<PAGE>
[REPRESENTATION OF GRAPHIC IMAGE]
NAVELLIER
PERFORMANCE FUNDS
AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
AGGRESSIVE GROWTH PORTFOLIO
MID CAP GROWTH PORTFOLIO
AGGRESSIVE MICRO CAP PORTFOLIO
SMALL CAP VALUE PORTFOLIO
LARGE CAP GROWTH PORTFOLIO
LARGE CAP VALUE PORTFOLIO
INTERNATIONAL EQUITY PORTFOLIO
ANNUAL REPORT
DECEMBER 31, 1999
<PAGE>
ANNUAL REPORT, December 31, 1999
NAVELLIER PERFORMANCE FUNDS
1 East Liberty, Third Floor
Reno, NV 89501
(800) 887-8671
- --------------------------------------------------------------------------------
Dear Shareholder:
1999 was an exceptional year for the stock market overall. The S&P 500** had
a very respectable 21.04% return for the year. But, the most exciting returns
were found in the mid cap stocks as evidenced by the Russell Midcap Index,**
which posted a return of 51.29%. Large cap stocks fared better than their
small-to-mid cap counterparts in the first quarter of 1999, but then were
trounced in the second quarter. Virtually all sectors of the market paused
during the third quarter with negative returns across the board. However, in the
fourth quarter of 1999, mid cap stocks turned in a record performance, with the
Russell Midcap Index** soaring 39.47%. Aggressive growth stocks dramatically
outperformed the more conservative value stocks over the year, with the big
winners found in the high-flying tech stocks.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AGGRESSIVE SMALL CAP EQUITY PORTOLIO
AGGRESSIVE SMALL CAP EQUITY RUSSELL 2000 RUSSELL 2000 GROWTH
<S> <C> <C> <C>
4/1/1994 $10,000 $10,000 $10,000
4/30/1994 $10,229 $10,059 10,015
5/31/1994 $9,750 $9,946 9,792
6/30/1994 $9,521 $9,608 9,370
7/31/1994 $9,719 $9,766 9,504
8/31/1994 $9,906 $10,310 10,202
9/30/1994 $10,427 $10,276 10,246
10/31/1994 $10,770 $10,236 10,357
11/30/1994 $10,957 $9,822 9,937
12/31/1994 $11,426 $10,086 10,173
1/31/1995 $10,614 $9,959 9,966
2/28/1995 $11,124 $10,374 10,426
3/31/1995 $11,655 $10,552 10,731
4/30/1995 $12,258 $10,786 10,893
5/31/1995 $12,341 $10,972 11,036
6/30/1995 $14,048 $11,541 11,796
7/31/1995 $16,306 $12,206 12,715
8/31/1995 $15,682 $12,459 12,872
9/30/1995 $16,514 $12,682 13,137
10/31/1995 $15,619 $12,115 12,490
11/30/1995 $16,348 $12,624 13,041
12/31/1995 $16,429 $12,957 13,331
1/31/1996 $15,481 $12,943 13,220
2/29/1996 $16,760 $13,346 13,823
3/31/1996 $18,007 $13,619 14,097
4/30/1996 $20,939 $14,347 15,179
5/31/1996 $22,816 $14,912 15,958
6/30/1996 $20,971 $14,300 14,921
7/31/1996 $17,656 $13,051 13,099
8/31/1996 $18,839 $13,810 14,068
9/30/1996 $20,321 $14,349 14,793
10/31/1996 $19,308 $14,128 14,155
11/30/1996 $19,287 $14,711 14,549
12/31/1996 $18,967 $15,096 14,832
1/31/1997 $18,935 $15,398 15,203
2/28/1997 $17,165 $15,025 14,285
3/31/1997 $16,014 $14,316 13,276
4/30/1997 $16,024 $14,356 13,122
5/31/1997 $18,114 $15,953 15,095
6/30/1997 $19,255 $16,637 15,606
7/31/1997 $20,428 $17,411 16,405
8/31/1997 $20,726 $17,809 16,898
9/30/1997 $22,027 $19,113 18,246
10/31/1997 $21,536 $18,274 17,149
11/30/1997 $21,579 $18,155 16,741
12/31/1997 $21,099 $18,473 16,751
1/31/1998 $20,097 $18,181 16,529
2/28/1998 $21,231 $19,524 17,988
3/31/1998 $21,798 $20,329 18,743
4/30/1998 $22,035 $20,441 18,858
5/31/1998 $21,389 $19,339 17,487
6/30/1998 $21,890 $19,380 17,665
7/30/1998 $20,822 $17,810 16,190
8/30/1998 $16,312 $14,351 12,453
9/30/1998 $17,222 $15,475 13,716
10/30/1998 $17,394 $16,106 14,432
11/30/1998 $18,673 $16,950 15,552
12/30/1998 $21,086 $17,999 16,960
1/30/1999 $20,980 $18,239 17,723
2/28/1999 $18,646 $16,761 16,101
3/30/1999 $19,345 $17,023 16,675
4/30/1999 $20,730 $18,548 18,147
5/30/1999 $21,705 $18,819 18,176
6/30/1999 $23,682 $19,670 19,134
7/30/1999 $22,867 $19,131 18,543
8/30/1999 $22,400 $18,423 17,849
9/30/1999 $20,450 $18,427 18,194
10/30/1999 $21,572 $18,501 18,660
11/30/1999 $23,228 $19,606 20,633
12/30/1999 $27,062 $21,825 24,270
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 2000
DECEMBER 31, 1999 FUND RUSSELL 2000 GROWTH
- ------------------------------ ------- ------------ ------------
<S> <C> <C> <C>
One Year 28.34% 21.25% 43.09%
Annualized Five Year 18.82% 16.69% 18.99%
Annualized Since Inception* 18.89% 14.53% 16.66%
Value of a $10,000 investment
over Life of Fund* $27,062 $21,825 $24,270
*Inception April 1, 1994
</TABLE>
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>
12/28/1995 $10,000 $10,000 $10,000
1/31/1996 $9,630 $9,989 $9,917
2/29/1996 $10,620 $10,301 $10,369
3/31/1996 $11,330 $10,511 $10,575
4/30/1996 $13,020 $11,073 $11,387
5/31/1996 $14,040 $11,509 $11,971
6/30/1996 $13,050 $11,036 $11,193
7/31/1996 $11,180 $10,073 $9,826
8/31/1996 $11,850 $10,658 $10,553
9/30/1996 $12,730 $11,075 $11,097
10/31/1996 $12,150 $10,904 $10,618
11/30/1996 $12,220 $11,354 $10,914
12/31/1996 $12,250 $11,651 $11,126
1/31/1997 $12,440 $11,884 $11,405
2/28/1997 $10,880 $11,596 $10,716
3/31/1997 $10,670 $11,049 $9,959
4/30/1997 $10,530 $11,080 $9,844
5/31/1997 $11,290 $12,312 $11,323
6/30/1997 $12,040 $12,840 $11,707
7/31/1997 $13,200 $13,437 $12,306
8/31/1997 $13,280 $13,745 $12,676
9/30/1997 $14,560 $14,751 $13,687
10/31/1997 $14,010 $14,104 $12,865
11/30/1997 $13,500 $14,012 $12,558
12/31/1997 $13,447 $14,257 $12,566
1/31/1998 $12,992 $14,032 $12,399
2/28/1998 $13,922 $15,069 $13,494
3/31/1998 $14,671 $15,690 $14,060
4/30/1998 $14,691 $15,776 $14,146
5/31/1998 $13,892 $14,926 $13,118
6/30/1998 $14,135 $14,957 $13,251
7/30/1998 $13,659 $13,746 $12,145
8/30/1998 $10,816 $11,076 $9,342
9/30/1998 $11,717 $11,943 $10,289
10/31/1998 $11,676 $12,431 $10,826
11/30/1998 $13,356 $13,082 $11,666
12/31/1998 $14,995 $13,892 $12,722
1/31/1999 $15,582 $14,076 $13,294
2/28/1999 $14,388 $12,936 $12,078
3/31/1999 $15,025 $13,138 $12,509
4/30/1999 $16,735 $14,315 $13,613
5/31/1999 $16,735 $14,525 $13,635
6/30/1999 $18,152 $15,181 $14,353
7/30/1999 $17,504 $14,765 $13,910
8/30/1999 $18,303 $14,219 $13,390
9/30/1999 $18,496 $14,222 $13,648
10/31/1999 $19,163 $14,279 $13,998
11/30/1999 $20,479 $15,132 $15,478
12/31/1999 $21,909 $16,845 $18,206
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH PORTFOLIO
TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 2000
DECEMBER 31, 1999 FUND RUSSELL 2000 GROWTH
- ------------------------------ ------- ------------ ------------
<S> <C> <C> <C>
One Year 46.11% 21.25% 43.09%
Annualized Since Inception* 21.60% 13.88% 16.11%
Value of a $10,000 investment
over Life of Fund* $21,909 $16,845 $18,206
*Inception December 28, 1995
</TABLE>
Overall our funds performed quite nicely this year. We are very proud of the
performance of our Mid Cap Growth Portfolio which was up 126.97% for the year
and received a five star Morningstar Overall Rating-TM-+. Our other stars were
the Large Cap Growth Portfolio returning 63.03% and on the small cap side, our
Aggressive Growth Portfolio was up 46.11%. We are particularly proud of the fact
that these funds managed to produce excellent returns without any IPO's in their
portfolios or excessive exposure to the volatile Internet stocks that drove much
of the market.
