<PAGE>
THE AMERICAN TIGER FUNDS
THE AMERICAN TIGER TOP 20 PORTFOLIO
SEMI-ANNUAL REPORT
JUNE 30, 1999
<PAGE>
SEMIANNUAL REPORT, June 30, 1999
AMERICAN TIGER FUNDS
One East Liberty, Third Floor
Reno, NV 89501
(800) 887-8671
- --------------------------------------------------------------------------------
August 24, 1999
Dear Shareholder:
The first half of 1999 generated significant gains for most investors. Large
cap stocks finished ahead of small caps for the period, even though small caps
dramatically outperformed large caps in the second quarter. The S&P 500*
generated a return of 12.38% over the first six months of the year and the
Russell 2000 Index* was up 9.28%. In the second quarter, the Russell 2000 was up
15.55% compared to 7.05% for the S&P 500.
Small cap stocks outperformed large cap stocks during the second quarter
largely because institutional money began to recognize that the fundamentals for
small caps were, and continue to be, far superior to large caps. The
significance of the sudden resurgence of small capitalization stocks is that the
breadth and power of the overall stock market is suddenly broadening out. This
is a very bullish event, because it is signaling that the stock market is no
longer focusing on blue chips and index investments. Liquidity proved to be the
catalyst for small and mid cap stocks and finally arrived in the second quarter.
We expect that transactional volume will remain high in these asset classes
through the end of the year. Although we had a much-anticipated move in interest
rates during the latter half of the period, it did little to dampen investor
enthusiasm.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AMERICAN TIGER TOP 20 PORTFOLIO
<S> <C> <C> <C>
American Tiger Top 20 (load adjusted) Russell 1000 Russell 3000
9/30/98 $10,000 $10,000 $10,000
10/31/98 $9,800 $10,790 $10,759
11/30/98 $10,560 $11,458 $11,417
12/31/98 $11,929 $12,188 $12,143
1/31/99 $13,602 $12,622 $12,555
2/28/99 $12,632 $12,222 $12,111
3/31/99 $13,849 $12,690 $12,555
4/30/99 $14,524 $13,221 $13,122
5/31/99 $13,754 $12,935 $12,872
6/30/99 $16,120 $13,179 $13,113
</TABLE>
<TABLE>
<CAPTION>
AMERICAN TIGER
TOTAL RETURNS FOR PERIOD ENDED JUNE 30, 1999 (LOAD TOP 20
ADJUSTED) PORTFOLIO RUSSELL 1000 RUSSELL 3000
- ----------------------------------------------------- -------------- ------------ ------------
<S> <C> <C> <C>
Six Months 28.45% 11.54% 11.36%
Since Inception* 61.20% 31.79% 31.13%
Value of a $10,000 investment over life of Portfolio* $ 16,120 $ 13,179 $ 13,113
*Inception September 30, 1998
</TABLE>
<PAGE>
So far, 1999 has been a great year for the American Tiger Top 20 Portfolio.
Over the past six months, ending June 30, 1999, the Portfolio has reported a
total return of 35.14% (28.45% after the maximum load). Although the Fund is
new, it shows great promise. The Fund is up 69.60% since inception, September
30, 1998 to June 30, 1999 (61.20% after the maximum load).
This is the time of year when the stock market is very turbulent for
seasonal reasons. However, the stock market should rebound impressively in
September as many Wall Street professionals return from their summer hiatus.
Although trading volume and stock prices typically rise after Labor Day when
Wall Street professionals return, skeptics may call this seasonal surge a "dead
cat bounce". Only time will tell, but we suspect that in late September, as
earnings pre-announcement season approaches, the analyst community will start to
aggressively revise their third quarter earnings estimates significantly higher,
just as they did in the last earnings pre-announcement season.
The bottom line is that the stock market has consolidated on light trading
volume, which means that there was no panic selling by investors, and now is the
time for the bargain hunting to begin. Investors must be careful, since Federal
Reserve Board policy could disrupt the stock market. It appears that the Federal
Reserve Board is trying to engineer a 'soft' landing for the U.S. economy as GDP
growth slows and interest rates rise.
