
RECREATIONAL PRODUCTS -- 1.1%
5,000 Escalade Inc. 92,500
------------
TOTAL COMMON STOCKS
(COST $6,057,652) 7,787,795
------------
MONEY MARKET FUNDS -- 5.4%
448,561 Fund for Government
Investors
(Cost $448,561) 448,561
------------
TOTAL INVESTMENTS -- 100.0%
(COST $6,506,213) $ 8,236,356
------------
------------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
AGGRESSIVE MICRO CAP PORTFOLIO
<TABLE>
<CAPTION>
- ----------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 97.9%
ADVERTISING -- 2.3%
30,000 Display Technologies, Inc.* $ 223,125
------------
AIRLINES -- 4.2%
15,000 Amtran, Inc.* 406,875
------------
APPAREL -- 18.6%
16,000 Chicos FAS, Inc.* 374,000
20,000 Children's Place Retail
Stores, Inc.* 502,500
17,000 Tarrant Apparel Group* 675,750
21,000 United Retail Group, Inc.* 225,750
------------
1,778,000
------------
BUILDING PRODUCTS -- 4.0%
15,000 American Locker Group* 378,750
------------
COMPUTER HARDWARE AND
PERIPHERALS -- 4.0%
7,500 Cybex Computer Products
Corp.* 220,312
17,600 Dataram Corp.* 167,200
------------
387,512
------------
COMPUTER SERVICES -- 2.8%
13,700 Integral Systems, Inc.* 266,294
------------
COMPUTER SOFTWARES -- 10.3%
17,000 Ardent Software, Inc.* 391,000
18,300 Eagle Point Software Corp.* 157,838
14,000 Segu Software, Inc.* 283,500
3,000 TSI International Software
Ltd.* 143,625
------------
975,963
------------
ELECTRIC UTILITIES -- 2.0%
15,000 Bangor Hydo-Electric Co.* 192,188
------------
ELECTRONIC DISTRIBUTORS -- 4.6%
18,000 Miami Computer Supply
Corp.* 443,250
------------
ENGINEERING AND
CONSTRUCTIONS -- 5.5%
9,500 Astec Industries, Inc.* 528,437
------------
HOMEBUILDING -- 4.9%
8,000 NVR, Inc.* 381,500
7,000 Nobility Homes, Inc.* 89,688
------------
471,188
------------
<CAPTION>
- ----------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
<C> <S> <C>
HOTELS AND RESORTS -- 2.6%
42,500 Commodore Holdings Ltd.* $ 249,687
------------
INSURANCE -- 8.8%
15,000 Hoopers Holmes, Inc. 435,000
7,000 Stewart Information
Services Corp. 406,000
------------
841,000
------------
MEDICAL EQUIPMENT AND
SUPPLIES -- 7.2%
11,000 ResMed Inc.* 499,125
6,000 Xomed Surgical Products,
Inc.* 192,000
------------
691,125
------------
MOTION PICTURES -- 3.4%
7,800 Macrovision Corp.* 329,550
------------
RECREATIONAL PRODUCTS -- 1.5%
8,000 Escalade, Inc. 148,000
------------
REAL ESTATE -- 1.1%
41,000 American Insured Mortgage
Investors 110,187
------------
SPECIALTY CHEMICALS -- 3.3%
31,000 Uniroyal Technology Corp.* 313,875
------------
SPECIALTY STORES -- 3.6%
10,000 Sonic Automotive, Inc.* 344,375
------------
WATER SUPPLY -- 3.2%
9,700 Consumers Water Co. 304,944
------------
TOTAL COMMON STOCKS
(COST $7,415,678) 9,384,325
------------
MONEY MARKET FUNDS -- 2.1%
198,878 Fund for Government
Investors
(Cost $198,878) 198,878
------------
TOTAL INVESTMENTS -- 100.0%
(COST $7,614,556) $ 9,583,203
------------
------------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
SMALL CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 95.6%
AEROSPACE AND DEFENSE -- 1.5%
800 Kaman Corp. $ 12,850
------------
AIRLINES -- 3.1%
600 Alaska Air Group, Inc.* 26,550
------------
APPAREL -- 2.5%
300 Kellwood Co. 7,500
500 Oxford Industries, Inc. 14,125
------------
21,625
------------
AUTO AND TRUCK PARTS -- 5.2%
700 Arvin Industries, Inc. 29,181
1,200 Commercial Intertech Corp. 15,525
------------
44,706
------------
MISC. FABRICATED PRODUCTS -- 2.9%
700 Amcast Industrial Corp. 13,387
400 Barnes Group, Inc. 11,750
------------
25,137
------------
BEVERAGES -- 2.9%
2,700 Quilmes Industrial, ADR 25,144
------------
CATALOG AND SPECIALTY
DISTRIBUTION -- 3.4%
1,300 Blair Corp. 28,844
------------
COMMUNICATION EQUIPMENT -- 1.1%
1,000 United Industrial Corp. 9,813
------------
CONTAINERS AND PACKAGINGS -- 4.7%
2,400 Rock-Tenn Co. 40,650
------------
CONTRACT DRILLING -- 1.0%
2,800 Petroleum Development Corp.* 8,575
------------
CROPS -- 2.6%
1,900 Andersons, Inc. 21,969
------------
ELECTRIC UTILITIES -- 3.2%
300 Central Hudson Gas & Electric 13,425
400 CLECO Corp. 13,725
------------
27,150
------------
ENGINEERING AND CONSTRUCTION -- 2.9%
2,000 Chicago Bridge & Iron Co. 24,625
------------
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
HOMEBUILDING -- 8.8%
600 Centex Corp. $ 27,038
1,000 D R Horton, Inc. 23,000
1,200 MDC Holdings, Inc. 25,650
------------
75,688
------------
INDUSTRIAL MACHINERY -- 6.4%
1,200 Ampco-Pittsburgh Corp. 13,050
1,800 Cascade Corp. 28,463
600 Lincoln Electric Holdings Co. 13,350
------------
54,863
------------
INDUSTRIAL SPECIALTIES -- 2.7%
1,800 Bairnco Corp. 12,825
975 Deswell Industries, Inc. 9,994
------------
22,819
------------
INSURANCE -- 2.3%
350 LandAmerica Financial Group 19,534
------------
MARINE TRANSPORTATION -- 1.2%
1,050 Stolt-Nielsen, ADR 10,631
------------
MEDICAL SERVICES -- 1.3%
4,500 NovaCare Corp.* 11,250
------------
NATURAL GAS DISTRIBUTION -- 0.6%
125 New Jersey Resources Corp. 4,937
------------
PERSONAL CARE PRODUCTS -- 1.3%
800 Herbalife International 11,400
------------
PRECISION INSTRUMENTS -- 1.7%
1,500 Spectra-Physics Lasers, Inc.* 14,250
------------
REAL ESTATE INVESTMENT TRUSTS -- 4.1%
600 Bedford Property Investment,
Inc. 10,125
900 MGI Properties, Inc. 25,144
------------
35,269
------------
RECREATIONAL PRODUCTS -- 5.7%
1,800 Arctic Cat, Inc. 18,337
700 Coachman Industries, Inc. 18,375
800 Winnebago Industries, Inc. 12,100
------------
48,812
------------
RESTAURANTS -- 4.7%
850 Buffets, Inc.* 10,147
1,350 FoodMaker, Inc.* 29,784
------------
39,931
------------
</TABLE>
9
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998 (CONTINUED)
SMALL CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
- --------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
COMMON STOCKS (CONTINUED)
- --------------------------------------------------
SAVINGS AND LOAN
ASSOCIATIONS -- 1.4%
<C> <S> <C>
300 TR Financial Corp. $ 11,813
-----------
SEMICONDUCTORS -- 3.9%
3,500 Tower Semiconductor, Ltd.* 33,250
-----------
SPECIALTY STORES -- 5.3%
1,200 Haverty Furniture, Inc. 25,200
1,300 Signet Group, ADR* 20,150
-----------
45,350
-----------
TOOLS AND HARDWARE -- 1.6%
400 Starrett (LS) Co. 13,725
-----------
TRUCKING -- 5.6%
1,450 Arnold Industries, Inc. 23,381
1,300 Yellow Corp.* 24,862
-----------
48,243
-----------
TOTAL COMMON STOCKS
(COST $865,990) 819,403
-----------
<CAPTION>
- --------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- --------------------------------------------------
<C> <S> <C>
MONEY MARKET FUNDS -- 4.4%
37,641 Fund for Government
Investors
(Cost $37,641) $ 37,641
-----------
TOTAL INVESTMENTS -- 100.0%
(COST $903,631) $ 857,044
-----------
-----------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
ADR AMERICAN DEPOSITORY RECEIPTS
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
LARGE CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
- -----------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- -----------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 94.2%
ADVERTISING -- 2.0%
870 Omnicom Group, Inc. $ 50,460
------------
APPAREL -- 5.9%
1,827 Gap, Inc. 102,769
1,510 TJX Companies, Inc. 43,790
------------
146,559
------------
BEVERAGES -- 3.8%
1,350 Cadbury Schweppes, ADR 93,488
------------
BIOTECHNOLOGY -- 2.3%
550 Amgen, Inc.* 57,509
------------
BUILDING PRODUCTS -- 3.5%
1,395 Home Depot, Inc. 85,357
------------
COMMERCIAL SERVICES -- 3.1%
1,470 Paychex, Inc. 75,613
------------
COMMUNICATION EQUIPMENT AND
SERVICES -- 17.1%
1,725 Ameritech Corp. 109,322
1,610 Century Telephone
Enterprises 108,675
825 Nokia Corp., ADR 99,361
650 Vodafone Group, ADR 104,731
------------
422,089
------------
COMPUTER HARDWARE AND
PERIPHERALS -- 8.7%
1,420 Dell Computer Corp.* 103,926