Last year, the U.S. economy was absolutely phenomenal. In 1999 it finished
the year and is now growing at an annual rate of almost 5%. The productivity
gains in the U.S. continued to accelerate and averaged well over 4% annual
gains. Furthermore, the core rate of inflation remained flat. Looking forward,
the labor market remains tight, but as long as productivity gains continue,
wages can grow moderately without igniting inflation. Although the Fed raised
interest rates three times in 1999, the stock market largely ignored these
increases. There is now massive speculation about whether or not the Federal
Reserve Board will increase interest rates again at their next Federal Open
Market
<PAGE>
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>
12/26/1996 $10,000 $10,000 $10,000
12/31/1996 $10,275 $10,262 $10,195
1/31/1997 $10,465 $10,467 $10,450
2/28/1997 $10,295 $10,214 $9,819
3/31/1997 $9,985 $9,732 $9,126
4/30/1997 $10,275 $9,759 $9,020
5/30/1997 $10,835 $10,844 $10,375
6/30/1997 $11,385 $11,310 $10,727
7/31/1997 $12,506 $11,835 $11,276
8/29/1997 $12,426 $12,106 $11,615
9/30/1997 $13,386 $12,993 $12,541
10/31/1997 $12,766 $12,422 $11,788
11/28/1997 $12,776 $12,342 $11,507
12/31/1997 $12,965 $12,557 $11,514
1/31/1998 $12,725 $12,359 $11,361
2/28/1998 $13,695 $13,272 $12,364
3/31/1998 $14,665 $13,819 $12,883
4/30/1998 $14,634 $13,895 $12,962
5/30/1998 $14,039 $13,146 $12,020
6/30/1998 $14,404 $13,174 $12,142
7/30/1998 $13,768 $12,107 $11,128
8/30/1998 $11,651 $9,756 $8,560
9/30/1998 $12,485 $10,520 $9,428
10/30/1998 $12,110 $10,949 $9,920
11/30/1998 $12,944 $11,522 $10,690
12/31/1998 $14,561 $12,236 $11,657
1/30/1999 $16,737 $12,398 $12,182
2/28/1999 $16,011 $11,394 $11,067
3/30/1999 $18,507 $11,572 $11,461
4/29/1999 $19,851 $12,609 $12,473
5/29/1999 $19,585 $12,793 $12,493
6/28/1999 $21,569 $13,371 $13,152
7/30/1999 $21,515 $13,005 $12,745
8/30/1999 $22,092 $12,524 $12,269
9/30/1999 $21,985 $12,526 $12,506
10/30/1999 $25,174 $12,577 $12,826
11/30/1999 $28,097 $13,328 $14,182
12/31/1999 $33,049 $14,836 $16,682
</TABLE>
<TABLE>
<CAPTION>
MID CAP GROWTH PORTFOLIO
TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 2000
DECEMBER 31, 1999 FUND RUSSELL 2000 GROWTH
- ---------------------------- ------- ------------ ------------
<S> <C> <C> <C>
One Year 126.97% 21.25% 43.09%
Annualized Since Inception* 47.18% 13.59% 17.97%
Value of a $10,000
investment
over Life of Fund* $33,049 $14,836 $16,682
*Inception November 26, 1996
</TABLE>
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>
3/17/1997 $10,000.00 $10,000.00 $10,000.00
3/31/1997 $9,859 $9,592 $9,500
4/30/1997 $9,872 $9,619 $9,390
5/31/1997 $10,691 $10,688 $10,801
6/30/1997 $11,432 $11,147 $11,167
7/31/1997 $12,423 $11,665 $11,739
8/31/1997 $12,679 $11,932 $12,091
9/30/1997 $13,593 $12,806 $13,056
10/31/1997 $13,434 $12,244 $12,271
11/30/1997 $13,459 $12,164 $11,979
12/31/1997 $13,276 $12,377 $11,987
1/31/1998 $12,821 $12,181 $11,827
2/28/1998 $13,608 $13,082 $12,871
3/31/1998 $13,914 $13,621 $13,412
4/30/1998 $14,083 $13,696 $13,494
5/31/1998 $13,719 $12,957 $12,513
6/30/1998 $14,090 $12,985 $12,640
7/31/1998 $13,283 $11,933 $11,585
8/31/1998 $10,699 $9,615 $8,911
9/30/1998 $11,441 $10,368 $9,815
10/31/1998 $11,083 $10,791 $10,327
11/30/1998 $12,229 $11,357 $11,128
12/31/1998 $13,289 $12,060 $12,136
1/31/1999 $13,400 $12,220 $12,681
2/28/1999 $12,151 $11,230 $11,521
3/31/1999 $11,454 $11,406 $11,932
4/30/1999 $12,450 $12,428 $12,985
5/31/1999 $13,068 $12,609 $13,006
6/30/1999 $13,856 $13,179 $13,692
7/31/1999 $13,335 $12,818 $13,268
8/31/1999 $12,964 $12,344 $12,772
9/30/1999 $13,914 $12,346 $13,019
10/31/1999 $13,745 $12,396 $13,352
11/30/1999 $13,966 $13,136 $14,764
12/31/1999 $15,254 $14,623 $17,366
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE MICRO CAP PORTFOLIO
TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 2000
DECEMBER 31, 1999 FUND RUSSELL 2000 GROWTH
- ---------------------------- ------- ------------ ------------
<S> <C> <C> <C>
One Year 14.79% 21.25% 43.09%
Annualized Since Inception* 16.33% 14.58% 21.86%
Value of a $10,000
investment over Life of
Fund* $15,254 $14,623 $17,366
*Inception March 17, 1997
</TABLE>
Committee (FOMC). Many on Wall Street believe that the Federal Reserve Board is
trying to raise interest rates to cool off the soaring stock market. Others
believe that now with the unemployment level at 4%, the Fed has no choice other
than to raise interest rates to avert wage inflation. On the other hand,
U.S. productivity continues to soar at a 5% annual pace and offsets any
potential wage inflation.
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>
12/19/1997 $10,000 $10,000 $10,000
12/31/1997 $10,125 $10,410 $10,363
1/30/1998 $9,885 $10,246 $10,175
2/27/1998 $10,405 $11,003 $10,791
3/31/1998 $10,945 $11,456 $11,229
4/30/1998 $11,105 $11,519 $11,284
5/29/1998 $10,695 $10,898 $10,885
6/30/1998 $10,315 $10,921 $10,823
7/31/1998 $9,625 $10,036 $9,975
8/31/1998 $8,244 $8,087 $8,413
9/30/1998 $8,384 $8,721 $8,888
10/30/1998 $8,514 $9,076 $9,152
11/30/1998 $8,894 $9,552 $9,400
12/31/1998 $9,286 $10,143 $9,696
1/29/1999 $9,065 $10,278 $9,476
2/26/1999 $8,419 $9,446 $8,829
3/31/1999 $8,379 $9,593 $8,756
4/30/1999 $8,853 $10,453 $9,555
5/28/1999 $9,216 $10,605 $9,849
6/30/1999 $9,871 $11,085 $10,205
7/30/1999 $9,680 $10,781 $9,963
8/31/1999 $9,105 $10,382 $9,599
9/30/1999 $8,923 $10,384 $9,407
10/29/1999 $8,681 $10,426 $9,218
11/30/1999 $8,944 $11,049 $9,266
12/31/1999 $9,327 $12,299 $9,551
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP VALUE PORTFOLIO
TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 2000
DECEMBER 31, 1999 FUND RUSSELL 2000 VALUE
- ----------------------------- -------- ------- --------
<S> <C> <C> <C>
One Year 0.44% 21.25% (1.50)%
Annualized Since Inception* (3.37)% 10.72% (2.23)%
Value of a $10,000 investment
over Life of Fund* $9,327 $12,299 $9,551
*Inception December 19, 1997
</TABLE>
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>
12/19/1997 $10,000 $10,000 $10,000
12/30/1997 $10,256 $10,252 $10,300
1/31/1998 $10,106 $10,370 $10,608
2/28/1998 $10,856 $11,111 $11,406
3/31/1998 $11,577 $11,681 $11,861
4/30/1998 $11,537 $11,798 $12,024
5/31/1998 $11,517 $11,588 $11,683
6/30/1998 $12,267 $12,060 $12,398
7/30/1998 $12,167 $11,932 $12,316
8/30/1998 $10,756 $10,207 $10,467
9/30/1998 $11,336 $10,861 $11,271
10/31/1998 $12,127 $11,744 $12,178
11/30/1998 $12,777 $12,456 $13,103
12/31/1998 $14,478 $13,173 $14,285
1/31/1999 $15,959 $13,724 $14,795
2/28/1999 $15,259 $13,297 $14,325
3/31/1999 $16,549 $13,829 $14,874
4/30/1999 $16,009 $14,364 $14,893
5/31/1999 $15,189 $14,025 $14,436
6/30/1999 $16,820 $14,803 $15,447
7/30/1999 $16,830 $14,341 $14,956
8/30/1999 $16,980 $14,271 $15,199
9/30/1999 $16,860 $13,880 $14,880
10/31/1999 $17,680 $14,758 $16,004
11/30/1999 $19,901 $15,058 $16,867
12/31/1999 $23,604 $15,945 $18,622
</TABLE>
<TABLE>
<CAPTION>
LARGE CAP GROWTH PORTFOLIO
TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 1000
DECEMBER 31, 1999 FUND S&P 500 GROWTH
- ---------------------------------- ------- ------- ------------
<S> <C> <C> <C>
One Year 63.03% 21.04% 30.36%
Annualized Since Inception* 52.57% 25.80% 35.78%
Value of a $10,000 investment
over Life of Fund* $23,604 $15,945 $18,622
*Inception December 19, 1997
</TABLE>
2
<PAGE>
Currently, corporate profits are growing in excess of 20% annually and this
trend will likely continue for at least a few more months. Unfortunately,
investors seem to be bored with such mundane growth. Instead, investors appear
to be only interested in stocks with over 70% annual earnings growth. Under this
kind of environment an investor's best defense remains a strong portfolio of
rapidly growing companies. The stock market's breadth and power has simply
refused to broaden out despite record earnings growth for the entire stock
market. Instead, the stock market is becoming increasingly cautious and
primarily technology stocks continue to prosper. Technology stocks continue to
dominate investor attention and are attracting 90% of the new money that is
flowing into the stock market. Fortunately, most technology stocks are immune to
the impact of rising interest rates, so the Federal Reserve Board's next
decision at the FOMC meeting in mid-March should have almost no impact on the
best technology stocks. As a result, we are continuing to realign our Portfolios
to capitalize on more technology stocks.
The new inflows into the stock market via mutual funds continue to favor the
small-to-mid capitalization arena. As many large capitalization stocks that were
former stock market flagships continue to flounder, institutional investors are
increasingly turning towards small-to-mid capitalization stocks. We believe that
this persistent institutional buying pressure in small-to-mid capitalization
stocks will continue to make them the safest place to be.
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>
12/19/1997 $10,000 $10,000 $10,000
12/1/1997 $10,118 $10,091 $10,237
1/31/1998 $9,998 $10,166 $10,093
2/28/1998 $10,808 $10,890 $10,772
3/31/1998 $11,369 $11,439 $11,431
4/30/1998 $11,499 $11,557 $11,508
5/31/1998 $11,249 $11,308 $11,337
6/30/1998 $11,369 $11,726 $11,483
7/30/1998 $11,249 $11,585 $11,280
8/30/1998 $10,218 $9,853 $9,602
9/30/1998 $10,538 $10,516 $10,153
10/31/1998 $11,489 $11,347 $10,940
11/30/1998 $12,029 $12,050 $11,450
12/31/1998 $12,190 $12,817 $11,839
1/31/1999 $12,190 $13,274 $11,934
2/28/1999 $12,072 $12,853 $11,765
3/31/1999 $12,532 $13,346 $12,009
4/30/1999 $14,191 $13,903 $13,130
5/31/1999 $13,881 $13,603 $12,986
6/30/1999 $14,009 $14,297 $13,362
7/30/1999 $13,624 $13,861 $12,971
8/30/1999 $13,281 $13,731 $12,490
9/30/1999 $12,607 $13,353 $12,054
10/31/1999 $12,982 $14,251 $12,748
11/30/1999 $12,479 $14,617 $12,648
12/31/1999 $12,707 $15,498 $12,709
</TABLE>
<TABLE>
<CAPTION>
LARGE CAP VALUE PORTFOLIO
TOTAL RUSSELL
RETURNS FOR PERIODS ENDED 1000
DECEMBER 31, 1999 FUND RUSSELL 1000 VALUE
- ---------------------------------- ------- ------- -------
<S> <C> <C> <C>
One Year 4.24% 20.91% 7.35%
Annualized Since Inception* 12.51% 24.05% 12.62%
Value of a $10,000 investment
over Life of Fund* $12,707 $15,498 $12,709
*Inception December 19, 1997
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO
INTERNATIONAL EQUITY EAFE
<S> <C> <C>
12/26/1997 $10,000 $10,000
12/31/1997 $10,000 $10,164
1/30/1998 $10,020 $10,616
2/27/1998 $10,120 $11,283
3/31/1998 $10,790 $11,617
4/30/1998 $10,800 $11,695
5/29/1998 $11,080 $11,625
6/30/1998 $10,950 $11,699
7/31/1998 $11,420 $11,803
8/31/1998 $9,780 $10,327
9/30/1998 $8,910 $9,996
10/30/1998 $9,620 $11,024
11/30/1998 $10,280 $11,575
12/31/1998 $10,664 $12,017
1/29/1999 $10,429 $11,967
2/26/1999 $9,979 $11,668
3/31/1999 $9,979 $12,141
4/30/1999 $10,184 $12,619
5/28/1999 $9,662 $11,955
6/30/1999 $9,856 $12,406
7/30/1999 $9,805 $12,761
8/31/1999 $9,948 $12,793
9/30/1999 $10,153 $12,907
10/29/1999 $10,593 $13,376
11/30/1999 $11,441 $13,826
12/31/1999 $13,478 $15,053
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL EQUITY PORTFOLIO
TOTAL
RETURNS FOR PERIODS ENDED
DECEMBER 31, 1999 FUND EAFE INDEX
- -------------------------------------- ------- ----------
<S> <C> <C>
One Year 26.39% 25.26%
Annualized Since Inception* 15.98% 22.29%
Value of a $10,000 investment
over Life of Fund* $13,478 $15,053
*Inception December 26, 1997
</TABLE>
Please call us if we can address any questions or concerns for you at
(800) 887-8671 or visit our website at www.navellier.com. The web site
includes the current weekly market commentary, which we will be happy to
e-mail to you at your request.