The corporate earnings environment remains ideal. The third quarter earnings
for the S&P 500 are now projected by the analyst community to grow in excess of
21% annually. We are confident that the day-to-day volatility that now
characterizes the stock market will subside within the next couple of months. We
believe that many stocks in our portfolios, especially many of our favorite mid
capitalization issues, will surge in the upcoming months.
Always feel free to contact us at (800) 887-8671 if you have any questions
or if we can help you in any way.
Sincerely,
<TABLE>
<S> <C>
/s/ Louis G. Navellier /s/ Alan Alpers
LOUIS G. NAVELLIER ALAN ALPERS
</TABLE>
This material has been preceded by an American Tiger Funds prospectus.
The preceding charts and performance numbers assume reinvestment of all
distributions and maximum sales load.
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
original cost.
*Indices:
The Russell 1000-Registered Trademark- Index consists of the 1,000 largest
securities in the Russell 3000 Index. It is not an investment product available
for sale.
The Russell 2000-Registered Trademark- Index is an unmanaged index consisting of
the smallest 2000 stocks in the Russell 3000 Index. It is considered
representative of the small cap market in general. It is not an investment
product available for sale.
The Russell 3000-Registered Trademark- Index measures the performance of the
3,000 largest U.S. companies based on total market capitalization, which
represents approximately 98% of the investable U.S. equity market. It is not an
investment product available for sale.
The S&P 500 is an unmanaged index consisting of 500 large cap stocks. It is
considered representative of the stock market as a whole. It is not an
investment product available for sale.
2
<PAGE>
AMERICAN TIGER FUNDS
- -----------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1999
(UNAUDITED)
AMERICAN TIGER TOP 20 PORTFOLIO
<TABLE>
<CAPTION>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS -- 99.0%
APPAREL -- 19.4%
22,800 Abercrombie & Fitch Co.* $ 1,094,400
13,700 Ann Taylor Stores Corp.* 616,500
19,800 Children's Place Retail Stores, Inc.* 801,900
7,400 K-Swiss, Inc. 344,100
12,200 Tarrant Apparel Group * 277,550
------------
3,134,450
------------
BIOTECHNOLOGY -- 6.5%
16,200 Biogen, Inc.* 1,041,862
------------
COMPUTER SOFTWARE -- 12.4%
18,700 Clarify, Inc.* 771,375
12,800 Citrix Systems, Inc.* 723,200
21,600 Wiztec Solutions, Ltd. 513,000
------------
2,007,575
------------
CONTAINERS -- 1.3%
11,000 Mobile Mini, Inc.* 215,188
------------
FINANCIAL SERVICES -- 11.5%
10,700 Ameritrade Holding Corp.* 1,134,200
6,500 Charles Schwab Corp. 714,187
------------
1,848,387
------------
INTERNET SERVICES -- 3.4%
4,900 America Online, Inc.* 541,450
------------
<CAPTION>
- ----------------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ----------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
MEDICAL ELECTRONICS -- 7.9%
16,000 VISX, Inc. * $ 1,267,000
------------
PRECISION INSTRUMENT -- 4.9%
14,740 Waters Corp. * 783,063
------------
SEMICONDUCTORS AND RELATED -- 27.3%
12,000 Power Integrations, Inc. * 877,500
10,900 Qlogic Corp.* 1,438,800
18,700 RF Micro Devices, Inc.* 1,395,487
14,250 TranSwitch Corp.* 675,094
------------
4,386,881
------------
TOYS AND CHILDREN'S PRODUCTS -- 4.4%
23,600 JAKKS Pacific, Inc.* 703,575
------------
TOTAL COMMON STOCKS
(COST $12,056,769) 15,929,431
------------
MONEY MARKET FUND -- 1.0%
153,730 Fund for Government Investors
(Cost $153,730) 153,730
------------
TOTAL INVESTMENTS -- 100.0%
(COST $12,210,499) $ 16,083,161
------------
------------
</TABLE>
* NON-INCOME PRODUCING
SEE NOTES TO FINANCIAL STATEMENTS.