1,290 EMC Corp.* 109,650
------------
213,576
------------
COMPUTER NETWORKS -- 4.2%
1,107 Cisco Systems, Inc.* 102,743
------------
COMPUTER SOFTWARES -- 4.0%
715 Microsoft Corp.* 99,161
------------
CONSUMER APPLIANCES -- 3.2%
1,265 Maytag Corp. 78,746
------------
DEPARTMENT STORES -- 2.1%
825 Kohls Corp.* 50,686
------------
<CAPTION>
- -----------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- -----------------------------------------------------
<C> <S> <C>
DISCOUNT STORES -- 2.1%
975 Dayton Hudson Corp. $ 52,894
------------
DRUG STORE CHAINS -- 3.6%
1,495 Walgreen Co. 87,551
------------
FINANCIAL SERVICES -- 1.7%
375 Capital One Financial
Corp. 43,125
------------
FOOD DISTRIBUTORS -- 2.9%
2,570 SYSCO Corp. 70,514
------------
HOUSEHOLD PRODUCTS -- 4.0%
840 Clorox Co. 98,123
------------
MANUFACTURING -- 2.7%
870 Tyco International Ltd. 65,631
------------
MOTOR VEHICLES -- 3.5%
1,475 Ford Motor Co. 86,564
------------
OFFICE EQUIPMENT AND
SUPPLIES -- 7.8%
1,125 Lexmark International
Group* 113,063
1,215 Pitney Bowes 80,266
------------
193,329
------------
PHARMACEUTICALS -- 6.0%
475 Pfizer, Inc. 59,583
1,610 Schering-Plough Corp. 88,952
------------
148,535
------------
TOTAL COMMON STOCKS
(COST $1,771,105) 2,322,253
------------
MONEY MARKET FUNDS -- 5.8%
142,371 Fund for Government
Investors
(Cost $142,371) 142,371
------------
TOTAL INVESTMENTS -- 100.0%
(COST $1,913,476) $ 2,464,624
------------
------------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
ADR AMERICAN DEPOSITORY RECEIPTS
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
LARGE CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 98.9%
AIRLINES -- 3.4%
325 British Airways, ADR $ 22,039
------------
APPAREL -- 7.9%
1200 The Limited, Inc. 34,950
350 V.F. Corp. 16,406
------------
51,356
------------
BANKS -- 9.1%
700 ABN-AMRO Holdings, ADR 15,225
650 Australia & New Zealand Banking Group,
ADR 21,125
675 UnionBancal Corp. 22,992
------------
59,342
------------
BEVERAGES -- 7.1%
1,750 Bass Public Limited Co., ADR 25,156
550 Seagram Company Ltd. 20,900
------------
46,056
------------
BUILDING MATERIALS AND
PRODUCTS -- 1.9%
300 Lafarge Corp. 12,150
------------
CONGLOMERATES -- 3.9%
900 Anglo American Corp. of South Africa,
ADR 25,200
------------
CONSUMER ELECTRONICS AND
APPLIANCES -- 2.1%
250 Whirlpool Corp. 13,844
------------
DEPARTMENT STORES -- 3.8%
600 Coles Myer Ltd., ADR 24,937
------------
DIVERSIFIED FINANCIAL
SERVICES -- 4.0%
225 Transamerica Corp. 25,988
------------
ELECTRIC UTILITIES -- 3.7%
600 Public Service Enterprise Group 24,000
------------
ENGINEERING AND
CONSTRUCTIONS -- 2.9%
450 Fluor Corp. 19,153
------------
<CAPTION>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
FOOD DISTRIBUTORS -- 5.6%
1,300 Super Value, Inc. $ 36,400
------------
INDUSTRIAL MACHINERY -- 8.4%
675 Caterpillar, Inc. 31,050
725 Deere & Co. 24,016
------------
55,066
------------
INSURANCE -- 7.0%
250 Cigna Corp. 19,328
275 Hartford Financial Services Group, Inc. 15,091
500 Old Republic International Corp. 11,250
------------
45,669
------------
INVESTMENT SERVICES -- 2.1%
375 Bear Stearns Co's. 14,016
------------
MANUFACTURING -- 3.2%
1,050 Tomkins F H PLC, ADR 21,000
------------
METALS AND MINERALS -- 4.7%
1,800 Pohang Iron & Steel Ltd., ADR 30,375
------------
MISC. TRANSPORTATION -- 2.3%
1,500 Laidlaw, Inc. 15,094
------------
MOTOR VEHICLES -- 10.2%
650 Ford Motor Co. 38,147
1,250 Volvo, ADR 29,141
------------
67,288
------------
OIL COMPANIES -- 3.2%
575 Sunoco, Inc. 20,736
------------
RAILROADS -- 2.4%
375 CSX Corp. 15,562
------------
TOTAL COMMON STOCKS
(COST $590,447) 645,271
------------
MONEY MARKET FUNDS -- 1.1%
7,402 Fund for Government Investors
(Cost $7,402) 7,402
------------
TOTAL INVESTMENTS -- 100.0%
(COST $597,849) $ 652,673
------------
------------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
ADR AMERICAN DEPOSITORY RECEIPTS
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998
INTERNATIONAL EQUITY PORTFOLIO
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
MARKET VALUE
SHARES COUNTRY (NOTE 1)
- -----------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS -- 92.1%
AIRLINES -- 2.5%
8,180 Deutsche Lufthansa Germany $ 180,738
2,630 Konin Luchtvaart Mij NV Netherlands 79,600
------------
260,338
------------
APPAREL -- 1.4%
71,700 Bennetton Group SPA Italy 141,865
------------
AUTOMOBILE MANUFACTURERS -- 11.3%
410 Bayerische Motoren Werke Germany 192,011
2,331 Daimler-Benz AG Germany 230,227
66,910 Fiat SPA Italy 232,742
920 Peugeot SA France 142,463
1,460 Renault (Regie) NH France 65,603
3,800 Volkswagen AG Germany 303,448
------------
1,166,494
------------
AUTOMOBILE PARTS & EQUIPMENT -- 1.1%
100 Fischer (Georg) AG Switzerland 33,819
950 Valeo France 74,898
------------
108,717
------------
BANKS -- 15.2%
8,192 ABN Amro Holding NV Netherlands 172,425
18,830 Banca Commerciale Italiana Italy 130,085
10,950 Banca Popolare di Milano Italy 99,536
1,470 Banque Nationale de Paris France 121,105
2,702 Bayer Hypo-Vereins AG Germany 211,712
3,370 Commerzbank AG Germany 106,632
510 Credit Suisse Group Switzerland 79,834
19,020 Credito Italiano SPA Italy 112,898
3,837 Ing Groep NV Netherlands 234,104
780 Societe Generale France 126,369
570 UBS AG Switzerland 177,206
------------
1,571,906
------------
BEVERAGES -- 0.9%
1,610 Heineken NV Netherlands 96,943
------------
BUILDING MATERIALS -- 0.9%
950 Lafarge France 90,306
------------
CHEMICALS -- 3.6%
2,120 Akzo Nobel NV Netherlands 92,519
3,220 BASF AG Germany 122,959
2,110 Bayer AG Germany 88,111
1,600 Hoechst AG Germany 66,381
------------
369,970
------------
</TABLE>
13
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998 (CONTINUED)
INTERNATIONAL EQUITY PORTFOLIO
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
MARKET VALUE
SHARES COUNTRY (NOTE 1)
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------------------------
COMPUTERS -- 1.1%
<C> <S> <C> <C>
2,260 Getronics NV Netherlands $ 111,996
------------
COMPUTERS SOFTWARE -- 2.1%
500 SAP AG Germany 216,148
------------
COSMETICS/PERSONAL CARE -- 2.7%
260 L'Oreal France 188,041
130 Wella AG Germany 91,323
------------
279,364
------------
DIVERSIFIED FINANCIAL SERVICES -- 1.2%
7,095 San Paolo-IMI SPA Italy 125,547
------------
ELECTRONICS -- 1.0%
1,470 Philips Electronics (KON) Netherlands 98,696
------------
ENGINEERING & CONSTRUCTION -- 1.3%
660 Suez Lyonnaise Des Eaux France 135,638
------------
FOOD -- 4.5%
520 Groupe Danone France 148,943
1,636 Ahold NV Netherlands 60,500
120 Nestle SA Switzerland 261,234
------------
470,677
------------
HOUSEHOLD PRODUCTS/WARES -- 1.6%
1,980 Unilever NV Netherlands 169,337
------------
INSURANCE -- 14.6%
930 Allianz AG Germany 341,172
1,595 Asr Verzekerings Groep NV Netherlands 144,485
4,270 Assicurazioni Generali SPA Italy 178,546
1,350 AXA France 195,756
49,970 Institut Naz Assicur Italy 132,180
90 Schweiz-Reuckversicherungs Switzerland 234,652
390 Zuerich Allied AG Switzerland 288,777
------------
1,515,568
------------
LODGING -- 1.4%
670 Accor SA France 145,130
------------
OIL & GAS -- 2.5%
15,420 ENI SPA Italy 100,921
3,110 Royal Dutch Petroleum Netherlands 154,947
------------
255,868
------------
</TABLE>
14
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
DECEMBER 31, 1998 (CONTINUED)
INTERNATIONAL EQUITY PORTFOLIO
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
MARKET VALUE
SHARES COUNTRY (NOTE 1)
COMMON STOCKS (CONTINUED)
- -----------------------------------------------------------------------------------
PHARMACEUTICALS -- 5.7%
<C> <S> <C> <C>
210 Novartis AG Switzerland $ 412,819
1,480 Rhone-Poulenc SA France 76,199
790 Schering AG Germany 99,252
------------
588,270
------------
