<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
SEMI-ANNUAL REPORT
JUNE 30, 1999
<PAGE>
SEMIANNUAL REPORT, June 30, 1999
NAVELLIER PERFORMANCE FUNDS
1 East Liberty, Third Floor
Reno, NV 89501
(800) 887-8671
- --------------------------------------------------------------------------------
August 24, 1999
Dear Shareholder:
The first half of 1999 generated significant gains for most investors. Large
cap stocks finished ahead of small caps for the period, even though small caps
dramatically outperformed large caps in the second quarter. The S&P 500*
generated a return of 12.38% over the first six months of the year and the
Russell 2000 Index* was up 9.28%. In the second quarter, the Russell 2000 was up
15.55% compared to 7.05% for the S&P 500.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH PORTFOLIO
AGGRESSIVE GROWTH RUSSELL 2000 RUSSELL 2000 GROWTH
<S> <C> <C> <C>
12/28/95 $10,000 $10,000 $10,000
12/31/95 $9,990 $10,000 $10,000
1/31/96 $9,630 $9,989 $9,917
2/29/96 $10,620 $10,301 $10,369
3/31/96 $11,330 $10,511 $10,575
4/30/96 $13,020 $11,073 $11,387
5/31/96 $14,040 $11,509 $11,971
6/30/96 $13,050 $11,036 $11,193
7/31/96 $11,180 $10,073 $9,826
8/31/96 $11,850 $10,658 $10,553
9/30/96 $12,730 $11,075 $11,097
10/31/96 $12,150 $10,904 $10,618
11/30/96 $12,220 $11,354 $10,914
12/31/96 $12,250 $11,651 $11,126
1/31/97 $12,440 $11,884 $11,405
2/28/97 $10,880 $11,596 $10,716
3/31/97 $10,670 $11,049 $9,959
4/30/97 $10,530 $11,080 $9,844
5/31/97 $11,290 $12,312 $11,323
6/30/97 $12,040 $12,840 $11,707
7/31/97 $13,200 $13,437 $12,306
8/31/97 $13,280 $13,745 $12,676
9/30/97 $14,560 $14,751 $13,687
10/31/97 $14,010 $14,104 $12,865
11/30/97 $13,500 $14,012 $12,558
12/31/97 $13,447 $14,257 $12,566
1/31/98 $12,992 $14,032 $12,399
2/28/98 $13,922 $15,069 $13,494
3/31/98 $14,671 $15,690 $14,060
4/30/98 $14,691 $15,776 $14,146
5/31/98 $13,892 $14,926 $13,118
6/30/98 $14,135 $14,957 $13,251
7/30/98 $13,659 $13,746 $12,145
8/30/98 $10,816 $11,076 $9,342
9/30/98 $11,717 $11,943 $10,289
10/31/98 $11,676 $12,431 $10,826
11/30/98 $13,356 $13,082 $11,666
12/31/98 $14,995 $13,892 $12,722
1/31/99 $15,582 $14,076 $13,294
2/28/99 $14,388 $12,936 $12,078
3/31/99 $15,025 $13,138 $12,509
4/30/99 $16,735 $14,315 $13,613
5/31/99 $16,735 $14,525 $13,635
6/30/99 $18,152 $15,181 $14,353
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH PORTFOLIO
TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 2000
JUNE 30, 1999 FUND RUSSELL 2000 GROWTH
- ------------------------------- --------- ------------- -------------
<S> <C> <C> <C>
Six Months 21.05% 9.28% 12.82%
Annualized Since Inception* 18.53% 13.89% 10.85%
Value of a $10,000 investment
over Life of Fund* $ 18,170 $ 15,181 $ 14,353
*Inception December 28, 1995
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MID CAP GROWTH PORTFOLIO
MID CAP GROWTH RUSSELL 2000 RUSSELL 2000 GROWTH
<S> <C> <C> <C>
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
5/30/97 $10,835 $10,844 $10,833
6/30/97 $11,385 $11,310 $11,156
7/31/97 $12,506 $11,835 $12,330
8/29/97 $12,426 $12,106 $12,280
9/30/97 $13,386 $12,993 $13,041
10/31/97 $12,766 $12,422 $12,329
11/28/97 $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
5/30/98 $14,039 $13,146 $12,682
6/30/98 $14,404 $13,174 $12,811
7/30/98 $13,768 $12,107 $11,742
8/30/98 $11,651 $9,756 $9,032
9/30/98 $12,485 $10,520 $9,948
10/30/98 $12,110 $10,949 $10,467
11/30/98 $12,944 $11,522 $11,279
12/30/98 $14,561 $12,236 $12,300
1/30/99 $16,737 $12,398 $12,853
2/28/99 $16,011 $11,394 $11,677
3/30/99 $18,507 $11,572 $12,093
4/29/99 $19,851 $12,609 $13,161
5/29/99 $19,585 $12,793 $13,182
6/28/99 $21,569 $13,371 $13,877
</TABLE>
<TABLE>
<CAPTION>
MID CAP GROWTH PORTFOLIO
TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 2000
JUNE 30, 1999 FUND RUSSELL 2000 GROWTH
- ----------------------------- --------- ------------- ---------------
<S> <C> <C> <C>
Six Months 48.13% 9.28% 12.82%
Annualized Since Inception* 34.57% 11.87% 13.49%
Value of a $10,000 investment
over Life of Fund* $ 21,569 $ 13,371 $ 13,877
*Inception November 26, 1996
</TABLE>
Small cap stocks outperformed large cap stocks during the second quarter
largely because institutional money began to recognize that the fundamentals for
small caps were, and continue to be, far superior to large caps. The
significance of the sudden resurgence of small capitalization stocks is that the
breadth and power of the overall stock market is suddenly broadening out. This
is a very bullish event, because it is signaling that the stock market is no
longer focusing on blue chips and index investments. Liquidity finally arrived
in the second quarter and proved to be the catalyst for small and mid cap
stocks. We expect that transactional volume will remain high in these asset
classes through the end of the year. Although we had a much-anticipated move in
interest rates during the latter half of the period, it did little to dampen
investor enthusiasm.
So far, 1999 has been a great year for the Navellier Performance Funds. We
are particularly proud of the performance of our Mid Cap Growth and Large Cap
Growth Portfolios. Over the past 6 months, ending June 30, 1999, the Mid Cap
Growth and the Large Cap Growth Portfolios were in the top 1% and 6% of their
Morningstar** categories with total returns during the period of 48.13% and
16.17%, respectively.
<PAGE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AGGRESSIVE MICRO CAP PORTFOLIO
AGGRESSIVE MICRO CAP RUSSELL 2000 RUSSELL 2000 GROWTH
<S> <C> <C> <C>
3/17/97 $10,000.00 $10,000.00 $10,000.00
$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
1/31/99 $13,400.10 $12,220.12 $12,681.48
2/28/99 $12,150.55 $11,230.37 $11,521.42
3/31/99 $11,454.19 $11,405.69 $11,931.77
4/30/99 $12,449.92 $12,427.64 $12,985.34
5/31/99 $13,068.19 $12,609.09 $13,006.12
6/30/99 $13,855.66 $13,179.02 $13,691.54
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE MICRO CAP PORTFOLIO
TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 2000
JUNE 30, 1999 FUND RUSSELL 2000 GROWTH
- ----------------------------- --------- ------------- ---------------
<S> <C> <C> <C>
Six Months 4.26% 9.28% 12.82%
Annualized Since Inception* 15.32% 12.82% 14.72%
Value of a $10,000 investment
over Life of Fund* $ 13,856 $ 13,179 $ 13,692
*Inception March 17, 1997
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
SMALL CAP VALUE PORTFOLIO
SMALL CAP VALUE RUSSELL 2000 RUSSELL 2000 VALUE
<S> <C> <C> <C>
12/19/97 $10,000 $10,000 $10,000
12/1/97 $10,120 $10,410 $10,363
1/31/98 $9,880 $10,246 $10,175
2/28/98 $10,400 $11,003 $10,791
3/31/98 $10,940 $11,456 $11,229
4/30/98 $11,100 $11,519 $11,284
5/31/98 $10,690 $10,898 $10,885
6/30/98 $10,310 $10,921 $10,823
7/30/98 $9,620 $10,036 $9,975
8/30/98 $8,240 $8,087 $8,413
9/30/98 $8,380 $8,721 $8,888
10/31/98 $8,510 $9,076 $9,152
11/30/98 $8,890 $9,552 $9,400
12/31/98 $9,210 $10,143 $9,696
1/31/99 $9,065 $10,278 $9,476
2/28/99 $8,419 $9,446 $8,829
3/31/99 $8,379 $9,593 $8,756
4/30/99 $8,853 $10,453 $9,555
5/31/99 $9,216 $10,605 $9,849
6/30/99 $9,871 $11,085 $10,205
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP VALUE PORTFOLIO
TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 2000
JUNE 30, 1999 FUND RUSSELL 2000 VALUE
- -------------------------------- --------- ------------- -------------
<S> <C> <C> <C>
Six Months 6.30% 9.28% 5.26%
Annualized Since Inception* (0.84)% 6.97% 1.34%
Value of a $10,000 investment
over Life of Fund* $9,871 $ 11,085 $10,205
*Inception December 19, 1997
</TABLE>
Our small cap funds, namely the Aggressive Micro Cap Portfolio, Aggressive
Small Cap Equity Portfolio, and the Small Cap Value Portfolio, have been
hindered by the weak market for small cap stocks. However, we are pleased that
all of our small cap portfolios rebounded impressively in the second quarter
(reporting returns of 20.97 %, 22.42%, and 17.81% respectively), outperforming
all of our larger capitalization funds. The second quarter was the first time
that small cap stocks beat large cap stocks in a couple of years.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LARGE CAP GROWTH PORTFOLIO
LARGE CAP GROWTH S&P 500 RUSSELL 1000 GROWTH
<S> <C> <C> <C>
12/19/97 $10,000 $10,000 $10,000
12/30/97 $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
7/30/98 $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
1/31/99 $15,959 $13,724 $14,795
2/28/99 $15,259 $13,297 $14,325
3/31/99 $16,549 $13,829 $14,874
4/30/99 $16,009 $14,364 $14,893
5/31/99 $15,189 $14,025 $14,436
6/30/99 $16,820 $14,803 $15,447
</TABLE>
<TABLE>
<CAPTION>
LARGE CAP GROWTH PORTFOLIO
TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 1000
JUNE 30, 1999 FUND S&P 500 GROWTH
- ----------------------------------- --------- ----------- -------------
<S> <C> <C> <C>
Six Months 16.17% 12.38% 10.45%
Annualized Since Inception* 40.51% 29.25% 32.90%
Value of a $10,000 investment over
Life of Fund* $ 16,820 $ 14,803 $ 15,447
*Inception December 19, 1997
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
LARGE CAP VALUE PORTFOLIO
LARGE CAP VALUE RUSSELL 1000 RUSSELL 1000 VALUE
<S> <C> <C> <C>
12/19/97 $10,000 $10,000 $10,000
12/1/97 $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
7/30/98 $11,249 $11,585 $11,280
8/30/98 $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
1/31/99 $12,190 $13,274 $11,934
2/28/99 $12,072 $12,853 $11,765
3/31/99 $12,532 $13,346 $12,009
4/30/99 $14,191 $13,903 $13,130
5/31/99 $13,881 $13,603 $12,986
6/30/99 $14,009 $14,297 $13,362
</TABLE>
<TABLE>
<CAPTION>
LARGE CAP VALUE PORTFOLIO
TOTAL RUSSELL
RETURNS FOR PERIODS ENDED 1000
JUNE 30, 1999 FUND RUSSELL 1000 VALUE
- ----------------------------------- --------- ------------- -----------
<S> <C> <C> <C>
Six Months 14.93% 11.54% 12.87%
Annualized Since Inception* 24.67% 26.34% 20.87%
Value of a $10,000 investment over