3
<PAGE>
AMERICAN TIGER FUNDS
- -----------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
(UNAUDITED)
AMERICAN TIGER
TOP 20 PORTFOLIO
<TABLE>
<S> <C>
ASSETS
Securities at Value (Note 1) (Cost $12,210,499)................ $16,083,161
Receivable for Securities Sold................................. 405,103
Receivable for Shares Sold..................................... 70,528
Dividends Receivable........................................... 111
Interest Receivable............................................ 1,473
-----------
Total Assets................................................. 16,560,376
-----------
LIABILITIES
Payable for Securities Purchased............................... 521,684
Payable for Shares Redeemed.................................... 32,677
Investment Advisory Fee Payable (Note 2)....................... 11,425
Distribution Plan Fee Payable (Note 4)......................... 8,287
Other Payables and Accrued Expenses............................ 3,013
-----------
Total Liabilities............................................ 577,086
-----------
NET ASSETS....................................................... $15,983,290
-----------
-----------
SHARES OUTSTANDING............................................... 942,580
-----------
-----------
NET ASSET VALUE PER SHARE........................................ $16.96
-----------
-----------
MAXIMUM OFFERING PRICE PER SHARE (100/95.05 OF $16.96)........... $17.84
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<PAGE>
AMERICAN TIGER FUNDS
- -----------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
AMERICAN TIGER
TOP 20 PORTFOLIO
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest (Note 1).............................................. $ 1,121
Dividends (Note 1)............................................. 6,337
----------
Total Investment Income...................................... 7,458
----------
EXPENSES
Investment Advisory Fee (Note 2)............................... 55,958
Distribution Plan Fee (Note 4)................................. 14,117
Transfer Agent and Custodian Fee (Note 3)...................... 21,957
Trustees' Fees................................................. 18,000
Shareholder Reports and Notices................................ 9,220
Registration Fees.............................................. 9,124
Insurance Fees................................................. 4,506
----------
Total Expenses............................................... 132,882
Less Expenses Reimbursed by Investment Adviser (Note 2)...... (48,817)
----------
Net Expenses............................................... 84,065
----------
NET INVESTMENT LOSS.............................................. (76,607)
----------
Net Realized Gain on Investments............................... 610,521
Change in Net Unrealized Appreciation of Investments........... 2,966,882
----------
NET GAIN ON INVESTMENTS.......................................... 3,577,403
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............. $3,500,796
----------
----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
AMERICAN TIGER FUNDS
- -----------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
AMERICAN TIGER
TOP 20 PORTFOLIO
--------------------------
FOR THE
FOR THE SIX PERIOD
MONTHS ENDED ENDED
JUNE 30, DECEMBER
1999 31,
(UNAUDITED) 1998*
------------ -----------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Loss....................................... $ (76,607) $ (5,594)
Net Realized Gain on Investment Transactions.............. 610,521 211,487
Change in Net Unrealized Appreciation of Investments...... 2,966,882 905,780
------------ -----------
Net Increase in Net Assets Resulting from Operations.... 3,500,796 1,111,673
------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
Total Distributions to Shareholders....................... -- --
------------ -----------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares......................... 6,366,718 6,038,494
Reinvestment of Distributions............................. -- --
Cost of Shares Redeemed................................... (1,085,983) (48,408)
------------ -----------
Net Increase in Net Assets Resulting from Share
Transactions.......................................... 5,280,735 5,990,086
------------ -----------
TOTAL INCREASE IN NET ASSETS............................ 8,781,531 7,101,759
NET ASSETS -- Beginning of Period........................... 7,201,759 100,000
------------ -----------
NET ASSETS -- End of Period................................. $15,983,290 $7,201,759
------------ -----------
------------ -----------
SHARES
Sold...................................................... 443,015 567,983
Issued in Reinvestment of Distributions................... -- --