REAL ESTATE -- 0.2%
49,970 Unione Immobiliare Italy 26,103
------------
RETAIL -- 2.5%
140 Jelmoli Switzerland 30,579
1,200 Pinault-Printemps France 229,429
------------
260,008
------------
TELECOMMUNICATION EQUIPMENT -- 0.8%
660 Alcatel Alsthom France 80,816
------------
TELECOMMUNICATIONS -- 7.0%
51,500 T.I.M. SPA Italy 380,750
40,160 Telecom Italia SPA Italy 343,151
------------
723,901
------------
TELEPHONE -- 5.0%
9,080 Deutsche Telekom AG Germany 298,755
2,740 France Telecom SA France 217,786
------------
516,541
------------
TOTAL COMMON STOCKS
(COST $9,728,741) 9,526,147
------------
MONEY MARKET FUNDS -- 7.9%
811,864 Fund for Government Investors
(Cost $811,864) 811,864
------------
TOTAL INVESTMENTS -- 100.0%
(COST $10,540,605) $ 10,338,011
------------
------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
<TABLE>
<CAPTION>
AGGRESSIVE AGGRESSIVE MID CAP AGGRESSIVE
SMALL CAP EQUITY GROWTH GROWTH MICRO CAP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
ASSETS
Securities at Cost.............................. $ 38,608,845 $ 73,327,987 $ 6,506,213 $ 7,614,556
----------------- ------------ ----------- -----------
----------------- ------------ ----------- -----------
Securities at Value (Note 1).................... $ 47,233,110 $ 83,739,983 $ 8,236,356 $ 9,583,203
Receivable for Securities Sold.................. -- 7,335,903 -- 19,499
Receivable for Shares Sold...................... 198,317 2,032,590 146,515 106,693
Interest Receivable............................. 6,282 13,643 999 700
Dividends Receivable............................ 7,600 27,876 4,613 4,180
Other Receivables............................... -- 162 -- --
Unamortized Organizational Costs (Note 1)....... -- 50,190 -- --
----------------- ------------ ----------- -----------
Total Assets.................................. 47,445,309 93,200,347 8,388,483 9,714,275
----------------- ------------ ----------- -----------
LIABILITIES
Investment Advisory Fee Payable (Note 2)........ 31,752 54,149 6,077 6,611
Administrative Fee Payable (Note 2)............. 9,450 16,116 1,809 1,968
Distribution Plan Fee Payable (Note 4).......... 9,450 16,116 1,809 1,968
Payable for Securities Purchased................ -- 11,407,975 246,315 --
Payable for Shares Redeemed..................... 129,605 242,009 7,517 51,097
Distributions Payable........................... -- 17 205 --
Other Payables and Accrued Expenses............. 5,670 9,669 1,085 1,185
Organizational Expense Payable to Adviser (Note
1)............................................ -- 50,190 -- --
----------------- ------------ ----------- -----------
Total Liabilities............................. 185,927 11,796,241 264,817 62,829
----------------- ------------ ----------- -----------
NET ASSETS........................................ $ 47,259,382 $ 81,404,106 $ 8,123,666 $ 9,651,446
----------------- ------------ ----------- -----------
----------------- ------------ ----------- -----------
SHARES OUTSTANDING................................ 2,955,086 5,491,448 594,970 472,643
----------------- ------------ ----------- -----------
----------------- ------------ ----------- -----------
NET ASSET VALUE PER SHARE......................... $15.99 $14.82 $13.65 $20.42
------ ------ ----------- -----------
------ ------ ----------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1998
<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.................................. $ 903,631 $ 1,913,476 $ 597,849 $10,540,605
----------- ----------- ----------- -------------
----------- ----------- ----------- -------------
Securities at Value (Note 1)........................ $ 857,044 $ 2,464,624 $ 652,673 $10,338,011
Receivable for Securities Sold...................... -- 52,425 -- --
Receivable for Shares Sold.......................... -- 11,513 58 --
Interest Receivable................................. 129 264 70 2,510
Dividends Receivable................................ 1,081 1,251 3,586 1,846
Unamortized Organizational Costs (Note 1)........... 73,440 73,440 73,440 73,440
----------- ----------- ----------- -------------
Total Assets...................................... 931,694 2,603,517 729,827 10,415,807
----------- ----------- ----------- -------------
LIABILITIES
Investment Advisory Fee Payable (Note 2)............ 653 1,661 492 8,374
Administrative Fee Payable (Note 2)................. 194 494 164 2,094
Distribution Plan Fee Payable (Note 4).............. 194 494 164 2,094
Payable for Securities Purchased.................... -- 125,584 -- --
Payable for Shares Redeemed......................... -- -- -- 1,265
Distributions Payable............................... -- -- 30 --
Other Payables and Accrued Expenses................. 117 297 98 2,094
Organizational Expense Payable to Adviser (Note
1)................................................ 73,440 73,440 73,440 73,440
----------- ----------- ----------- -------------
Total Liabilities................................. 74,598 201,970 74,388 89,361
----------- ----------- ----------- -------------
NET ASSETS............................................ $ 857,096 $ 2,401,547 $ 655,439 $10,326,446
----------- ----------- ----------- -------------
----------- ----------- ----------- -------------
SHARES OUTSTANDING.................................... 93,069 165,990 57,553 990,083
----------- ----------- ----------- -------------
----------- ----------- ----------- -------------
NET ASSET VALUE PER SHARE............................. $9.21 $14.47 $11.39 $10.43
----- ----------- ----------- ------
----- ----------- ----------- ------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
<TABLE>
<CAPTION>
AGGRESSIVE SMALL AGGRESSIVE MID CAP AGGRESSIVE
CAP EQUITY GROWTH GROWTH MICRO CAP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest (Note 1)................................. $ 196,099 $ 267,860 $ 34,335 $ 35,023
Dividends (Note 1)................................ 266,225 396,072 84,676 40,669
----------------- ------------ ----------- -----------
Total Investment Income......................... 462,324 663,932 119,011 75,692
----------------- ------------ ----------- -----------
EXPENSES
Investment Advisory Fee (Note 2).................. 591,904 870,444 90,643 90,856
Administrative Fee (Note 2)....................... 136,969 218,920 23,121 23,621
Distribution Plan Fees (Note 4)................... 48,212 218,290 23,157 14,331
Transfer Agent and Custodian Fee (Note 3)......... 146,185 160,728 62,467 62,782
Shareholder Reports and Notices................... 79,524 91,123 12,395 15,586
Registration Fees................................. 55,433 17,789 17,280 20,628
Organizational Expense (Note 1)................... 767 25,200 -- --
Audit Fees........................................ 18,100 23,600 1,950 2,350
Trustees' Fees and Expenses (Note 2).............. 1,784 3,388 3,388 3,388
Other Expenses.................................... 3,431 23,693 2,446 3,040
----------------- ------------ ----------- -----------
Total Expenses.................................. 1,082,309 1,653,175 236,847 236,582
Less Expenses Reimbursed by Investment Adviser
(Note 2)...................................... (187,573) (181,272) (82,893) (93,800)
----------------- ------------ ----------- -----------
Net Expenses.................................. 894,736 1,471,903 153,954 142,782
----------------- ------------ ----------- -----------
NET INVESTMENT LOSS................................. (432,412) (807,971) (34,943) (67,090)
----------------- ------------ ----------- -----------
Net Realized Gain (Loss) on Investment
Transactions...................................... (338,976) 10,857,763 600,569 (593,873)
Change in Net Unrealized Appreciation of
Investments....................................... 686,288 262,591 485,817 938,282