Thank you for allowing us to manage some of your assets. We feel very
obligated to our shareholders and promise to make every effort to manage them
efficiently and ambitiously!
Sincerely,
<TABLE>
<S> <C>
[SIGNATURE] [SIGNATURE]
LOUIS G. NAVELLIER ALAN ALPERS
</TABLE>
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:
3
<PAGE>
S&P 500 Index is an unmanaged index consisting of 500 large capitalization
companies. It is considered representative of the stock market as a whole.
Russell 3000-Registered Trademark- Index measures the performance of the 3,000
largest US companies based on total market capitalization, which represents
approximately 98% of the investable U.S. equity market.
Russell 1000-Registered Trademark- Index measures the performance of the 1,000
largest companies in the Russell 3000 Index, which represents approximately 89%
of the total market capitalization of the Russell 3000 Index.
Russell 2000-Registered Trademark- Index measures the performance of the 2,000
smallest companies in the Russell 3000 Index, which represents approximately 11%
of the total market capitalization of the Russell 3000 Index.
Russell MidCap-Registered Trademark- Index measures the performance of the 800
smallest companies in the Russell 1000 Index, which represents approximately 26%
of the total market capitalization of the Russell 1000 Index.
Russell 1000-Registered Trademark- Growth Index measures the performance of
those Russell 1000 companies with higher price-to-book ratios and higher
forecasted growth values.
Russell 1000-Registered Trademark- Value Index measures the performance of those
Russell 1000 companies with lower price-to-book ratios and lower forecasted
growth values.
Russell 2000-Registered Trademark- Growth Index measures the performance of
those Russell 2000 companies with higher price-to-book ratios and higher
forecasted growth values.
Russell 2000-Registered Trademark- Value Index measures the performance of those
Russell 2000 companies with lower price-to-book ratios and lower forecasted
growth values.
Morgan Stanley EAFE Index (Europe, Australasia and Far East) is an unmanaged
index consisting of approximately 1000 companies listed on stock exchanges in
the twenty countries that make up the MSCI National Indices.
THESE INDICES ARE CONSIDERED REPRESENTATIVE OF PERTINENT MARKET SECTORS IN
GENERAL. NONE ARE INVESTMENT PRODUCTS AVAILABLE FOR SALE.
+Morningstar proprietary ratings reflect historical risk-adjusted performance as
of December 31, 1999. The ratings are subject to change every month. Past
performance is no guarantee of future results. Morningstar ratings are
calculated from the fund's three-year average annual returns in excess of 90-day
Treasury bill returns with appropriate fee adjustments, and a risk factor that
reflects fund performance below 90-day Treasury bill returns. The Navellier Mid
Cap Growth portfolio received five stars, for the three year period. The top 10%
of the funds in a broad asset class receive five stars. The fund was rated among
3,309 domestic equity funds for the three year period.
4
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF NET ASSETS
DECEMBER 31, 1999
AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
<TABLE>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 96.6%
BIOTECHNOLOGY AND DRUGS -- 2.4%
22,000 Andrx Corp.* $ 930,875
-----------
BUSINESS SERVICES -- 5.1%
77,100 PDS Financial Corp.* 130,106
41,000 Zomax, Inc.* 1,855,250
-----------
1,985,356
-----------
COMMUNICATION EQUIPMENT AND
SERVICES -- 11.7%
24,000 CommScope, Inc.* 967,500
20,000 Polycom, Inc.* 1,273,750
40,000 Lightbridge, Inc.* 1,110,000
20,000 Powerwave
Technologies, Inc.* 1,167,500
-----------
4,518,750
-----------
COMPUTER EQUIPMENT -- 8.8%
20,000 Emulex Corp.* 2,250,000
50,000 In Focus Systems,
Inc.* 1,159,375
-----------
3,409,375
-----------
COMPUTER SOFTWARE AND
PROGRAMMING -- 8.2%
54,700 Harbinger Corp.* 1,740,144
35,000 Radiant Systems, Inc.* 1,406,563
-----------
3,146,707
-----------
CONSUMER GOODS -- 2.4%
34,000 Church & Dwight Co.,
Inc. 907,375
-----------
ELECTRONICS -- 24.1%
24,300 Audiovox Corp.* 738,113
20,000 CTS Corp. 1,507,500
18,800 DSP Group, Inc.* 1,748,400
41,700 InterTAN, Inc.* 1,089,412
27,300 KEMET Corp.* 1,230,206
36,800 LTX Corp.* 823,400
15,000 Orbotech, Ltd.* 1,162,500
40,000 Ultimate Electronics,
Inc.* 990,000
-----------
9,289,531
-----------
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
INDUSTRIAL MACHINERY -- 8.0%
53,000 Applied Science and
Technology, Inc.* $ 1,761,423
30,000 Helix Technology Corp. 1,344,375
-----------
3,105,798
-----------
INSTRUMENTS -- 1.5%
14,900 Photon Dynamics, Inc.* 577,375
-----------
MEDICAL EQUIPMENT AND SUPPLIES -- 2.6%
25,000 Datascope Corp. 1,000,000
-----------
SEMICONDUCTORS AND RELATED -- 16.7%
34,000 Power Integrations,
Inc.* 1,629,875
6,000 QLogic Corp.* 959,250
46,655 Three Five Systems,
Inc.* 1,912,855
35,000 Zoran Corp.* 1,951,250
-----------
6,453,230
-----------
TOYS AND CHILDREN'S PRODUCTS -- 2.3%
48,000 JAKKS Pacific, Inc.* 897,000
-----------
UTILITIES -- 2.8%
17,000 Calpine Corp.* 1,088,000
-----------
TOTAL COMMON STOCKS
(COST $26,974,972) 37,309,372
-----------
MONEY MARKET FUNDS -- 7.0%
2,702,025 Fund for Government
Investors
(Cost $2,702,025) 2,702,025
-----------
TOTAL INVESTMENTS -- 103.6%
(COST $29,676,997) $40,011,397
Liabilities in Excess of Other
Assets -- (3.6%) (1,385,757)
-----------
NET ASSETS -- 100.0% $38,625,640
===========
NET ASSET VALUE PER SHARE
(BASED ON 1,906,257 SHARES OUTSTANDING)
$20.26
===========
NET ASSETS CONSIST OF:
Paid-in-Capital $25,324,986
Accumulated Net Realized Gain on Investments
2,966,254
Net Unrealized Appreciation of Investments
10,334,400
-----------
NET ASSETS $38,625,640
===========
</TABLE>
5
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF NET ASSETS
DECEMBER 31, 1999
AGGRESSIVE GROWTH PORTFOLIO
<TABLE>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 97.5%
BUSINESS SERVICES -- 8.7%
150,000 Learning Tree
International, Inc.* $ 4,200,000
80,000 Zomax, Inc.* 3,620,000
-----------
7,820,000
-----------
COMMERCIAL SERVICES -- 1.5%
111,000 ICT Group, Inc.* 1,359,750
-----------
COMMUNICATION EQUIPMENT AND
SERVICES -- 10.7%
65,000 CommScope, Inc.* 2,620,312
40,000 Harmonic, Inc.* 3,797,500
185,000 Performance
Technologies, Inc.* 3,214,375
-----------
9,632,187
-----------
COMPUTER SOFTWARE AND
PROGRAMMING -- 5.3%
150,000 Harbinger Corp.* 4,771,875
-----------
DATA PROCESSING -- 2.9%
147,600 CAM Data Systems,
Inc.* 2,638,350
-----------
ELECTRONIC COMPONENTS/
EQUIPMENT -- 23.7%
100,000 Audiovox Corp.* 3,037,500
141,100 California Amplifier,
Inc.* 3,712,694
40,000 DSP Group, Inc.* 3,720,000
130,000 Park Electrochemical
Corp. 3,453,125
50,000 Power Integrations,
Inc.* 2,396,875
60,000 Power-One, Inc.* 2,748,750
50,000 Xilinx, Inc.* 2,273,440
-----------
21,342,384
-----------
HEALTHCARE -- 1.1%
250,000 I-Flow Corp.* 992,200
-----------
MACHINERY -- 8.3%
100,000 Helix Technology Corp. 4,481,250
90,000 Imation Corp.* 3,020,625
-----------
7,501,875
-----------
MANUFACTURING -- 9.1%
154,700 Meade Instruments
Corp.* 4,408,950
201,600 Scott Technologies,
Inc.* 3,805,200
-----------
8,214,150
-----------
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
PAPER & RELATED PRODUCTS -- 2.8%
40,000 Champion International
Corp. $ 2,477,500
-----------
PLASTICS -- 3.2%
90,000 Spartech Corp. 2,902,500
-----------
SEMICONDUCTORS AND RELATED -- 3.5%
25,000 Applied Micro Circuits
Corp.* 3,181,250
-----------
RETAIL -- 2.9%
100,000 InterTAN, Inc.* 2,612,500
-----------
TELECOMMUNICATIONS -- 11.1%
120,000 Price Communications
Corp.* 3,337,500
25,000 Rural Cellular Corp.* 2,262,500
65,000 Western Wireless
Corp.* 4,338,750
-----------
9,938,750
-----------
TRANSPORTATION -- 2.7%
50,000 USFreightways Corp. 2,393,750
-----------
TOTAL COMMON STOCKS
(COST $73,605,903) 87,779,021
-----------
MONEY MARKET FUNDS -- 0.3%
250,025 Fund for Government
Investors
(Cost $250,025) 250,025
-----------
TOTAL INVESTMENTS -- 97.8%
(COST $73,855,928) $88,029,046
Other Assets Less Liabilities -- 2.2% 1,999,401
-----------
NET ASSETS -- 100.0% $90,028,447
===========
NET ASSET VALUE PER SHARE
(BASED ON 4,735,814 SHARES OUTSTANDING)
$19.01
===========
NET ASSETS CONSIST OF:
Paid-in-Capital $66,265,484
Accumulated Net Realized Gain on Investments
9,589,845
Net Unrealized Appreciation of Investments
14,173,118
-----------
NET ASSETS $90,028,447
===========
</TABLE>
6
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF NET ASSETS
DECEMBER 31, 1999
MID CAP GROWTH PORTFOLIO
<TABLE>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 95.3%
BIOTECHNOLOGY & DRUGS -- 3.5%
28,200 Affymetrix, Inc.* $ 4,785,187
------------
BROADCASTING -- 5.8%
39,500 Cox Radio, Inc.* 3,940,125
39,300 Univision
Communications
Inc.* 4,015,969
------------
7,956,094
------------
COMMUNICATION EQUIPMENT AND
SERVICES -- 14.4%
70,700 Adaptec, Inc.* 3,526,162
51,800 Ancor Communications,
Inc.* 3,515,925
89,900 CommScope, Inc.* 3,624,094
41,000 Emulex Corp.* 4,612,500
47,000 Harmonic Inc.* 4,462,062
------------
19,740,743
------------
COMPUTER SERVICES -- 9.2%
66,000 BEA Systems, Inc.* 4,615,875
20,000 Check Point Software
Technologies Ltd.* 3,975,000
69,000 Symantec Corp.* 4,045,125
------------
12,636,000
------------
COMPUTER SOFTWARE AND
PROGRAMMING -- 5.5%
55,900 Adobe Systems, Inc. 3,759,275
45,000 Electronic Arts Inc.* 3,780,000
------------
7,539,275
------------
ELECTRONIC COMPONENTS -- 8.4%
73,300 AVX Corp. 3,660,419
60,000 Sawtek Inc.* 3,993,750
123,700 Vishay
Intertechnology,
Inc.* 3,912,013
------------
11,566,182
------------
FINANCIAL SERVICES -- 3.0%
90,000 Knight/Trimark Group,
Inc.* 4,140,000
------------
FOOD -- 1.1%
36,600 Hormel Foods Corp. 1,486,875
------------
OIL & GAS SERVICES -- 2.7%
88,300 BJ Services Company* 3,692,044
------------
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
RETAIL -- 3.7%
35,400 BJ's Wholesale Club,
Inc.* $ 1,292,100
42,600 Tiffany & Co. 3,802,050
------------
5,094,150
------------
SEMICONDUCTORS AND RELATED -- 26.5%
42,600 Analog Devices, Inc.* 3,961,800
36,100 Applied Micro
Circuits Corp.* 4,593,725
126,400 Atmel Corp.* 3,736,700
127,300 Integrated Device
Technology, Inc.* 3,691,700
65,000 Micrel, Inc.* 3,700,938
26,600 PMC-Sierra, Inc.* 4,264,312
27,100 QLogic Corp.* 4,332,612
18,900 SDL, Inc.* 4,120,200
86,400 Xilinx, Inc.* 3,928,504
------------
36,330,491
------------
