<PAGE>
[REPRESENTATION OF GRAPHIC IMAGE]
NAVELLIER
PERFORMANCE FUNDS
AGGRESSIVE GROWTH PORTFOLIO
MID CAP GROWTH PORTFOLIO
AGGRESSIVE MICRO CAP PORTFOLIO
SMALL CAP VALUE PORTFOLIO
LARGE CAP GROWTH PORTFOLIO
LARGE CAP VALUE PORTFOLIO
SEMI-ANNUAL REPORT
JUNE 30, 2000
<PAGE>
SEMIANNUAL REPORT, June 30, 2000
NAVELLIER PERFORMANCE FUNDS
1 East Liberty, Third Floor
Reno, NV 89501
(800) 887-8671
--------------------------------------------------------------------------------
August 25, 2000
Dear Shareholder:
The first six months of the year 2000 have quite frankly been one of the
most volatile periods in the history of the U.S. stock market. We saw a
correction at the end of the first quarter of the year and at the beginning of
April, especially in the NASDAQ market. Then after the tail end of the last
quarterly earnings announcement season in May, the stock market went into a low
volume meltdown that saw stock prices erode by up to 30% in about three weeks.
Such meltdowns are always a possibility because the stock market is more
volatile than ever before. We have to admit that we have been surprised by the
degree of NASDAQ volatility that now exists.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
AGGRESSIVE GROWTH PORTFOLIO
<TABLE>
<CAPTION>
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
3/29/1996 $11,330 $10,511 $10,575
4/30/1996 $13,020 $11,073 $11,387
5/31/1996 $14,040 $11,509 $11,971
6/28/1996 $13,050 $11,036 $11,193
7/31/1996 $11,180 $10,073 $9,826
8/30/1996 $11,850 $10,658 $10,553
9/30/1996 $12,730 $11,075 $11,097
10/31/1996 $12,150 $10,904 $10,618
11/29/1996 $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
5/30/1997 $11,290 $12,312 $11,323
6/30/1997 $12,040 $12,840 $11,707
7/31/1997 $13,200 $13,437 $12,306
8/29/1997 $13,280 $13,745 $12,676
9/30/1997 $14,560 $14,751 $13,687
10/31/1997 $14,010 $14,104 $12,865
11/28/1997 $13,500 $14,012 $12,558
12/31/1997 $13,447 $14,257 $12,566
1/30/1998 $12,992 $14,032 $12,399
2/27/1998 $13,922 $15,069 $13,494
3/31/1998 $14,671 $15,690 $14,060
4/30/1998 $14,691 $15,776 $14,146
5/29/1998 $13,892 $14,926 $13,118
6/30/1998 $14,135 $14,957 $13,251
7/31/1998 $13,659 $13,746 $12,145
8/31/1998 $10,816 $11,076 $9,342
9/30/1998 $11,717 $11,943 $10,289
10/30/1998 $11,676 $12,431 $10,826
11/30/1998 $13,356 $13,082 $11,666
12/31/1998 $14,995 $13,892 $12,722
1/29/1999 $15,582 $14,076 $13,294
2/26/1999 $14,388 $12,936 $12,078
3/31/1999 $15,025 $13,138 $12,509
4/30/1999 $16,735 $14,315 $13,613
5/28/1999 $16,735 $14,525 $13,635
6/30/1999 $18,152 $15,181 $14,353
7/30/1999 $17,504 $14,765 $13,910
8/31/1999 $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
1/31/2000 $20,111 $16,574 $18,036
2/29/2000 $23,465 $19,311 $22,233
3/31/2000 $22,670 $18,038 $19,896
4/30/2000 $22,324 $16,953 $17,887
5/31/2000 $20,791 $15,965 $16,321
6/30/2000 $23,154 $17,356 $18,429
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH PORTFOLIO
TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 2000
JUNE 30, 2000 FUND RUSSELL 2000 GROWTH
------------------------------ -------- ------------ ------------
<S> <C> <C> <C>
Six Months 5.68% 3.04% 1.23%
Annualized Since Inception* 20.48% 13.01% 14.53%
Value of a $10,000 investment
over Life of Fund* $23,154 $17,356 $18,429
*Inception December 28, 1995
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
MID CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
MID CAP GROWTH RUSSELL 2000 RUSSELL 2000 GROWTH
<S> <C> <C> <C>
11/26/1996 $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
1/30/1998 $12,725 $12,359 $11,361
2/27/1998 $13,695 $13,272 $12,364
3/31/1998 $14,665 $13,819 $12,883
4/30/1998 $14,634 $13,895 $12,962
5/29/1998 $14,039 $13,146 $12,020
6/30/1998 $14,404 $13,174 $12,142
7/31/1998 $13,768 $12,107 $11,128
8/31/1998 $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
1/29/1999 $16,737 $12,398 $12,182
2/26/1999 $16,011 $11,394 $11,067
3/31/1999 $18,507 $11,572 $11,461
4/30/1999 $19,851 $12,609 $12,473
5/28/1999 $19,585 $12,793 $12,493
6/30/1999 $21,569 $13,371 $13,152
7/30/1999 $21,515 $13,005 $12,745
8/31/1999 $22,092 $12,524 $12,269
9/30/1999 $21,985 $12,526 $12,506
10/29/1999 $25,174 $12,577 $12,826
11/30/1999 $28,097 $13,328 $14,182
12/31/1999 $33,049 $14,836 $16,682
1/31/2000 $32,305 $14,598 $16,526
2/29/2000 $44,233 $17,009 $20,371
3/31/2000 $37,360 $15,888 $18,230
4/28/2000 $37,525 $14,932 $16,389
5/31/2000 $31,987 $14,061 $14,954
6/30/2000 $33,771 $15,287 $16,886
</TABLE>
<TABLE>
<CAPTION>
MID CAP GROWTH PORTFOLIO
TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 2000
JUNE 30, 2000 FUND RUSSELL 2000 GROWTH
---------------------------- -------- ------------ --------------
<S> <C> <C> <C>
Six Months 2.19% 3.04% 1.23%
Annualized Since Inception* 40.33% 12.54% 15.70%
Value of a $10,000
investment over Life of
Fund* $33,771 $15,287 $16,886
*Inception November 26, 1996
</TABLE>
Due to the recent volatility, the stock market is now obsessed with
fundamentals. Stocks without earnings, such as Amazon.com, have been severely
punished. Not only is the stock market demanding strong earnings growth from
stocks, but the stock market is also seeking out those stocks that will have
consistent, predictable growth in the upcoming months. This is the perfect
environment for the stocks in our funds. It appears that institutional investors
are gravitating toward the fundamentally superior stocks that we favor, and the
analyst community continues to upgrade their earnings estimates for many of our
stocks. As a result, we remain confident that our favorite stocks will continue
to appreciate after their third and fourth quarter earnings results are
released.
Our best performing fund by far, was the Aggressive Micro Cap Portfolio,
which posted a return of 52.66% for the six months ending June 30, 2000. This is
an outstanding return considering the volatile market conditions we witnessed in
the second quarter. The success of this Fund was largely due to its holdings in
oil stocks, which soared while the tech stocks were losing favor. The Large Cap
Growth and Small Cap Value funds also posted impressive gains with returns of
15.18% and 12.91%, respectively.
<PAGE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
AGGRESSIVE MICRO CAP PORTFOLIO
<TABLE>
<CAPTION>
AGGRESSIVE MICRO CAP RUSSELL 2000 RUSSELL 2000 GROWTH
<S> <C> <C> <C>
3/17/1997 10,000 10,000 10,000
3/31/1997 9,859 9,592 9,500
4/30/1997 9,872 9,619 9,390
5/30/1997 10,691 10,688 10,801
6/30/1997 11,432 11,147 11,167
7/31/1997 12,423 11,665 11,739
8/29/1997 12,679 11,932 12,091
9/30/1997 13,593 12,806 13,056
10/31/1997 13,434 12,244 12,271
11/28/1997 13,459 12,164 11,979
12/31/1997 13,276 12,377 11,987
1/30/1998 12,821 12,181 11,827
2/27/1998 13,608 13,082 12,871
3/31/1998 13,914 13,621 13,412
4/30/1998 14,083 13,696 13,494
5/29/1998 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
10/30/1998 11,083 10,791 10,327
11/30/1998 12,229 11,357 11,128
12/31/1998 13,289 12,060 12,136
1/29/1999 13,400 12,220 12,681
2/26/1999 12,151 11,230 11,521
3/31/1999 11,454 11,406 11,932
4/30/1999 12,450 12,428 12,985
5/28/1999 13,068 12,609 13,006
6/30/1999 13,856 13,179 13,692
7/30/1999 13,335 12,818 13,268
8/31/1999 12,964 12,344 12,772
9/30/1999 13,914 12,346 13,019
10/29/1999 13,745 12,396 13,352
11/30/1999 13,966 13,136 14,764
12/31/1999 15,254 14,623 17,366
1/31/2000 14,606 14,388 17,205
2/29/2000 17,268 16,765 21,207
3/31/2000 20,912 15,659 18,978
4/30/2000 19,732 14,717 17,062
5/31/2000 18,646 13,859 15,568
6/30/2000 23,288 15,067 17,579
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE MICRO CAP PORTFOLIO
TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 2000
JUNE 30, 2000 FUND RUSSELL 2000 GROWTH
---------------------------- -------- ------------ --------------
<S> <C> <C> <C>
Six Months 52.66% 3.04% 1.23%
Annualized Since Inception* 29.29% 13.27% 18.70%
Value of a $10,000
investment over Life of
Fund* $23,288 $15,067 $17,579
*Inception March 17, 1997
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
SMALL CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
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
1/31/2000 $8,679 $12,102 $9,301
2/29/2000 $9,317 $14,100 $9,869
3/31/2000 $9,718 $13,171 $9,915
4/30/2000 $10,017 $12,378 $9,974
5/31/2000 $9,801 $11,657 $9,822
6/30/2000 $10,532 $12,673 $10,109
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP VALUE PORTFOLIO
TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 2000
JUNE 30, 2000 FUND RUSSELL 2000 VALUE
-------------------------------- -------- ------------ ------------
<S> <C> <C> <C>
Six Months 12.91% 3.04% 5.84%
Annualized Since Inception* 2.07% 9.81% 0.43%
Value of a $10,000 investment
over Life of Fund* $10,532 $12,673 $10,109
*Inception December 19, 1997
</TABLE>
Many investors believe that the recent volatility in the stock market is
tied to the uncertainty surrounding the Federal Reserve Board, the direction of
interest rates, and the slowdown of the U.S. economy. This is partially correct.