----------------- ------------ ----------- -----------
NET GAIN ON INVESTMENTS............................. 347,312 11,120,354 1,086,386 344,409
----------------- ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS........................................ $ (85,100) $ 10,312,383 $ 1,051,443 $ 277,319
----------------- ------------ ----------- -----------
----------------- ------------ ----------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998
<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)........................................ $ 2,565 $ 2,871 $ 2,060 $ 33,109
Dividends (Note 1)....................................... 13,169 7,164 14,251 72,300
----------- ----------- ----------- -------------
Total Investment Income................................ 15,734 10,035 16,311 105,409
----------- ----------- ----------- -------------
EXPENSES
Investment Advisory Fee (Note 2)......................... 5,147 7,956 3,950 65,510
Administrative Fee (Note 2).............................. 1,487 2,285 1,316 16,378
Distribution Plan Fee (Note 4)........................... 1,464 2,298 1,321 16,487
Transfer Agent and Custodian Fee (Note 3)................ 28,972 30,396 28,594 81,574
Organizational Expense (Note 1).......................... 18,360 18,360 18,360 18,360
Registration Fees........................................ 8,114 8,114 8,207 7,838
Audit Fees............................................... 8,000 8,000 8,000 3,000
Trustees' Fees and Expenses (Note 2)..................... 3,388 3,388 3,388 3,388
Shareholder Reports and Notices.......................... 2,131 2,155 1,914 2,321
Other Expenses........................................... 45 59 80 276
----------- ----------- ----------- -------------
Total Expenses......................................... 77,108 83,011 75,130 215,132
Less Expenses Reimbursed by Investment Adviser (Note
2)................................................... (68,024) (69,011) (67,670) (100,379)
----------- ----------- ----------- -------------
Net Expenses......................................... 9,084 14,000 7,460 114,753
----------- ----------- ----------- -------------
NET INVESTMENT INCOME (LOSS)............................... 6,650 (3,965) 8,851 (9,344)
----------- ----------- ----------- -------------
Net Realized Gain (Loss) on Investment Transactions........ (49,214) (51,859) 18,166 232,783
Net Realized Gain on Foreign Currency Transactions......... -- -- -- 282
Change in Net Unrealized Appreciation/Depreciation of
Investments.............................................. (47,797) 548,665 53,686 (202,622)
----------- ----------- ----------- -------------
NET GAIN (LOSS) ON INVESTMENTS............................. (97,011) 496,806 71,852 30,443
----------- ----------- ----------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS............................................... $ (90,361) $ 492,841 $ 80,703 $ 21,099
----------- ----------- ----------- -------------
----------- ----------- ----------- -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
AGGRESSIVE SMALL CAP EQUITY
PORTFOLIO AGGRESSIVE GROWTH
----------------------------- PORTFOLIO
-----------------------------
FOR THE YEARS ENDED
<S> <C> <C> <C> <C>
1998 1997 1998 1997
DECEMBER 31,
------------- ------------- ------------- -------------
-------------------------------------------------------------
<CAPTION>
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Loss................... $ (432,412) $ (1,378,702) $ (807,971) $ (1,040,691)
Net Realized Gain (Loss) on Investment
Transactions........................ (338,976) 25,247,521 10,857,763 11,968,088
Change in Net Unrealized Appreciation
of Investments...................... 686,288 (28,940,108) 262,591 321,088
------------- ------------- ------------- -------------
Net Increase (Decrease) in Net
Assets Resulting from
Operations........................ (85,100) (5,071,289) 10,312,383 11,248,485
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Realized Gain................ -- (14,124,008) -- (1,178,202)
------------- ------------- ------------- -------------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares..... 69,506,803 60,192,194 267,578,704 148,051,404
Reinvestment of Distributions......... -- 13,539,639 -- 1,148,045
Cost of Shares Redeemed............... (95,041,562) (171,691,808) (298,233,289) (152,769,712)
------------- ------------- ------------- -------------
Net Decrease in Net Assets Resulting
from Share Transactions........... (25,534,759) (97,959,975) (30,654,585) (3,570,263)
------------- ------------- ------------- -------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS............................ (25,619,859) (117,155,272) (20,342,202) 6,500,020
NET ASSETS -- Beginning of Year......... 72,879,241 190,034,513 101,746,308 95,246,288
------------- ------------- ------------- -------------
NET ASSETS -- End of Year............... $ 47,259,382 $ 72,879,241 $ 81,404,106 $ 101,746,308
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
SHARES
Sold.................................. 4,515,915 4,277,974 20,345,331 11,764,667
Issued in Reinvestment of
Distributions....................... -- 846,228 -- 86,384
Redeemed.............................. (6,115,945) (11,252,090) (22,510,476) (11,968,178)
------------- ------------- ------------- -------------
Net Decrease in Shares.............. (1,600,030) (6,127,888) (2,165,145) (117,127)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MID CAP GROWTH
PORTFOLIO
----------------------------- AGGRESSIVE MICRO CAP
PORTFOLIO
FOR THE YEARS ---------------------------------
ENDED FOR THE YEAR FOR THE PERIOD
DECEMBER 31, ENDED ENDED
----------------------------- DECEMBER 31, DECEMBER 31,
1998 1997 1998 1997*
------------- ------------- -------------- ----------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Loss................... $ (34,943) $ (41,193) $ (67,090) $ (26,415)
Net Realized Gain (Loss) on Investment
Transactions........................ 600,569 317,596 (593,873) 415,737
Change in Net Unrealized Appreciation
of Investments...................... 485,817 1,208,882 938,282 1,030,365
------------- ------------- -------------- ----------------
Net Increase in Net Assets Resulting
from Operations................... 1,051,443 1,485,285 277,319 1,419,687
------------- ------------- -------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Realized Gain................ (174,079) (341,588) -- (180,781)
------------- ------------- -------------- ----------------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares..... 14,064,660 7,858,965 16,347,179 13,757,919
Reinvestment of Distributions......... 170,002 336,620 -- 176,182
Cost of Shares Redeemed............... (15,360,950) (2,608,712) (17,163,447) (4,982,612)
------------- ------------- -------------- ----------------
Net Increase (Decrease) in Net
Assets Resulting from Share
Transactions...................... (1,126,288) 5,586,873 (816,268) 8,951,489
------------- ------------- -------------- ----------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS............................ (248,924) 6,730,570 (538,949) 10,190,395
NET ASSETS -- Beginning of Period....... 8,372,590 1,642,020 10,190,395 --
------------- ------------- -------------- ----------------
NET ASSETS -- End of Period............. $ 8,123,666 $ 8,372,590 $ 9,651,446 $10,190,395
------------- ------------- -------------- ----------------
------------- ------------- -------------- ----------------
SHARES
Sold.................................. 1,082,352 711,277 825,396 741,820
Issued in Reinvestment of
Distributions....................... 12,658 27,081 -- 8,636
Redeemed.............................. (1,173,434) (224,912) (852,387) (250,822)