Life of Fund* $ 14,009 $ 14,297 $ 13,362
*Inception December 19, 1997
</TABLE>
2
<PAGE>
The International Equity Portfolio is lagging the Morgan Stanley EAFE Index*
this year. This is primarily due to the decision to invest approximately 10% of
the Fund in Japanese stocks. Japan is now overpowering the EAFE Index due to the
currency appreciation of the Japanese Yen versus the U.S. dollar and a
rebounding Japanese economy. The International Equity Portfolio is predominately
invested in continental Europe.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO
INTERNATIONAL EQUITY EAFE
<S> <C> <C>
12/19/97 $10,000 $10,000
12/1/97 $10,000 $10,090
1/31/98 $10,020 $10,554
2/28/98 $10,120 $11,234
3/31/98 $10,790 $11,582
4/30/98 $10,800 $11,676
5/31/98 $11,080 $11,622
6/30/98 $10,950 $11,713
7/30/98 $11,420 $11,835
8/30/98 $9,780 $10,371
9/30/98 $8,910 $10,368
10/31/98 $9,620 $11,451
11/30/98 $10,280 $12,041
12/31/98 $10,430 $12,519
1/31/99 $10,429 $12,518
2/28/99 $9,979 $12,515
3/31/99 $9,979 $13,041
4/30/99 $10,184 $13,572
5/31/99 $9,662 $12,876
6/30/99 $9,856 $13,380
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO
TOTAL
RETURNS FOR PERIODS ENDED
JUNE 30, 1999 FUND EAFE INDEX
- ---------------------------------------- --------- -------------
<S> <C> <C>
Six months (7.57)% 3.24%
Annualized Since Inception* (0.95)% 21.27%
Value of a $10,000 investment
over Life of Fund* $ 9,856 $ 13,380
*Inception December 26, 1997
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AGGRESSIVE SMALL CAP EQUITY
AGGRESSIVE SMALL CAP EQUITY RUSSELL 2000 RUSSELL 2000 GROWTH
<S> <C> <C> <C>
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
7/30/98 $20,822 $17,810 $16,190.18
8/30/98 $16,312 $14,351 $12,453.48
9/30/98 $17,222 $15,475 $13,716.27
10/30/98 $17,394 $16,106 $14,432.26
11/30/98 $18,673 $16,950 $15,552.20
12/30/98 $21,086 $17,999 $16,959.67
1/30/99 $20,980 $18,239 $17,722.53
2/28/99 $18,646 $16,761 $16,101.34
3/30/99 $19,345 $17,023 $16,674.81
4/30/99 $20,730 $18,548 $18,147.20
5/30/99 $21,705 $18,819 $18,176.23
6/30/99 $23,682 $19,670 $19,134.12
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 2000
JUNE 30, 1999 FUND RUSSELL 2000 GROWTH
- ------------------------------- --------- ------------- -------------
<S> <C> <C> <C>
Six Months 12.31% 9.28% 12.82%
Annualized Since Inception* 17.85% 13.75% 13.16%
Value of a $10,000 investment
over Life of Fund* $ 23,682 $ 19,670 $ 19,134
*Inception April 1, 1994
</TABLE>
This is the time of year when the stock market is very turbulent for
seasonal reasons. However, the stock market should rebound impressively in
September as many Wall Street professionals return from their summer hiatus.
Although trading volume and stock prices typically rise after Labor Day when
Wall Street professionals return, skeptics may call this seasonal surge a "dead
cat bounce". Only time will tell, but we suspect that in late September, as
earnings pre-announcement season approaches, the analyst community will start to
aggressively revise their third quarter earnings estimates significantly higher,
just as they did in the last earnings pre-announcement season.
The bottom line is that the stock market has consolidated on light trading
volume, which means that there was no panic selling by investors, and now is the
time for the bargain hunting to begin. Investors must be careful, since Federal
Reserve Board policy could disrupt the stock market. It appears that the Federal
Reserve Board is trying to engineer a "soft" landing for the U.S. economy as GDP
growth slows and interest rates rise.
The corporate earnings environment remains ideal. The third quarter earnings
for the S&P 500 are now projected by the analyst community to grow in excess of
21% annually. We are confident that the day-to-day volatility that now
characterizes the stock market will subside within the next couple of months. We
believe that many stocks in our portfolios, especially many of our favorite mid
capitalization issues, will surge in the upcoming months.
3
<PAGE>
Always feel free to contact us at (800) 887-8671 if you have any questions
or if we can help you in any way. Additionally, please feel free to check our
web site (www.navellier.com) for daily fund prices and updated commentary on the
market environment.
Sincerely,
<TABLE>
<S> <C>
[SIGNATURE] [SIGNATURE]
LOUIS G. NAVELLIER ALAN ALPERS
</TABLE>
This material has been preceded by a Navellier Performance Funds prospectus.
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.
*Indices:
The 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. This index is
considered representative of a pertinent market sector in general. It is not an
investment product available for sale.
The Russell 1000-Registered Trademark- Index consists of the 1,000 largest
securities in the Russell 3000 Index. It is not an investment product available
for sale.
The 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.
The Russell 1000-Registered Trademark- Value Index contains those Russell 1000
securities with a less-than-average growth orientation. It is not an investment
product available for sale.
The Russell 2000-Registered Trademark- Index is an unmanaged index consisting of
the smallest 2000 stocks in the Russell 3000 Index. It is considered
representative of the small cap market in general. It is not an investment
product available for sale.
The Russell 2000-Registered Trademark- Growth Index contains those Russell 2000
securities with a greater-than-average growth orientation. It is not an
investment product available for sale.
The Russell 2000-Registered Trademark- Value Index contains those Russell 2000
securities with a less-than-average growth orientation. It is not an investment
product available for sale.
The Russell 3000-Registered Trademark- Index measures the performance of the
3,000 largest U.S. companies based on total market capitalization, which
represents approximately 98% of the investable U.S. equity market. It is not an
investment product available for sale.
The S&P 500 is an unmanaged index consisting of 500 large cap stocks. It is
considered representative of the stock market as a whole. It is not an
investment product available for sale.
**Source: Morningstar Principia Pro Mutual Funds 6/99 release
4
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
<TABLE>
<CAPTION>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 92.9%
APPAREL -- 15.8%
35,000 American Eagle Outfitters, Inc.* $ 1,592,500
35,000 Children's Place Retail Stores, Inc.* 1,417,500
11,000 Fossil, Inc.* 532,125
20,000 K-Swiss, Inc. 930,000
37,500 Quiksilver, Inc.* 977,344
30,000 Tarrant Apparel Group * 682,500
------------
6,131,969
------------
BIOTECHNOLOGY AND DRUGS -- 8.5%
22,000 Andrx Corp.* 1,696,750
45,000 Syncor International Corp.* 1,620,000
------------
3,316,750
------------
BUSINESS SERVICES -- 4.4%
56,000 Copart, Inc.* 1,190,000
101,400 PDS Financial Corp.* 500,662
------------
1,690,662
------------
COMMUNICATION EUIPMENT AND
SERVICES -- 5.0%
50,000 Polycom, Inc.* 1,950,000
------------
COMPUTER SOFTWARE AND
PROGRAMMING -- 6.2%
30,000 AVT Corp.* 1,136,250
28,000 Kronos, Inc.* 1,274,000
------------
2,410,250
------------
ELECTRONICS -- 10.0%
15,000 CTS Corp. 1,050,000
48,000 DII Group, Inc.* 1,791,000
35,100 Plexus Corp.* 1,057,388
------------
3,898,388
------------
ENGINEERING AND CONSTRUCTION -- 8.0%
35,000 Astec Industries, Inc.* 1,426,250
24,000 Elcor Corp. 1,048,500
22,000 URS Corp.* 644,875
------------
3,119,625
------------
<CAPTION>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
INSURANCE -- 5.1%
30,000 Hoopers Holmes, Inc. $ 611,250
20,000 E. W. Blanch Holdings, Inc. 1,363,750
------------
1,975,000
------------
MEDICAL EQUIPMENT AND
SUPPLIES -- 3.5%
61,000 Summit Technology, Inc.* 1,342,000
------------
PLASTICS -- 2.7%
32,000 Geon Company 1,032,000
------------
RECREATIONAL VEHICLES -- 5.3%
25,000 Monaco Coach Corp.* 1,057,812
45,000 Winnebago Industries, Inc.* 1,012,500
------------
2,070,312
------------
SEMICONDUCTORS AND RELATED -- 11.3%
20,000 Cree Research, Inc.* 1,538,750
17,000 Power Integrations, Inc.* 1,243,125
12,000 QLogic Corp.* 1,584,000
------------
4,365,875
------------
TRANSPORTATION -- 3.6%
12,700 American Freightways Corp.* 248,444
41,000 Forward Air Corp.* 1,153,125
------------
1,401,569
------------
UTILITIES -- 3.5%
25,000 Calpine Corp.* 1,350,000
------------
TOTAL COMMON STOCKS
(COST $26,934,317) 36,054,400
------------
MONEY MARKET FUNDS -- 7.1%
2,760,649 Fund for Government Investors
(Cost $2,760,649) 2,760,649
------------
TOTAL INVESTMENTS -- 100.0%
(COST $29,694,966) $ 38,815,049
------------
------------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
AGGRESSIVE GROWTH PORTFOLIO
<TABLE>
<CAPTION>
- -----------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- -----------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 91.0%
APPAREL -- 8.3%
425,000 Gymboree Corp.* $ 4,462,500
15,000 Saucony, Inc., Class B* 339,375
75,000 Tarrant Apparel Group * 1,706,250
-------------
6,508,125
-------------
BIOTECHNOLOGY AND DRUGS -- 16.4%
20,000 Allergan, Inc. 2,220,000
25,000 Andrx Corp.* 1,928,125
50,000 MedImmune, Inc.* 3,387,500
150,000 Syncor International
Corp.* 5,400,000
-------------
12,935,625
-------------
COMMUNICATION EQUIPMENT AND
SERVICES -- 17.7%
80,000 Harmonic, Inc.* 4,595,000
55,000 MCI WorldCom, Inc.* 4,743,750
80,000 Proxim, Inc.* 4,640,000
-------------
13,978,750
-------------
COMPUTER SOFTWARE AND
PROGRAMMING -- 4.1%
118,000 Mysoftware Co.* 1,823,466
60,000 Wiztec Solutions, Ltd. 1,425,000
-------------
3,248,466
-------------
CONSTRUCTION SERVICES -- 5.3%
75,000 Dycom Industries, Inc.* 4,200,000
-------------
DEFENSE CONTRACTOR -- 1.7%
20,000 General Dynamics Corp. 1,370,000
-------------
HEALTHCARE -- 2.2%
