<PAGE>
[REPRESENTATION OF THE GRAPHIC IMAGE]
NAVELLIER
VARIABLE INSURANCE SERIES FUND
ANNUAL REPORT
DECEMBER 31, 1999
<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 VARIABLE INSURANCE SERIES FUND, INC.
One East Liberty, Third Floor
Reno, NV 89501
(800) 887-8671
- --------------------------------------------------------------------------------
February 18, 2000
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>
GROWTH PORTFOLIO
<S> <C> <C> <C>
Growth Portfolio Russell 2000 Russell 2000 Growth
2/98 $10,000 $10,000 $10,000
3/98 $10,500 $10,412 $10,420
4/98 $10,520 $10,469 $10,484
5/98 $10,140 $9,905 $9,721
6/98 $10,440 $9,926 $9,821
7/98 $9,990 $9,122 $9,001
8/98 $7,930 $7,350 $6,923
9/98 $8,610 $7,926 $7,625
10/98 $8,740 $8,249 $8,023
11/98 $9,730 $8,582 $8,646
12/98 $11,220 $9,219 $9,428
1/99 $12,680 $9,341 $9,852
2/99 $11,720 $8,585 $8,951
3/99 $12,750 $8,719 $9,270
4/99 $13,350 $9,500 $10,089
5/99 $12,850 $9,639 $10,105
6/99 $14,340 $10,074 $10,637
7/99 $14,200 $9,798 $10,308
8/99 $14,470 $9,436 $9,923
9/99 $14,660 $9,438 $10,114
10/99 $17,010 $9,476 $10,374
11/99 $18,430 $10,042 $11,470
12/99 $21,616 $11,178 $13,492
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
VARIABLE INSURANCE SERIES FUND
RUSSELL
GROWTH RUSSELL 2000
TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 1999 PORTFOLIO 2000 GROWTH
- --------------------------------------------------------- ------- ------- -------
One Year 92.66% 21.25% 43.09%
Annualized Since Inception+ 52.00% 6.24% 17.67%
Value of a $10,000 investment over Life of Fund+ $21,616 $11,178 $13,492
+Inception February 27, 1998
</TABLE>
Overall our funds performed quite nicely this year. We are very proud of the
performance of the Navellier Variable Insurance Series Fund - Growth Portfolio
which was up 92.66% for the year. We are particularly proud of the fact that
this fund managed to produce excellent returns without any IPO's in its
portfolio or with 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
<PAGE>
the Federal Reserve Board will increase interest rates again at their next
Federal Open Market 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.
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 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 invested.
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 VARIABLE INSURANCE SERIES FUND
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:
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 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 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 3000-REGISTERED TRADEMARK- INDEX MEASURES THE PERFORMANCE OF THE 3,000
LARGEST US COMPANIES BASED ON TOTAL MARKET CAPITALIZATION, WHICH REPRESENTS
APPROXIMATELY 98% OF THE INVESTABLE US EQUITY MARKET.
RUSSELL MIDCAP-REGISTERED TRADEMARK- INDEX MEASURES THE PERFORMANCE OF THE 800
SMALLEST COMPANIES IN THE RUSSELL 1000 INDEX, WHICH REPRESENT APPROXIMATELY 26%
OF THE TOTAL MARKET CAPITALIZATION OF THE RUSSELL 1000 INDEX.
RUSSELL 1000-REGISTERED TRADEMARK- INDEX MEASURES THE PERFORMANCE OF THE 1,000
LARGEST COMPANIES IN THE RUSSELL 3000 INDEX, WHICH REPRESENTS APPROXIMATELY 92%
OF THE TOTAL MARKET CAPITALIZATION OF THE RUSSELL 3000 INDEX.