TELECOMMUNICATIONS -- 11.5%
40,000 Powertel, Inc.* 4,015,000
66,300 Scientific-Atlanta,
Inc. 3,687,938
37,500 United States
Cellular Corp.* 3,785,156
63,000 Western Wireless
Corp.* 4,205,250
------------
15,693,344
------------
TOTAL COMMON STOCKS
(COST $94,985,380) 130,660,385
------------
MONEY MARKET FUNDS -- 4.8%
6,597,458 Fund for Government
Investors
(Cost $6,597,458) 6,597,458
------------
TOTAL INVESTMENTS -- 100.1%
(COST $101,582,838) $137,257,843
Liabilities in Excess of Other Assets --
(0.1%) (150,281)
------------
NET ASSETS -- 100.0% $137,107,562
============
NET ASSET VALUE PER SHARE
(BASED ON 4,540,047 SHARES OUTSTANDING)
$30.20
============
NET ASSETS CONSIST OF:
Paid-in-Capital $ 97,674,774
Accumulated Net Realized Gain on
Investments 3,757,783
Net Unrealized Appreciation of Investments
35,675,005
------------
NET ASSETS $137,107,562
============
</TABLE>
7
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF NET ASSETS
DECEMBER 31, 1999
AGGRESSIVE MICRO CAP PORTFOLIO
<TABLE>
- ----------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 97.4%
APPAREL -- 4.3%
12,000 Braun's Fashions Corp.* $ 252,000
----------
CASINOS AND GAMING -- 5.6%
21,000 Argosy Gaming Company* 326,812
----------
COMMUNICATION EQUIPMENT AND
SERVICES -- 9.9%
11,000 LodgeNet Entertainment
Corp.* 273,625
11,000 Lightbridge, Inc.* 305,250
----------
578,875
----------
COMPUTER HARDWARE AND
PERIPHERALS -- 5.0%
26,000 NUR Macroprinters Ltd.* 294,125
----------
CONTAINERS -- 5.4%
14,700 Mobile Mini, Inc.* 316,050
----------
ELECTRONICS -- 18.9%
21,000 Merix Corp.* 231,000
8,000 Park Electrochemical
Corp. 212,500
9,331 Three-Five Systems,
Inc.* 382,571
7,000 Watkins-Johnson Company 280,000
----------
1,106,071
----------
HEALTHCARE -- 11.5%
23,000 Taro Pharmaceutical
Industries Ltd.* 333,500
9,000 Zoll Medical Corp.* 343,688
----------
677,188
----------
HOUSEHOLD APPLIANCES -- 6.3%
11,000 Salton, Inc.* 367,812
----------
- ----------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
INDUSTRIAL -- 4.3%
10,000 The Shaw Group, Inc.* $ 253,125
----------
MANUFACTURING -- 5.3%
11,000 Meade Instruments
Corp.* 313,500
----------
RETAIL STORES -- 16.5%
15,000 1-800 CONTACTS, INC.* 405,938
8,000 REX Stores Corp.* 280,000
8,000 Tweeter Home
Entertainment Group,
Inc.* 284,000
----------
969,938
----------
TOYS AND CHILDREN'S PRODUCTS -- 4.4%
13,950 JAKKS Pacific, Inc.* 260,691
----------
TOTAL COMMON STOCKS
(COST $4,514,136) 5,716,187
----------
MONEY MARKET FUNDS -- 1.7%
101,364 Fund for Government
Investors
(Cost $101,364) 101,364
----------
TOTAL INVESTMENTS -- 99.1%
(COST $4,615,500) $5,817,551
Other Assets Less Liabilities -- 0.9% 51,809
----------
NET ASSETS -- 100.0% $5,869,360
==========
NET ASSET VALUE PER SHARE
(BASED ON 262,655 SHARES OUTSTANDING)
$22.35
==========
NET ASSETS CONSIST OF:
Paid-in-Capital $4,040,429
Net Investment Loss (11,483)
Accumulated Net Realized Gain on Investments
638,363
Net Unrealized Appreciation of Investments
1,202,051
----------
NET ASSETS $5,869,360
==========
</TABLE>
8
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF NET ASSETS
DECEMBER 31, 1999
SMALL CAP VALUE PORTFOLIO
<TABLE>
- ----------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 96.0%
AEROSPACE AND DEFENSE -- 1.1%
1,000 Kaman Corp. $ 12,875
----------
AUTO AND TRUCK PARTS -- 5.0%
2,190 Arvin Industries, Inc. 62,141
----------
AUTOMOBILES -- 3.7%
2,570 Lithia Motors, Inc.* 45,939
----------
CASINOS AND GAMING -- 3.7%
2,030 Hollywood Park, Inc.* 45,548
----------
CHEMICALS -- 3.6%
800 H.B. Fuller Co. 44,750
----------
COMMERCIAL SERVICES -- 3.1%
1,350 Quanta Services, Inc.* 38,137
----------
COMPUTER PRODUCTS -- 5.5%
1,400 Advanced Digital
Information* 68,075
----------
CONTAINERS AND PACKAGING -- 2.5%
2,110 Rock-Tenn Co. 31,123
----------
DISTRIBUTION AND WHOLESALE -- 4.9%
2,110 United Stationers Inc.* 60,267
----------
ELECTRONICS -- 5.3%
900 Electro Scientific
Industries* 65,700
----------
ENGINEERING AND CONSTRUCTION -- 3.7%
3,350 Chicago Bridge & Iron
Co. 46,063
----------
FINANCIAL SERVICES -- 6.1%
1,550 WFS Financial, Inc.* 32,744
2,900 Westcorp 42,050
----------
74,794
----------
HOMEBUILDING -- 3.7%
1,440 D.R. Horton, Inc. 19,890
1,610 MDC Holdings, Inc. 25,257
----------
45,147
----------
INDUSTRIAL MACHINERY -- 6.8%
1,610 Ampco-Pittsburgh Corp. 16,301
1,400 Gerber Scientific, Inc. 30,712
1,100 Imation Corp.* 36,919
----------
83,932
----------
REAL ESTATE -- 1.4%
800 Prentiss Properties
Trust 16,800
----------
RECREATIONAL VEHICLES -- 8.2%
1,852 Monaco Coach Corp.* 47,342
2,690 Winnebago Industries,
Inc. 53,968
----------
101,310
----------
- ----------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
RENTAL AND LEASING -- 5.3%
1,070 Avis Rent A Car, Inc.* $ 27,352
1,600 Dollar Thrifty
Automotive Group,
Inc.* 38,300
----------
65,652
----------
RESTAURANTS -- 4.7%
2,010 Buffets, Inc.* 20,100
1,810 Jack in the Box, Inc.* 37,444
----------
57,544
----------
RETAIL -- 6.7%
3,210 Genesco, Inc.* 41,730
3,220 Haverty Furniture
Companies 40,652
----------
82,382
----------
TELECOMMUNICATIONS -- 3.2%
800 NICE Systems Ltd., ADR* 39,350
----------
TRANSPORTATION -- 6.7%
1,400 America West Holdings
Corp.* 29,050
1,470 American Freightways* 23,796
1,740 Yellow Corp.* 29,254
----------
82,100
----------
UTILITIES -- 1.1%
400 CH Energy Group, Inc. 13,200
----------
TOTAL COMMON STOCKS
(COST $1,112,401) 1,182,829
----------
MONEY MARKET FUNDS -- 3.6%
44,612 Fund for Government
Investors
(Cost $44,612) 44,612
----------
TOTAL INVESTMENTS -- 99.6%
(COST $1,157,013) $1,227,441
Other Assets Less Liabilities -- 0.4% 4,581
----------
NET ASSETS -- 100.0% $1,232,022
==========
NET ASSET VALUE PER SHARE
(BASED ON 135,940 SHARES OUTSTANDING)
$9.06
==========
NET ASSETS CONSIST OF:
Paid-in-Capital $1,340,117
Undistributed Net Investment Income 2,976
Accumulated Net Realized Loss on Investments
(181,499)
Net Unrealized Appreciation of Investments
70,428
----------
NET ASSETS $1,232,022
==========
</TABLE>
9
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF NET ASSETS
DECEMBER 31, 1999
LARGE CAP GROWTH PORTFOLIO
<TABLE>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 88.9%
BIOTECHNOLOGY AND DRUGS -- 7.9%
5,900 Amgen, Inc. * $ 354,369
2,200 Biogen, Inc.* 185,900
2,750 MedImmune, Inc.* 456,156
-----------
996,425
-----------
COMMUNICATION EQUIPMENT AND
SERVICES -- 23.0%
2,500 Comverse Technology,
Inc.* 361,875
3,950 Nokia Corp., ADR 750,500
4,000 QUALCOMM Inc.* 704,500
4,750 Scientific-Atlanta,
Inc. 264,219
2,600 Telephone and Data
Systems, Inc. 327,600
3,250 United States Cellular
Corp.* 328,047
3,625 Vodafone Group, ADR 179,438
-----------
2,916,179
-----------
COMPUTER HARDWARE AND
PERIPHERALS -- 6.5%
5,180 EMC Corp. * 565,915
2,400 International Business
Machines Corp. 259,200
-----------
825,115
-----------
COMPUTER NETWORKS -- 4.2%
5,014 Cisco Systems, Inc. * 537,125
-----------
COMPUTER SOFTWARE AND
SERVICES -- 12.8%
5,500 America Online, Inc.* 414,906
3,530 Microsoft Corp. * 412,127
4,650 Siebel Systems, Inc.* 390,600
5,150 Sun Microsystems,
Inc.* 398,803
-----------
1,616,436
-----------
ELECTRONICS -- 3.3%
4,400 Solectron Corp.* 418,550
-----------
FOOD DISTRIBUTORS -- 2.9%
9,170 SYSCO Corp. 362,788
-----------
MEDIA AND BROADCASTING -- 2.2%
5,000 Tribune Company 275,313
-----------
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
MEDICAL EQUIPMENT -- 1.6%
1,750 MiniMed, Inc.* $ 128,188
1,550 VISX, Inc.* 80,212
-----------
208,400
-----------
OFFICE EQUIPMENT AND SUPPLIES -- 3.0%
4,250 Lexmark International
Group, Inc.* 384,625
-----------
RECREATIONAL VEHICLES -- 2.0%
4,000 Harley Davidson, Inc. 256,250
-----------
RETAIL -- 3.3%
6,067 The Home Depot, Inc. 415,969
-----------
SEMICONDUCTORS -- 14.4%
2,100 Broadcom Corp.* 571,987
3,300 Qlogic Corp.* 527,588
3,500 Texas Instruments,
Inc. 339,062
8,500 Xilinx Inc.* 386,485
-----------
1,825,122
-----------
UTILITIES -- 1.8%
5,000 Enron Corp. 221,875
-----------
TOTAL COMMON STOCKS
(COST $7,024,918) 11,260,172
-----------
MONEY MARKET FUNDS -- 9.2%
1,168,992 Fund for Government
Investors
(Cost $1,168,992) 1,168,992
-----------
TOTAL INVESTMENTS -- 98.1%
(COST $8,193,910) $12,429,164
Other Assets Less Liabilities -- 1.9% 237,578
-----------
NET ASSETS -- 100.0% $12,666,742
===========
NET ASSET VALUE PER SHARE
(BASED ON 536,888 SHARES OUTSTANDING)
$23.59
===========
NET ASSETS CONSIST OF:
Paid-in-Capital $ 8,323,520
Accumulated Net Realized Gain on Investments
107,968
Net Unrealized Appreciation of Investments
4,235,254
-----------
NET ASSETS $12,666,742
===========
</TABLE>
10
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF NET ASSETS
DECEMBER 31, 1999
LARGE CAP VALUE PORTFOLIO
<TABLE>
- ----------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 93.7%
AEROSPACE AND DEFENSE -- 1.6%
300 Northrop Grumman Corp. $ 16,219
----------
AIRLINES -- 4.3%
275 British Airways plc,
ADR 17,703
325 UAL Corp.* 25,208
----------
42,911
----------
AUTO PARTS AND EQUIPMENT -- 5.3%
900 Dana Corporation 26,944
600 Magna International
Inc. 25,425
----------
52,369
----------
BANKS -- 8.3%
800 First Union Corp. 26,250
975 Golden West Financial
Corp. 32,663
600 UnionBanCal Corp. 23,662
----------
82,575
----------
BEVERAGES -- 1.9%
1,575 Bass PLC, ADR 18,605
----------
COMMERCIAL SERVICES -- 1.5%
600 R. R. Donnelley & Sons
Co. 14,887
----------
INSTRUMENTS -- 1.7%
300 Johnson Controls, Inc. 17,062
----------
INSURANCE -- 20.6%
600 Aetna, Inc. 33,487
890 The Allstate Corp. 21,360
1,350 Conseco, Inc. 24,131
250 Hartford Financial
Services Group, Inc. 11,844
1,050 SAFECO Corp. 26,119
800 The St. Paul Companies,
Inc. 26,950
840 Travelers Property
Casualty Corp. 28,770
850 Unitrin, Inc. 31,981
----------
204,642
----------
INVESTMENT SERVICES -- 7.5%
450 A.G. Edwards, Inc. 14,428
725 The Bear Stearns
Companies, Inc. 30,994
340 Lehman Brothers
Holdings, Inc. 28,794
----------
74,216
----------
MANUFACTURING -- 1.4%
950 Tomkins F H PLC, ADR 13,953
----------
- ----------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
METALS AND MINERALS -- 3.0%
1,150 Corus Group plc, ADR $ 29,756
----------
MOTOR VEHICLES -- 11.5%
585 Ford Motor Co. 31,261
350 General Motors Corp. 25,441
400 Navistar International
Corp.* 18,950
300 PACCAR, Inc. 13,294
1,000 Volvo AB, ADR 25,250
----------
114,196
----------
REAL ESTATE -- 3.7%
2,200 Trizec Hahn Corp. 37,125
----------
RETAIL -- 2.6%
2,600 Kmart Corp.* 26,162
----------