186,000 LCA Vision, Inc.* 1,732,125
-------------
OPTICAL INSTRUMENTS -- 3.2%
30,000 Optical Coating
Laboratory, Inc. 2,508,750
-------------
<CAPTION>
- -----------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- -----------------------------------------------------
<C> <S> <C>
SEMICONDUCTORS AND RELATED -- 7.0%
40,000 Power Integrations, Inc.* $ 2,925,000
50,000 Semtech Corp.* 2,606,250
-------------
5,531,250
-------------
RETAIL -- 15.3%
75,000 Family Dealer Stores,
Inc. 1,800,000
40,000 Home Depot, Inc. 2,577,500
50,000 REX Stores Corp.* 1,490,625
150,000 Ultimate Electronics,
Inc.* 2,728,125
175,000 ValueVision
International, Inc.* 3,478,125
-------------
12,074,375
-------------
TRANSPORTATION -- 3.7%
60,000 Forward Air Corp.* 1,687,500
75,000 Frontier Airlines, Inc.* 1,209,375
-------------
2,896,875
-------------
UTILITIES -- 6.1%
60,000 Texas Utilities Co. 2,475,000
60,000 Unicom Corp. 2,313,750
-------------
4,788,750
-------------
TOTAL COMMON STOCKS
(COST $65,718,794) 71,773,091
-------------
MONEY MARKET FUNDS -- 9.0%
7,082,313 Fund for Government
Investors
(Cost $7,082,313) 7,082,313
-------------
TOTAL INVESTMENTS -- 100.0%
(COST $72,801,107) $ 78,855,404
-------------
-------------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
MID CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
- -----------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- -----------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 93.4%
APPAREL -- 7.4%
11,600 Abercrombie & Fitch Co.* $ 556,800
17,400 American Eagle
Outfitters, Inc.* 791,700
11,200 Ann Taylor Stores Corp.* 504,000
-------------
1,852,500
-------------
AUTO AND TRUCK MANUFACTURING
AND PARTS -- 4.0%
23,000 Gentex Corp.* 644,000
7,000 Navistar International
Corp. 350,000
-------------
994,000
-------------
BIOTECHNOLOGY & DRUGS -- 11.5%
13,600 Andrx Corp.* 1,048,900
9,400 Biogen, Inc.* 604,537
14,200 ICOS Corp. 579,537
9,500 MedImmune, Inc.* 643,625
-------------
2,876,599
-------------
BUILDING MATERIALS -- 1.9%
7,900 Martin Marietta
Materials, Inc. 466,100
-------------
CABLE TELEVISION SERVICES AND
EQUIPMENT -- 5.1%
20,400 Commscope, Inc.* 627,300
11,500 TCA Cable TV, Inc. 638,250
-------------
1,265,550
-------------
COMPUTER HARDWARE AND
PERIPHERALS -- 3.8%
6,900 Symbol Technologies, Inc. 254,438
12,300 Xilinx, Inc. 704,175
-------------
958,613
-------------
COMPUTER SOFTWARE AND
PROGRAMMING -- 13.9%
9,400 Adobe Systems, Inc. 772,269
14,400 Citrix System, Inc.* 813,600
15,200 Electronics for Imaging,
Inc.* 780,900
15,000 Macromedia, Inc.* 528,750
8,700 Siebel Systems, Inc.* 577,463
-------------
3,472,982
-------------
CONSTRUCTION SERVICES -- 3.2%
14,200 Dycom Industry, Inc. 795,200
-------------
CONSUMER APPLIANCES -- 2.1%
7,500 Maytag Corp. 522,656
-------------
DEFENSE CONTRACTOR -- 2.0%
7,200 General Dynamics Corp. 493,200
-------------
<CAPTION>
- -----------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- -----------------------------------------------------
<C> <S> <C>
FINANCIAL SERVICES -- 2.9%
6,900 Ameritrade Holding Corp.* $ 731,400
-------------
INDUSTRIAL MACHINERY -- 1.7%
7,600 Briggs & Stratton Corp. 438,900
-------------
MEDICAL EQUIPMENT AND SUPPLIES -- 5.3%
8,600 MiniMed, Inc.* 661,663
8,400 VISX, Inc.* 665,175
-------------
1,326,838
-------------
PUBLISHING -- 1.1%
16,000 John Wiley & Sons, Inc. 282,000
-------------
RECREATIONAL ACTIVITIES -- 2.7%
14,500 International Speedway
Corp. 688,750
-------------
RETAIL -- 4.2%
4,900 Best Buy Company, Inc.* 330,750
7,500 Tiffany & Co. 723,750
-------------
1,054,500
-------------
SEMICONDUCTORS AND RELATED -- 6.9%
7,900 QLogic Corp.* 1,042,800
9,200 RF Micro Devices, Inc.* 686,550
-------------
1,729,350
-------------
TRANSPORTATION -- 2.3%
15,400 C.H. Robinson Worldwide,
Inc. 565,950
-------------
UTILITIES -- 11.4%
13,000 Calpine Corp.* 702,000
27,600 Conectiv, Inc. 674,475
11,600 GPU, Inc. 489,375
14,200 National Fuel Gas Co. 688,700
9,600 PP&L Resources, Inc. 295,200
-------------
2,849,750
-------------
TOTAL COMMON STOCKS
(COST $19,090,842) 23,364,838
-------------
MONEY MARKET FUNDS -- 6.6%
1,646,675 Fund for Government
Investors
(Cost $1,646,675) 1,646,675
-------------
TOTAL INVESTMENTS -- 100.0%
(COST $20,737,517) $ 25,011,513
-------------
-------------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
AGGRESSIVE MICRO CAP PORTFOLIO
<TABLE>
<CAPTION>
- ----------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
<C> <S> <C>
COMMON STOCKS - 98.4%
APPAREL -- 14.8%
10,000 Children's Place Retail
Stores, Inc.* $ 405,000
8,000 K-Swiss, Inc. 372,000
7,100 Movie Star, Inc.* 11,981
6,500 Tarrant Apparel Group * 147,875
------------
936,856
------------
BIOTECHNOLOGY AND DRUGS -- 8.6%
7,500 Priority Healthcare Corp.* 258,750
8,000 Syncor International Corp.* 288,000
------------
546,750
------------
BUILDING PRODUCTS -- 1.8%
13,200 American Locker Group * 115,500
------------
COMMUNICATION EQUIPMENT AND
SERVICES -- 8.8%
13,600 Gilat Communications, Ltd.* 217,600
22,000 Microwave Power Device,
Inc.* 338,250
------------
555,850
------------
COMPUTER HARDWARE AND
PERIPHERALS -- 3.3%
7,500 Cybex Computer Products
Corp.* 209,062
------------
COMPUTER SOFTWARE AND
PROGRAMMING -- 8.0%
15,600 Eagle Point Software Corp.* 105,300
17,000 Wiztec Solutions, Ltd. 403,750
------------
509,050
------------
CONTAINERS -- 4.6%
14,700 Mobile Mini, Inc.* 287,569
------------
<CAPTION>
- ----------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------
<C> <S> <C>
ENGINEERING AND CONSTRUCTION -- 5.8%
9,000 Astec Industries, Inc.* $ 366,750
------------
FOOD AND RESTAURANTS -- 7.1%
6,000 Rica Foods, Inc.* 70,500
37,000 Taco Cabana, Inc.* 376,938
------------
447,438
------------
HOUSEHOLD APPLIANCES -- 7.5%
9,500 Salton, Inc.* 475,000
------------
INSURANCE -- 4.8%
15,000 Hoopers Holmes, Inc. 305,625
------------
RECREATIONAL PRODUCTS -- 2.5%
8,500 Brass Eagle, Inc.* 159,375
------------
RETAIL STORES -- 13.6%
10,000 Haverty Furniture, Inc. 351,875
17,000 REX Stores Corp.* 506,813
------------
858,688
------------
TOYS AND CHILDREN'S PRODUCTS -- 7.2%
15,300 JAKKS Pacific, Inc.* 456,131
------------
TOTAL COMMON STOCKS
(COST $4,829,768) 6,229,644
------------
MONEY MARKET FUNDS -- 1.6%
100,266 Fund for Government
Investors
(Cost $100,266) 100,266
------------
TOTAL INVESTMENTS -- 100.0%
(COST $4,930,034) $ 6,329,910
------------
------------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
SMALL CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 90.9%
AEROSPACE AND DEFENSE -- 1.3%
1,000 Kaman Corp. $ 15,687
------------
APPAREL -- 5.8%
2,950 Genesco, Inc.* 42,959
1,000 Oxford Industries, Inc. 28,313
------------
71,272
------------
AUTO AND TRUCK PARTS -- 4.3%
800 Arvin Industries, Inc. 30,300
1,400 Commercial Intertech Corp. 22,313
------------
52,613
------------
BEVERAGES -- 3.3%
3,300 Quilmes Industrial, ADR 40,837
------------
CASINOS AND GAMING -- 2.5%
1,800 Hollywood Park, Inc.* 30,600
------------
CATALOG AND SPECIALTY
DISTRIBUTION -- 1.3%
600 Blair Corp. 16,162
------------
COMPUTER SOFTWARE AND
PROGRAMMING -- 1.1%
880 3Dfx Interactive, Inc.* 13,750
------------
CONTAINERS AND PACKAGING -- 2.4%
1,750 Rock-Tenn Co. 29,203
------------
CONTRACT DRILLING -- 1.1%
3,400 Petroleum Development Corp.* 14,238
------------
CROPS -- 2.3%
2,250 Andersons, Inc. 28,687
------------
ENGINEERING AND CONSTRUCTION -- 3.4%
3,050 Chicago Bridge & Iron Co. 42,509
------------
FOOD PROCESSING -- 1.4%
1,050 Ralcorp Holdings, Inc.* 16,866
------------
HOMEBUILDING -- 4.0%
1,150 D R Horton, Inc. 19,119
1,400 MDC Holdings, Inc. 30,100
------------
49,219
------------
HOUSEHOLD APPLIANCE -- 4.5%
3,300 Windmere-Durable Holdings,
Inc.* 55,688
------------
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
INDUSTRIAL MACHINERY -- 5.1%
1,400 Ampco-Pittsburgh Corp. $ 17,937
2,200 Cascade Corp. 30,800
700 Lincoln Electric Holdings Co. 14,350
------------
63,087
------------
INDUSTRIAL SPECIALTIES -- 0.9%
1,175 Deswell Industries, Inc. 11,309
------------
OFFICE SUPPLIES -- 3.2%
1,800 United Stationers, Inc.* 39,600
------------
PERSONAL CARE PRODUCTS -- 1.2%
1,400 Herbalife International 15,312
------------
REAL ESTATE -- 6.0%
2,575 IMPAC Mortgage Holdings, Inc. 13,036
600 Meristar Hospitality Corp. 13,463
1,100 MGI Properties, Inc. 31,075
700 Prentiss Properties Trust 16,450
------------
74,024
------------
RECREATIONAL VEHICLES -- 12.6%
2,125 Arctic Cat, Inc. 18,992
1,725 Coachman Industries, Inc. 40,106
1,075 Monaco Coach Corp.* 45,486
2,300 Winnebago Industries, Inc. 51,750
------------
156,334
------------
RENTAL AND LEASING -- 2.2%
950 Avis Rent A Car, Inc.* 27,669
------------
RESTAURANTS -- 5.5%
1,850 Buffets, Inc.* 21,275
1,650 FoodMaker, Inc.* 46,819
------------
68,094
------------
SEMICONDUCTORS -- 2.9%
4,300 Tower Semiconductor, Ltd.* 35,475
------------
SPECIALTY STORES -- 4.0%
1,400 Haverty Furniture, Inc. 49,263
------------
TOOLS AND HARDWARE -- 0.9%
400 Starrett (LS) Co. 10,750
------------
TRUCKING -- 4.4%
1,700 Arnold Industries, Inc. 26,244
1600 Yellow Corp.* 28,400
------------
54,644
------------
</TABLE>
9
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (CONTINUED)
(UNAUDITED)
SMALL CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
</TABLE>
COMMON STOCKS (CONTINUED)
<TABLE>
<C> <S> <C>
UTILITIES -- 3.3%
400 Central Hudson Gas & Electric $ 16,800
800 CLECO Corp. 24,300
------------
41,100
------------
TOTAL COMMON STOCKS
(COST $1,049,376) $ 1,123,992
------------
MONEY MARKET FUNDS -- 9.1%
112,852 Fund for Government Investors
(Cost $112,852) 112,852
------------
TOTAL INVESTMENTS -- 100.0%
(COST $1,162,228) $ 1,236,844
------------
------------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
ADR AMERICAN DEPOSITORY RECEIPTS
SEE NOTES TO FINANCIAL STATEMENTS.