However, the truth of the matter is that the majority of the volatility on Wall
Street can be traced directly to the NASDAQ reforms that were imposed by the
Justice Department back at the beginning of 1997. Prior to those NASDAQ reforms,
the NASDAQ market rarely exceeded more than 1% daily volatility, since then,
daily volatility of over 10% is not uncommon.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
LARGE CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
LARGE CAP GROWTH S&P 500 RUSSELL 1000 GROWTH
<S> <C> <C> <C>
12/19/1997 $10,000 $10,000 $10,000
12/31/1997 $10,256 $10,252 $10,300
1/30/1998 $10,106 $10,370 $10,608
2/27/1998 $10,856 $11,111 $11,406
3/31/1998 $11,577 $11,681 $11,861
4/30/1998 $11,537 $11,798 $12,024
5/29/1998 $11,517 $11,588 $11,683
6/30/1998 $12,267 $12,060 $12,398
7/31/1998 $12,167 $11,932 $12,316
8/31/1998 $10,756 $10,207 $10,467
9/30/1998 $11,336 $10,861 $11,271
10/30/1998 $12,127 $11,744 $12,178
11/30/1998 $12,777 $12,456 $13,103
12/31/1998 $14,478 $13,173 $14,285
1/29/1999 $15,959 $13,724 $14,795
2/26/1999 $15,259 $13,297 $14,325
3/31/1999 $16,549 $13,829 $14,874
4/30/1999 $16,009 $14,364 $14,893
5/28/1999 $15,189 $14,025 $14,436
6/30/1999 $16,820 $14,803 $15,447
7/30/1999 $16,830 $14,341 $14,956
8/31/1999 $16,980 $14,271 $15,199
9/30/1999 $16,860 $13,880 $14,880
10/29/1999 $17,680 $14,758 $16,004
11/30/1999 $19,901 $15,058 $16,867
12/31/1999 $23,604 $15,945 $18,622
1/31/2000 $22,693 $15,145 $17,748
2/29/2000 $29,147 $14,859 $18,616
3/31/2000 $28,466 $16,312 $19,949
4/30/2000 $26,675 $15,821 $18,999
5/31/2000 $23,924 $15,497 $18,043
6/30/2000 $27,186 $15,879 $19,410
</TABLE>
<TABLE>
<CAPTION>
LARGE CAP GROWTH PORTFOLIO
TOTAL
RETURNS FOR PERIODS ENDED RUSSELL 1000
JUNE 30, 2000 FUND S&P 500 GROWTH
---------------------------------- -------- --------- ------------
<S> <C> <C> <C>
Six Months 15.18% (0.42)% 4.23%
Annualized Since Inception* 48.45% 20.04% 29.95%
Value of a $10,000 investment over
Life of Fund* $27,186 $15,879 $19,410
*Inception December 19, 1997
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
LARGE CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
LARGE CAP VALUE RUSSELL 1000 RUSSELL 1000 VALUE
<S> <C> <C> <C>
12/19/1997 $10,000 $10,000 $10,000
12/31/1997 $10,118 $10,091 $10,237
1/30/1998 $9,998 $10,166 $10,093
2/27/1998 $10,808 $10,890 $10,772
3/31/1998 $11,369 $11,439 $11,431
4/30/1998 $11,499 $11,557 $11,508
5/29/1998 $11,249 $11,308 $11,337
6/30/1998 $11,369 $11,726 $11,483
7/31/1998 $11,249 $11,585 $11,280
8/31/1998 $10,218 $9,853 $9,602
9/30/1998 $10,538 $10,516 $10,153
10/30/1998 $11,489 $11,347 $10,940
11/30/1998 $12,029 $12,050 $11,450
12/31/1998 $12,190 $12,817 $11,839
1/29/1999 $12,190 $13,274 $11,934
2/26/1999 $12,072 $12,853 $11,765
3/31/1999 $12,532 $13,346 $12,009
4/30/1999 $14,191 $13,903 $13,130
5/28/1999 $13,881 $13,603 $12,986
6/30/1999 $14,009 $14,297 $13,362
7/30/1999 $13,624 $13,861 $12,971
8/31/1999 $13,281 $13,731 $12,490
9/30/1999 $12,607 $13,353 $12,054
10/29/1999 $12,982 $14,251 $12,747
11/30/1999 $12,479 $14,617 $12,648
12/31/1999 $12,707 $15,498 $12,709
1/31/2000 $11,951 $14,863 $12,294
2/29/2000 $10,989 $14,824 $11,381
3/31/2000 $11,866 $16,174 $12,769
4/30/2000 $12,317 $15,635 $12,621
5/31/2000 $11,963 $15,231 $12,754
6/30/2000 $12,073 $15,619 $12,171
</TABLE>
<TABLE>
<CAPTION>
LARGE CAP VALUE PORTFOLIO
TOTAL RUSSELL
RETURNS FOR PERIODS ENDED 1000
JUNE 30, 2000 FUND RUSSELL 1000 VALUE
--------------------------------- -------- ------------ ---------
<S> <C> <C> <C>
Six Months (4.99)% 0.78% (4.23)%
Annualized Since Inception* 7.73% 19.26% 8.07%
Value of a $10,000 investment
over Life of Fund* $12,073 $15,619 $12,171
*Inception December 19, 1997
</TABLE>
2
<PAGE>
Semiconductor companies have been hit hard recently on concerns that the
chip boom has peaked and will start to drop off. In an attention-grabbing
report, Salomon Smith Barney analyst Jonathan J. Joseph warned that hard-to-find
chips were becoming easier and cheaper to buy, while chipmakers continued to
ramp up capacity. The report sent semiconductor stocks such as National
Semiconductor and Texas Instruments spiraling downward. However, there is some
good news for semiconductor stocks long-term. The analyst community states that
sales will likely pick up next year as global demand for personal computers
increases. A rebound in wireless cell-phone sales should also help the
semiconductor sector late this year and early next year. We plan to continue
holding specialty semiconductor companies, especially those with healthy
operating margins, such as Applied Micro Circuits, that should continue to post
record earnings in the upcoming quarters.
During the past few years, 90% of the money pouring into the stock market
chased less than 10% of the stocks. However, it now appears that the breadth and
power of the overall stock market is expanding. Fortunately, the previous narrow
stock market environment benefited many stocks in our growth funds. Now that the
breadth and power of the overall stock market is expanding and is now
encompassing many interest-sensitive value stocks, it is possible that some
money that would normally flow into the growth stocks might wander over to
selected value stocks. The fact that the breadth and power of the stock market
is all of a sudden expanding is now painting a very bullish outlook for the
overall stock market.
Our forecast for the upcoming period is as follows: we expect the current
stock market rally to have at least four major waves of buying pressure. The
first wave of buying pressure started in August, after long-term bond yields
fell and it became very clear that inflationary pressures were diminishing and
the Federal Reserve Board would not need to raise key interest rates further.
The second wave of buying pressure will start after Labor Day when trading
volume traditionally surges after senior traders return from their summer
hiatus. The third wave of buying pressure will commence in mid-to-late September
when earnings pre-announcement season arrives and the analyst community revises
their earnings estimates higher for many stocks in our funds. The final wave of
buying pressure will arrive in mid-October and continue into early November as
the third quarter earnings are announced. By the time the Presidential elections
arrive in early November, the stock market may be overbought and ripe for
consolidation. However, we expect that the stock market will have its
traditional year-end rally starting around Thanksgiving, so we are expecting
smooth sailing for the remainder of the year. The high-flying growth stocks are
now facing increasing competition from value stocks, so although the stock
market's breadth and power is expanding, it may actually divert some of the
money that has been flowing into growth stocks. Although value stocks will
likely perform well during the first two waves of the four-stage rally that we
foresee, we suspect that when investors turn their attention towards earnings,
growth stocks will lead the third and fourth stages of the rally, which will be
earnings driven. This is truly a wonderful time to be invested in the stock
market. Everything has fallen into place to launch a powerful stock market
rally. Interest rates have peaked, corporate earnings remain extremely strong,
trading volume is about to surge and the Presidential election cycle is now in
full force. In other words, this is as good as it gets!
3
<PAGE>
Always feel free to contact us if you have any questions or if we can help
you in any way. You may call us at (800) 887-8671 or visit our web site at
www.navellier.com, where we invite you to take advantage of our complimentary
weekly market commentary service, "Fund Mail".
Sincerely,
<TABLE>
<S> <C>
/s/ LOUIS G. NAVELLIER /s/ ALAN ALPERS
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.
The S&P 500 is an unmanaged index consisting of 500 large cap stocks. It is
considered representative of the stock market as a whole.
The Russell 1000 Index consists of the 1,000 largest securities in the Russell
3000 Index, which represents approximately 89% of the total market
capitalization of the Russell 3000 Index.
The Russell 1000 Growth Index measures the performance of those Russell 1000
companies with higher price-to-book ratios and higher forecasted growth values.