UTILITIES -- 18.8%
625 American Electric Power
Company, Inc. 20,078
590 Constellation Energy
Group, Inc. 17,110
500 DTE Energy Co. 15,687
1,100 Entergy Corp. 28,325
1,150 FirstEnergy Corp. 26,091
850 GPU, Inc. 25,447
850 Public Service
Enterprise Group,
Inc. 29,591
1,050 Reliant Energy, Inc. 24,019
----------
186,348
----------
TOTAL COMMON STOCKS
(COST $980,704) 931,026
----------
MONEY MARKET FUNDS -- 6.2%
61,375 Fund for Government
Investors
(Cost $61,375) 61,375
----------
TOTAL INVESTMENTS -- 99.9%
(COST $1,042,079) $ 992,401
Other Assets Less Liabilities -- 0.1% 1,229
----------
NET ASSETS -- 100.0% $ 993,630
==========
NET ASSET VALUE PER SHARE
(BASED ON 95,222 SHARES OUTSTANDING)
$10.43
==========
NET ASSETS CONSIST OF:
Paid-in-Capital $1,068,162
Undistributed Net Investment Income 2,779
Accumulated Net Realized Loss on Investments
(27,633)
Net Unrealized Depreciation of Investments
(49,678)
----------
NET ASSETS $ 993,630
==========
</TABLE>
11
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF NET ASSETS
DECEMBER 31, 1999
INTERNATIONAL EQUITY PORTFOLIO
<TABLE>
- -------------------------------------------------------------------------------------------------------------------------
MARKET VALUE
SHARES COUNTRY (NOTE 1)
- -------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
COMMON STOCKS -- 97.3%
AIRLINES -- 0.02%
67 Konin Luchtvaart Mij NV Netherlands $ 1,712
-----------
AUTO AND TRUCK MANUFACTURERS -- 1.9%
4,000 Toyota Motor Corp. Japan 193,426
-----------
CHEMICALS -- 2.1%
3,760 Aventis ADR 213,850
-----------
COMPUTERS -- 13.3%
440 Cap Gemini SA* France 111,135
5,580 CMG Plc United Kingdom 412,432
2,880 Getronics NV Netherlands 228,620
7,115 Logica United Kingdom 182,329
15,100 Sema Group Plc United Kingdom 269,650
1,000 TDK Corp. Japan 137,840
-----------
1,342,006
-----------
COMPUTER SOFTWARE -- 8.1%
10,300 Sage Group United Kingdom 125,500
610 SAP AG Germany 298,976
400 Softbank Corp.* Japan 386,000
-----------
810,476
-----------
DIVERSIFIED FINANCIAL SERVICES -- 3.8%
15,000 Daiwa Securities Group, Inc. Japan 234,310
5,000 Nomura Securities Ltd. Japan 90,119
6,100 WEBS Index Fund, Inc. Singapore 56,044
-----------
380,473
-----------
ELECTRICAL MACHINERY -- 4.2%
1,000 Matsushita Communications Japan 263,763
7,000 Omron Corp. Japan 161,042
-----------
424,805
-----------
ELECTRONIC EQUIPMENT -- 9.7%
300 Keyence Corp. Japan 121,624
1,000 Murata MFG Japan 234,456
7,000 Sharp Corp. Japan 178,821
1,545 Sony Corp. Japan 439,939
-----------
974,840
-----------
HOUSEHOLD PRODUCTS/WARES -- 0.01%
40 Celanese AG* Germany 725
-----------
MEDIA / BROADCASTING -- 4.4%
6,350 British Sky Broadcasting United Kingdom 102,036
18 Fuji Television Japan 246,179
</TABLE>
12
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF NET ASSETS
DECEMBER 31, 1999
INTERNATIONAL EQUITY PORTFOLIO (CONTINUED)
<TABLE>
- -------------------------------------------------------------------------------------------------------------------------
MARKET VALUE
SHARES COUNTRY (NOTE 1)
- -------------------------------------------------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
<C> <S> <C> <C>
1,175 Reuters Group, ADR United Kingdom $ 94,955
-----------
443,170
-----------
OFFICE SUPPLIES AND EQUIPMENT -- 1.7%
9,000 Ricoh Co. Japan 169,336
-----------
PRECISION INSTRUMENTS -- 1.2%
4,000 Nikon Corp. Japan 117,228
-----------
RETAIL -- 6.3%
2,000 Seven-Eleven Co. Japan 316,516
1,200 Pinault-Printemps-Redo France 315,123
-----------
631,639
-----------
SEMICONDUCTORS -- 6.3%
800 Rohm Co. Japan 328,239
1,075 STMicroelectronics NV Netherlands 162,795
1,000 Toyko Electron Japan 136,766
-----------
627,800
-----------
TELECOMMUNICATION EQUIPMENT -- 10.8%
3,300 Alcatel Alsthom, ADR France 148,500
3,570 Ericsson LM Telephone Co. Class B, ADR Sweden 234,504
100 Hikari Tsushin Inc. Japan 200,265
2,630 Nokia Corp. Finland 499,700
-----------
1,082,969
-----------
TELECOMMUNICATIONS -- 14.6%
925 Nippon Telegraph & Telephone Japan 79,666
4 Nippon Telegraph & Telephone, ADR Japan 68,383
12 NTT Mobile Communications Japan 460,706
500 Orange Plc, ADR* United Kingdom 82,750
51,500 T.I.M. SPA Italy 572,449
4,200 Vodafone Airtouch PLC, ADR United Kingdom 207,900
-----------
1,471,854
-----------
UTILITIES -- 8.9%
17 DDI Corp. Japan 232,502
2,380 Deutsche Telekom AG, ADR Germany 168,980
650 France Telecom, ADR France 86,775
1200 Royal PTT Nederland NV, ADR Netherlands 115,350
5,070 Swisscom AG, ADR Switzerland 205,335
1,122 Telefonica SA, ADR* Spain 88,428
-----------
897,370
-----------
TOTAL COMMON STOCKS
(COST $6,937,143) 9,783,679
-----------
</TABLE>
13
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF NET ASSETS
DECEMBER 31, 1999
INTERNATIONAL EQUITY PORTFOLIO (CONTINUED)
<TABLE>
- -------------------------------------------------------------------------------------------------------------------------
MARKET VALUE
SHARES COUNTRY (NOTE 1)
- -------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
MONEY MARKET FUNDS -- 2.8%
276,581 Fund for Government Investors
(Cost $276,581) United States $ 276,581
-----------
TOTAL INVESTMENTS -- 100.1%
(COST $7,213,724) $10,060,260
Liabilities in Excess of Other Assets -- (0.1%) (5,163)
-----------
NET ASSETS -- 100.0% $10,055,097
===========
NET ASSET VALUE PER SHARE
(BASED ON 763,012 SHARES OUTSTANDING) $13.18
==========
NET ASSETS CONSIST OF:
Paid-in-Capital $ 8,162,982
Accumulated Net Realized Loss on Investments and Foreign
Currency Transactions (954,276)
Net Unrealized Depreciation of Investments and Foreign
Currency Transactions 2,846,391
-----------
NET ASSETS $10,055,097
===========
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
ADR AMERICAN DEPOSITORY RECEIPTS
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
AGGRESSIVE AGGRESSIVE MID CAP AGGRESSIVE
SMALL CAP EQUITY GROWTH GROWTH MICRO CAP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------------- ----------- ----------- ----------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest (Note 1)...................... $ 67,087 $ 213,936 $ 112,269 $ 8,964
Dividends (Note 1)..................... 38,060 165,776 65,592 18,707
---------- ----------- ----------- ----------
Total Investment Income.............. 105,147 379,712 177,861 27,671
---------- ----------- ----------- ----------
EXPENSES
Investment Advisory Fee (Note 2)....... 317,862 649,922 314,987 53,691
Administrative Fee (Note 2)............ 94,602 193,429 93,746 15,979
Distribution Plan Fees (Note 4)........ 94,677 194,117 94,291 15,963
Transfer Agent and Custodian Fee
(Note 3)............................. 99,604 145,824 88,676 48,144
Shareholder Reports and Notices........ 41,240 36,449 10,446 6,893
Registration Fees...................... 17,418 16,139 20,705 15,117
Organizational Expense (Note 1)........ -- 25,200 -- --
Audit Fees............................. 15,000 9,000 8,000 8,000
Trustees' Fees and Expenses
(Note 2)............................. 2,958 2,958 2,958 2,958
Other Expenses......................... 17,448 33,634 9,658 4,207
---------- ----------- ----------- ----------
Total Expenses....................... 700,809 1,306,672 643,467 170,952
Less Expenses Reimbursed by
Investment
Adviser (Note 2)................... (136,907) (153,146) (84,196) (75,719)
---------- ----------- ----------- ----------
Net Expenses....................... 563,902 1,153,526 559,271 95,233
---------- ----------- ----------- ----------
NET INVESTMENT LOSS...................... (458,755) (773,814) (381,410) (67,562)
---------- ----------- ----------- ----------
Net Realized Gain on Investment
Transactions........................... 7,084,090 27,161,572 7,146,986 1,285,026
Change in Net Unrealized Appreciation
of Investments......................... 1,710,135 3,761,122 33,944,862 (766,596)
---------- ----------- ----------- ----------
NET GAIN ON INVESTMENTS.................. 8,794,225 30,922,694 41,091,848 518,430
---------- ----------- ----------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS............................. $8,335,470 $30,148,880 $40,710,438 $ 450,868
========== =========== =========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
SMALL CAP LARGE CAP LARGE CAP INTERNATIONAL
VALUE GROWTH VALUE EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- ---------- --------- -------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME
Interest (Note 1)............................. $ 2,268 $ 10,993 $ 2,201 $ 31,305
Dividends (Note 1)............................ 38,534 21,194 30,379 128,058
-------- ---------- --------- ----------
Total Investment Income..................... 40,802 32,187 32,580 159,363
-------- ---------- --------- ----------
EXPENSES
Investment Advisory Fee (Note 2).............. 8,762 54,872 6,968 90,992
Administrative Fee (Note 2)................... 2,608 16,331 2,322 22,748
Distribution Plan Fees (Note 4)............... 2,613 16,412 2,322 22,763
Transfer Agent and Custodian Fee (Note 3)..... 37,038 42,675 36,874 101,915
Organizational Expense (Note 1)............... 18,360 18,360 18,360 18,360
Registration Fees............................. 14,545 14,545 14,545 9,298
Audit Fees.................................... 8,000 8,000 8,000 3,000
Trustees' Fees and Expenses (Note 2).......... 2,958 2,958 2,958 2,958
Shareholder Reports and Notices............... 1,050 3,975 1,331 1,316
Other Expenses................................ 639 2,615 627 4,130
-------- ---------- --------- ----------
Total Expenses.............................. 96,573 180,743 94,307 277,480
Less Expenses Reimbursed by Investment
Adviser (Note 2).......................... (81,026) (83,330) (81,301) (118,229)
-------- ---------- --------- ----------
Net Expenses.............................. 15,547 97,413 13,006 159,251
-------- ---------- --------- ----------
NET INVESTMENT INCOME (LOSS).................... 25,255 (65,226) 19,574 112
-------- ---------- --------- ----------
Net Realized Gain (Loss) on Investment
Transactions.................................. (132,236) 159,827 90,722 (949,623)
Net Realized Loss on Foreign Currency
Transactions.................................. -- -- -- (41,691)
Change in Net Unrealized Appreciation/
Depreciation of Investments................... 117,015 3,684,106 (104,502) 3,049,013
-------- ---------- --------- ----------
NET GAIN (LOSS) ON INVESTMENTS.................. (15,221) 3,843,933 (13,780) 2,057,699