10
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
LARGE CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
- -----------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- -----------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 99.1%
APPAREL -- 7.7%
6,640 Gap, Inc. $ 334,490
5,410 TJX Companies, Inc. 180,221
------------
514,711
------------
BEVERAGES -- 2.1%
2,000 Anheuser-Busch Companies,
Inc. 141,875
------------
BIOTECHNOLOGY AND DRUGS -- 7.1%
4,200 Amgen, Inc. * 255,675
3,400 Biogen, Inc.* 218,662
------------
474,337
------------
BUILDING PRODUCTS -- 3.6%
3,745 Home Depot, Inc. 241,318
------------
COMMUNICATION EQUIPMENT AND
SERVICES -- 14.2%
3,925 Ameritech Corp. 288,487
3,950 Nokia Corp., ADR 361,672
1,525 Vodafone Group, ADR 300,425
------------
950,584
------------
COMPUTER HARDWARE AND
PERIPHERALS -- 14.9%
1,700 Broadcom Corp.* 245,756
2,140 Dell Computer Corp.* 79,180
5,180 EMC Corp. * 284,900
1,600 International Business
Machines Corp. 206,800
3,100 Xilinx Inc. 177,475
------------
994,111
------------
COMPUTER NETWORKS -- 4.8%
5,014 Cisco Systems, Inc. * 323,403
------------
COMPUTER SOFTWARE AND SERVICES- 9.0%
2,650 America Online, Inc.* 292,825
3,430 Microsoft Corp. * 309,343
------------
602,168
------------
<CAPTION>
- -----------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- -----------------------------------------------------
<C> <S> <C>
ELECTRONICS -- 4.4%
4,400 Solectron Corp.* $ 293,425
------------
FINANCIAL SERVICES -- 7.2%
3,450 Capital One Financial
Corp. 192,122
2,600 Charles Schwab Corp. 285,675
------------
477,797
------------
FOOD DISTRIBUTORS -- 2.5%
5,570 SYSCO Corp. 166,056
------------
MANUFACTURING -- 3.6%
2,570 Tyco International Ltd. 243,508
------------
MEDICAL EQUIPMENT -- 2.6%
2,200 VISX, Inc.* 174,213
------------
OFFICE EQUIPMENT AND SUPPLIES -- 6.0%
4,250 Lexmark International
Group * 280,766
1,915 Pitney Bowes, Inc. 123,039
------------
403,805
------------
RECREATIONAL VEHICLES -- 3.7%
4,500 Harley Davidson, Inc. 244,687
------------
RETAIL -- 5.7%
5,600 Best Buy Company, Inc.* 378,000
------------
TOTAL COMMON STOCKS
(COST $5,344,128) 6,623,998
------------
MONEY MARKET FUNDS -- 0.9%
59,806 Fund for Government
Investors
(Cost $59,806) 59,806
------------
TOTAL INVESTMENTS -- 100.0%
(COST $5,403,934) $ 6,683,804
------------
------------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
ADR AMERICAN DEPOSITORY RECEIPTS
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
LARGE CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 88.2%
AIRLINES -- 5.8%
350 AMR Corp.* $ 23,888
275 British Airways, ADR 19,645
325 UAL Corp.* 21,125
------------
64,658
------------
APPAREL -- 4.4%
1,075 The Limited, Inc. 48,778
------------
BANKS -- 6.8%
575 Australia & New Zealand Banking Group,
ADR 21,347
325 Golden West Financial Corp. 31,850
600 UnionBancal Corp. 21,675
------------
74,872
------------
BEVERAGES -- 2.1%
1,575 Bass Public Limited Co., ADR 23,527
------------
CONGLOMERATES -- 4.2%
985 Anglo American Corp. of South Africa,
ADR 47,034
------------
CONSUMER ELECTRONICS AND
APPLIANCES -- 1.5%
225 Whirlpool Corp. 16,650
------------
ENGINEERING AND CONSTRUCTION -- 1.5%
400 Fluor Corp. 16,200
------------
FINANCIAL SERVICES -- 6.9%
775 Countrywide Credit Industries, Inc. 33,131
575 Transamerica Corp. 43,125
------------
76,256
------------
INDUSTRIAL MACHINERY -- 6.3%
600 Caterpillar, Inc. 36,000
850 Deere & Co. 33,681
------------
69,681
------------
INSURANCE -- 11.1%
820 ACE Ltd. 23,165
890 Allstate Corp. 31,929
225 Cigna Corp. 20,025
250 Hartford Financial Services Group, Inc. 14,578
840 Travelers Property Casualty Corp. 32,865
------------
122,562
------------
<CAPTION>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
INVESTMENT SERVICES -- 6.1%
450 A.G. Edwards, Inc. $ 14,513
691 Bear Stearns Companies, Inc. 32,304
340 Lehman Brothers Holdings, Inc. 21,165
------------
67,982
------------
MANUFACTURING -- 1.6%
950 Tomkins F H PLC, ADR 17,338
------------
METALS AND MINERALS -- 2.4%
1,100 De Beers Consolidated Mines. Ltd., ADR 26,262
------------
MOTOR VEHICLES -- 8.7%
1,100 Fiat Spa, ADR 17,737
585 Ford Motor Co. 33,016
300 PACCAR, Inc. 16,013
1,000 Volvo, ADR 29,375
------------
96,141
------------
OIL COMPANIES -- 1.4%
525 Sunoco, Inc. 15,848
------------
RAILROADS -- 1.5%
375 CSX Corp. 16,992
------------
REAL ESTATE -- 4.0%
2,200 Trizec Hahn Corp. 44,825
------------
TRANSPORTATION -- 0.9%
1,300 Laidlaw, Inc. 9,587
------------
UTILITIES -- 11.0%
625 American Electric Power Company, Inc. 23,477
590 Constellation Energy Group, Inc. 17,479
500 DTE Energy Co. 20,000
1000 KeySpan Corp. 26,375
850 Public Service Enterprise Group, Inc. 34,744
------------
122,075
------------
TOTAL COMMON STOCKS
(COST $858,734) 977,268
------------
MONEY MARKET FUNDS -- 11.8%
130,477 Fund for Government Investors
(Cost $130,477) 130,477
------------
TOTAL INVESTMENTS -- 100.0%
(COST $989,211) $ 1,107,745
------------
------------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
ADR AMERICAN DEPOSITORY RECEIPTS
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
INTERNATIONAL EQUITY PORTFOLIO
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
MARKET VALUE
SHARES COUNTRY (NOTE 1)
- -----------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS -- 90.8%
AIRLINES -- 1.7%
8,180 Deutsche Lufthansa Germany $ 148,301
90 Konin Luchtvaart Mij NV Netherlands 2,548
------------
150,849
------------
AUTO AND TRUCK MANUFACTURERS -- 10.3%
2,331 DaimlerChrysler AG ORD NPV Germany 201,927
520 DaimlerChrysler AG, ADR Germany 46,215
10 Fiat SPA Italy 32
9,000 Mitsubishi Motor Corp. Japan 46,617
920 Peugeot SA France 145,162
1,460 Renault (Regie) NH France 63,539
4,000 Suzuki Motor Corp. Japan 63,610
26,220 Volkswagen AG, ADR Germany 338,377
------------
905,479
------------
AUTO AND TRUCK PARTS & EQUIPMENT -- 0.9%
950 Valeo France 78,377
------------
BANKS -- 15.8%
8,192 ABN Amro Holding NV Netherlands 177,412
10,950 Banca Popolare di Milano Italy 84,580
1,470 Banque Nationale de Paris France 122,490
2,702 Bayer Hypo-Vereins AG Germany 175,549
3,370 Commerzbank AG Germany 102,350
510 Credit Suisse Group Switzerland 88,248
19,020 Credito Italiano SPA Italy 83,559
3,837 Ing Groep NV Netherlands 207,742
880 Ing Groep NV, ADR Netherlands 48,400
780 Societe Generale France 137,471
570 UBS AG Switzerland 170,128
------------
1,397,929
------------
BEVERAGES -- 1.5%
2,570 Heineken NV, ADR Netherlands 131,590
------------
BUILDING MATERIALS -- 1.0%
950 Lafarge France 90,329
------------
CHEMICALS -- 6.2%
2,120 Akzo Nobel NV Netherlands 89,201
4,380 BASF AG, ADR Germany 192,422
3,300 Bayer AG, ADR Germany 137,319
1,600 Hoechst AG, ADR Germany 73,600
8,000 Mitsui Chemicals Japan 51,549
------------
544,091
------------
COMPUTERS -- 1.0%
2,260 Getronics NV Netherlands 86,934
------------
</TABLE>
13
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (CONTINUED)
(UNAUDITED)
INTERNATIONAL EQUITY PORTFOLIO
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
MARKET VALUE
SHARES COUNTRY (NOTE 1)
- -----------------------------------------------------------------------------------
<C> <S> <C> <C>
</TABLE>
COMMON STOCKS (CONTINUED)
<TABLE>
<C> <S> <C> <C>
COMPUTER SERVICES -- 0.8%
1,485 Pacific Internet Singapore $ 70,352
------------
COMPUTER SOFTWARE -- 2.9%
800 American Online, Inc.* United States 88,400
500 SAP AG Germany 169,129
------------
257,529
------------
DIVERSIFIED FINANCIAL SERVICES -- 1.1%
7,095 San Paolo-IMI SPA Italy 96,583
------------
ELECTRICAL MACHINERY -- 1.4%
1,000 Matsushita Communications Japan 71,458
3,000 Omron Corp. Japan 52,044
------------
123,502
------------
ELECTRONIC EQUIPMENT -- 0.6%
500 Sony Corp. Japan 55,187
------------
FOOD -- 4.6%
1,636 Ahold NV Netherlands 56,351
2,600 Groupe Danone, ADR France 136,013
120 Nestle SA Switzerland 216,211
------------
408,575
------------
HOUSEHOLD PRODUCTS/WARES -- 1.9%
1,767 Unilever NV Netherlands 119,085
647 Unilever NV ADR, NY Shares Netherlands 45,128
------------
164,213
------------
INSURANCE -- 10.8%
930 Allianz AG Germany 257,993
1,595 Asr Verzekerings Groep NV Netherlands 105,190
4,270 Assicurazioni Generali SPA Italy 147,959
800 AXA SA, ADR France 49,850
90 Schweiz-Reuckversicherungs Switzerland 171,363
390 Zuerich Allied AG Switzerland 221,769
------------
954,124
------------
MACHINERY -- 0.6%
4,000 Ricoh Co. Japan 55,051
------------
PHARMACEUTICALS -- 6.3%
210 Novartis AG Switzerland 306,640
600 Novartis AG, ADR Switzerland 43,806
2,560 Rhone-Poulenc SA, ADR France 118,080
790 Schering AG Germany 83,752
------------
552,278
------------
</TABLE>
14
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999 (CONTINUED)
(UNAUDITED)
INTERNATIONAL EQUITY PORTFOLIO
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------
MARKET VALUE
SHARES COUNTRY (NOTE 1)
- -----------------------------------------------------------------------------------
<C> <S> <C> <C>
</TABLE>
COMMON STOCKS (CONTINUED)
<TABLE>
<C> <S> <C> <C>
PRECISION INSTRUMENTS -- 0.7%
4,000 Nikon Corp. Japan $ 65,427
------------
REAL ESTATE -- 0.2%
49,970 Unione Immobiliare Italy 22,159
------------
RETAIL -- 2.6%
140 Jelmoli Switzerland 25,576
1,200 Pinault-Printemps France 205,924
------------
231,500
------------
TELECOMMUNICATION EQUIPMENT -- 4.5%
660 Alcatel Alsthom France 92,907
1,920 Ericsson LM Telephone Co., ADR Sweden 63,240
2,630 Nokia Corp. Finland 240,809
------------
396,956
------------
TELECOMMUNICATIONS -- 10.8%
2,380 Deutsche Telekom AG, ADR Germany 100,555
650 France Telecom, ADR France 50,050
675 Global Telesystems Group Germany 54,675
925 Nippon Telegraph & Telephone, ADR Japan 57,928
5 NTT Mobile Communications Japan 67,740
2,610 Swisscom AG, ADR Switzerland 100,159
367 Telefonica, ADR Spain 53,995
51,500 T.I.M. SPA Italy 307,510
840 Vodafone Airtouch PLC, ADR United Kingdom 165,480
------------
958,092
------------
UTILITIES -- 1.1%
4,450 Endesa SA, ADR Spain 94,563
------------
WHOLESALE -- 1.5%
300 Softbank, ADR Japan 62,400
1,000 Toyko Electron Japan 67,823
------------
130,223
------------
TOTAL COMMON STOCKS
(COST $9,027,480) 8,021,892
------------
MONEY MARKET FUNDS -- 9.2%
810,206 Fund for Government Investors
(Cost $810,206) 810,206
------------
TOTAL INVESTMENTS -- 100.0%
(COST $9,837,686) $ 8,832,098
------------
------------
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
ADR AMERICAN DEPOSITORY RECEIPTS
15
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
<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.......................... $ 29,694,966 $ 72,801,107 $ 20,737,517 $ 4,930,034
----------------- ------------ ------------ -----------
----------------- ------------ ------------ -----------
Securities at Value (Note 1)................ $ 38,815,049 $ 78,855,404 $ 25,011,513 $ 6,329,910
Receivable for Securities Sold.............. 4,058,842 5,802,293 1,556,955 241,395
Receivable for Shares Sold.................. 505,587 777,976 1,124,922 3,336
Interest Receivable......................... 7,976 15,805 4,980 964
Dividends Receivable........................ 1,200 27,750 5,576 120
Other Receivables........................... -- 162 -- --