Redeemed.................................................. (74,207) (4,211)
------------ -----------
Net Increase in Shares.................................. 368,808 563,772
------------ -----------
------------ -----------
- ------------------------------------------------------------
</TABLE>
* FROM COMMENCEMENT OF OPERATIONS SEPTEMBER 30, 1998
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
AMERICAN TIGER FUNDS
- -----------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
AMERICAN TIGER
TOP 20 PORTFOLIO
----------------------------------------
FOR THE SIX FOR THE PERIOD
MONTHS ENDED ENDED
JUNE 30, 1999 DECEMBER 31,
(UNAUDITED) 1998*
----------------- --------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of Period.................... $12.55 $10.00
------- ------
Income from Investment Operations:
Net Investment Loss..................................... (0.08) (0.01)
Net Realized and Unrealized Gains on Investments........ 4.49 2.56
------- ------
Total from Investment Operations...................... 4.41 2.55
------- ------
Distributions to Shareholders:
Total Distributions to Shareholders..................... -- --
------- ------
Net Increase in Net Asset Value........................... 4.41 2.55
------- ------
Net Asset Value -- End of Period.......................... $16.96 $12.55
------- ------
------- ------
TOTAL INVESTMENT RETURN..................................... 35.14%(A) 25.50%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note 2)..................... 1.50%(B) 1.50%(B)
Expenses Before Reimbursement (Note 2).................... 2.36%(B) 7.90%(B)
Net Investment Loss After Reimbursement (Note 2).......... (1.36)%(B) (0.64)%(B)
Net Investment Loss Before Reimbursement (Note 2)......... (2.23)%(B) (7.04)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate................................... 95% 82%
Net Assets at End of Period (in thousands)................ $15,983 $7,202
Number of Shares Outstanding at End of Period (in
thousands).............................................. 943 574
</TABLE>
- --------------------------------------------------------------------
(A) Total returns for periods of less than one year are not annualized.
(B) Annualized
* FROM COMMENCEMENT OF OPERATIONS SEPTEMBER 30, 1998
SEE NOTES TO FINANCIAL STATEMENTS.
7
<PAGE>
AMERICAN TIGER FUNDS
- -----------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
(UNAUDITED)
1. Significant Accounting Policies
The American Tiger Funds (the "Fund") is registered under the Investment
Company Act of 1940, as amended, (the "Act") as an open-end management
investment company and is authorized to issue shares of beneficial interests.
The Fund currently offers shares of beneficial interests in one Portfolio, the
American Tiger Top 20 Portfolio (the "Portfolio"), a non-diversified open-end
management investment company. The Fund was established as a Delaware Business
Trust organized on September 4, 1998. The Fund is authorized to issue an
unlimited number of shares of beneficial interest. Shares of the fund are
purchased at the public offering price which includes a maximum sales charge of
up to 4.95% depending on the size of the purchase. The financial statements have
been prepared in conformity with generally accepted accounting principles which
permit management to make certain estimates and assumptions at the date of the
financial statements. The following is a summary of significant accounting
policies which the Fund follows:
(a) Listed securities are valued at the last sales price of the New York
Stock Exchange and other major exchanges. Over-the-Counter securities are
valued at the last sales price. If market quotations are not readily
available, the Board of Trustees will value the Fund's securities in good
faith. The Trustees will periodically review this method of valuation and
recommend changes which may be necessary to assure that the Fund's instruments
are valued at fair value.
(b) Security transactions are recorded on the trade date (the date the
order to buy or sell is executed). Interest income is accrued on a daily
basis. Dividend income is recorded on the ex-dividend date. Realized gain and
loss on securities transactions are computed on an identified cost basis.
(c) Dividends from net investment income are declared and paid annually.
Dividends are reinvested in additional shares unless shareholders request
payment in cash. Net capital gains, if any, are distributed annually.
(d) The Fund intends to comply with the provisions of the Internal Revenue
Code applicable to regulated investment companies and will distribute all net
investment income and capital gains to its shareholders. Therefore, no Federal
income tax provision is required.