-------- ---------- --------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................... $ 10,034 $3,778,707 $ 5,794 $2,057,811
======== ========== ========= ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
AGGRESSIVE SMALL CAP EQUITY AGGRESSIVE GROWTH
PORTFOLIO PORTFOLIO
--------------------------- -----------------------------
FOR THE YEARS ENDED FOR THE YEARS ENDED
DECEMBER 31, DECEMBER 31,
--------------------------- -----------------------------
1999 1998 1999 1998
------------ ------------ ------------- -------------
FROM INVESTMENT ACTIVITIES
<S> <C> <C> <C> <C>
Net Investment Loss........................ $ (458,755) $ (432,412) $ (773,814) $ (807,971)
Net Realized Gain (Loss) on Investment
Transactions............................. 7,084,090 (338,976) 27,161,572 10,857,763
Change in Net Unrealized Appreciation of
Investments.............................. 1,710,135 686,288 3,761,122 262,591
------------ ------------ ------------- -------------
Net Increase (Decrease) in Net Assets
Resulting from Operations.............. 8,335,470 (85,100) 30,148,880 10,312,383
------------ ------------ ------------- -------------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Realized Gain..................... (461,494) -- (11,023,982) --
------------ ------------ ------------- -------------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares.......... 51,183,189 69,506,803 136,256,553 267,578,704
Reinvestment of Distributions.............. 446,173 -- 10,759,472 --
Cost of Shares Redeemed.................... (68,137,080) (95,041,562) (157,516,582) (298,233,289)
------------ ------------ ------------- -------------
Net Decrease in Net Assets Resulting from
Share Transactions..................... (16,507,718) (25,534,759) (10,500,557) (30,654,585)
------------ ------------ ------------- -------------
TOTAL DECREASE IN NET ASSETS............. (8,633,742) (25,619,859) 8,624,341 (20,342,202)
NET ASSETS -- Beginning of Year.............. 47,259,382 72,879,241 81,404,106 101,746,308
------------ ------------ ------------- -------------
NET ASSETS -- End of Year.................... $ 38,625,640 $ 47,259,382 $ 90,028,447 $ 81,404,106
============ ============ ============= =============
SHARES
Sold....................................... 3,131,803 4,515,915 7,808,792 20,345,331
Issued in Reinvestment of Distributions.... 28,748 -- 574,758 --
Redeemed................................... (4,209,380) (6,115,945) (9,139,184) (22,510,476)
------------ ------------ ------------- -------------
Net Decrease in Shares................... (1,048,829) (1,600,030) (755,634) (2,165,145)
============ ============ ============= =============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
MID CAP GROWTH AGGRESSIVE MICRO CAP
PORTFOLIO PORTFOLIO
--------------------------- --------------------------
FOR THE YEARS ENDED FOR THE YEARS ENDED
DECEMBER 31, DECEMBER 31,
--------------------------- --------------------------
1999 1998 1999 1998
------------ ------------ ----------- ------------
FROM INVESTMENT ACTIVITIES
<S> <C> <C> <C> <C>
Net Investment Loss........................... $ (381,410) $ (34,943) $ (67,562) $ (67,090)
Net Realized Gain (Loss) on Investment
Transactions................................ 7,146,986 600,569 1,285,026 (593,873)
Change in Net Unrealized Appreciation of
Investments................................. 33,944,862 485,817 (766,596) 938,282
------------ ------------ ----------- ------------
Net Increase in Net Assets Resulting from
Operations................................ 40,710,438 1,051,443 450,868 277,319
------------ ------------ ----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Realized Gain........................ (3,369,098) (174,079) (261,332) --
------------ ------------ ----------- ------------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares............. 116,509,706 14,064,660 3,539,007 16,347,179
Reinvestment of Distributions................. 3,250,780 170,002 258,260 --
Cost of Shares Redeemed....................... (28,117,930) (15,360,950) (7,768,889) (17,163,447)
------------ ------------ ----------- ------------
Net Increase (Decrease) in Net Assets
Resulting from Share Transactions......... 91,642,556 (1,126,288) (3,971,622) (816,268)
------------ ------------ ----------- ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS..... 128,983,896 (248,924) (3,782,086) (538,949)
NET ASSETS -- Beginning of Year................. 8,123,666 8,372,590 9,651,446 10,190,395
------------ ------------ ----------- ------------
NET ASSETS -- End of Year....................... $137,107,562 $ 8,123,666 $ 5,869,360 $ 9,651,446
============ ============ =========== ============
SHARES
Sold.......................................... 5,156,724 1,082,352 171,557 825,396
Issued in Reinvestment of Distributions....... 108,658 12,658 11,929 --
Redeemed...................................... (1,320,305) (1,173,434) (393,474) (852,387)
------------ ------------ ----------- ------------
Net Increase (Decrease) in Shares........... 3,945,077 (78,424) (209,988) (26,991)
============ ============ =========== ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
SMALL CAP VALUE LARGE CAP GROWTH
PORTFOLIO PORTFOLIO
----------------------- ------------------------
FOR THE YEARS ENDED FOR THE YEARS ENDED
DECEMBER 31, DECEMBER 31,
----------------------- ------------------------
1999 1998 1999 1998
---------- ---------- ----------- ----------
FROM INVESTMENT ACTIVITIES
<S> <C> <C> <C> <C>
Net Investment Income (Loss)........................ $ 25,255 $ 6,650 $ (65,226) $ (3,965)
Net Realized Gain (Loss) on Investment
Transactions...................................... (132,236) (49,214) 159,827 (51,859)
Change in Net Unrealized Appreciation of
Investments....................................... 117,015 (47,797) 3,684,106 548,665
---------- ---------- ----------- ----------
Net Increase in Net Assets Resulting from
Operations...................................... 10,034 (90,361) 3,778,707 492,841
---------- ---------- ----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Investment Income.......................... (25,255) (6,650) -- --
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares................... 847,356 1,107,661 12,367,626 2,553,343
Reinvestment of Distributions....................... 25,255 6,650 -- --
Cost of Shares Redeemed............................. (482,464) (261,412) (5,881,138) (747,178)
---------- ---------- ----------- ----------
Net Increase in Net Assets Resulting from Share
Transactions.................................... 390,147 852,899 6,486,488 1,806,165
---------- ---------- ----------- ----------
TOTAL INCREASE IN NET ASSETS...................... 374,926 755,888 10,265,195 2,299,006
NET ASSETS -- Beginning of Year....................... 857,096 101,208 2,401,547 102,541
---------- ---------- ----------- ----------
NET ASSETS -- End of Year............................. $1,232,022 $ 857,096 $12,666,742 $2,401,547
========== ========== =========== ==========
SHARES
Sold................................................ 93,218 109,516 725,134 216,274
Issued in Reinvestment of Distributions............. 2,787 722 -- --
Redeemed............................................ (53,134) (27,174) (354,236) (60,290)
---------- ---------- ----------- ----------
Net Increase in Shares............................ 42,871 83,064 370,898 155,984
========== ========== =========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
LARGE CAP VALUE INTERNATIONAL EQUITY
PORTFOLIO PORTFOLIO
--------------------- -------------------------
FOR THE YEARS ENDED FOR THE YEARS ENDED
DECEMBER 31, DECEMBER 31,
--------------------- -------------------------
1999 1998 1999 1998
--------- --------- ----------- -----------
FROM INVESTMENT ACTIVITIES
<S> <C> <C> <C> <C>
Net Investment Income (Loss)........................ $ 19,574 $ 8,851 $ 112 $ (9,344)
Net Realized Gain (Loss) on Investment
Transactions...................................... 90,722 18,166 (949,623) 232,783
Net Realized Gain (Loss) on Foreign Currency
Transactions...................................... -- -- (41,691) 282
Change in Net Unrealized Appreciation of
Investments....................................... (104,502) 53,686 3,049,013 (202,622)
--------- --------- ----------- -----------
Net Increase in Net Assets Resulting from
Operations...................................... 5,794 80,703 2,057,811 21,099
--------- --------- ----------- -----------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Investment Income.......................... (19,574) (8,851) -- --
From Net Realized Gain.............................. (102,701) (33,820) (1,644) (226,731)
--------- --------- ----------- -----------
Total Distributions to Shareholders............... (122,275) (42,671) (1,644) (226,731)
--------- --------- ----------- -----------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares................... 691,527 844,096 1,794,445 11,259,013
Reinvestment of Distributions....................... 121,787 42,522 1,644 226,731
Cost of Shares Redeemed............................. (358,642) (370,425) (4,123,605) (963,665)
--------- --------- ----------- -----------
Net Increase (Decrease) in Net Assets Resulting
from Share Transactions......................... 454,672 516,193 (2,327,516) 10,522,079
--------- --------- ----------- -----------
TOTAL INCREASE (DECREASE) IN NET ASSETS........... 338,191 554,225 (271,349) 10,316,447
NET ASSETS -- Beginning of Year....................... 655,439 101,214 10,326,446 9,999
--------- --------- ----------- -----------
NET ASSETS -- End of Year............................. $ 993,630 $ 655,439 $10,055,097 $10,326,446
========= ========= =========== ===========
SHARES
Sold................................................ 56,283 75,563 174,257 1,063,405
Issued in Reinvestment of Distributions............. 11,519 3,723 126 21,738
Redeemed............................................ (30,133) (31,741) (401,454) (96,060)
--------- --------- ----------- -----------
Net Increase (Decrease) in Shares................. 37,669 47,545 (227,071) 989,083
========= ========= =========== ===========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
AGGRESSIVE SMALL CAP EQUITY
PORTFOLIO**
FOR THE YEARS ENDED DECEMBER 31,
----------------------------------------------------------
1999 1998 1997 1996 1995
-------- -------- -------- --------- ---------
<S> <C> <C> <C> <C> <C>
FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR:
Net Asset Value -- Beginning of Year........ $15.99 $16.00 $17.79 $15.41 $10.98
------- ------- ------- -------- --------
Income from Investment Operations:
Net Investment Loss....................... (0.24) (0.15) (0.30) (0.23) (0.16)
Net Realized and Unrealized Gain on
Investments............................. 4.71 0.14 2.30(C) 2.61 4.97
------- ------- ------- -------- --------
Total from Investment Operations........ 4.47 (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..................................... 4.27 (0.01) (1.79) 2.38 4.43
------- ------- ------- -------- --------
Net Asset Value -- End of Year.............. $20.26 $15.99 $16.00 $17.79 $15.41
======= ======= ======= ======== ========
TOTAL INVESTMENT RETURN....................... 28.34% (0.06)% 11.24% 15.44% 43.80%
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note 2)....... 1.49% 1.63% 2.33% 1.75% 1.75%
Expenses Before Reimbursement (Note 2)...... 1.85% 1.98% 2.62% 1.86% 2.10%
Net Investment Loss After Reimbursement
(Note 2).................................. (1.21)% (0.79)% (1.37)% (1.33)% (1.15)%
Net Investment Loss Before Reimbursement
(Note 2).................................. (1.57)% (1.13)% (1.64)% (1.44)% (1.50)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate..................... 240% 145% 184% 137% 170%
Net Assets at End of Year (in thousands).... $38,626 $47,259 $72,879 $190,035 $105,299
Number of Shares Outstanding at End of Year
(in thousands)............................ 1,906 2,955 4,555 10,683 6,831
</TABLE>
- ---------------------------------------------
(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.
** 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.
21
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
AGGRESSIVE GROWTH
PORTFOLIO
--------------------------------------------------------------
FOR THE
PERIOD
FOR THE YEARS ENDED DECEMBER 31, ENDED
--------------------------------------------- DECEMBER 31,
1999 1998 1997 1996 1995*
-------- -------- --------- -------- -------------
<S> <C> <C> <C> <C> <C>
FOR A SHARE OUTSTANDING THROUGHOUT
EACH PERIOD:
Net Asset Value -- Beginning of Period... $14.82 $13.29 $12.25 $9.99 $10.00
------- ------- -------- ------- -------
Income from Investment Operations:
Net Investment Loss.................... (0.16) (0.15) (0.14) (0.12) --
Net Realized and Unrealized Gain (Loss)
on Investments....................... 6.95 1.68 1.34 2.38(C) (0.01)
------- ------- -------- ------- -------
Total from Investment Operations..... 6.79 1.53 1.20 2.26 (0.01)
------- ------- -------- ------- -------
Distributions to Shareholders:
From Net Realized Gain................. (2.60) -- (0.16) -- --
------- ------- -------- ------- -------
Net Increase (Decrease) in Net Asset
Value.................................. 4.19 1.53 1.04 2.26 (0.01)
------- ------- -------- ------- -------
Net Asset Value -- End of Period......... $19.01 $14.82 $13.29 $12.25 $9.99
======= ======= ======== ======= =======
TOTAL INVESTMENT RETURN.................... 46.11% 11.51% 9.77% 22.62% (0.10)%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note 2).... 1.49% 1.68% 2.00% 2.00% 2.00%(B)
Expenses Before Reimbursement (Note 2).. 1.68% 1.89% 2.15% 2.22% 27.25%(B)
Net Investment Income (Loss) After
Reimbursement (Note 2)................. (1.00)% (0.92)% (1.07)% (1.57)% 2.59%(B)
Net Investment Income (Loss) Before
Reimbursement (Note 2)................. (1.20)% (1.13)% (1.22)% (1.77)% (12.66)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate.................. 702% 237% 247% 169% --
Net Assets at End of Period (in
thousands)............................. $90,028 $81,404 $101,746 $95,246 $300
Number of Shares Outstanding at End of
Period (in thousands).................. 4,736 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 amount of per share realized and unrealized gain and loss at
such time.
* FROM COMMENCEMENT OF OPERATIONS DECEMBER 28, 1995
SEE NOTES TO FINANCIAL STATEMENTS.
22
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
MID CAP GROWTH
PORTFOLIO
------------------------------------------------------
FOR THE
FOR THE YEARS ENDED PERIOD
DECEMBER 31, ENDED
----------------------------------- DECEMBER 31,
1999 1998 1997 1996*
--------- ------- ------- -------------
<S> <C> <C> <C> <C>
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
Net Asset Value -- Beginning of Period......... $13.65 $12.43 $10.27 $10.00
-------- ------ ------ -------
Income from Investment Operations:
Net Investment Income (Loss)................. (0.08) (0.06) (0.06) 0.01
Net Realized and Unrealized Gain on
Investments................................ 17.40 1.59 2.75 0.27
-------- ------ ------ -------
Total from Investment Operations........... 17.32 1.53 2.69 0.28
-------- ------ ------ -------
Distributions to Shareholders:
From Net Investment Income................... -- -- -- (0.01)
From Net Realized Gain....................... (0.77) (0.31) (0.53) --
-------- ------ ------ -------
Total Distributions to Shareholders........ (0.77) (0.31) (0.53) (0.01)
-------- ------ ------ -------
Net Increase in Net Asset Value................ 16.55 1.22 2.16 0.27
-------- ------ ------ -------
Net Asset Value -- End of Period............... $30.20 $13.65 $12.43 $10.27
======== ====== ====== =======
TOTAL INVESTMENT RETURN.......................... 126.97% 12.31% 26.18% 2.75%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note 2).......... 1.49% 1.66% 2.00% 2.00%(B)
Expenses Before Reimbursement (Note 2)......... 1.69% 2.56% 3.27% 113.02%(B)
Net Investment Income (Loss) After
Reimbursement (Note 2)....................... (1.00)% (0.38)% (0.69)% 0.87%(B)
Net Investment Income (Loss) Before
Reimbursement (Note 2)....................... (1.23)% (1.27)% (1.96)% (110.15)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate........................ 208% 211% 163% --
Net Assets at End of Period (in thousands)..... $137,108 $8,124 $8,373 $1,642
Number of Shares Outstanding at End of Period
(in thousands)............................... 4,540 595 673 160
</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.
23
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
AGGRESSIVE MICRO CAP
PORTFOLIO
---------------------------------------
FOR THE YEARS FOR THE
ENDED PERIOD
DECEMBER 31, ENDED
-------------------- DECEMBER 31,
1999 1998 1997*
------- ------- -------------
<S> <C> <C> <C>
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
Net Asset Value -- Beginning of Period.................... $20.42 $20.40 $15.64
------ ------ -------
Income from Investment Operations:
Net Investment Loss..................................... (0.28) (0.14) (0.05)
Net Realized and Unrealized Gain on Investments......... 3.27 0.16 5.17
------ ------ -------
Total from Investment Operations...................... 2.99 0.02 5.12
------ ------ -------
Distributions to Shareholders:
From Net Realized Gain.................................. (1.06) -- (0.36)
------ ------ -------
Net Increase in Net Asset Value........................... 1.93 0.02 4.76
------ ------ -------
Net Asset Value -- End of Period.......................... $22.35 $20.42 $20.40
====== ====== =======
TOTAL INVESTMENT RETURN..................................... 14.79% 0.10% 32.76%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note 2)..................... 1.49% 1.51% 1.55%(B)
Expenses Before Reimbursement (Note 2).................... 2.68% 2.50% 3.21%(B)
Net Investment Loss After Reimbursement (Note 2).......... (1.06)% (0.71)% (0.54)%(B)
Net Investment Loss Before Reimbursement (Note 2)......... (2.24)% (1.70)% (2.20)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate................................... 190% 196% 86%
Net Assets at End of Period (in thousands)................ $5,869 $9,651 $10,190
Number of Shares Outstanding at End of Period (in
thousands).............................................. 263 473 500
</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.
24
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
SMALL CAP VALUE LARGE CAP GROWTH
PORTFOLIO PORTFOLIO
--------------------------------- ----------------------------------
FOR THE YEARS FOR THE FOR THE YEARS FOR THE
ENDED PERIOD ENDED PERIOD
DECEMBER 31, ENDED DECEMBER 31, ENDED
----------------- DECEMBER 31, ------------------ DECEMBER 31,
1999 1998 1997* 1999 1998 1997*
------- ------- ------------- -------- ------- -------------
<S> <C> <C> <C> <C> <C> <C>
FOR A SHARE OUTSTANDING THROUGHOUT
EACH PERIOD:
Net Asset Value -- Beginning of
Period......................... $9.21 $10.12 $10.00 $14.47 $10.25 $10.00
------ ------ ------ ------- ------ ------
Income from Investment
Operations:
Net Investment Income (Loss)... 0.19 0.07 0.01 (0.12) (0.02) 0.01
Net Realized and Unrealized
Gain (Loss) on Investments... (0.15) (0.91) 0.12 9.24 4.24 0.25
------ ------ ------ ------- ------ ------
Total from Investment
Operations................. 0.04 (0.84) 0.13 9.12 4.22 0.26
------ ------ ------ ------- ------ ------
Distributions to Shareholders:
From Net Investment Income..... (0.19) (0.07) (0.01) -- -- (0.01)
------ ------ ------ ------- ------ ------
Net Increase (Decrease) in Net
Asset Value.................... (0.15) (0.91) 0.12 9.12 4.22 0.25
------ ------ ------ ------- ------ ------
Net Asset Value -- End of
Period......................... $9.06 $9.21 $10.12 $23.59 $14.47 $10.25
====== ====== ====== ======= ====== ======
TOTAL INVESTMENT RETURN............ 0.44% (8.28)% 1.25%(A) 63.03% 41.17% 2.56%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement
(Note 2)....................... 1.49% 1.53% 1.75%(B) 1.49% 1.54% 1.90%(B)
Expenses Before Reimbursement
(Note 2)....................... 9.25% 13.01% 7.74%(B) 2.75% 9.11% 6.66%(B)
Net Investment Income (Loss)
After Reimbursement
(Note 2)....................... 2.42% 1.12% 1.94%(B) (0.99)% (0.43)% 2.40%(B)
Net Investment Income (Loss)
Before Reimbursement
(Note 2)....................... (5.34)% (10.36)% (4.03)%(B) (2.26)% (8.00)% (2.36)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate.......... 91% 85% 2% 75% 80% --
Net Assets at End of Period (in
thousands)..................... $1,232 $857 $101 $12,667 $2,402 $103
Number of Shares Outstanding at
End of Period (in thousands)... 136 93 10 537 166 10
</TABLE>
- ----------------------------------
(A) Total returns for periods of less than one year are not annualized.