Unamortized Organizational Costs (Note 1)... -- 37,590 -- --
----------------- ------------ ------------ -----------
Total Assets.............................. 43,388,654 85,516,980 27,703,946 6,575,725
----------------- ------------ ------------ -----------
LIABILITIES
Investment Advisory Fee Payable
(Note 2).................................. 26,295 50,565 14,328 4,275
Administrative Fee Payable (Note 2)......... 7,826 15,049 4,264 1,272
Distribution Plan Fee Payable (Note 4)...... 7,826 15,049 4,264 1,272
Payable for Securities Purchased............ 2,382,143 6,228,895 2,272,645 114,750
Payable for Shares Redeemed................. 19,716 85,630 38,117 25,090
Other Payables and Accrued Expenses......... 4,697 9,047 2,558 769
Organizational Expense Payable to Adviser
(Note 1).................................. -- 37,590 -- --
----------------- ------------ ------------ -----------
Total Liabilities......................... 2,448,503 6,441,825 2,336,176 147,428
----------------- ------------ ------------ -----------
NET ASSETS.................................... $ 40,940,151 $ 79,075,155 $ 25,367,770 $ 6,428,297
----------------- ------------ ------------ -----------
----------------- ------------ ------------ -----------
SHARES OUTSTANDING............................ 2,309,377 4,408,106 1,254,783 301,896
----------------- ------------ ------------ -----------
----------------- ------------ ------------ -----------
NET ASSET VALUE PER SHARE..................... $17.73 $17.94 $20.22 $21.29
------ ------ ------ -----------
------ ------ ------ -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SMALL CAP LARGE CAP LARGE CAP INTERNATIONAL
VALUE GROWTH VALUE EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
ASSETS
Securities at Cost.............................. $ 1,162,228 $ 5,403,934 $ 989,211 $ 9,837,686
----------- ----------- ----------- -------------
----------- ----------- ----------- -------------
Securities at Value (Note 1).................... $ 1,236,844 $ 6,683,804 $ 1,107,745 $ 8,832,098
Receivable for Securities Sold.................. -- -- -- 595
Receivable for Shares Sold...................... -- 28,903 41,466 45
Interest Receivable............................. 289 595 308 2,025
Dividends Receivable............................ 888 942 1,817 18,311
Other Receivables............................... -- 27 -- 913
Unamortized Organizational Costs (Note 1)....... 64,260 64,260 64,260 64,260
----------- ----------- ----------- -------------
Total Assets.................................. 1,302,281 6,778,531 1,215,596 8,918,247
----------- ----------- ----------- -------------
LIABILITIES
Investment Advisory Fee Payable (Note 2)........ 771 4,478 647 7,102
Administrative Fee Payable (Note 2)............. 229 1,333 216 1,775
Distribution Plan Fee Payable (Note 4).......... 229 1,333 216 1,775
Payable for Securities Purchased................ 30,628 -- -- 165,598
Payable for Shares Redeemed..................... -- 32,059 -- --
Other Payables and Accrued Expenses............. 138 800 129 1,776
Organizational Expense Payable to Adviser (Note
1)............................................ 64,260 64,260 64,260 64,260
----------- ----------- ----------- -------------
Total Liabilities............................. 96,255 104,263 65,468 242,286
----------- ----------- ----------- -------------
NET ASSETS........................................ $ 1,206,026 $ 6,674,268 $ 1,150,128 $ 8,675,961
----------- ----------- ----------- -------------
----------- ----------- ----------- -------------
SHARES OUTSTANDING................................ 123,243 397,088 87,865 899,844
----------- ----------- ----------- -------------
----------- ----------- ----------- -------------
NET ASSET VALUE PER SHARE......................... $9.79 $16.81 $13.09 $9.64
----- ----------- ----------- -----
----- ----------- ----------- -----
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<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)................................. $ 28,995 $ 95,730 $ 18,828 $ 14,564
Dividends (Note 1)................................ 16,330 103,211 30,709 4,659
----------------- ------------ ----------- -----------
Total Investment Income......................... 45,325 198,941 49,537 19,223
----------------- ------------ ----------- -----------
EXPENSES
Investment Advisory Fee (Note 2).................. 162,959 305,625 56,575 28,428
Administrative Fee (Note 2)....................... 48,500 90,960 16,838 8,461
Distribution Plan Fees (Note 4)................... 48,502 91,235 16,882 8,453
Transfer Agent and Custodian Fee (Note 3)......... 53,540 69,726 27,363 24,244
Shareholder Reports and Notices................... 19,881 17,190 3,070 3,449
Registration Fees................................. 13,968 6,489 7,365 12,167
Organizational Expense (Note 1)................... -- 12,600 -- --
Trustees' Fees and Expenses (Note 2).............. 1,406 1,406 1,406 1,406
Other Expenses.................................... 6,513 12,690 1,796 1,949
----------------- ------------ ----------- -----------
Total Expenses.................................. 355,269 607,921 131,295 88,557
Less Expenses Reimbursed by Investment
Adviser (Note 2).............................. (66,209) (65,525) (30,897) (38,139)
----------------- ------------ ----------- -----------
Net Expenses.................................. 289,060 542,396 100,398 50,418
----------------- ------------ ----------- -----------
NET INVESTMENT LOSS................................. (243,735) (343,455) (50,861) (31,195)
----------------- ------------ ----------- -----------
Net Realized Gain on Investment Transactions........ 3,608,911 18,685,797 2,335,440 591,694
Change in Net Unrealized Appreciation of
Investments....................................... 495,818 (4,357,699) 2,543,854 (568,772)
----------------- ------------ ----------- -----------
NET GAIN ON INVESTMENTS............................. 4,104,729 14,328,098 4,879,294 22,922
----------------- ------------ ----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS........................................ $ 3,860,994 $ 13,984,643 $ 4,828,433 $ (8,273)
----------------- ------------ ----------- -----------
----------------- ------------ ----------- -----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SMALL CAP LARGE CAP LARGE CAP INTERNATIONAL
VALUE GROWTH VALUE EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest (Note 1)........................................ $ 1,015 $ 5,302 $ 1,103 $ 20,105
Dividends (Note 1)....................................... 7,423 13,170 8,679 103,924
----------- ----------- ----------- -------------
Total Investment Income................................ 8,438 18,472 9,782 124,029
----------- ----------- ----------- -------------
EXPENSES
Investment Advisory Fee (Note 2)......................... 3,658 21,912 3,023 47,361
Administrative Fee (Note 2).............................. 1,089 6,521 1,008 11,840
Distribution Plan Fees (Note 4).......................... 1,089 6,571 1,010 11,868
Transfer Agent and Custodian Fee (Note 3)................ 18,410 20,866 18,376 50,696
Organizational Expense (Note 1).......................... 9,180 9,180 9,180 9,180
Registration Fees........................................ 6,695 6,695 6,695 6,948
Trustees' Fees and Expenses (Note 2)..................... 1,406 1,406 1,406 1,406
Shareholder Reports and Notices.......................... 467 1,153 396 636
Other Expenses........................................... 239 746 264 1,549
----------- ----------- ----------- -------------
Total Expenses......................................... 42,233 75,050 41,358 141,484
Less Expenses Reimbursed by Investment Adviser (Note
2)................................................... (35,744) (36,133) (35,712) (58,575)
----------- ----------- ----------- -------------
Net Expenses......................................... 6,489 38,917 5,646 82,909
----------- ----------- ----------- -------------
NET INVESTMENT INCOME (LOSS)............................... 1,949 (20,445) 4,136 41,120
----------- ----------- ----------- -------------
Net Realized Gain (Loss) on Investment Transactions........ (43,508) (2,703) 44,347 (20,812)
Net Realized Loss on Foreign Currency Transactions......... -- -- -- (316)
Change in Net Unrealized Appreciation/Depreciation of
Investments.............................................. 121,204 728,722 63,710 (803,332)
----------- ----------- ----------- -------------
NET GAIN (LOSS) ON INVESTMENTS............................. 77,696 726,019 108,057 (824,460)
----------- ----------- ----------- -------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS............................................... $ 79,645 $ 705,574 $ 112,193 $ (783,340)
----------- ----------- ----------- -------------
----------- ----------- ----------- -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
AGGRESSIVE SMALL CAP EQUITY AGGRESSIVE GROWTH
PORTFOLIO PORTFOLIO
----------------------------- -----------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, 1999 DECEMBER 31, JUNE 30, 1999 DECEMBER 31,
(UNAUDITED) 1998 (UNAUDITED) 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Loss................... $ (243,735) $ (432,412) $ (343,455) $ (807,971)
Net Realized Gain (Loss) on Investment
Transactions........................ 3,608,911 (338,976) 18,685,797 10,857,763
Change in Net Unrealized Appreciation
of Investments...................... 495,818 686,288 (4,357,699) 262,591
------------- ------------- ------------- -------------
Net Increase (Decrease) in Net
Assets Resulting from
Operations........................ 3,860,994 (85,100) 13,984,643 10,312,383
------------- ------------- ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Realized Gain................ (461,494) -- -- --
------------- ------------- ------------- -------------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares..... 19,451,452 69,506,803 52,417,234 267,578,704
Reinvestment of Distributions......... 446,173 -- -- --
Cost of Shares Redeemed............... (29,616,356) (95,041,562) (68,730,828) (298,233,289)
------------- ------------- ------------- -------------
Net Decrease in Net Assets Resulting
from Share Transactions........... (9,718,731) (25,534,759) (16,313,594) (30,654,585)
------------- ------------- ------------- -------------
TOTAL DECREASE IN NET ASSETS........ (6,319,231) (25,619,859) (2,328,951) (20,342,202)
NET ASSETS -- Beginning of Period....... 47,259,382 72,879,241 81,404,106 101,746,308
------------- ------------- ------------- -------------
NET ASSETS -- End of Period............. $ 40,940,151 $ 47,259,382 $ 79,075,155 $ 81,404,106
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
SHARES
Sold.................................. 1,234,077 4,515,915 3,349,327 20,345,331
Issued in Reinvestment of
Distributions....................... 29,706 -- -- --
Redeemed.............................. (1,909,492) (6,115,945) (4,432,669) (22,510,476)
------------- ------------- ------------- -------------
Net Decrease in Shares.............. (645,709) (1,600,030) (1,083,342) (2,165,145)
------------- ------------- ------------- -------------