2. Investment Advisory Fees and Other Transactions with Affiliates
Investment advisory services are provided by Navellier Management, Inc. (the
"Adviser"). Under an agreement with the Adviser, the Fund pays a fee at the
annual rate of 1.00% of the daily net assets of the Portfolio. 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. During the six months ended June 30, 1999,
the Adviser paid operating expenses of the portfolio totaling $62,807 under the
operating expense agreements the Adviser requested and the Portfolio reimbursed,
$13,990 of such expenses.
From inception of the Fund through August 4, 1999, GSG Securities, Inc. (the
"Distributor") acted 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 service to
the Fund pursuant to a distribution agreement. On August 5, 1999, Navellier
Securities Corp. became the distributor of the Fund. An officer and trustee of
the Fund is also an officer and director of Navellier Securities Corp.
For the six months ended June 30, 1999, the Fund was advised that the
Distributor received $290,902 from sales loads earned on sales of the Fund's
capital stock.
The Fund pays each of its Trustees not affiliated with the Adviser $10,000
annually. For the six months ended June 30, 1999, Trustees fees totaled $18,000.
8
<PAGE>
AMERICAN TIGER FUNDS
- -----------------------------------------------------------------
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 Portfolio for
expenses incurred in the promotion and distribution of shares of the portfolio.
These expenses include, but are not limited to, the printing of prospectuses,
statements of additional information, and reports used for sales purposes,
expenses of preparation of sales literature and related expenses (including
Distributor personnel), advertisements and other distribution-related expenses,
including a prorated portion of the Distributor's overhead expenses attributable
to the distribution of shares. Such payments are made monthly. The 12b-1 fee
includes, in addition to promotional activities, the amount the Fund may pay to
the Distributor or others as a service fee to reimburse such parties for
personal services provided to shareholders of the Fund and/or the maintenance of
shareholder accounts. Such Rule 12b-1 fees are made pursuant to the Plan and
distribution agreements entered into between such service providers and the
Distributor or the Fund directly.
5. Securities Transactions
For the six months ended June 30, 1999, purchases and sales (including
maturities) of securities (excluding short-term securities) were as follows:
<TABLE>
<CAPTION>
TOP 20
PORTFOLIO
------------
<S> <C>
Purchases......................................... $ 16,024,373
------------
------------
Sales............................................. $ 10,572,708
------------
------------
</TABLE>
6. Unrealized Appreciation and Depreciation of Investments
Unrealized appreciation and depreciation as of June 30, 1999, based on the
cost for Federal income tax purposes are as follows:
<TABLE>
<CAPTION>
TOP 20
PORTFOLIO
------------
<S> <C>
Gross Unrealized Appreciation..................... $ 4,355,208
Gross Unrealized Depreciation..................... (482,546)
------------
Net Unrealized Appreciation....................... $ 3,872,662
------------
------------
Cost of Investments for Federal Income Tax
Purposes......................................... $ 12,210,499
------------
------------
</TABLE>
7. Net Assets
At June 30, 1999, net assets consisted of the following:
<TABLE>
<CAPTION>
TOP 20
PORTFOLIO
------------
<S> <C>
Paid-in-Capital................................... $ 11,370,821
Undistributed Net Investment Loss................. (76,607)
Accumulated Net Realized Gain on Investments...... 816,414
Net Unrealized Appreciation of Investments........ 3,872,662
------------
NET ASSETS........................................ $ 15,983,290
------------
------------
</TABLE>
9
<PAGE>
INVESTMENT ADVISER:
NAVELLIER MANAGEMENT, INC.
ONE EAST LIBERTY, THIRD FLOOR
RENO, NV 89501
(800) 887-8671
DISTRIBUTOR:
NAVELLIER SECURITIES CORP.
ONE EAST LIBERTY, THIRD FLOOR
RENO, NV 89501
(800) 887-8671
TRANSFER AGENT AND CUSTODIAN:
RUSHMORE TRUST AND SAVINGS, FSB
4922 FAIRMONT AVENUE
BETHESDA, MD 20814
(800) 622-1386