The Russell 1000 Value Index contains those Russell 1000 securities with a
less-than-average growth orientation.
The Russell 2000 Index is an unmanaged index consisting of the smallest 2000
stocks in the Russell 3000 Index, which represents approximately 11% of the
total market capitalization of the Russell 3000 Index.
The Russell 2000 Growth Index contains those Russell 2000 securities with a
greater-than-average growth orientation.
The Russell 2000 Value Index contains those Russell 2000 securities with a
less-than-average growth orientation.
The Russell 3000 Index measures the performance of the 3,000 largest U.S.
companies based on total market capitalization, which represents approximately
98% of the investable U.S. equity market.
THESE INDICES ARE CONSIDERED REPRESENTATIVE OF PERTINENT MARKET SECTORS IN
GENERAL. NONE ARE INVESTMENT PRODUCTS AVAILABLE FOR SALE.
4
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
-----------------------------------------------------------------
STATEMENTS OF NET ASSETS
JUNE 30, 2000
(UNAUDITED)
AGGRESSIVE GROWTH PORTFOLIO
<TABLE>
<CAPTION>
---------------------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
---------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 90.7%
APPAREL -- 1.9%
50,000 Gildan Activewear Inc.* $ 1,837,500
-----------
BEVERAGES -- 4.5%
70,000 Adolph Coors Company* 4,235,000
-----------
BIOTECHNOLOGY AND DRUGS -- 4.4%
10,000 IVAX Corp.* 4,150,000
-----------
BUSINESS SERVICES -- 3.1%
70,000 ADVO, Inc. 2,940,000
-----------
CASINOS AND GAMING -- 0.8%
50,000 Argosy Gaming Company* 718,750
-----------
COMPUTER EQUIPMENT, SOFTWARE AND
SERVICES -- 10.6%
15,000 Check Point Software Technologies Ltd.* 3,176,250
40,000 i2 Technologies, Inc.* 4,170,624
30,000 Silicon Storage Technology* 2,649,375
-----------
9,996,249
-----------
ELECTRONIC COMPONENTS/
EQUIPMENT -- 17.2%
60,000 Amphenol Corp.* 3,971,250
50,000 KEMET Corp.* 1,253,125
40,000 Power-One, Inc.* 4,557,500
10,000 SDL, Inc.* 2,851,875
95,000 Vishay Intertechnology, Inc.* 3,604,063
-----------
16,237,813
-----------
MANUFACTURING -- 4.4%
55,000 Millipore Corporation 4,145,625
-----------
MEDICAL SPECIALTIES -- 11.7%
60,000 Cytyc Corp.* 3,202,500
500 I-Flow Corp.* 1,437
50,000 Laboratory Corporation of America
Holdings* 3,856,250
146,100 RehabCare Group, Inc.* 3,981,225
-----------
11,041,412
-----------
OIL AND GAS SERVICES -- 10.4%
40,000 BJ Services Company* 2,500,000
100,000 HS Resources, Inc.* 3,000,000
150,000 Patterson Energy, Inc.* 4,275,000
-----------
9,775,000
-----------
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
---------------------------------------------------------------------------
<C> <S> <C>
PAPER AND RELATED PRODUCTS -- 2.5%
150,000 Pope & Talbot, Inc. $ 2,400,000
-----------
SEMICONDUCTORS AND RELATED -- 8.0%
40,000 Analog Devices, Inc.* 3,040,000
50,000 Mattson Technology, Inc.* 1,625,000
30,000 TriQuint Semiconductor, Inc.* 2,870,625
-----------
7,535,625
-----------
TELECOMMUNICATIONS -- 8.4%
40,000 ADC Telecommunications, Inc.* 3,355,000
15,000 Aspect Communications Corp.* 589,688
30,000 Tollgrade Communications, Inc.* 3,975,000
-----------
7,919,688
-----------
TRANSPORTATION -- 2.8%
50,000 Teekay Shipping Corp. 2,630,000
-----------
TOTAL COMMON STOCKS
(COST $75,088,983) 85,562,662
-----------
MONEY MARKET FUNDS -- 7.2%
6,797,110 Fund for Government Investors
(Cost $6,797,110) 6,797,110
-----------
TOTAL INVESTMENTS -- 97.9%
(COST $81,886,093) $92,359,772
Other Assets Less Liabilities -- 2.1% 1,983,586
-----------
NET ASSETS -- 100.0% $94,343,358
===========
NET ASSETS CONSIST OF:
Paid-in-Capital $67,392,194
Net Investment Loss (491,778)
Accumulated Net Realized Gain on Investments
16,969,263
Net Unrealized Appreciation of Investments
10,473,679
-----------
NET ASSETS $94,343,358
===========
NET ASSET VALUE PER SHARE
(Based on 4,696,450 Shares Outstanding)
$20.09
===========
</TABLE>
5
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
-----------------------------------------------------------------
STATEMENTS OF NET ASSETS
JUNE 30, 1999 (CONTINUED)
(UNAUDITED)
MID CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
----------------------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
----------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 94.3%
AEROSPACE AND DEFENSE -- 3.1%
180,000 The Titan Corp.* $ 8,055,000
------------
BIOTECHNOLOGY & DRUGS -- 6.7%
100,000 Forest Laboratories, Inc.* 10,100,000
45,000 Protein Design Labs, Inc.* 7,422,889
------------
17,522,889
------------
BUSINESS SERVICES -- 3.9%
360,000 Rober Half International* 10,260,000
------------
CASINOS AND GAMING -- 3.4%
275,000 MGM Grand, Inc. 8,834,375
------------
COMMUNICATION EQUIPMENT & SERVICES -- 9.7%
165,000 CDW Computer Centers* 10,312,500
187,500 MasTec, Inc.* 7,160,156
180,500 Powerwave Technologies* 7,942,000
------------
25,414,656
------------
COMPUTER EQUIPMENT & SERVICES -- 5.3%
150,000 BEA Systems, Inc.* 7,415,625
123,700 Symantec Corp.* 6,672,069
------------
14,087,694
------------
COMPUTER NETWORKS -- 2.9%
117,000 Emulex Corp.* 7,685,437
------------
COMPUTER SOFTWARE & PROGRAMMING -- 12.2%
88,000 Adobe Systems, Inc. 11,440,000
85,800 Mercury Interactive Corp.* 8,301,150
240,000 Vignette Corp.* 12,483,744
------------
32,224,894
------------
ELECTRONIC COMPONENTS -- 10.4%
252,000 American Power Conversion* 10,284,750
260,000 AVX Corp. 5,963,750
290,550 Vishay Intertechnology* 11,022,741
------------
27,271,241
------------
FINANCIAL SERVICES -- 6.8%
322,200 Federated Investors, Inc. 11,297,137
200,000 Waddell & Reed Financial 6,562,500
------------
17,859,637
------------
OIL & GAS SERVICES -- 3.4%
143,300 BJ Services Company* 8,956,250
------------
</TABLE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
----------------------------------------------------------------------------
<C> <S> <C>
SEMICONDUCTORS AND RELATED -- 18.9%
115,600 Analog Devices, Inc.* $ 8,785,600
81,000 Applied Micro Circuits* 7,998,750
151,600 Integrated Device Technology* 9,077,050
150,000 Micrel, Inc.* 6,515,625
57,400 PMC-Sierra, Inc.* 10,199,263
73,200 TriQuint Semiconductor* 7,004,325
------------
49,580,613
------------
TELECOMMUNICATIONS -- 7.6%
190,000 Advanced Fibre Communications* 8,609,375
152,300 Scientific-Atlanta, Inc. 11,346,350
------------
19,955,725
------------
TOTAL COMMON STOCKS
(COST $197,797,622) 247,708,411
------------
SHORT-TERM INVESTMENTS -- 4.0%
MONEY MARKET FUNDS -- 0.6%
1,645,255 Fund for Government Investors 1,645,255
------------
GOVERNMENT AGENCY OBLIGATIONS -- 3.4%
8,995,688 FHLB Discount Notes 8,995,688
------------
TOTAL SHORT-TERM INVESTMENTS
(COST $10,640,943) 10,640,943
------------
TOTAL INVESTMENTS -- 98.3%
(COST $208,438,565) $258,349,354
Other Assets Less Liabilities -- 1.7% 4,547,766
------------
NET ASSETS -- 100.0% $262,897,120
============
NET ASSETS CONSIST OF:
Paid-in-Capital applicable to:
Regular Class $228,383,647
I Class 15,553,451
Net Investment Loss (1,191,811)