------------- ------------- ------------- -------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MID CAP GROWTH AGGRESSIVE MICRO CAP
PORTFOLIO PORTFOLIO
----------------------------- ---------------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, 1999 DECEMBER 31, JUNE 30, 1999 DECEMBER 31,
(UNAUDITED) 1998 (UNAUDITED) 1998
------------- ------------- -------------- ----------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Loss................... $ (50,861) $ (34,943) $ (31,195) $ (67,090)
Net Realized Gain (Loss) on Investment
Transactions........................ 2,335,440 600,569 591,694 (593,873)
Change in Net Unrealized Appreciation
of Investments...................... 2,543,854 485,817 (568,772) 938,282
------------- ------------- -------------- ----------------
Net Increase (Decrease) in Net
Assets Resulting from
Operations........................ 4,828,433 1,051,443 (8,273) 277,319
------------- ------------- -------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Realized Gain................ -- (174,079) -- --
------------- ------------- -------------- ----------------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares..... 18,973,065 14,064,660 1,615,638 16,347,179
Reinvestment of Distributions......... -- 170,002 -- --
Cost of Shares Redeemed............... (6,557,394) (15,360,950) (4,830,514) (17,163,447)
------------- ------------- -------------- ----------------
Net Increase (Decrease) in Net
Assets Resulting from Share
Transactions...................... 12,415,671 (1,126,288) (3,214,876) (816,268)
------------- ------------- -------------- ----------------
TOTAL INCREASE IN NET ASSETS........ 17,244,104 (248,924) (3,223,149) (538,949)
NET ASSETS -- Beginning of Period....... 8,123,666 8,372,590 9,651,446 10,190,395
------------- ------------- -------------- ----------------
NET ASSETS -- End of Period............. $ 25,367,770 $ 8,123,666 $ 6,428,297 $9,651,446
------------- ------------- -------------- ----------------
------------- ------------- -------------- ----------------
SHARES
Sold.................................. 1,047,870 1,082,352 83,164 825,396
Issued in Reinvestment of
Distributions....................... -- 12,658 -- --
Redeemed.............................. (388,057) (1,173,434) (253,911) (852,387)
------------- ------------- -------------- ----------------
Net Increase (Decrease) in Shares... 659,813 (78,424) (170,747) (26,991)
------------- ------------- -------------- ----------------
------------- ------------- -------------- ----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SMALL CAP LARGE CAP
VALUE PORTFOLIO GROWTH PORTFOLIO
----------------------------- ---------------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, 1999 DECEMBER 31, JUNE 30, 1999 DECEMBER 31,
(UNAUDITED) 1998 (UNAUDITED) 1998
------------- ------------- -------------- ----------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Income (Loss).......... $ 1,949 $ 6,650 $ (20,445) $ (3,965)
Net Realized Loss on Investment
Transactions........................ (43,508) (49,214) (2,703) (51,859)
Change in Net Unrealized Appreciation/
Depreciation of Investments......... 121,204 (47,797) 728,722 548,665
------------- ------------- -------------- ----------------
Net Increase (Decrease) in Net
Assets Resulting from
Operations........................ 79,645 (90,361) 705,574 492,841
------------- ------------- -------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Investment Income............ -- (6,650) -- --
------------- ------------- -------------- ----------------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares..... 465,242 1,107,661 6,600,407 2,553,343
Reinvestment of Distributions......... -- 6,650 -- --
Cost of Shares Redeemed............... (195,957) (261,412) (3,033,260) (747,178)
------------- ------------- -------------- ----------------
Net Increase in Net Assets Resulting
from Share Transactions........... 269,285 852,899 3,567,147 1,806,165
------------- ------------- -------------- ----------------
TOTAL INCREASE IN NET ASSETS........ 348,930 755,888 4,272,721 2,299,006
NET ASSETS -- Beginning of Period....... 857,096 101,208 2,401,547 102,541
------------- ------------- -------------- ----------------
NET ASSETS -- End of Period............. $ 1,206,026 $ 857,096 $ 6,674,268 $2,401,547
------------- ------------- -------------- ----------------
------------- ------------- -------------- ----------------
SHARES
Sold.................................. 52,435 109,516 420,796 216,274
Issued in Reinvestment of
Distributions....................... -- 722 -- --
Redeemed.............................. (22,261) (27,174) (189,698) (60,290)
------------- ------------- -------------- ----------------
Net Increase in Shares.............. 30,174 83,064 231,098 155,984
------------- ------------- -------------- ----------------
------------- ------------- -------------- ----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LARGE CAP INTERNATIONAL
VALUE PORTFOLIO EQUITY PORTFOLIO
----------------------------- ---------------------------------
FOR THE SIX FOR THE YEAR FOR THE SIX FOR THE YEAR
MONTHS ENDED ENDED MONTHS ENDED ENDED
JUNE 30, 1999 DECEMBER 31, JUNE 30, 1999 DECEMBER 31,
(UNAUDITED) 1998 (UNAUDITED) 1998
------------- ------------- -------------- ----------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Income (Loss).......... $ 4,136 $ 8,851 $ 41,120 $ (9,344)
Net Realized Gain (Loss) on Investment
Transactions........................ 44,347 18,166 (20,812) 232,783
Net Realized Gain (Loss) on Foreign
Currency Transactions............... -- -- (316) 282
Change in Net Unrealized Appreciation/
Depreciation of Investments......... 63,710 53,686 (803,332) (202,622)
------------- ------------- -------------- ----------------
Net Increase (Decrease) in Net
Assets Resulting from
Operations........................ 112,193 80,703 (783,340) 21,099
------------- ------------- -------------- ----------------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Investment Income............ -- (8,851) -- --
From Net Realized Gain................ -- (33,820) -- (226,731)
------------- ------------- -------------- ----------------
Total Distributions to
Shareholders...................... -- (42,671) -- (226,731)
------------- ------------- -------------- ----------------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares..... 523,658 844,096 1,266,364 11,259,013
Reinvestment of Distributions......... -- 42,522 -- 226,731
Cost of Shares Redeemed............... (141,162) (370,425) (2,133,509) (963,665)
------------- ------------- -------------- ----------------
Net Increase (Decrease) in Net
Assets Resulting from Share
Transactions...................... 382,496 516,193 (867,145) 10,522,079
------------- ------------- -------------- ----------------
TOTAL INCREASE (DECREASE) IN NET
ASSETS............................ 494,689 554,225 (1,650,485) 10,316,447
NET ASSETS -- Beginning of Period....... 655,439 101,214 10,326,446 9,999
------------- ------------- -------------- ----------------
NET ASSETS -- End of Period............. $ 1,150,128 $ 655,439 $ 8,675,961 $10,326,446
------------- ------------- -------------- ----------------
------------- ------------- -------------- ----------------
SHARES
Sold.................................. 42,463 75,563 124,647 1,063,405
Issued in Reinvestment of
Distributions....................... -- 3,723 -- 21,738
Redeemed.............................. (12,151) (31,741) (214,886) (96,060)
------------- ------------- -------------- ----------------
Net Increase (Decrease) in Shares... 30,312 47,545 (90,239) 989,083
------------- ------------- -------------- ----------------
------------- ------------- -------------- ----------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
AGGRESSIVE SMALL CAP EQUITY
PORTFOLIO**
--------------------------------------------------------------------------------------
FOR THE SIX
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31,
JUNE 30, 1999 -------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995
---------------- ---------------- ---------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $15.99 $16.00 $17.79 $15.41 $10.98
------- ------- ------- ------------- -------------
Income from Investment Operations:
Net Investment Loss................. (0.11) (0.15) (0.30) (0.23) (0.16)
Net Realized and Unrealized Gain on
Investments....................... 2.05 0.14 2.30(C) 2.61 4.97
------- ------- ------- ------------- -------------
Total from Investment
Operations...................... 1.94 (0.01) 2.00 2.38 4.81
------- ------- ------- ------------- -------------
Distributions to Shareholders:
From Net Realized Gain.............. (0.20) -- (3.79) -- (0.38)
------- ------- ------- ------------- -------------
Net Increase (Decrease) in Net Asset
Value............................... 1.74 (0.01) (1.79) 2.38 4.43
------- ------- ------- ------------- -------------
Net Asset Value -- End of Period...... $17.73 $15.99 $16.00 $17.79 $15.41
------- ------- ------- ------------- -------------
------- ------- ------- ------------- -------------
TOTAL INVESTMENT RETURN................. 12.31%(A) (0.06)% 11.24% 15.44% 43.80%
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.49%(B) 1.63% 2.33% 1.75% 1.75%
Expenses Before Reimbursement (Note
2).................................. 1.83%(B) 1.98% 2.62% 1.86% 2.10%
Net Investment Loss After
Reimbursement (Note 2).............. (1.26)%(B) (0.79)% (1.37)% (1.33)% (1.15)%
Net Investment Loss Before
Reimbursement (Note 2).............. (1.60)%(B) (1.13)% (1.64)% (1.44)% (1.50)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 120% 145% 184% 137% 170%
Net Assets at End of Period (in
thousands).......................... $40,940 $47,259 $72,879 $190,035 $105,299
Number of Shares Outstanding at End of
Period (in thousands)............... 2,309 2,955 4,555 10,683 6,831
<CAPTION>
FOR THE
PERIOD
ENDED
DECEMBER 31,
1994*
-------------
<S> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $10.00
-------------
Income from Investment Operations:
Net Investment Loss................. (0.08)
Net Realized and Unrealized Gain on
Investments....................... 1.06
-------------
Total from Investment
Operations...................... 0.98
-------------
Distributions to Shareholders:
From Net Realized Gain.............. --
-------------
Net Increase (Decrease) in Net Asset
Value............................... 0.98
-------------
Net Asset Value -- End of Period...... $10.98
-------------
-------------
TOTAL INVESTMENT RETURN................. 9.80%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.68%(B)
Expenses Before Reimbursement (Note
2).................................. 4.52%(B)
Net Investment Loss After
Reimbursement (Note 2).............. (0.81)%(B)
Net Investment Loss Before
Reimbursement (Note 2).............. (3.65)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 140%
Net Assets at End of Period (in
thousands).......................... $18,224
Number of Shares Outstanding at End of
Period (in thousands)............... 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 NOTES TO FINANCIAL STATEMENTS.