------------- ------------- -------------- ----------------
Net Increase (Decrease) in Shares... (78,424) 513,446 (26,991) 499,634
------------- ------------- -------------- ----------------
------------- ------------- -------------- ----------------
</TABLE>
* FROM COMMENCEMENT OF OPERATIONS MARCH 17, 1997
SEE NOTES TO FINANCIAL STATEMENTS.
21
<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 YEAR PERIOD FOR THE YEAR FOR THE PERIOD
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997* 1998 1997*
------------- ------------- -------------- ----------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Income (Loss).......... $ 6,650 $ 48 $ (3,965) $ 59
Net Realized Loss on Investment
Transactions........................ (49,214) (49) (51,859) --
Change in Net Unrealized Appreciation
of Investments...................... (47,797) 1,209 548,665 2,482
------------- ------------- -------------- --------
Net Increase (Decrease) in Net
Assets Resulting from
Operations........................ (90,361) 1,208 492,841 2,541
------------- ------------- -------------- --------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Investment Income............ (6,650) (48) -- (59)
------------- ------------- -------------- --------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares..... 1,107,661 100,000 2,553,343 100,000
Reinvestment of Distributions......... 6,650 48 -- 59
Cost of Shares Redeemed............... (261,412) -- (747,178) --
------------- ------------- -------------- --------
Net Increase in Net Assets Resulting
from Share Transactions........... 852,899 100,048 1,806,165 100,059
------------- ------------- -------------- --------
TOTAL INCREASE IN NET ASSETS........ 755,888 101,208 2,299,006 102,541
NET ASSETS -- Beginning of Period....... 101,208 -- 102,541 --
------------- ------------- -------------- --------
NET ASSETS -- End of Period............. $ 857,096 $ 101,208 $ 2,401,547 $ 102,541
------------- ------------- -------------- --------
------------- ------------- -------------- --------
SHARES
Sold.................................. 109,516 10,000 216,274 10,000
Issued in Reinvestment of
Distributions....................... 722 5 -- 6
Redeemed.............................. (27,174) -- (60,290) --
------------- ------------- -------------- --------
Net Increase in Shares.............. 83,064 10,005 155,984 10,006
------------- ------------- -------------- --------
------------- ------------- -------------- --------
</TABLE>
* FROM COMMENCEMENT OF OPERATION DECEMBER 19, 1997
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LARGE CAP
VALUE PORTFOLIO INTERNATIONAL
----------------------------- EQUITY PORTFOLIO
FOR THE ---------------------------------
FOR THE YEAR PERIOD FOR THE YEAR FOR THE PERIOD
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997* 1998 1997**
------------- ------------- -------------- ----------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Income (Loss).......... $ 8,851 $ 76 $ (9,344) $ (1)
Net Realized Gain on Investment
Transactions........................ 18,166 -- 232,783 --
Net Realized Gain on Foreign Currency
Transactions........................ -- -- 282
Change in Net Unrealized Appreciation
of Investments...................... 53,686 1,138 (202,622) --
------------- ------------- -------------- -------
Net Increase (Decrease) in Net
Assets Resulting from
Operations........................ 80,703 1,214 21,099 (1)
------------- ------------- -------------- -------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Investment Income............ (8,851) (76) -- --
From Net Realized Gain................ (33,820) -- (226,731) --
------------- ------------- -------------- -------
Total Distributions to
Shareholders...................... (42,671) (76) (226,731) --
------------- ------------- -------------- -------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares..... 844,096 100,000 11,259,013 10,000
Reinvestment of Distributions......... 42,522 76 226,731 --
Cost of Shares Redeemed............... (370,425) -- (963,665) --
------------- ------------- -------------- -------
Net Increase in Net Assets Resulting
from Share Transactions........... 516,193 100,076 10,522,079 10,000
------------- ------------- -------------- -------
TOTAL INCREASE IN NET ASSETS........ 554,225 101,214 10,316,447 9,999
NET ASSETS -- Beginning of Period....... 101,214 -- 9,999 --
------------- ------------- -------------- -------
NET ASSETS -- End of Period............. $ 655,439 $ 101,214 $10,326,446 $ 9,999
------------- ------------- -------------- -------
------------- ------------- -------------- -------
SHARES
Sold.................................. 75,563 10,000 1,063,405 1,000
Issued in Reinvestment of
Distributions....................... 3,723 8 21,738 --
Redeemed.............................. (31,741) -- (96,060) --
------------- ------------- -------------- -------
Net Increase in Shares.............. 47,545 10,008 989,083 1,000
------------- ------------- -------------- -------
------------- ------------- -------------- -------
</TABLE>
* FROM COMMENCEMENT OF OPERATION DECEMBER 19, 1997
** FROM COMMENCEMENT OF OPERATION DECEMBER 26, 1997
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
AGGRESSIVE
SMALL CAP EQUITY PORTFOLIO**
-----------------------------------------------------------------------------------
FOR THE
PERIOD
FOR THE YEARS ENDED DECEMBER 31, ENDED
------------------------------------------------------------------- DECEMBER 31,
1998 1997 1996 1995 1994*
---------------- ---------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $16.00 $17.79 $15.41 $10.98 $10.00
------- ------- ------------- ------------- -------------
Income from Investment Operations:
Net Investment Loss................. (0.15) (0.30) (0.23) (0.16) (0.08)
Net Realized and Unrealized Gain on
Investments....................... 0.14 2.30(C) 2.61 4.97 1.06
------- ------- ------------- ------------- -------------
Total from Investment
Operations...................... (0.01) 2.00 2.38 4.81 0.98
------- ------- ------------- ------------- -------------
Distributions to Shareholders:
From Net Realized Gain.............. -- (3.79) -- (0.38) --
------- ------- ------------- ------------- -------------
Net Increase in Net Asset Value....... (0.01) (1.79) 2.38 4.43 0.98
------- ------- ------------- ------------- -------------
Net Asset Value -- End of Period...... $15.99 $16.00 $17.79 $15.41 $10.98
------- ------- ------------- ------------- -------------
------- ------- ------------- ------------- -------------
TOTAL INVESTMENT RETURN(A).............. (0.06)% 11.24% 15.44% 43.80% 9.80%
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.63% 2.33% 1.75% 1.75% 1.68%(B)
Expenses Before Reimbursement (Note
2).................................. 1.98% 2.62% 1.86% 2.10% 4.52%(B)
Net Investment Loss After
Reimbursement (Note 2).............. (0.79)% (1.37)% (1.33)% (1.15)% (0.81)%(B)
Net Investment Loss Before
Reimbursement (Note 2).............. (1.13)% (1.64)% (1.44)% (1.50)% (3.65)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 145% 184% 137% 170% 140%
Net Assets at End of Period (in
thousands).......................... $47,259 $72,879 $190,035 $105,299 $18,224
Number of Shares Outstanding at End of
Period (in thousands)............... 2,955 4,555 10,683 6,831 1,660
</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 year because of the 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 JANUARY 3, 1994
** Financial Highlights include the performance of the Navellier Aggressive
Small Cap Equity Portfolio, a series of the Navellier Series Fund, which
reorganized on July 24, 1998, as a series of the Navellier Performance Funds
(See Note 9).