Accumulated Net Realized Loss (29,758,956)
Net Unrealized Appreciation 49,910,789
------------
NET ASSETS $262,897,120
============
NET ASSET VALUE PER SHARE:
REGULAR CLASS
(Based on 8,097,011 Shares Outstanding)
$30.86
============
I CLASS
(Based on 421,246 Shares Outstanding)
$30.91
============
</TABLE>
6
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
-----------------------------------------------------------------
STATEMENTS OF NET ASSETS
JUNE 30, 2000 (CONTINUED)
(UNAUDITED)
AGGRESSIVE MICRO CAP PORTFOLIO
<TABLE>
<CAPTION>
---------------------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
---------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 85.1%
APPAREL -- 3.5%
48,000 Braun's Fashions Corp.* $ 1,761,000
-----------
BIOTECHNOLOGY AND DRUGS -- 7.9%
31,000 Emisphere Technologies, Inc.* 1,320,891
40,000 Genzyme Transgenics Corp.* 1,085,000
28,000 ILEX Oncology, Inc.* 987,000
8,000 Trimeris, Inc.* 559,500
-----------
3,952,391
-----------
CHEMICALS -- 0.5%
21,000 Uniroyal Technology Corp.* 232,313
-----------
COMPUTER HARDWARE AND
PERIPHERALS -- 8.3%
15,500 InFocus Corp.* 498,906
30,000 PC Connection, Inc.* 1,710,000
25,000 M-Systems Flash Disk Pioneers Ltd.* 1,946,875
-----------
4,155,781
-----------
COMPUTER SOFTWARE AND
PROGRAMMING -- 5.1%
42,000 MapInfo Corp.* 1,706,250
17,400 Rainbow Technologies, Inc.* 846,075
-----------
2,552,325
-----------
ELECTRONICS -- 2.2%
31,600 Rogers Corp.* 1,106,000
-----------
HEALTHCARE -- 5.1%
34,000 Triad Hospitals, Inc.* 822,375
35,000 Zoll Medical Corp.* 1,715,000
-----------
2,537,375
-----------
INDUSTRIAL SPECIALTIES -- 0.9%
45,000 Ceradyne, Inc.* 461,250
-----------
INDUSTRIAL MACHINERY -- 3.3%
36,000 Lone Star Technologies, Inc.* 1,665,000
-----------
INSTRUMENTS -- 0.7%
14,000 Meade Instruments Corp.* 351,750
-----------
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
---------------------------------------------------------------------------
<C> <S> <C>
MANUFACTURING -- 15.3%
43,000 Applied Films Corp.* $ 1,574,875
77,000 Concord Camera Corp.* 1,607,375
32,500 CyberOptics Corp.* 1,503,125
38,000 Direct Focus, Inc.* 1,862,000
33,000 NS Group, Inc.* 690,938
11,000 Nanometrics, Inc.* 453,063
-----------
7,691,376
-----------
MEDICAL EQUIPMENT AND
SUPPLIES -- 3.3%
68,000 ADAC Laboratories 1,632,000
-----------
OIL AND GAS SERVICES -- 9.7%
30,000 Clayton Williams Energy, Inc.* 958,125
84,000 Patina Oil & Gas Corp. 1,743,000
32,500 Prima Energy Corp. 1,738,750
11,000 UTI Energy Corp.* 441,375
-----------
4,881,250
-----------
SEMICONDUCTORS AND RELATED -- 15.2%
21,000 Actel Corp.* 958,125
17,000 Diodes, Inc.* 728,875
24,600 Elantec Semiconductor, Inc.* 1,712,775
19,500 Exar Corp.* 1,700,156
24,000 ICOS Vision Systems Corp. NV* 876,000
32,000 Oak Technology, Inc.* 690,000
30,000 Tower Semiconductor Ltd. 978,750
-----------
7,644,681
-----------
TELECOMMUNICATION EQUIPMENT -- 4.1%
34,000 Radyne ComStream, Inc.* 493,000
12,000 Tollgrade Communications, Inc.* 1,590,000
-----------
2,083,000
-----------
TOTAL COMMON STOCKS
(COST $37,609,371) 42,707,492
-----------
</TABLE>
7
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
-----------------------------------------------------------------
STATEMENTS OF NET ASSETS
JUNE 30, 2000 (CONTINUED)
(UNAUDITED)
AGGRESSIVE MICRO CAP PORTFOLIO
<TABLE>
<CAPTION>
---------------------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
---------------------------------------------------------------------------
<C> <S> <C>
SHORT TERM INVESTMENTS -- 21.5%
MONEY MARKET FUNDS -- 3.6%
1,775,827 Fund for Government Investors $ 1,775,827
-----------
GOVERNMENT AGENCY OBLIGATIONS -- 17.9%
8,995,687 Federal Home Loan Bank Discount Note 8,995,687
-----------
TOTAL SHORT TERM INVESTMENTS
(COST $10,771,514) 10,771,514
-----------
TOTAL INVESTMENTS -- 106.6%
(COST $48,380,885) $53,479,006
Liabilities in Excess of Other Assets -- (6.6%)
(3,312,775)
-----------
NET ASSETS -- 100.0% $50,166,231
===========
NET ASSETS CONSIST OF:
Paid-in-Capital $44,321,914
Net Investment Loss (47,506)
Accumulated Net Realized Gain on Investments
793,702
Net Unrealized Appreciation of Investments
5,098,121
-----------
NET ASSETS $50,166,231
===========
NET ASSET VALUE PER SHARE
(Based on 1,470,207 Shares Outstanding)
$34.12
===========
</TABLE>
SMALL CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
---------------------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
---------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 96.5%
APPAREL -- 5.2%
1,100 Columbia Sportswear Company * $ 29,562
750 Kennethh Cole Productions, Inc.* 30,000
-----------
59,562
-----------
AUTOMOBILES -- 2.1%
1,810 Lithia Motors, Inc.* 24,209
-----------
BIOTECHNOLOGY AND DRUGS -- 3.6%
1,450 Cell Genesys, Inc.* 40,600
-----------
BUSINESS SERVICES -- 4.5%
800 Administaff, Inc.* 50,800
-----------
CHEMICALS -- 2.0%
1,050 Penford Corp. 22,575
-----------
COMMERCIAL SERVICES -- 3.5%
735 Quanta Services, Inc.* 40,425
-----------
COMPUTER HARDWARE AND
PERIPHERALS -- 5.3%
1,050 PC Connection, Inc.* 59,850
-----------
COMPUTER SOFTWARE AND
SERVICES -- 8.0%
1,290 Aspen Technology, Inc.* 49,665
580 Advanced Digital Information Corp.* 9,244
650 BARRA, Inc.* 32,216
-----------
91,125
-----------
ELECTRONICS -- 2.9%
1,120 Kent Electronics Corp.* 33,390
-----------
FINANCIAL SERVICES -- 7.3%
950 GBC Bancorp 27,788
350 Silicon Valley Bancshares* 14,919
3,400 Westcorp 40,587
-----------
83,294
-----------
INDUSTRIAL MACHINERY -- 5.2%
1,610 Ampco-Pittsburgh Corp. 17,911
1,400 Imation Corp.* 41,125
-----------
59,036
-----------
</TABLE>
8
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
-----------------------------------------------------------------
STATEMENTS OF NET ASSETS
JUNE 30, 2000 (CONTINUED)
(UNAUDITED)
SMALL CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
---------------------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
---------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
INDUSTRIAL SPECIALTIES -- 6.1%
1700 ESCO Technologies Inc.* $ 28,900
1,400 The Shaw Group, Inc.* 40,056
-----------
68,956
-----------
OIL AND GAS SERVICES -- 14.4%
600 Helmerich & Payne, Inc. 22,425
2,250 Key Production Company, Inc.* 39,375
3,100 Patina Oil & Gas Corp. 64,325
1,800 Western Gas Resources, Inc. 37,800
-----------
163,925
-----------
RECREATIONAL VEHICLES -- 2.1%
1,870 Winnebago Industries, Inc. 24,427
-----------
RENTAL AND LEASING -- 2.3%
1,440 Dollar Thrifty Automotive Group, Inc.* 26,550
-----------
RESTAURANTS -- 4.9%
1,870 Buffets, Inc.* 23,726
1,290 Jack in the Box Inc.* 31,766
-----------
55,492
-----------
RETAIL -- 3.9%
1,900 REX Stores Corp.* 44,294
-----------
SEMICONDUCTORS AND RELATED -- 2.4%
1,600 Semitool, Inc.* 27,700
-----------
TELECOMMUNICATIONS -- 8.9%
1,550 Anixter International, Inc.* 41,075
750 Lightbridge, Inc.* 17,906
550 NICE Systems Ltd., ADR* 42,453
-----------
101,434
-----------
UTILITIES -- 1.9%
650 CH Energy Group, Inc. 22,059
-----------
TOTAL COMMON STOCKS
(COST $922,123) 1,099,703
-----------