24
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH
PORTFOLIO
--------------------------------------------------------------------------------
FOR THE
FOR THE SIX FOR THE YEARS ENDED PERIOD
MONTHS ENDED DECEMBER 31, ENDED
JUNE 30, 1999 ------------------------------------------------ DECEMBER 31,
(UNAUDITED) 1998 1997 1996 1995*
------------- ---------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $14.82 $13.29 $12.25 $9.99 $10.00
------------- ------- ------------- ------------- ------
Income from Investment Operations:
Net Investment Loss................. (0.08) (0.15) (0.14) (0.12) --
Net Realized and Unrealized Gain
(Loss) on Investments............. 3.20 1.68 1.34 2.38(C) (0.01)
------------- ------- ------------- ------------- ------
Total from Investment
Operations...................... 3.12 1.53 1.20 2.26 (0.01)
------------- ------- ------------- ------------- ------
Distributions to Shareholders:
From Net Realized Gain.............. -- -- (0.16) -- --
------------- ------- ------------- ------------- ------
Net Increase (Decrease) in Net Asset
Value............................... 3.12 1.53 1.04 2.26 (0.01)
------------- ------- ------------- ------------- ------
Net Asset Value -- End of Period...... $17.94 $14.82 $13.29 $12.25 $9.99
------------- ------- ------------- ------------- ------
------------- ------- ------------- ------------- ------
TOTAL INVESTMENT RETURN................. 21.05%(A) 11.51% 9.77% 22.62% (0.10)%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.49%(B) 1.68% 2.00% 2.00% 2.00%(B)
Expenses Before Reimbursement (Note
2).................................. 1.67%(B) 1.89% 2.15% 2.22% 27.25%(B)
Net Investment Income (Loss) After
Reimbursement (Note 2).............. (0.94)%(B) (0.92)% (1.07)% (1.57)% 2.59%(B)
Net Investment Loss Before
Reimbursement (Note 2).............. (1.12)%(B) (1.13)% (1.22)% (1.77)% (12.66)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 378% 237% 247% 169% --
Net Assets at End of Period (in
thousands).......................... $79,075 $81,404 $101,746 $95,246 $300
Number of Shares Outstanding at End of
Period (in thousands)............... 4,408 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
FOR THE SIX PERIOD
MONTHS ENDED DECEMBER 31, ENDED
JUNE 30, 1999 -------------------------------- DECEMBER 31,
(UNAUDITED) 1998 1997 1996*
------------- -------- ------------- -------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $13.65 $12.43 $10.27 $10.00
------------- ------ ------ -------------
Income from Investment Operations:
Net Investment Income (Loss)........ (0.04) (0.06) (0.06) 0.01
Net Realized and Unrealized Gain on
Investments....................... 6.61 1.59 2.75 0.27
------------- ------ ------ -------------
Total from Investment
Operations...................... 6.57 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....... 6.57 1.22 2.16 0.27
------------- ------ ------ -------------
Net Asset Value -- End of Period...... $20.22 $13.65 $12.43 $10.27
------------- ------ ------ -------------
------------- ------ ------ -------------
TOTAL INVESTMENT RETURN................. 48.13%(A) 12.31% 26.18% 2.75%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.49%(B) 1.66% 2.00% 2.00%(B)
Expenses Before Reimbursement (Note
2).................................. 1.93%(B) 2.56% 3.27% 113.02%(B)
Net Investment Income (Loss) After
Reimbursement (Note 2).............. (0.75)%(B) (0.38)% (0.69)% 0.87%(B)
Net Investment Loss Before
Reimbursement (Note 2).............. (1.20)%(B) (1.27)% (1.96)% (110.15)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 107% 211% 163% --
Net Assets at End of Period (in
thousands).......................... $25,368 $8,124 $8,373 $1,642
Number of Shares Outstanding at End of
Period (in thousands)............... 1,255 595 673 160
</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 SIX FOR THE YEAR PERIOD
MONTHS ENDED ENDED ENDED
JUNE 30, 1999 DECEMBER 31, DECEMBER 31,
(UNAUDITED) 1998 1997*
---------------- ---------------- -------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $20.42 $20.40 $15.64
------ ------ -------------
Income from Investment Operations:
Net Investment Loss................. (0.12) (0.14) (0.05)
Net Realized and Unrealized Gain on
Investments....................... 0.99 0.16 5.17
------ ------ -------------
Total from Investment
Operations...................... 0.87 0.02 5.12
------ ------ -------------
Distributions to Shareholders:
From Net Realized Gain.............. -- -- (0.36)
------ ------ -------------
Net Increase in Net Asset Value....... 0.87 0.02 4.76
------ ------ -------------
Net Asset Value -- End of Period...... $21.29 $20.42 $20.40
------ ------ -------------
------ ------ -------------
TOTAL INVESTMENT RETURN................. 4.26%(A) 0.10% 32.76%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.49%(B) 1.51% 1.55%(B)
Expenses Before Reimbursement (Note
2).................................. 2.62%(B) 2.50% 3.21%(B)
Net Investment Loss After
Reimbursement (Note 2).............. (0.92)%(B) (0.71)% (0.54)%(B)
Net Investment Loss Before
Reimbursement (Note 2).............. (2.05)%(B) (1.70)% (2.20)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 90% 196% 86%
Net Assets at End of Period (in
thousands).......................... $ 6,428 $ 9,651 $10,190
Number of Shares Outstanding at End of
Period (in thousands)............... 302 473 500
</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 LARGE CAP GROWTH
PORTFOLIO PORTFOLIO
------------------------------------------------------ -------------------------------
FOR THE SIX FOR THE FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED PERIOD ENDED MONTHS ENDED YEAR ENDED
JUNE 30, 1999 DEC. 31, DEC. 31, JUNE 30, 1999 DEC. 31,
(UNAUDITED) 1998 1997* (UNAUDITED) 1998
---------------- ---------------- ---------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $9.21 $10.12 $10.00 $14.47 $10.25
------ ------ ------ ------ ------
Income from Investment Operations:
Net Investment Income (Loss)........ 0.02 0.07 0.01 (0.05) (0.02)
Net Realized and Unrealized Gain
(Loss) on Investments............. 0.56 (0.91) 0.12 2.39 4.24
------ ------ ------ ------ ------
Total from Investment
Operations...................... 0.58 (0.84) 0.13 2.34 4.22
------ ------ ------ ------ ------
Distributions to Shareholders:
From Net Investment Income.......... -- (0.07) (0.01) -- --
------ ------ ------ ------ ------
Net Increase (Decrease) in Net Asset
Value............................... 0.58 (0.91) 0.12 2.34 4.22
------ ------ ------ ------ ------
Net Asset Value -- End of Period...... $9.79 $9.21 $10.12 $16.81 $14.47
------ ------ ------ ------ ------
------ ------ ------ ------ ------
TOTAL INVESTMENT RETURN................. 6.30%(A) (8.28)% 1.25%(A) 16.17%(A) 41.17%
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.49%(B) 1.53% 1.75%(B) 1.49%(B) 1.54%
Expenses Before Reimbursement (Note
2).................................. 9.67%(B) 13.01% 7.74%(B) 2.86%(B) 9.11%
Net Investment Income (Loss) After
Reimbursement (Note 2).............. 0.45%(B) 1.12% 1.94%(B) (0.78)%(B) (0.43)%
Net Investment Loss Before
Reimbursement (Note 2).............. (7.74)%(B) (10.36)% (4.03)%(B) (2.15)%(B) (8.00)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 44% 85% 2% 40% 80%
Net Assets at End of Period (in
thousands).......................... $1,206 $857 $101 $6,674 $2,402
Number of Shares Outstanding at End of
Period (in thousands)............... 123 93 10 397 166
<CAPTION>
FOR THE
PERIOD ENDED
DEC. 31,
1997*
---------------
<S> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $10.00
------
Income from Investment Operations:
Net Investment Income (Loss)........ 0.01
Net Realized and Unrealized Gain
(Loss) on Investments............. 0.25
------
Total from Investment
Operations...................... 0.26
------
Distributions to Shareholders:
From Net Investment Income.......... (0.01)
------
Net Increase (Decrease) in Net Asset
Value............................... 0.25
------
Net Asset Value -- End of Period...... $10.25
------
------
TOTAL INVESTMENT RETURN................. 2.56%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.90%(B)
Expenses Before Reimbursement (Note
2).................................. 6.66%(B)
Net Investment Income (Loss) After
Reimbursement (Note 2).............. 2.40%(B)
Net Investment Loss Before
Reimbursement (Note 2).............. (2.36)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... --
Net Assets at End of Period (in
thousands).......................... $103
Number of Shares Outstanding at End of
Period (in thousands)............... 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 INTERNATIONAL EQUITY
PORTFOLIO PORTFOLIO
------------------------------------------------------ -------------------------------
FOR THE SIX FOR THE FOR THE FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED PERIOD ENDED MONTHS ENDED YEAR ENDED
JUNE 30, 1999 DEC. 31, DEC. 31, JUNE 30, 1999 DEC. 31,
(UNAUDITED) 1998 1997* (UNAUDITED) 1998
---------------- ---------------- ---------------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $11.39 $10.11 $10.00 $10.43 $10.00
------ ------ ------ ------ -------
Income from Investment Operations:
Net Investment Income (Loss)........ 0.05 0.16 0.01 0.05 (0.01)
Net Realized and Unrealized Gain
(Loss) on Investments............. 1.65 1.91 0.11 (0.84) 0.67
------ ------ ------ ------ -------
Total from Investment
Operations...................... 1.70 2.07 0.12 (0.79) 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 (Decrease) in Net Asset
Value............................... 1.70 1.28 0.11 (0.79) 0.43
------ ------ ------ ------ -------
Net Asset Value -- End of Period...... $13.09 $11.39 $10.11 $9.64 $10.43
------ ------ ------ ------ -------
------ ------ ------ ------ -------
TOTAL INVESTMENT RETURN................. 14.93%(A) 20.48% 1.18%(A) (7.57)%(A) 6.64%
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.40%(B) 1.42% 1.50%(B) 1.75%(B) 1.75%
Expenses Before Reimbursement (Note
2).................................. 10.22%(B) 14.34% 5.03%(B) 2.99%(B) 3.29%