(B) Annualized
* FROM COMMENCEMENT OF OPERATION DECEMBER 19, 1997
SEE NOTES TO FINANCIAL STATEMENTS.
25
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- ---------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
LARGE CAP VALUE INTERNATIONAL EQUITY
PORTFOLIO PORTFOLIO
---------------------------------- -----------------------------------
FOR THE YEARS FOR THE FOR THE YEARS FOR THE
ENDED PERIOD ENDED PERIOD
DECEMBER 31, ENDED DECEMBER 31, ENDED
------------------ DECEMBER 31, ------------------- DECEMBER 31,
1999 1998 1997* 1999 1998 1997**
------- -------- ------------- -------- -------- -------------
<S> <C> <C> <C> <C> <C> <C>
FOR A SHARE OUTSTANDING THROUGHOUT
EACH PERIOD:
Net Asset Value -- Beginning of
Period....................... $11.39 $10.11 $10.00 $10.43 $10.00 $10.00
------ ------- ------ ------- ------- ------
Income from Investment
Operations:
Net Investment Income
(Loss)..................... 0.21 0.16 0.01 -- (0.01) --
Net Realized and Unrealized
Gain on Investments........ 0.27 1.91 0.11 2.75 0.67 --
------ ------- ------ ------- ------- ------
Total from Investment
Operations............... 0.48 2.07 0.12 2.75 0.66 --
------ ------- ------ ------- ------- ------
Distributions to Shareholders:
From Net Investment Income... (0.21) (0.16) (0.01) -- -- --
From Net Realized Gain....... (1.23) (0.63) -- -- (0.23) --
------ ------- ------ ------- ------- ------
Total Distributions to
Shareholders............. (1.44) (0.79) (0.01) -- (0.23) --
------ ------- ------ ------- ------- ------
Net Increase (Decrease) in Net
Asset Value.................. (0.96) 1.28 0.11 2.75 0.43 --
------ ------- ------ ------- ------- ------
Net Asset Value -- End of
Period....................... $10.43 $11.39 $10.11 $13.18 $10.43 $10.00
====== ======= ====== ======= ======= ======
TOTAL INVESTMENT RETURN.......... 4.24% 20.48% 1.18%(A) 26.39% 6.64% --(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement
(Note 2)..................... 1.40% 1.42% 1.50%(B) 1.75% 1.75% 1.75%(B)
Expenses Before Reimbursement
(Note 2)..................... 10.14% 14.34% 5.03%(B) 3.05% 3.29% 5.48%(B)
Net Investment Gain (Loss)
After Reimbursement
(Note 2)..................... 2.10% 1.69% 3.09%(B) -- (0.14)% (1.75)%(B)
Net Investment Loss Before
Reimbursement (Note 2)....... (6.63)% (11.22)% (0.45)%(B) (1.30)% (1.68)% (5.48)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate........ 90% 256% -- 84% 41% --
Net Assets at End of Period (in
thousands)................... $994 $655 $101 $10,055 $10,326 $10
Number of Shares Outstanding at
End of Period (in
thousands)................... 95 58 10 763 990 1
</TABLE>
- --------------------------------
(A) Total returns for periods of less than one year are not annualized.
(B) Annualized
* FROM COMMENCEMENT OF OPERATION DECEMBER 19, 1997
** FROM COMMENCEMENT OF OPERATION DECEMBER 26, 1997
SEE NOTES TO FINANCIAL STATEMENTS.
26
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
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's
objective is to achieve long-term capital growth. 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, if any, 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 public offering of shares in the portfolios. Any
redemption by an initial investor during the amortization period will be
reduced by a pro rata portion of any of the unamortized organization expenses.
Such proration is to be calculated by dividing the number of initial shares
redeemed by the number of initial shares outstanding at the date of
redemption. At December 31, 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 $24,990, $55,080, $55,080, $55,080 and $55,080, respectively.
27
<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 year ended December 31, 1999,
the Adviser paid operating expenses of the Aggressive Small Cap Portfolio, the
Aggressive Growth Portfolio, the Mid Cap Growth Portfolio, the Aggressive Micro
Cap Portfolio, the Small Cap Value, the Large Cap Growth Portfolio, the Large
Cap Value Portfolio and the International Equity Portfolio totaling $193,668,
$269,204, $140,443, $85,319, $82,591, $93,128, $82,695, and $140,977,
respectively. Under the operating expense agreement, the Adviser requested, and
the Aggressive Small Cap 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, $56,761, $116,058, $56,247, $9,600,
$1,565, $9,798, $1,394, and $22,748 respectively, of such expenses. Effective
May 1, 1998, the Adviser agreedto 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 in
fees annually. For the year ended December 31, 1999, Trustees' fees and expenses
totaled $23,664.
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
28
<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 year ended December 31, 1999, the cost of purchases and proceeds
from 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....................... $ 86,025,402 $514,118,553 $160,334,786 $11,902,051
============ ============ ============ ===========
Sales........................... $101,209,495 $533,017,807 $ 78,554,042 $16,083,700
============ ============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
LARGE CAP INTERNATIONAL
SMALL CAP VALUE GROWTH LARGE CAP EQUITY
PORTFOLIO PORTFOLIO VALUE PORTFOLIO PORTFOLIO
--------------- ------------ --------------- -------------
<S> <C> <C> <C> <C>
Purchases....................... $ 1,290,197 $ 9,852,874 $ 1,085,090 $ 6,987,816
============ ============ ============ ===========
Sales........................... $ 900,561 $ 4,758,647 $ 771,943 $ 8,829,567
============ ============ ============ ===========
</TABLE>
6. Unrealized Appreciation and Depreciation of Investments
Unrealized appreciation and depreciation as of December 31, 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.... $11,110,823 $17,105,898 $ 37,461,938 $1,281,911
Gross Unrealized Depreciation.... (776,423) (3,224,340) (1,835,049) (79,860)
----------- ----------- ------------ ----------
Net Unrealized Appreciation...... $10,334,400 $13,881,558 $ 35,626,889 $1,202,051
=========== =========== ============ ==========
Cost of Investments for Federal
Income Tax Purposes............. $29,676,997 $74,147,488 $101,630,954 $4,615,500
=========== =========== ============ ==========
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP LARGE CAP LARGE CAP INTERNATIONAL
VALUE GROWTH VALUE EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ----------- ------------ -------------
<S> <C> <C> <C> <C>
Gross Unrealized Appreciation.... $ 140,983 $ 4,375,343 $ 46,230 $2,916,445
Gross Unrealized Depreciation.... (70,555) (140,089) (95,908) (69,909)
----------- ----------- ------------ ----------
Net Unrealized Appreciation...... $ 70,428 $ 4,235,254 $ (49,678) $2,846,536
=========== =========== ============ ==========
Cost of Investments for Federal
Income Tax Purposes............. $ 1,157,013 $ 8,193,910 $ 1,042,079 $7,213,724
=========== =========== ============ ==========
</TABLE>
29
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
- -----------------------------------------------------------------
7. Federal Income Tax
Permanent differences between tax and financial reporting of net investment
income and net realized gain/loss are reclassified. As of December 31, 1999, net
investment losses were reclassified to paid-in-capital and accumulated net
realized gain/loss on investment transactions as follows:
<TABLE>
<CAPTION>
AGGRESSIVE
SMALL CAP AGGRESSIVE MID CAP AGGRESSIVE
EQUITY GROWTH GROWTH MICRO CAP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- --------- ----------
<S> <C> <C> <C> <C>
Reduction of paid-in capital........... $458,755 $ 47,893 $381,410 $68,065
Reduction of accumulated net realized
gain.................................. -- $748,614 -- --
</TABLE>
<TABLE>
<CAPTION>
LARGE CAP LARGE CAP INTERNATIONAL
SMALL CAP VALUE GROWTH VALUE EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------------- --------- --------- -------------
<S> <C> <C> <C> <C>
Reduction of paid-in-capital........... $2,976 $65,226 $2,779 $41,579
</TABLE>
Additionally, as of December 31, 1999, the Aggressive Growth Portfolio
reclassified $14,605,906 of accumulated net realized gain on investments to
paid-in-capital.
At December 31, 1999, 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>
SMALL CAP INTERNATIONAL
VALUE EQUITY
EXPIRES DECEMBER 31, PORTFOLIO PORTFOLIO
-------------------- --------- -------------
<S> <C> <C>
2005........................................................ $ 50 --
2006........................................................ 32,877 $422,735
2007........................................................ 140,648 --
-------- --------
173,525 422,735
======== ========
</TABLE>
8. Litigation
The former Trustees of the Navellier Series Fund, which was merged into the
Aggressive Small Cap Equity Portfolio ("Portfolio") on July 24, 1998 have made a
demand to be indemnified for their attorneys fees and costs which they claim to
be approximately $4 million, in connection with a class action lawsuit filed
against them by shareholders of the Portfolio. The current Trustees of the
Navellier Performance Funds (the "Fund") and the legal counsel to the Fund do
not believe the former Trustees have a valid claim. However, if such claim is
determined by a court to be valid, only the assets of the Portfolio would be
subject to such claim and not the assets of any other Portfolio of the Fund.
However, even then, Navellier Management, Inc. ("NMI") has agreed that, if any
such claim were determined to be valid, NMI, not the Portfolio, would pay such
claim.
30
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES
THE NAVELLIER PERFORMANCE FUNDS
RENO, NEVADA
We have audited the accompanying statements of net assets of Navellier Small Cap
Equity Portfolio, Navellier Aggressive Growth Portfolio, Navellier Mid Cap
Growth Portfolio, Navellier Aggressive Micro Cap Portfolio, Navellier Small Cap
Value Portfolio, Navellier Large Cap Growth Portfolio, Navellier Large Cap Value
Portfolio and Navellier International Equity Portfolio, each a series of shares
of The Navellier Performance Funds as of December 31, 1999, and the related
statements of operations for the year then ended, the statements of changes in
net assets for each of the two years in the period then ended, and the financial
highlights for the periods indicated therein. These financial statements are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits. The financial highlights presented for the year ended December 31, 1996
and prior were audited by other auditors whose report dated January 31, 1997,
expressed an unqualified opinion on those statements.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1999, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of
Navellier Small Cap Equity Portfolio, Navellier Aggressive Growth Portfolio,
Navellier Mid Cap Growth Portfolio, Navellier Aggressive Micro Cap Portfolio,
Navellier Small Cap Value Portfolio, Navellier Large Cap Growth Portfolio,
Navellier Large Cap Value Portfolio and Navellier International Equity Portfolio
as of December 31, 1999, the results of their operations for the year then
ended, the changes in their net assets for each of the two years in the period
then ended, and the financial highlights for the periods referred to above, in
conformity with generally accepted accounting principles.
[SIGNATURE]
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
February 18, 2000
31
<PAGE>
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<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.