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
---------------------------------------------------------------------------
<C> <S> <C>
MONEY MARKET FUNDS -- 3.4%
39,155 Fund for Government Investors
(Cost $39,155) $ 39,155
-----------
TOTAL INVESTMENTS -- 99.9%
(COST $961,278) $ 1,138,858
Other Assets Less Liabilities -- 0.1% 708
-----------
NET ASSETS -- 100.0% $ 1,139,566
===========
NET ASSETS CONSIST OF:
Paid-in-Capital $ 1,126,819
Undistributed Net Investment Income 273
Accumulated Net Relaized Loss on Investments
(165,106)
Net Unrealized Appreciation of Investments
177,580
-----------
NET ASSETS $ 1,139,566
===========
NET ASSET VALUE PER SHARE
(Based on 111,364 Shares Outstanding)
$10.23
===========
</TABLE>
9
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
-----------------------------------------------------------------
STATEMENTS OF NET ASSETS
JUNE 30, 2000 (CONTINUED)
(UNAUDITED)
LARGE CAP GROWTH PORTFOLIO
<TABLE>
<CAPTION>
---------------------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
---------------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 95.0%
BIOTECHNOLOGY AND DRUGS -- 7.4%
7,500 Amgen, Inc. * $ 526,875
25,000 IVAX Corp.* 1,037,500
15,900 MedImmune, Inc.* 1,176,600
-----------
2,740,975
-----------
COMMUNICATION EQUIPMENT AND
SERVICES -- 27.1%
17,900 ADC Telecommunications, Inc.* 1,501,363
6,600 Broadcom Corp.* 1,444,987
10,250 Comverse Technology, Inc.* 953,250
10,300 Conexant Systems, Inc.* 500,838
6,600 Corning, Inc. 1,781,175
19,150 Cypress Semiconductor Corp.* 809,087
16,800 Nokia Corp., ADR 838,950
15,050 Scientific-Atlanta, Inc. 1,121,225
53,300 Telefonaktiebolaget LM Ericsson 1,066,000
-----------
10,016,875
-----------
COMPUTER HARDWARE AND
PERIPHERALS -- 8.2%
14,260 EMC Corp. * 1,097,129
10,800 Sun Microsystems, Inc.* 982,125
8,350 VERITAS Software Corp.* 943,680
-----------
3,022,934
-----------
COMPUTER NETWORKS -- 10.2%
13,978 Cisco Systems, Inc. * 888,477
7,300 Emulex Corp.* 479,519
12,850 Network Appliance, Inc.* 1,034,425
16,400 Oracle Corp.* 1,378,625
-----------
3,781,046
-----------
COMPUTER SOFTWARE AND
SERVICES -- 11.3%
5,000 Adobe Systems, Inc. 650,000
5,700 Check Point Software Technologies Ltd.* 1,206,975
10,600 Mercury Interactive Corp.* 1,025,550
7,900 Siebel Systems, Inc.* 1,292,144
-----------
4,174,669
-----------
ELECTRONIC COMPONENTS/
EQUIPMENT -- 3.6%
14,100 Flextronics International Ltd.* 968,494
9,900 Vishay Intertechnology, Inc.* 375,581
-----------
1,344,075
-----------
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
---------------------------------------------------------------------------
<C> <S> <C>
INDUSTRIAL SPECIALTIES -- 1.8%
18,300 Atmel Corp.* $ 674,812
-----------
OIL AND GAS SERVICES -- 1.3%
7,000 Dynegy, Inc. 478,188
-----------
RECREATIONAL VEHICLES -- 0.8%
8,000 Harley Davidson, Inc. 308,000
-----------
SEMICONDUCTORS AND RELATED -- 17.2%
13,100 Analog Devices, Inc. 995,600
10,450 Applied Materials, Inc*. 947,031
4,600 Cree, Inc. 614,100
8,850 Qlogic Corporation* 584,653
15,300 STMicroelectronics N.V. 982,069
12,700 Texas Instruments, Inc. 872,331
16,450 Xilinx Inc.* 1,358,153
-----------
6,353,937
-----------
UTILITIES -- 6.1%
23,700 Calpine Corp.* 1,558,275
10,700 Enron Corp. 690,150
-----------
2,248,425
-----------
TOTAL COMMON STOCKS
(COST $28,753,046) 35,143,936
-----------
MONEY MARKET FUNDS -- 4.3%
1,612,716 Fund for Government Investors
(Cost $1,612,716) 1,612,716
-----------
TOTAL INVESTMENTS -- 99.3%
(COST $30,365,762) $36,756,652
Other Assets Less Liabilities -- 0.7% 247,197
-----------
NET ASSETS -- 100.0% $37,003,849
===========
NET ASSETS CONSIST OF:
Paid-in-Capital $31,381,116
Net Investment Loss (132,033)
Accumulated Net Relaized Loss on Investments
(636,124)
Net Unrealized Appreciation of Investments
6,390,890
-----------
NET ASSETS $37,003,849
===========
NET ASSET VALUE PER SHARE
(Based on 1,361,833 Shares Outstanding)
$27.17
===========
</TABLE>
10
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
-----------------------------------------------------------------
STATEMENTS OF NET ASSETS
JUNE 30, 2000 (CONTINUED)
(UNAUDITED)
LARGE CAP VALUE PORTFOLIO
<TABLE>
<CAPTION>
-----------------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
-----------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 93.6%
AIRLINES -- 6.2%
600 British Airways plc, ADR $ 34,500
325 UAL Corp.* 18,911
----------
53,411
----------
BANKING -- 8.0%
400 Northern Trust Corp. 26,025
300 State Street Corp. 31,819
600 UnionBanCal Corp. 11,137
----------
68,981
----------
BIOTECHNOLOGY AND DRUGS -- 2.8%
500 Elan Corp. plc* 24,219
----------
COMMUNICATION EQUIPMENT
AND SERVICES -- 6.1%
300 Amdocs Limited* 23,025
400 Scientific-Atlanta, Inc. 29,800
----------
52,825
----------
COMPUTER HARDWARE AND
PERIPHERALS -- 2.4%
400 Apple Computer, Inc.* 20,950
----------
COMPUTER SOFTWARE AND SERVICES -- 7.4%
450 Microsoft Corp.* 36,000
300 Rational Software Corp.* 27,881
----------
63,881
----------
INDUSTRIAL SPECIALTIES -- 2.3%
500 Dover Corp. 20,281
----------
INSTRUMENTS -- 2.4%
400 Johnson Controls, Inc. 20,525
----------
INSURANCE -- 2.0%
500 The St. Paul Companies, Inc. 17,063
----------
FINANCIAL SERVICES -- 11.3%
750 The Charles Schwab Corp. 25,219
450 Citigroup, Inc. 27,112
240 Lehman Brothers Holdings, Inc. 22,695
200 Merrill Lynch & Co., Inc. 23,000
----------
98,026
----------
MOTOR VEHICLES -- 7.9%
585 Ford Motor Co. 25,155
350 General Motors Corp. 20,322
870 Fiat S.p.A. 22,511
----------
67,988
----------
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
-----------------------------------------------------------------------
<C> <S> <C>
OIL AND GAS SERVICES -- 5.6%
1,000 Imperial Oil Ltd. $ 24,375
1,430 Sempra Energy 24,310
----------
48,685
----------
RETAIL -- 2.9%
780 Sears, Roebuck & Co. 25,448
----------
SEMICONDUCTORS AND RELATED -- 5.6%
400 LSI Logic Corp.* 21,650
400 Maxim Integrated Products, Inc.* 27,175
----------
48,825
----------
UTILITIES -- 20.7%
762 American Electric Power Company, Inc. 22,574
730 Ameren Corp. 24,637
450 Constellation Energy Group, Inc. 14,653
1,000 Cinergy Corp. 25,438
590 Dominion Resources, Inc. 25,296
1,530 FirstEnergy Corp. 35,764
1,050 Reliant Energy, Inc. 31,041
----------
179,403
----------
TOTAL COMMON STOCKS
(COST $820,227) 810,511
----------
MONEY MARKET FUNDS -- 6.3%
54,591 Fund for Government Investors
(Cost $54,591) 54,591
----------
TOTAL INVESTMENTS -- 99.9%
(COST $874,818) $ 865,102
Other Assets Less Liabilities -- 0.1% 400
----------
NET ASSETS -- 100.0% $ 865,502
==========
NET ASSETS CONSIST OF:
Paid-in-Capital $ 997,681
Undistributed Net Investment Income 12,249
Accumulated Net Realized Loss on Investments
(134,712)
Net Unrealized Depreciation of Investments
(9,716)
----------
NET ASSETS $ 865,502
==========
NET ASSET VALUE PER SHARE
(Based on 87,347 Shares Outstanding) $9.91
==========
</TABLE>
--------------------------
* NON-INCOME PRODUCING
ADR AMERICAN DEPOSITORY RECEIPTS
SEE NOTES TO FINANCIAL STATEMENTS.