2
<PAGE>
NAVELLIER VARIABLE INSURANCE SERIES FUND
- -----------------------------------------------------------------
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
GROWTH PORTFOLIO
<TABLE>
- -----------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 90.5%
BIOTECHNOLOGY AND DRUGS -- 4.5%
760 MedImmune, Inc.* $ 126,065
----------
COMMERCIAL SERVICES -- 2.6%
330 Catalina Marketing
Corp.* 38,197
840 Valassis Communications,
Inc.* 35,490
----------
73,687
----------
COMMUNICATION EQUIPMENT AND
SERVICES -- 17.2%
640 ANTEC Corp.* 23,360
1,050 CommScope, Inc.* 42,328
800 Emulex Corp.* 90,000
1,350 Harmonic, Inc.* 128,166
1,050 Powerwave Technologies,
Inc.* 61,294
740 Scientific-Atlanta, Inc. 41,162
1,440 Western Wireless Corp.* 96,120
----------
482,430
----------
COMPUTER HARDWARE AND
PERIPHERALS -- 4.2%
1,310 Adaptec, Inc.* 65,336
540 SanDisk Corp.* 51,975
----------
117,311
----------
COMPUTER SOFTWARE AND
PROGRAMMING -- 21.4%
1,130 Adobe Systems, Inc. 75,992
1,350 BroadVision, Inc.* 229,584
820 Electronics for Imaging,
Inc.* 47,663
920 Macromedia, Inc.* 67,275
650 Mercury Interactive
Corp.* 70,159
1,280 Siebel Systems, Inc.* 107,520
----------
598,193
----------
ELECTRONIC PRODUCTS -- 10.8%
950 DII Group, Inc.* 67,420
1,820 Gemstar International
Group Ltd.* 129,675
730 Jabil Circuit, Inc.* 53,290
1,160 KEMET Corp.* 52,273
----------
302,658
----------
- -----------------------------------------------------------------
MARKET
VALUE
SHARES (NOTE 1)
- -----------------------------------------------------------------
<C> <S> <C>
MACHINERY -- 1.8%
1,110 Helix Technology Corp. $ 49,742
----------
MEDICAL EQUIPMENT AND SUPPLIES -- 5.2%
700 ArthroCare Corp.* 42,700
650 MiniMed, Inc. * 47,613
1,050 VISX, Inc.* 54,338
----------
144,651
----------
RETAIL -- 2.2%
700 Tiffany & Co. 62,475
----------
SEMICONDUCTORS AND RELATED -- 20.6%
840 Alpha Industries, Inc.* 48,143
1,040 Applied Micro Circuits
Corp.* 132,340
1,080 Power Integrations,
Inc.* 51,773
920 QLogic Corp.* 147,085
1,450 RF Micro Devices, Inc.* 99,234
900 TriQuint Semiconductor,
Inc.* 100,125
----------
578,700
----------
TOTAL COMMON STOCK
(COST $1,711,623) 2,535,912
----------
MONEY MARKET FUND -- 9.6%
267,871 Fund for Government
Investors
(Cost $267,871) 267,871
----------
TOTAL INVESTMENTS -- 100.1%
(COST $1,979,494) $2,803,783
Liabilities in Excess of
Other Assets -- (0.1)% (2,094)
----------
NET ASSETS (NOTE 6) -- 100.0% $2,801,689
==========
NET ASSET VALUE PER SHARE
(BASED ON 130,408 SHARES OUTSTANDING)
$21.48
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE>
NAVELLIER VARIABLE INSURANCE SERIES FUND
- -----------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
GROWTH
PORTFOLIO
---------
<S> <C>
INVESTMENT INCOME
Interest (Note 1)......................................... $ 4,899
Dividends (Note 1)........................................ 310
--------
Total Investment Income................................. 5,209
--------
EXPENSES
Investment Advisory Fee (Note 2).......................... 6,972
Administrative Fee (Note 2)............................... 2,050
Transfer Agent and Custodian Fee (Note 3)................. 24,477
Legal Fees................................................ 9,356
Shareholder Reports and Notices........................... 5,895
Directors' Fees and Expenses (Note 2)..................... 12,000
Audit Fees................................................ 3,000
Organizational Expense (Note 1)........................... 3,504
Other Expenses............................................ 1,205
--------
Total Expenses.......................................... 68,459
Less Expenses Reimbursed by Investment Adviser
(Note 2)............................................... (56,156)
--------
Net Expenses.......................................... 12,303
--------
NET INVESTMENT LOSS......................................... (7,094)
--------
Net Realized Gain on Investments............................ 103,746
Change in Net Unrealized Appreciation of Investments........ 779,531
--------
NET INCOME ON INVESTMENTS................................... 883,277
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $876,183
========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
NAVELLIER VARIABLE INSURANCE SERIES FUNDS
- -----------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GROWTH PORTFOLIO
-----------------------------
FOR THE YEAR FOR THE PERIOD
ENDED ENDED
DECEMBER 31, DECEMBER 31,
1999 1998*
------------ --------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Loss....................................... $ (7,094) $ (734)
Net Realized Gain (Loss) on Investment Transactions....... 103,746 (21,589)
Change in Net Unrealized Appreciation of Investments...... 779,531 44,758
---------- ----------