Net Investment Income (Loss) After
Reimbursement (Note 2).............. 1.02%(B) 1.69% 3.09%(B) 0.87%(B) (0.14)%
Net Investment Loss Before
Reimbursement (Note 2).............. (7.80)%(B) (11.22)% (0.45)%(B) (0.37)%(B) (1.68)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 31% 256% -- 30% 41%
Net Assets at End of Period (in
thousands).......................... $1,150 $655 $101 $8,676 $10,326
Number of Shares Outstanding at End of
Period (in thousands)............... 88 58 10 900 990
<CAPTION>
FOR THE
PERIOD ENDED
DEC. 31,
1997**
---------------
<S> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $10.00
-------
Income from Investment Operations:
Net Investment Income (Loss)........ --
Net Realized and Unrealized Gain
(Loss) on Investments............. --
-------
Total from Investment
Operations...................... --
-------
Distributions to Shareholders:
From Net Investment Income.......... --
From Net Realized Gain.............. --
-------
Total Distributions to
Shareholders...................... --
-------
Net Increase (Decrease) in Net Asset
Value............................... --
-------
Net Asset Value -- End of Period...... $10.00
-------
-------
TOTAL INVESTMENT RETURN................. --(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note
2).................................. 1.75%(B)
Expenses Before Reimbursement (Note
2).................................. 5.48%(B)
Net Investment Income (Loss) After
Reimbursement (Note 2).............. (1.75)%(B)
Net Investment Loss Before
Reimbursement (Note 2).............. (5.48)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... --
Net Assets at End of Period (in
thousands).......................... $10
Number of Shares Outstanding at End of
Period (in thousands)............... 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
JUNE 30, 1999
(UNAUDITED)
1. Significant Accounting Policies
The Navellier Performance Funds (the "Fund") is registered with the
Securities and Exchange Commission under the Investment Company Act of 1940, as
amended, (the "Act") as an open-end investment company which offers its shares
in a series of no-load non-diversified and diversified portfolios. The Fund is
authorized to issue an unlimited number of shares of capital stock with no
stated par value. The Fund currently consists of eight separate portfolios each
with its own investment objectives and policies: 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 gain and
loss from securities transactions are computed on an identified cost basis.
(c) Dividends from net investment income are declared and paid annually.
Dividends are reinvested in additional shares unless shareholders request
payment in cash. Net capital gains, if any, are distributed annually.
(d) The Fund intends to comply with the provisions of the Internal Revenue
Code applicable to regulated investment companies and will distribute all net
investment income and 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 June 30, 1999, 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 $37,590, $64,260, $64,260, $64,260 and $64,260, respectively.
30
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
2. Investment Advisory Fees and Other Transactions with Affiliates
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 seek future reimbursement of all unreimbursed past
expense incurred on behalf of the Fund. During the six months ended June 30,
1999, 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, Large Cap Growth
Portfolio, the Large Cap Value Portfolio and the International Equity Portfolio
totaling $95,308, $120,101, $41,000, $43,215, $36,397, $40,046, $36,317, and
$70,415, 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, $29,099, $54,576,
$10,103, $5,076, $653, $3,913, $605, and $11,840 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 six months ended June 30, 1999, Trustees' fees and expenses
totaled $11,250.
3. Transfer Agent and Custodian
Rushmore Trust and Savings, FSB ("Rushmore Trust"), provides transfer
agency, dividend disbursing and other shareholder services to the Fund. In
addition, Rushmore Trust serves as custodian of the Fund's assets. Fees paid to
Rushmore Trust are based upon a fee schedule approved by the Board of Trustees.
4. Distribution Plan
The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1
under the Act, whereby it reimburses the Distributor or others in an amount not
to exceed 0.25% per annum of the average daily net assets of the Aggressive
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
31
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
Distributor personnel), advertisements and other distribution-related expenses,
including a prorated portion of the Distributor's overhead expenses attributable
to the distribution of shares. Such payments are made monthly. The 12b-1 fee
includes, in addition to promotional activities, the amount the Fund may pay to
the Distributor or others as a service fee to reimburse such parties for
personal services provided to shareholders of the Fund and/or the maintenance of
shareholder accounts. Such Rule 12b-1 fees are made pursuant to the Plan and
distribution agreements entered into between such service providers and the
Distributor or the Fund directly.
5. Securities Transactions
For the six months ended June 30, 1999, purchases and sales (including
maturities) of securities (excluding short-term securities) were 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>
Purchases................................ $ 44,518,605 $ 263,600,042 $ 24,744,319 $ 6,101,444
----------------- --------------- ------------- -------------
----------------- --------------- ------------- -------------
Sales.................................... $ 55,122,837 $ 283,184,006 $ 14,046,569 $ 9,274,128
----------------- --------------- ------------- -------------
----------------- --------------- ------------- -------------
<CAPTION>
LARGE CAP LARGE CAP INTERNATIONAL
SMALL CAP VALUE GROWTH VALUE EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------------- --------------- ------------- -------------
<S> <C> <C> <C> <C>
Purchases................................ $ 611,636 $ 5,536,044 $ 462,074 $ 2,529,614
----------------- --------------- ------------- -------------
----------------- --------------- ------------- -------------
Sales.................................... $ 373,765 $ 1,960,106 $ 238,123 $ 3,209,933
----------------- --------------- ------------- -------------
----------------- --------------- ------------- -------------
</TABLE>
6. Unrealized Appreciation and Depreciation of Investments
Unrealized appreciation and depreciation as of June 30, 1999, 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............. $ 9,877,259 $ 7,878,680 $ 4,549,217 $ 1,669,048
Gross Unrealized Depreciation............. (757,176) (2,347,360) (337,194) (269,172)
----------------- ------------- ------------- -------------
Net Unrealized Appreciation............... $ 9,120,083 $ 5,531,320 $ 4,212,023 $ 1,399,876
----------------- ------------- ------------- -------------
----------------- ------------- ------------- -------------
Cost of Investments for Federal Income Tax
Purposes................................. $ 29,694,966 $ 73,324,084 $ 20,799,490 $ 4,930,034
----------------- ------------- ------------- -------------
----------------- ------------- ------------- -------------
</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............. $ 136,572 $ 1,371,504 $ 140,157 $ 201,219
Gross Unrealized Depreciation............. (62,631) (95,718) (22,759) (1,207,172)
----------------- ------------- ------------- -------------
Net Unrealized Appreciation
(Depreciation)........................... $ 73,941 $ 1,275,786 $ 117,398 $ (1,005,953)
----------------- ------------- ------------- -------------
----------------- ------------- ------------- -------------
Cost of Investments for Federal Income Tax
Purposes................................. $ 1,162,903 $ 5,408,018 $ 990,347 $ 9,837,686
----------------- ------------- ------------- -------------
----------------- ------------- ------------- -------------
</TABLE>
32
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
7. Net Assets
At June 30, 1999, 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............................ $ 32,572,728 $ 45,894,434 $ 18,447,890 $ 4,865,239
Undistributed Net Investment Loss.......... (243,735) (343,455) (50,861) (43,181)
Accumulated Net Realized Gain (Loss) on
Investment Transactions................... (508,925) 27,469,879 2,696,745 206,363
Net Unrealized Appreciation of
Investments............................... 9,120,083 6,054,297 4,273,996 1,399,876
----------------- ------------- ------------- -------------
NET ASSETS................................. $ 40,940,151 $ 79,075,155 $ 25,367,770 $ 6,428,297
----------------- ------------- ------------- -------------
----------------- ------------- ------------- -------------
</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.............................. $ 1,222,232 $ 5,469,405 $ 998,765 $ 9,664,932
Undistributed Net Investment Income (Loss)... 1,949 (20,445) 4,136 41,120
Accumulated Net Realized Gain (Loss) on
Investment and Foreign Currency
Transactions................................ (92,771) (54,562) 28,693 (24,138)
Net Unrealized Appreciation (Depreciation) of
Investments and Foreign Currency
Transactions................................ 74,616 1,279,870 118,534 (1,005,953)
----------------- ------------ ------------ -------------
NET ASSETS................................... $ 1,206,026 $ 6,674,268 $ 1,150,128 $ 8,675,961
----------------- ------------ ------------ -------------
----------------- ------------ ------------ -------------
</TABLE>
8. Federal Income Tax
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>
33
<PAGE>
NAVELLIER OFFICES:
ONE EAST LIBERTY THIRD FLOOR
RENO, NEVADA 89501
800-887-8671 P.S.T.
CUSTODIAN & TRANSFER AGENT:
RUSHMORE TRUST AND SAVINGS, FSB
4922 FAIRMONT AVENUE
BETHESDA, MD 20814
800-622-1386 E.S.T.