11
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
-----------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
AGGRESSIVE MID CAP AGGRESSIVE
GROWTH GROWTH MICRO CAP
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------ ----------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest (Note 1)..................................... $ 98,494 $ 357,260 $ 43,225
Dividends (Note 1).................................... 80,700 42,950 --
----------- ------------ ----------
Total Investment Income............................. 179,194 400,210 43,225
----------- ------------ ----------
EXPENSES
Investment Advisory Fee (Note 2)...................... 377,995 1,004,385 44,637
Administrative Fee (Note 2)........................... 112,498 119,570 13,285
Distribution Plan Fees -- Regular Class (Note 4)...... 112,980 291,806 13,355
Transfer Agent and Custodian Fee (Note 3)............. 75,752 178,423 26,660
Shareholder Reports and Notices....................... 18,032 33,068 3,124
Registration Fees..................................... 7,708 50,049 11,617
Organizational Expense (Note 1)....................... 12,600 -- --
Audit Fees............................................ 6,000 6,000 6,000
Trustees' Fees and Expenses (Note 2).................. 1,406 1,406 1,406
Other Expenses........................................ 16,294 23,500 2,583
----------- ------------ ----------
Total Expenses...................................... 741,265 1,708,207 122,667
Less Expenses Reimbursed by Investment
Adviser (Note 2).................................. (70,293) (116,186) (43,419)
----------- ------------ ----------
Net Expenses...................................... 670,972 1,592,021 79,248
----------- ------------ ----------
NET INVESTMENT LOSS..................................... (491,778) (1,191,811) (36,023)
----------- ------------ ----------
Net Realized Gain (Loss) on Investment Transactions..... 7,379,418 (33,516,739) 155,339
Change in Net Unrealized Appreciation of Investments.... (3,699,439) 14,235,784 3,896,070
----------- ------------ ----------
NET GAIN (LOSS) ON INVESTMENTS.......................... 3,679,979 (19,280,955) 4,051,409
----------- ------------ ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS............................................ $ 3,188,201 $(20,472,766) $4,015,386
=========== ============ ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
---------------------------------------------------------------
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
SMALL CAP LARGE CAP LARGE CAP
VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO
--------- ---------- ---------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest (Note 1)......................................... $ 1,130 $ 38,150 $ 1,999
Dividends (Note 1)........................................ 3,913 7,761 13,806
-------- ---------- ---------
Total Investment Income................................. 5,043 45,911 15,805
-------- ---------- ---------
EXPENSES
Investment Advisory Fee (Note 2).......................... 4,369 100,164 3,395
Administrative Fee (Note 2)............................... 1,300 29,811 1,131
Distribution Plan Fees (Note 4)........................... 1,297 30,083 1,130
Transfer Agent and Custodian Fee (Note 3)................. 18,498 32,065 18,476
Organizational Expense (Note 1)........................... 9,180 9,180 9,180
Registration Fees......................................... 7,586 10,845 7,593
Audit Fees................................................ 6,000 6,000 6,000
Trustees' Fees and Expenses (Note 2)...................... 1,406 1,406 1,406
Shareholder Reports and Notices........................... 656 3,766 712
Other Expenses............................................ 577 3,046 464
-------- ---------- ---------
Total Expenses.......................................... 50,869 226,366 49,487
Less Expenses Reimbursed by Investment Adviser
(Note 2).............................................. (43,123) (48,422) (43,152)
-------- ---------- ---------
Net Expenses.......................................... 7,746 177,944 6,335
-------- ---------- ---------
NET INVESTMENT INCOME (LOSS)................................ (2,703) (132,033) 9,470
-------- ---------- ---------
Net Realized Gain (Loss) on Investment Transactions......... 16,393 (744,092) (107,079)
Change in Net Unrealized Appreciation/Depreciation
of Investments............................................ 107,152 2,155,636 39,962
-------- ---------- ---------
NET GAIN (LOSS) ON INVESTMENTS.............................. 123,545 1,411,544 (67,117)
-------- ---------- ---------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................ $120,842 $1,279,511 $ (57,647)
======== ========== =========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
-----------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH MID CAP GROWTH
PORTFOLIO PORTFOLIO
---------------------------------- ----------------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE YEAR MONTHS ENDED FOR THE YEAR
JUNE 30, 2000 ENDED JUNE 30, 2000 ENDED
(UNAUDITED) DECEMBER 31, 1999 (UNAUDITED) DECEMBER 31, 1999
-------------- ------------------ -------------- ------------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Loss................... $ (491,778) $ (773,814) $ (1,191,811) $ (381,410)
Net Realized Gain (Loss) on Investment
Transactions........................ 7,379,418 27,161,572 (33,516,739) 7,146,986
Change in Net Unrealized Appreciation
of Investments...................... (3,699,439) 3,761,122 14,235,784 33,944,862
------------ ------------ ------------- ------------
Net Increase (Decrease) in Net
Assets Resulting from
Operations........................ 3,188,201 30,148,880 (20,472,766) 40,710,438
------------ ------------ ------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Realized Gain:
Regular Class..................... -- (11,023,982) -- (3,369,098)
I Class........................... -- -- -- --
------------ ------------ ------------- ------------
Total Distributions to
Shareholders...................... -- (11,023,982) -- (3,369,098)
------------ ------------ ------------- ------------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares:
Regular Class..................... 82,262,739 136,256,553 284,889,498 116,509,706
I Class........................... -- -- 16,099,198 --
Reinvestment of Distributions:
Regular Class..................... -- 10,759,472 -- 3,250,780
I Class........................... -- -- -- --
Cost of Shares Redeemed:
Regular Class..................... (81,136,029) (157,516,582) (154,180,625) (28,117,930)
I Class........................... -- -- (545,747) --
------------ ------------ ------------- ------------
Net Increase (Decrease) in Net
Assets Resulting from Share
Transactions...................... 1,126,710 (10,500,557) 146,262,324 91,642,556
------------ ------------ ------------- ------------
TOTAL INCREASE IN NET ASSETS........ 4,314,911 8,624,341 125,789,558 128,983,896
NET ASSETS -- Beginning of Period....... 90,028,447 81,404,106 137,107,562 8,123,666
------------ ------------ ------------- ------------
NET ASSETS -- End of Period............. $ 94,343,358 $ 90,028,447 $ 262,897,120 $137,107,562
============ ============ ============= ============
SHARES
Sold:
Regular Class..................... 4,214,484 7,808,792 8,189,632 5,156,724
I Class........................... -- -- 437,991 --
Issued in Reinvestment of
Distributions:
Regular Class..................... -- 574,758 -- 108,658
I Class........................... -- -- -- --
Redeemed:
Regular Class..................... (4,253,848) (9,139,184) (4,632,668) (1,320,305)
I Class........................... -- -- (16,744) --
------------ ------------ ------------- ------------
Net Increase (Decrease) in Shares... (39,364) (755,634) 3,978,211 3,945,077
============ ============ ============= ============
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
---------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
AGGRESSIVE MICRO CAP SMALL CAP VALUE
PORTFOLIO PORTFOLIO
---------------------------------- ----------------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE YEAR MONTHS ENDED FOR THE YEAR
JUNE 30, 2000 ENDED JUNE 30, 2000 ENDED
(UNAUDITED) DECEMBER 31, 1999 (UNAUDITED) DECEMBER 31, 1999
-------------- ------------------ -------------- ------------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Income (Loss).......... $ (36,023) $ (67,562) $ (2,703) $ 25,255
Net Realized Gain (Loss) on Investment
Transactions........................ 155,339 1,285,026 16,393 (132,236)
Change in Net Unrealized Appreciation
of Investments...................... 3,896,070 (766,596) 107,152 117,015
------------ ----------- ----------- ----------
Net Increase in Net Assets Resulting
from Operations................... 4,015,386 450,868 120,842 10,034
------------ ----------- ----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Investment Income............ -- -- -- (25,255)
From Net Realized Gain................ -- (261,332) -- --
------------ ----------- ----------- ----------
Total Distributions to
Shareholders...................... -- (261,332) -- (25,255)
------------ ----------- ----------- ----------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares..... 59,636,196 3,539,007 834,187 847,356
Reinvestment of Distributions......... -- 258,260 -- 25,255
Cost of Shares Redeemed............... (19,354,711) (7,768,889) (1,047,485) (482,464)
------------ ----------- ----------- ----------
Net Increase (Decrease) in Net Assets
Resulting from Share Transactions... 40,281,485 (3,971,622) (213,298) 390,147
------------ ----------- ----------- ----------
TOTAL INCREASE (DECREASE) IN NET
ASSETS............................ 44,296,871 (3,782,086) (92,456) 374,926
NET ASSETS -- Beginning of Period....... 5,869,360 9,651,446 1,232,022 857,096
------------ ----------- ----------- ----------
NET ASSETS -- End of Period............. $ 50,166,231 $ 5,869,360 $ 1,139,566 $1,232,022
============ =========== =========== ==========
SHARES
Sold.................................. 1,909,005 171,557 87,585 93,218
Issued in Reinvestment of
Distributions....................... -- 11,929 -- 2,787
Redeemed.............................. (701,453) (393,474) (112,161) (53,134)
------------ ----------- ----------- ----------
Net Increase (Decrease) in Shares... 1,207,552 (209,988) (24,576) 42,871
============ =========== =========== ==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
---------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
LARGE CAP GROWTH LARGE CAP VALUE
PORTFOLIO PORTFOLIO
---------------------------------- ----------------------------------
FOR THE SIX FOR THE SIX
MONTHS ENDED FOR THE YEAR MONTHS ENDED FOR THE YEAR
JUNE 30, 2000 ENDED JUNE 30, 2000 ENDED
(UNAUDITED) DECEMBER 31, 1999 (UNAUDITED) DECEMBER 31, 1999
-------------- ------------------ -------------- ------------------
<S> <C> <C> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Income (Loss).......... $ (132,033) $ (65,226) $ 9,470 $ 19,574
Net Realized Gain (Loss) on Investment
Transactions........................ (744,092) 159,827 (107,079) 90,722
Change in Net Unrealized Appreciation/
Depreciation of Investments......... 2,155,636 3,684,106 39,962 (104,502)
------------ ----------- ----------- ---------
Net Increase (Decrease) in Net Assets
Resulting from Operations........... 1,279,511 3,778,707 (57,647) 5,794
------------ ----------- ----------- ---------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Investment Income............ -- -- -- (19,574)
From Net Realized Gain................ -- -- -- (102,701)
------------ ----------- ----------- ---------
Total Distributions to
Shareholders...................... -- -- -- (122,275)
------------ ----------- ----------- ---------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares..... 33,346,433 12,367,626 1,122,069 691,527
Reinvestment of Distributions......... -- -- -- 121,787
Cost of Shares Redeemed............... (10,288,837) (5,881,138) (1,192,550) (358,642)
------------ ----------- ----------- ---------
Net Increase (Decrease) in Net
Assets Resulting from Share
Transactions...................... 23,057,596 6,486,488 (70,481) 454,672
------------ ----------- ----------- ---------
TOTAL INCREASE (DECREASE) IN NET
ASSETS............................ 24,337,107 10,265,195 (128,128) 338,191
NET ASSETS -- Beginning of Period....... 12,666,742 2,401,547 993,630 655,439
------------ ----------- ----------- ---------
NET ASSETS -- End of Period............. $ 37,003,849 $12,666,742 $ 865,502 $ 993,630
============ =========== =========== =========
SHARES
Sold.................................. 1,224,446 725,134 114,051 56,283
Issued in Reinvestment of
Distributions....................... -- -- -- 11,519
Redeemed.............................. (399,501) (354,236) (121,926) (30,133)
------------ ----------- ----------- ---------
Net Increase (Decrease) in Shares... 824,945 370,898 (7,875) 37,669
============ =========== =========== =========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
-----------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
AGGRESSIVE GROWTH
PORTFOLIO
---------------------------------------------------------------------------
FOR THE SIX FOR THE PERIOD
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31, ENDED
JUNE 30, 2000 ----------------------------------------- DECEMBER 31,
(UNAUDITED) 1999 1998 1997 1996 1995*
--------------- ----------- -------- --------- -------- --------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $19.01 $14.82 $13.29 $12.25 $9.99 $10.00
------- ------- ------- -------- ------- ------
Income from Investment Operations:
Net Investment Loss................. (0.10) (0.16) (0.15) (0.14) (0.12) --
Net Realized and Unrealized Gain
(Loss) on Investments............. 1.18 6.95 1.68 1.34 2.38(C) (0.01)
------- ------- ------- -------- ------- ------
Total from Investment
Operations...................... 1.08 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............................... 1.08 4.19 1.53 1.04 2.26 (0.01)
------- ------- ------- -------- ------- ------
Net Asset Value -- End of Period...... $20.09 $19.01 $14.82 $13.29 $12.25 $9.99
======= ======= ======= ======== ======= ======
TOTAL INVESTMENT RETURN................. 5.68%(A) 46.11% 11.51% 9.77% 22.62% (0.10)%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement
(Note 2)............................ 1.49%(B) 1.49% 1.68% 2.00% 2.00% 2.00%(B)
Expenses Before Reimbursement
(Note 2)............................ 1.61%(B) 1.68% 1.89% 2.15% 2.22% 27.25%(B)
Net Investment Loss After
Reimbursement (Note 2).............. (1.09)%(B) (1.00)% (0.92)% (1.07)% (1.57)% 2.59%(B)
Net Investment Loss Before
Reimbursement (Note 2).............. (1.21)%(B) (1.20)% (1.13)% (1.22)% (1.77)% (12.66)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 225% 702% 237% 247% 169% --
Net Assets at End of Period (in
thousands).......................... $94,343 $90,028 $81,404 $101,746 $95,246 $300
Number of Shares Outstanding at End of
Period (in thousands)............... 4,696 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.