Net Increase in Net Assets Resulting from Operations.... 876,183 22,435
---------- ----------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Realized Gains................................... (17,346) --
---------- ----------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares......................... 1,772,191 128,396
Reinvestment of Distributions............................. 17,346 --
Cost of Shares Redeemed................................... (51,232) (46,284)
---------- ----------
Net Increase in Net Assets Resulting from Share
Transactions.......................................... 1,738,305 82,112
---------- ----------
TOTAL INCREASE IN NET ASSETS............................ 2,597,142 104,547
NET ASSETS -- Beginning of Period........................... 204,547 100,000
---------- ----------
NET ASSETS -- End of Period................................. $2,801,689 $ 204,547
========== ==========
SHARES
Sold...................................................... 115,039 13,412
Issued in Reinvestment of Distributions................... 821 --
Redeemed.................................................. (3,676) (5,188)
---------- ----------
Net Increase in Shares.................................. 112,184 8,224
========== ==========
</TABLE>
- --------------------------------------------------------------------
* FROM COMMENCEMENT OF OPERATIONS FEBRUARY 27, 1998
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
NAVELLIER VARIABLE INSURANCE SERIES FUND
- -----------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE YEAR FOR THE PERIOD
ENDED ENDED
DECEMBER 31, DECEMBER 31,
1999 1998*
------------ --------------
<S> <C> <C>
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD:
Net Asset Value -- Beginning of Period.................... $11.22 $10.00
------ ------
Income from Investment Operations:
Net Investment Loss..................................... (0.05) (0.04)
Net Realized and Unrealized Gains on Investments........ 10.44 1.26
------ ------
Total from Investment Operations.................... 10.39 1.22
------ ------
Distributions to Shareholders
From Net Realized Gains................................. (0.13) --
------ ------
Net Increase in Net Asset Value........................... 10.26 1.22
------ ------
Net Asset Value -- End of Period.......................... $21.48 $11.22
====== ======
TOTAL INVESTMENT RETURN..................................... 92.66% 12.20%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note 2)..................... 1.50% 1.50%(B)
Expenses Before Reimbursement (Note 2).................... 8.23% 70.17%(B)
Net Investment Loss After Reimbursement (Note 2).......... (0.85)% (0.67)%(B)
Net Investment Loss Before Reimbursement (Note 2)......... (7.60)% (69.34)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate................................... 85% 129%
Net Assets at End of Period (in thousands)................ $2,802 $205
Number of Shares Outstanding at End of Period (in
thousands).............................................. 130 18
</TABLE>
- --------------------------------------------------------------------
(A) Total returns for periods of less than one year are not annualized.
(B) Annualized
* FROM COMMENCEMENT OF OPERATIONS FEBRUARY 27, 1998
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
NAVELLIER VARIABLE INSURANCE SERIES FUND
- -----------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
1. Significant Accounting Policies
The Navellier Variable Insurance Series Fund, Inc. (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 management
investment company authorized to issue multiple series of shares, each
representing a portfolio of investments. The Fund currently has authorized one
series, the Navellier Growth Portfolio (the "Growth Portfolio"), a diversified
open-end management investment company. The Growth Portfolio seeks to achieve
long-term growth of capital primarily through investment in companies with
appreciation potential. The Fund was established as a Maryland corporation
organized on February 28, 1997. The Fund is authorized to issue 500,000,000
shares of capital stock with no stated par value of the Growth Portfolio. The
Fund's shares are offered only to (a) insurance companies to fund benefits under
their variable annuity contracts and variable life insurance policies and (b)
tax-qualified pension and retirement plans ("Qualified Plans"), including
participant-directed Qualified Plans which elect to make the Fund available as
investment options for Qualified Plan participants. 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 Directors will value the Fund's securities in good
faith. The Directors will periodically review this method of valuation and
recommend changes which may be necessary to assure that the Fund's instruments
are valued at fair value.