SEE NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH
PORTFOLIO
----------------------------------------------------------------
FOR THE
PERIOD
FOR THE YEARS ENDED DECEMBER 31, ENDED
------------------------------------------------ DECEMBER 31,
1998 1997 1996 1995*
---------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $13.29 $12.25 $9.99 $10.00
------- ------------- ------------- ------
Income from Investment Operations:
Net Investment Loss................. (0.15) (0.14) (0.12) --
Net Realized and Unrealized Gain
(Loss) on Investments............. 1.68 1.34 2.38(C) (0.01)
------- ------------- ------------- ------
Total from Investment
Operations...................... 1.53 1.20 2.26 (0.01)
------- ------------- ------------- ------
Distributions to Shareholders:
From Net Realized Gain.............. -- (0.16) -- --
------- ------------- ------------- ------
Net Increase (Decrease) in Net Asset
Value............................... 1.53 1.04 2.26 (0.01)
------- ------------- ------------- ------
Net Asset Value -- End of Period...... $14.82 $13.29 $12.25 $9.99
------- ------------- ------------- ------
------- ------------- ------------- ------
TOTAL INVESTMENT RETURN................. 11.51% 9.77% 22.62% (0.10)%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.68% 2.00% 2.00% 2.00%(B)
Expenses Before Reimbursement (Note
2).................................. 1.89% 2.15% 2.22% 27.25%(B)
Net Investment Income (Loss) After
Reimbursement (Note 2).............. (0.92)% (1.07)% (1.57)% 2.59%(B)
Net Investment Loss Before
Reimbursement (Note 2).............. (1.13)% (1.22)% (1.77)% (12.66)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 237% 247% 169% --
Net Assets at End of Period (in
thousands).......................... $81,404 $101,746 $95,246 $300
Number of Shares Outstanding at End of
Period (in thousands)............... 5,491 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 year because of the timing of sales and redemptions of Fund
shares and the amounts of per share realized and unrealized gain and loss at
such time.
* FROM COMMENCEMENT OF OPERATIONS DECEMBER 28, 1995
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MID CAP GROWTH
PORTFOLIO
------------------------------------------------
FOR THE YEARS ENDED FOR THE
PERIOD
DECEMBER 31, ENDED
-------------------------------- DECEMBER 31,
1998 1997 1996*
-------- ------------- -------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $12.43 $10.27 $10.00
------ ------ -------------
Income from Investment Operations:
Net Investment Income (Loss)........ (0.06) (0.06) 0.01
Net Realized and Unrealized Gain on
Investments....................... 1.59 2.75 0.27
------ ------ -------------
Total from Investment
Operations...................... 1.53 2.69 0.28
------ ------ -------------
Distributions to Shareholders:
From Net Investment Income.......... -- -- (0.01)
From Net Realized Gain.............. (0.31) (0.53) --
------ ------ -------------
Total Distributions to
Shareholders.................... (0.31) (0.53) (0.01)
------ ------ -------------
Net Increase in Net Asset Value....... 1.22 2.16 0.27
------ ------ -------------
Net Asset Value -- End of Period...... $13.65 $12.43 $10.27
------ ------ -------------
------ ------ -------------
TOTAL INVESTMENT RETURN................. 12.31% 26.18% 2.75%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.66% 2.00% 2.00%(B)
Expenses Before Reimbursement (Note
2).................................. 2.56% 3.27% 113.02%(B)
Net Investment Income (Loss) After
Reimbursement (Note 2).............. (0.38)% (0.69)% 0.87%(B)
Net Investment Loss Before
Reimbursement (Note 2).............. (1.27)% (1.96)% (110.15)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 211% 163% --
Net Assets at End of Period (in
thousands).......................... $8,124 $8,373 $1,642
Number of Shares Outstanding at End of
Period (in thousands)............... 595 673 160
</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.
26
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
AGGRESSIVE MICRO CAP
PORTFOLIO
--------------------------------
FOR THE
FOR THE YEAR PERIOD
ENDED ENDED
DECEMBER 31, DECEMBER 31,
1998 1997*
---------------- -------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $20.40 $15.64
------ -------------
Income from Investment Operations:
Net Investment Loss................. (0.14) (0.05)
Net Realized and Unrealized Gain on
Investments....................... 0.16 5.17
------ -------------
Total from Investment
Operations...................... 0.02 5.12
------ -------------
Distributions to Shareholders:
From Net Realized Gain.............. -- (0.36)
------ -------------
Net Increase in Net Asset Value....... 0.02 4.76
------ -------------
Net Asset Value -- End of Period...... $20.42 $20.40
------ -------------
------ -------------
TOTAL INVESTMENT RETURN................. 0.10% 32.76%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.51% 1.55%(B)
Expenses Before Reimbursement (Note
2).................................. 2.50% 3.21%(B)
Net Investment Loss After
Reimbursement (Note 2).............. (0.71)% (0.54)%(B)
Net Investment Loss Before
Reimbursement (Note 2).............. (1.70)% (2.20)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 196% 86%
Net Assets at End of Period (in
thousands).......................... $ 9,651 $10,190
Number of Shares Outstanding at End of
Period (in thousands)............... 473 500
</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.