17
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
---------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MID CAP GROWTH
PORTFOLIO
REGULAR CLASS I CLASS
---------------------------------------------------------------------- ---------------
FOR THE SIX FOR THE YEARS ENDED FOR THE PERIOD FOR THE PERIOD
MONTHS ENDED DECEMBER 31, ENDED ENDED
JUNE 30, 2000 -------------------------------------- DECEMBER 31, JUNE 30, 2000**
(UNAUDITED) 1999 1998 1997 1996* (UNAUDITED)
------------- --------- ------------- ------------ -------------- ---------------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $30.20 $13.65 $12.43 $10.27 $10.00 $31.31
-------- -------- ------ ------ ------- -------
Income from Investment Operations:
Net Investment Income (Loss)........ (0.14) (0.08) (0.06) (0.06) 0.01 (0.04)
Net Realized and Unrealized Gain on
Investments....................... 0.80 17.40 1.59 2.75 0.27 (0.36)
-------- -------- ------ ------ ------- -------
Total from Investment
Operations...................... 0.66 17.32 1.53 2.69 0.28 (0.40)
-------- -------- ------ ------ ------- -------
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 (Decrease) in Net Asset
Value............................... 0.66 16.55 1.22 2.16 0.27 (0.40)
-------- -------- ------ ------ ------- -------
Net Asset Value -- End of Period...... $30.86 $30.20 $13.65 $12.43 $10.27 $30.91
======== ======== ====== ====== ======= =======
TOTAL INVESTMENT RETURN................. 2.19%(A) 126.97% 12.31% 26.18% 2.75%(A) (1.28)%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement
(Note 2)............................ 1.34%(B) 1.49% 1.66% 2.00% 2.00%(B) 0.99%(B)
Expenses Before Reimbursement
(Note 2)............................ 1.41%(B) 1.69% 2.56% 3.27% 113.02%(B) 1.75%(B)
Net Investment Loss After
Reimbursement (Note 2).............. (1.01)%(B) (1.00)% (0.38)% (0.69)% 0.87%(B) (0.47)%(B)
Net Investment Loss Before
Reimbursement (Note 2).............. (1.08)%(B) (1.23)% (1.27)% (1.96)% (110.15)%(B) (1.24)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 104% 208% 211% 163% -- 104%
Net Assets at End of Period (in
thousands).......................... $249,877 $137,108 $8,124 $8,373 $1,642 $13,020
Number of Shares Outstanding at End of
Period (in thousands)............... 8,097 4,540 595 673 160 421
</TABLE>
----------------------------
(A) Total returns for periods of less than one year are not annualized.
(B) Annualized
* FROM COMMENCEMENT OF OPERATIONS NOVEMBER 26, 1996
** FROM COMMENCEMENT OF OPERATIONS FEBRUARY 2, 2000
18
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
---------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
AGGRESSIVE MICRO CAP
PORTFOLIO
------------------------------------------------------------
FOR THE YEARS
FOR THE SIX ENDED FOR THE PERIOD
MONTHS ENDED DECEMBER 31, ENDED
JUNE 30, 2000 ----------------------------- DECEMBER 31,
(UNAUDITED) 1999 1998 1997*
------------- --------------- ------------ --------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $22.35 $20.42 $20.40 $15.64
------- ------ ------ -------
Income from Investment Operations:
Net Investment Income (Loss)........ 0.01(A) (0.28) (0.14) (0.05)
Net Realized and Unrealized Gain on
Investments....................... 11.76 3.27 0.16 5.17
------- ------ ------ -------
Total from Investment
Operations...................... 11.77 2.99 0.02 5.12
------- ------ ------ -------
Distributions to Shareholders:
From Net Realized Gain.............. -- (1.06) -- (0.36)
------- ------ ------ -------
Net Increase in Net Asset Value....... 11.77 1.93 0.02 4.76
------- ------ ------ -------
Net Asset Value -- End of Period...... $34.12 $22.35 $20.42 $20.40
======= ====== ====== =======
TOTAL INVESTMENT RETURN................. 52.66%(B) 14.79% 0.10% 32.76%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement
(Note 2)............................ 1.49%(C) 1.49% 1.51% 1.55%(B)
Expenses Before Reimbursement
(Note 2)............................ 2.25%(C) 2.68% 2.50% 3.21%(B)
Net Investment Loss After
Reimbursement (Note 2).............. (0.89)%(C) (1.06)% (0.71)% (0.54)%(B)
Net Investment Loss Before
Reimbursement (Note 2).............. (1.65)%(C) (2.24)% (1.70)% (2.20)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 86% 190% 196% 86%
Net Assets at End of Period (in
thousands).......................... $50,166 $5,869 $9,651 $10,190
Number of Shares Outstanding at End of
Period (in thousands)............... 1,470 263 473 500
</TABLE>
-----------------------------------------------
(A) The per share amount does not coincide with the net investment loss for the
period because of the timing of sales and redemptions of Fund shares and the
amount of per share net investment loss at such time.
(B) Total returns for periods of less than one year are not annualized.
(C) Annualized
* FROM COMMENCEMENT OF OPERATIONS MARCH 17, 1997
SEE NOTES TO FINANCIAL STATEMENTS.
19
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
---------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SMALL CAP VALUE
PORTFOLIO
------------------------------------------------------------
FOR THE YEARS
FOR THE SIX ENDED FOR THE PERIOD
MONTHS ENDED DECEMBER 31, ENDED
JUNE 30, 2000 ----------------------------- DECEMBER 31,
(UNAUDITED) 1999 1998 1997*
------------- --------------- ------------ --------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $9.06 $9.21 $10.12 $10.00
------- ------ ------ -------
Income from Investment Operations:
Net Investment Income (Loss)........ (0.02) 0.19 0.07 0.01
Net Realized and Unrealized Gain
(Loss) on Investments............. 1.19 (0.15) (0.91) 0.12
------- ------ ------ -------
Total from Investment
Operations...................... 1.17 0.04 (0.84) 0.13
------- ------ ------ -------
Distributions to Shareholders:
From Net Investment Income........ -- (0.19) (0.07) (0.01)
------- ------ ------ -------
Total Distributions to
Shareholders.................... -- (0.19) (0.07) (0.01)
------- ------ ------ -------
Net Increase (Decrease) in Net Asset
Value............................... 1.17 (0.15) (0.91) 0.12
------- ------ ------ -------
Net Asset Value -- End of Period...... $10.23 $9.06 $9.21 $10.12
======= ====== ====== =======
TOTAL INVESTMENT RETURN................. 12.91%(A) 0.44% (8.28)% 1.25%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement
(Note 2)............................ 1.49%(B) 1.49% 1.53% 1.75%(B)
Expenses Before Reimbursement
(Note 2)............................ 9.71%(B) 9.25% 13.01% 7.74%(B)
Net Investment Loss After
Reimbursement (Note 2).............. (0.52)%(B) 2.42% 1.12% 1.94%(B)
Net Investment Loss Before
Reimbursement (Note 2).............. (8.74)%(B) (5.34)% (10.36)% (4.03)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 76% 91% 85% 2%
Net Assets at End of Period (in
thousands).......................... $1,140 $1,232 $857 $101
Number of Shares Outstanding at End of
Period (in thousands)............... 111 136 93 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.
20
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
---------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE CAP GROWTH
PORTFOLIO
------------------------------------------------------------
FOR THE SIX FOR THE YEARS ENDED FOR THE PERIOD
MONTHS ENDED DECEMBER 31, ENDED
JUNE 30, 2000 ----------------------------- DECEMBER 31,
(UNAUDITED) 1999 1998 1997*
------------- --------------- ------------ --------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $23.59 $14.47 $10.25 $10.00
------- ------- ------ ------
Income from Investment Operations:
Net Investment Income (Loss)........ (0.10) (0.12) (0.02) 0.01
Net Realized and Unrealized Gain on
Investments....................... 3.68 9.24 4.24 0.25
------- ------- ------ ------
Total from Investment
Operations...................... 3.58 9.12 4.22 0.26
------- ------- ------ ------
Distributions to Shareholders:
From Net Investment Income.......... -- -- -- (0.01)
------- ------- ------ ------
Total Distributions to
Shareholders.................... -- -- -- (0.01)
------- ------- ------ ------
Net Increase in Net Asset Value....... 3.58 9.12 4.22 0.25
------- ------- ------ ------
Net Asset Value -- End of Period...... $27.17 $23.59 $14.47 $10.25
======= ======= ====== ======
TOTAL INVESTMENT RETURN................. 15.18%(A) 63.03% 41.17% 2.56%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement
(Note 2)............................ 1.49%(B) 1.49% 1.54% 1.90%(B)
Expenses Before Reimbursement
(Note 2)............................ 1.86%(B) 2.75% 9.11% 6.66%(B)
Net Investment Loss After
Reimbursement (Note 2).............. (1.10)%(B) (0.99)% (0.43)% 2.40%(B)
Net Investment Loss Before
Reimbursement (Note 2).............. (1.47)%(B) (2.26)% (8.00)% (2.36)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 22% 75% 80% --
Net Assets at End of Period (in
thousands).......................... $37,004 $12,667 $2,402 $103
Number of Shares Outstanding at End of
Period (in thousands)............... 1,362 537 166 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.