(b) Security transactions are recorded on the trade date (the date the
order to buy or sell is executed). Interest income is accrued on a daily
basis. Dividend income is recorded on the ex-dividend date. Realized gains and
losses from securities transactions are computed on an identified cost basis.
(c) Dividends from net investment income, if any, are declared and paid
annually. 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 Growth Portfolio totaling $17,520 are
being deferred and amortized over 60 months beginning with public offering of
shares in the Fund. 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, unamortized
organization costs of the Growth Portfolio were $11,096.
2. Investment Advisory Fees and Other Transactions with Affiliates
Investment advisory services are provided by Navellier & Associates, Inc.
(the "Adviser"). Under an agreement with the Adviser, the Fund pays a fee at the
annual rate of 0.85% of the daily net assets of the Growth 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 director of the Fund is also an officer
and director of the Adviser.
7
<PAGE>
NAVELLIER VARIABLE INSURANCE SERIES FUND
- -----------------------------------------------------------------
Under an agreement between the Fund and the Adviser, the Adviser has agreed
to waive its advisory fee and/or reimburse expenses until the total portfolio
operating expenses are at or below 1.50%. This agreement is subject to
termination at any time without notice to shareholders after the expiration of
the twelve months from the date shares of the Growth Portfolio are first offered
to the public. During the year ended December 31, 1999, the Adviser paid
operating expenses of the portfolio totaling $59,437 under the operating expense
agreements, the Adviser requested and the portfolio reimbursed $3,281 of such
expenses.
Navellier Securities Corp. (the "Distributor") acts as the Fund's
Distributor and is registered as a broker-dealer under the Securities and
Exchange Act of 1934. The Distributor, which is the principal underwriter of the
Fund's shares, renders its services to the Fund pursuant to a distribution
agreement. An officer and director of the Fund is also an officer and director
of the Distributor.
The Fund pays each of its Directors not affiliated with the Adviser $6,000
annually. For the year ended December 31, 1999, Directors' fees and expenses
totaled $12,000.
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 Directors.
4. 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 $2,122,232 and $652,518, respectively.
5. 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>
GROWTH PORTFOLIO
----------------
<S> <C>
Gross Unrealized Appreciation............................... $ 875,146
Gross Unrealized Depreciation............................... (53,952)
----------
Net Unrealized Appreciation................................. $ 821,194
==========
Cost of Investments for Federal Income Tax Purposes......... $1,982,589
==========
</TABLE>
6. Net Assets
At December 31, 1999, net assets consisted of the following:
<TABLE>
<CAPTION>
GROWTH PORTFOLIO
----------------
<S> <C>
Paid-in-Capital............................................. $1,919,683
Accumulated Net Realized Gain on Investments................ 57,717
Net Unrealized Appreciation of Investments.................. 824,289
----------
NET ASSETS.................................................. $2,801,689
==========
</TABLE>
7. Federal Income Tax
Permanent differences between tax and financial reporting of accumulated net
investment income and net realized gain/loss are reclassified. As of
December 31, 1999, $7,094 from accumulated net investment loss were reclassified
to accumulated net realized gain.
8
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF DIRECTORS
NAVELLIER VARIABLE INSURANCE SERIES FUND
RENO, NEVADA
We have audited the accompanying statement of net assets of Navellier Growth
Portfolio, a series of shares of the Navellier Variable Insurance Series Fund as
of December 31, 1999, and the related statement of operations for the year then
ended and the statement of changes in net assets and financial highlights for
each of the two periods then ended. These financial statements are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1999, by correspondence with the custodian. 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 position of
Navellier Growth Portfolio as of December 31, 1999, the results of its
operations for the year then ended and the changes in its net assets and
financial highlights for each of the two periods then ended, in conformity with
generally accepted accounting principles.
[SIGNATURE]
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
February 18, 2000
9
<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.