27
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SMALL CAP VALUE
PORTFOLIO LARGE CAP GROWTH
-------------------------------- PORTFOLIO
FOR THE ---------------------------------
FOR THE YEAR PERIOD FOR THE YEAR FOR THE PERIOD
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997* 1998 1997*
---------------- ------------- --------------- ---------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $10.12 $10.00 $10.25 $10.00
------ ------ ------ ------
Income from Investment Operations:
Net Investment Income (Loss)........ 0.07 0.01 (0.02) 0.01
Net Realized and Unrealized Gain
(Loss) on Investments............. (0.91) 0.12 4.24 0.25
------ ------ ------ ------
Total from Investment
Operations...................... (0.84) 0.13 4.22 0.26
------ ------ ------ ------
Distributions to Shareholders:
From Net Investment Income.......... (0.07) (0.01) -- (0.01)
------ ------ ------ ------
Net Increase (Decrease) in Net Asset
Value............................... (0.91) 0.12 4.22 0.25
------ ------ ------ ------
Net Asset Value -- End of Period...... $9.21 $10.12 $14.47 $10.25
------ ------ ------ ------
------ ------ ------ ------
TOTAL INVESTMENT RETURN................. (8.28)% 1.25%(A) 41.17% 2.56%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.53% 1.75%(B) 1.54% 1.90%(B)
Expenses Before Reimbursement (Note
2).................................. 13.01% 7.74%(B) 9.11% 6.66%(B)
Net Investment Income (Loss) After
Reimbursement (Note 2).............. 1.12% 1.94%(B) (0.43)% 2.40%(B)
Net Investment Loss Before
Reimbursement (Note 2).............. (10.36)% (4.03)%(B) (8.00)% (2.36)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 85% 2% 80% --
Net Assets at End of Period (in
thousands).......................... $857 $101 $2,402 $103
Number of Shares Outstanding at End of
Period (in thousands)............... 93 10 166 10
</TABLE>
- -------------------------------------------------
(A) Total returns for periods of less than one year are not annualized.
(B) Annualized
* FROM COMMENCEMENT OF OPERATION DECEMBER 19, 1997
SEE NOTES TO FINANCIAL STATEMENTS.
28
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE CAP VALUE
PORTFOLIO INTERNATIONAL EQUITY
-------------------------------- PORTFOLIO
FOR THE ---------------------------------
FOR THE YEAR PERIOD FOR THE YEAR FOR THE PERIOD
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997* 1998 1997**
---------------- ------------- --------------- ---------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $10.11 $10.00 $10.00 $10.00
------ ------ ------- -------
Income from Investment Operations:
Net Investment Income (Loss)........ 0.16 0.01 (0.01) --
Net Realized and Unrealized Gain
(Loss) on Investments............. 1.91 0.11 0.67 --
------ ------ ------- -------
Total from Investment
Operations...................... 2.07 0.12 0.66 --
------ ------ ------- -------
Distributions to Shareholders:
From Net Investment Income.......... (0.16) (0.01) -- --
From Net Realized Gain.............. (0.63) -- (0.23) --
------ ------ ------- -------
Total Distributions to
Shareholders.................... (0.79) (0.01) (0.23) --
------ ------ ------- -------
Net Increase in Net Asset Value....... 1.28 0.11 0.43 --
------ ------ ------- -------
Net Asset Value -- End of Period...... $11.39 $10.11 $10.43 $10.00
------ ------ ------- -------
------ ------ ------- -------
TOTAL INVESTMENT RETURN................. 20.48% 1.18%(A) 6.64% --
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.42% 1.50%(B) 1.75% 1.75%(B)
Expenses Before Reimbursement (Note
2).................................. 14.34% 5.03%(B) 3.29% 5.48%(B)
Net Investment Income (Loss) After
Reimbursement (Note 2).............. 1.69% 3.09%(B) (0.14)% (1.75)%(B)
Net Investment Loss Before
Reimbursement (Note 2).............. (11.22)% (0.45)%(B) (1.68)% (5.48)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 256% -- 41% --
Net Assets at End of Period (in
thousands).......................... $655 $101 $10,326 $10
Number of Shares Outstanding at End of
Period (in thousands)............... 58 10 990 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.
29
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
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: the Aggressive Small Cap Equity
Portfolio, a diversified open-end management company portfolio, 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 the Aggressive Small Cap
Portfolio), a diversified open-end management company portfolio, the Small Cap
Value Portfolio, a diversified open-end management company portfolio, 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 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 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 the 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 December 31, 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 $50,190, $73,440, $73,440, $73,440 and $73,440, respectively.
2. Investment Advisory Fees and Other Transactions with Afflilates
Investment advisory services are provided by Navellier Management, Inc. (the
"Adviser"). Effective May 1, 1998, 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
Small Cap Equity Portfolio, the Aggressive Growth Portfolio, the Mid Cap Growth
Portfolio, the Aggressive Micro Cap Portfolio, the Small Cap Value Portfolio,
and the 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 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, 1998, the Adviser
voluntarily agreed not to
30
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
seek future reimbursement of all unreimbursed past expense incurred on behalf of
the Fund. During the year ended December 31, 1998, the Adviser paid operating
expenses of the Aggressive Small Cap Equity Portfolio, 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 $305,224, $345,521,
$99,926, $107,774, $69,010, $70,472, $68,543, and $116,757, respectively. Under
the operating expense agreement, the Adviser requested, and the Aggressive Small
Cap Equity Portfolio, 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, $117,651, $164,249, $17,033, $13,974,
$986, $1,461, $873, and $16,378, respectively, of such expenses. Effective May
1, 1998, the Adviser agreed to limit the total normal expenses of each Portfolio
to 1.49% of average annual net assets, except for the Large Cap Value
Portfolio's expense limitation of 1.40% and the International Equity Portfolio's
expense limitation of 1.75%.
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 year ended December 31, 1998, Trustees' fees and expenses
totaled $25,500.