21
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
---------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LARGE CAP VALUE
PORTFOLIO
------------------------------------------------------------
FOR THE YEARS
FOR THE SIX ENDED FOR THE PERIOD
MONTHS ENDED DECEMBER 31, ENDED
JUNE 30, 2000 ----------------------------- DECEMBER 31,
(UNAUDITED) 1999 1998 1997*
------------- --------------- ------------ --------------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of
Period.............................. $10.43 $11.39 $10.11 $10.00
------ ------ ------ ------
Income from Investment Operations:
Net Investment Income............... 0.11 0.21 0.16 0.01
Net Realized and Unrealized Gain
(Loss) on Investments............. (0.63) 0.27 1.91 0.11
------ ------ ------ ------
Total from Investment
Operations...................... (0.52) 0.48 2.07 0.12
------ ------ ------ ------
Distributions to Shareholders:
From Net Investment Income.......... -- (0.21) (0.16) (0.01)
From Net Realized Gain.............. -- (1.23) (0.63) --
------ ------ ------ ------
Total Distributions to
Shareholders.................... -- (1.44) (0.79) (0.01)
------ ------ ------ ------
Net Increase (Decrease) in Net Asset
Value............................... (0.52) (0.96) 1.28 0.11
------ ------ ------ ------
Net Asset Value -- End of Period...... $9.91 $10.43 $11.39 $10.11
====== ====== ====== ======
TOTAL INVESTMENT RETURN................. (4.99)%(A) 4.24% 20.48% 1.18%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement
(Note 2)............................ 1.40%(B) 1.40% 1.42% 1.50%(B)
Expenses Before Reimbursement
(Note 2)............................ 10.87%(B) 10.14% 14.34% 5.03%(B)
Net Investment Loss After
Reimbursement (Note 2).............. 2.09%(B) 2.10% 1.69% 3.09%(B)
Net Investment Loss Before
Reimbursement (Note 2).............. (7.38)%(B) (6.63)% (11.22)% (0.45)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate............... 159% 90% 256% --
Net Assets at End of Period (in
thousands).......................... $866 $994 $655 $101
Number of Shares Outstanding at End of
Period (in thousands)............... 87 95 58 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.
22
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
-----------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED)
1. Significant Accounting Policies
The Navellier Performance Funds (the "Fund") is registered with the
Securities and Exchange Commission under the Investment Company Act of 1940, as
amended, (the "Act") as an open-end investment company which offers its shares
in a series of no-load non-diversified and diversified portfolios. The Fund'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 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 Mid Cap Growth Portfolio consists of two classes of shares: Regular
Class offered since November 26, 1996, and I Class offered since December 28,
1999 to registered investment advisers and their clients. Income and expenses of
the Portfolio are allocated proportionately to the two classes of shares based
on daily net assets, except for Rule 12b-1 distribution fees, which are charged
only to the Regular Class.
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.
Financial statements for the Aggressive Small Cap Equity Portfolio and the
International Equity Portfolio can be found in separately printed reports. 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 June 30, 2000, the unamortized organization costs of the
Aggressive Growth Portfolio, the Small Cap Value Portfolio, the Large Cap
Growth Portfolio, and the Large Cap Value Portfolio were $12,390, $45,900,
$45,900 and $45,900, respectively.
23
<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
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. The Adviser
receives an annual fee equal to 0.25% (0.10% for the Mid Cap Growth Portfolio)
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, 1999, the Adviser
voluntarily agreed not to seek future reimbursement of all unreimbursed past
expense incurred on behalf of the Fund. During the six months ended June 30,
2000, the Adviser paid operating expenses of the Aggressive Growth Portfolio,
the Mid Cap Growth Portfolio, the Aggressive Micro Cap Portfolio, the Small Cap
Large Cap Growth Portfolio, and the Large Cap Value Portfolio totaling $137,792,
$292,446, $51,390, $43,903, $66,308, and $43,831, respectively. Under the
operating expense agreement, the Adviser requested, and the Aggressive Growth
Portfolio, the Mid Cap Growth Portfolio, the Aggressive Micro Cap Portfolio, the
Small Cap Value Portfolio, the Large Cap Growth Portfolio and the Large Cap
Value Portfolio reimbursed, $67,499 $177,559, $7,971, $780, $17,886, and $679
respectively, of such expenses. Effective May 1, 1998, the Adviser agreed to
limit the total normal expenses of each Portfolio to 1.49% of average annual net
assets, except for the Large Cap Value Portfolio, Mid Cap Growth Portfolio and
the Mid Cap Growth Portfolio - I Class which are limited to 1.40%, 1.34% and
0.99%, respectively.
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 $12,500
annually. For the six months ended June 30, 2000, Trustees' fees and expenses
totaled $8,436.
3. Transfer Agent and Custodian
Rushmore Trust and Savings, FSB ("Rushmore Trust"), provides transfer
agency, dividend disbursing and other shareholder services to the Fund. In
addition, Rushmore Trust serves as custodian of the Fund's assets. Fees paid to
Rushmore Trust are based upon a fee schedule approved by the Board of Trustees.
4. Distribution Plan
The Fund has adopted a Distribution Plan (the "Plan") pursuant to
Rule 12b-1 under the Act, whereby it reimburses the Distributor or others in an
amount not to exceed 0.25% per annum of the average daily net assets of the
Aggressive Growth Portfolio, the Mid Cap Growth Portfolio (Regular Class only),
the Aggressive Micro Cap Portfolio, the Small Cap Value Portfolio, the Large Cap
Growth Portfolio and the Large Cap Value Portfolio, for expenses incurred in the
promotion and distribution of shares of the Fund. These expenses include, but
are not limited to, the printing of prospectuses, statements of additional
information, and reports used for sales purposes, expenses of preparation of
sales literature and related expenses (including Distributor personnel),
advertisements and other distribution-related expenses, including a prorated
portion of the Distributor's overhead expenses attributable to the distribution
of shares. Such payments are made monthly. The 12b-1 fee includes, in addition
to promotional activities, the amount the Fund may pay to the Distributor or
others as a service fee to reimburse such parties for personal services provided
to shareholders of the Fund and/or the maintenance of shareholder accounts. Such
Rule 12b-1 fees are made pursuant to the Plan and distribution agreements
entered into between such service providers and the Distributor or the Fund
directly.
24
<PAGE>
THE NAVELLIER PERFORMANCE FUNDS
-----------------------------------------------------------------
5. Securities Transactions
For the six months ended June 30, 2000, purchases and sales (including
maturities) of securities (excluding short-term securities) were as follows:
<TABLE>
<CAPTION>
AGGRESSIVE MID CAP AGGRESSIVE
GROWTH GROWTH MICRO CAP
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ -----------
<S> <C> <C> <C>
Purchases................................................ $194,552,474 $367,251,999 $44,220,095
============ ============ ===========
Sales.................................................... $200,448,814 $230,922,992 $11,280,147
============ ============ ===========
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP LARGE CAP LARGE CAP
VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ -----------
<S> <C> <C> <C>
Purchases................................................ $ 779,276 $ 27,656,254 $ 1,336,712
============ ============ ===========
Sales.................................................... $ 985,946 $ 5,184,040 $ 1,390,110
============ ============ ===========
</TABLE>
6. Unrealized Appreciation and Depreciation of Investments
Unrealized appreciation and depreciation as of June 30, 2000, based on the
cost for Federal income tax purposes is as follows:
<TABLE>
<CAPTION>
AGGRESSIVE MID CAP AGGRESSIVE
GROWTH GROWTH MICRO CAP
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------ -----------
<S> <C> <C> <C>
Gross Unrealized Appreciation............................. $14,912,596 $ 65,206,796 $ 6,247,207
Gross Unrealized Depreciation............................. (4,438,917) (15,296,007) (1,149,086)
----------- ------------ -----------
Net Unrealized Appreciation............................... $10,473,679 $ 49,910,789 $ 5,098,121
=========== ============ ===========
Cost of Investments for Federal Income Tax Purposes....... $81,886,093 $208,438,565 $48,380,885
=========== ============ ===========
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP LARGE CAP LARGE CAP
VALUE GROWTH VALUE
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ------------ -----------
<S> <C> <C> <C>
Gross Unrealized Appreciation............................. $ 221,587 $ 8,437,812 $ 43,492
Gross Unrealized Depreciation............................. (44,007) (2,046,922) (53,208)
----------- ------------ -----------
Net Unrealized Appreciation............................... $ 177,580 $ 6,390,890 $ (9,716)
=========== ============ ===========
Cost of Investments for Federal Income Tax Purposes....... $ 961,278 $ 30,365,762 $ 874,818
=========== ============ ===========
</TABLE>
7. Federal Income Tax
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
VALUE
EXPIRES DECEMBER 31, PORTFOLIO
-------------------- ---------------
<S> <C>
2005........................................................ 50
2006........................................................ 32,827
2007........................................................ 140,648
--------
$173,525
========
</TABLE>
25
<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.