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
Small Cap Equity Portfolio, 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 Fund. 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 year ended December 31, 1998, purchases and sales (including
maturities) of securities (excluding short-term securities) were as follows:
<TABLE>
<CAPTION>
AGGRESIVE AGGRESSIVE MID CAP AGGRESSIVE
SMALL CAP EQUITY GROWTH GROWTH MICRO CAP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Purchases.................................... $ 73,746,379 $ 192,553,844 $ 17,779,736 $17,049,010
----------------- ------------- ------------ -------------
----------------- ------------- ------------ -------------
Sales........................................ $ 98,638,433 $ 223,588,024 $ 18,851,872 $17,462,892
----------------- ------------- ------------ -------------
----------------- ------------- ------------ -------------
<CAPTION>
LARGE CAP LARGE CAP INTERNATIONAL
SMALL CAP VALUE GROWTH VALUE EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
Purchases.................................... $ 1,279,497 $ 2,454,057 $ 1,671,541 $12,352,270
----------------- ------------- ------------ -------------
----------------- ------------- ------------ -------------
Sales........................................ $ 450,444 $ 714,375 $ 1,188,768 $ 2,843,156
----------------- ------------- ------------ -------------
----------------- ------------- ------------ -------------
</TABLE>
31
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
6. Unrealized Appreciation and Depreciation of Investments
Unrealized appreciation and depreciation as of December 31, 1998, based on
the cost for Federal income tax purposes is as follows:
<TABLE>
<CAPTION>
AGGRESSIVE AGGRESSIVE MID CAP AGGRESSIVE
SMALL CAP EQUITY GROWTH GROWTH MICRO CAP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Gross Unrealized Appreciation.................. $ 9,785,243 $ 11,149,032 $ 1,725,489 $ 2,202,901
Gross Unrealized Depreciation.................. (1,160,978) (919,282) (45,531) (234,254)
----------------- ------------ ----------- -------------
Net Unrealized Appreciation.................... $ 8,624,265 $ 10,229,750 $ 1,679,958 $ 1,968,647
----------------- ------------ ----------- -------------
----------------- ------------ ----------- -------------
Cost of Investments for Federal Income Tax
Purposes...................................... $ 38,608,845 $ 93,510,233 $ 6,556,398 $ 7,614,556
----------------- ------------ ----------- -------------
----------------- ------------ ----------- -------------
</TABLE>
<TABLE>
<CAPTION>
LARGE CAP LARGE CAP INTERNATIONAL
SMALL CAP VALUE GROWTH VALUE EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Gross Unrealized Appreciation.................. $ 55,278 $ 547,955 $ 73,772 $ 735,754
Gross Unrealized Depreciation.................. (102,540) (891) (18,948) (943,002)
----------------- ------------ ----------- -------------
Net Unrealized Appreciation (Depreciation)..... $ (47,262) $ 547,064 $ 54,824 $ (207,248)
----------------- ------------ ----------- -------------
----------------- ------------ ----------- -------------
Cost of Investments for Federal Income Tax
Purposes...................................... $ 904,306 $ 1,917,560 $ 597,849 $10,545,259
----------------- ------------ ----------- -------------
----------------- ------------ ----------- -------------
</TABLE>
7. Net Assets
At December 31, 1998, net assets consisted of the following:
<TABLE>
<CAPTION>
AGGRESSIVE AGGRESSIVE MID CAP AGGRESSIVE
SMALL CAP EQUITY GROWTH GROWTH MICRO CAP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Paid-in-Capital................................ $ 42,291,459 $ 62,208,028 $ 6,032,218 $ 8,080,116
Undistributed Net Investment Loss.............. -- -- -- (11,986)
Accumulated Net Realized Gain (Loss) on
Investment Transactions....................... (3,656,342) 8,784,082 361,305 (385,331)
Net Unrealized Appreciation (Depreciation) of
Investments................................... 8,624,265 10,411,996 1,730,143 1,968,647
----------------- ------------ ----------- -------------
NET ASSETS..................................... $ 47,259,382 $ 81,404,106 $ 8,123,666 $ 9,651,446
----------------- ------------ ----------- -------------
----------------- ------------ ----------- -------------
</TABLE>
<TABLE>
<CAPTION>
LARGE CAP LARGE CAP INTERNATIONAL
SMALL CAP VALUE GROWTH VALUE EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------------- ------------ ----------- -------------
<S> <C> <C> <C> <C>
Paid-in-Capital................................ $ 952,946 $ 1,902,258 $ 616,269 $10,532,078
Accumulated Net Realized Gain (Loss) on
Investment and Foreign Currency
Transactions.................................. (49,263) (51,859) (15,654) (3,010)
Net Unrealized Appreciation (Depreciation) of
Investment and Foreign Currency
Transactions.................................. (46,587) 551,148 54,824 (202,622)
----------------- ------------ ----------- -------------
NET ASSETS..................................... $ 857,096 $ 2,401,547 $ 655,439 $10,326,446
----------------- ------------ ----------- -------------
----------------- ------------ ----------- -------------
</TABLE>
32
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
8. Federal Income Tax
Permanent differences between tax and financial reporting of net investment
income and net realized gain/ loss are reclassified. As of December 31, 1998,
net investment losses were reclassified to paid-in-capital and accumulated net
realized gain/loss on investment transactions as follows:
<TABLE>
<CAPTION>
AGGRESSIVE SMALL AGGRESSIVE MID CAP
CAP EQUITY GROWTH GROWTH
PORTFOLIO PORTFOLIO PORTFOLIO
----------------- ----------- -------------
<S> <C> <C> <C>
Reduction of paid-in capital.................................. $ 125,792 -- $ (34,943)
Reduction of accumulated net realized gain.................... $ 306,620 $(807,971) --
</TABLE>
<TABLE>
<CAPTION>
LARGE CAP INTERNATIONAL
AGGRESSIVE MICRO GROWTH EQUITY
CAP PORTFOLIO PORTFOLIO PORTFOLIO
----------------- ----------- -------------
<S> <C> <C> <C>
Reduction of paid-in-capital.................................. $ (55,104) $ (3,965) --
Reduction of accumulated net realized gain.................... -- -- $ (9,062)
</TABLE>
Additionally, as of December 31, 1998, the Aggressive Small Cap Equity
Portfolio reclassified $5,397,358 of accumulated net realized gain on
investments to paid-in-capital.
At December 31, 1998, for Federal income tax purposes, the following Funds
had capital loss carryovers which may be applied against future net taxable
realized gains of each succeeding year until the earlier of its utilization or
its expiration:
<TABLE>
<CAPTION>
AGGRESSIVE SMALL LARGE CAP AGGRESSIVE
CAP EQUITY SMALL CAP VALUE GROWTH MICRO CAP
EXPIRES DECEMBER 31, PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
- ------------------------------------------- ----------------- ----------------- ----------- -------------
<S> <C> <C> <C> <C>
2005....................................... -- $ 50 -- --
2006....................................... $ 3,656,342 32,827 $ 39,186 $ 422,402
----------------- ------- ----------- -------------
$ 3,656,342 $ 32,877 $ 39,186 $ 422,402
----------------- ------- ----------- -------------
----------------- ------- ----------- -------------
</TABLE>
9. Reorganization
On July 24, 1998, the Navellier Aggressive Small Cap Equity Portfolio of the
Navellier Performance Funds (the "Acquiring Portfolio") acquired all the net
assets of the Navellier Aggressive Small Cap Equity Portfolio of the Navellier
Series Fund (the "Series Fund") pursuant to a plan of reorganization approved by
the Series Fund's shareholders on June 26, 1998. The acquisition was
accomplished by a tax-free exchange of 3,318,156 shares of the Acquiring
Portfolio (valued at $54,597,912) for the 3,318,156 shares of the Series Fund
outstanding on July 24, 1998. Series Fund's net assets at that date
($54,597,912), including $6,897,784 of unrealized appreciation, were combined
with those of the Acquiring Portfolio. The aggregate net assets of the Acquiring
Portfolio and Series Fund immediately before the acquisition were $10,298 and
$54,597,912, respectively.
33
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES
THE NAVELLIER PERFORMANCE FUNDS
RENO, NEVADA
We have audited the accompanying statement of assets and liabilities of
Navellier Aggressive Small Cap Equity Portfolio, Navellier Aggressive Growth
Portfolio, Navellier Mid Cap Growth Portfolio, Navellier Aggressive Micro Cap
Portfolio, Navellier Small Cap Value Portfolio, Navellier Large Cap Growth
Portfolio, Navellier Large Cap Value Portfolio and Navellier International
Equity Portfolio, each a series of shares of the Navellier Performance Funds
including the portfolio of investments, as of December 31, 1998, and the related
statement of operations, the statement of changes in net assets, and the
financial highlights for the periods indicated therein. These financial
statements are the responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and financial highlights
based on our audits. The financial highlights presented for the year ended
December 31, 1996 and prior were audited by other auditors whose report dated
January 31, 1997, expressed an unqualified opinion on those statements.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1998, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provides a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Navellier Aggressive Small Cap Equity Portfolio, Navellier Aggressive Growth
Portfolio, Navellier Mid Cap Growth Portfolio, Navellier Aggressive Micro Cap
Portfolio, Navellier Small Cap Value Portfolio, Navellier Large Cap Growth
Portfolio, Navellier Large Cap Value Portfolio and Navellier International
Equity Portfolio as of December 31, 1998, the results of its operations, the
changes in its net assets, and the financial highlights for the periods referred
to above, in conformity with generally accepted accounting principles.
[SIGNATURE]
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
February 19, 1999
34
<PAGE>
NAVELLIER OFFICES:
ONE EAST LIBERTY THIRD FLOOR
RENO, NEVEADA 89501
800-887-8671 P.S.T.
CUSTODIAN & TRANSFER AGENT:
RUSHMOER TRUST AND SAVINGS, FSB
4922 FAIRMONT AVENUE
BETHESDA, MD 20814
800-622-1386 E.S.T.
