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[REPRESENTATION OF GRAPHIC IMAGE]
NAVELLIER
MILLENNIUM FUNDS
TOP 20 PORTFOLIO
ANNUAL REPORT
DECEMBER 31, 1999
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ANNUAL REPORT, December 31, 1999
NAVELLIER MILLENNIUM FUNDS
One East Liberty, Third Floor
Reno, NV 89501
(800) 887-8671
- --------------------------------------------------------------------------------
Dear Shareholder:
1999 was an exceptional year for the stock market overall. The S&P 500* had
a very respectable 21.04% return for the year. But, the most exciting returns
were found in the mid cap stocks as evidenced by the Russell Midcap Index*,
which posted a return of 51.29%. Large cap stocks fared better than their
small-to-mid cap counterparts in the first quarter of 1999, but then were
trounced in the second quarter. Virtually all sectors of the market paused
during the third quarter with negative returns across the board. However, in the
fourth quarter of 1999, mid cap stocks turned in a record performance, with the
Russell Midcap Index soaring 39.47%. Aggressive growth stocks dramatically
outperformed the more conservative value stocks over the year, with the big
winners found in the high-flying tech stocks.
We are very proud of the performance of the Navellier Top 20 Portfolio**
which was up 67.2% (adjusted for the maximum load) in 1999. The Top 20 Portfolio
is a concentrated portfolio that only invests in the top 20 stocks that our
research produces. We are particularly proud of the fact that this Fund managed
to produce excellent returns without any IPO's in its portfolio and without
excessive exposure to the volatile Internet stocks that drove much of the market
in 1999.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
TOP 20 PORTFOLIO
<S> <C> <C> <C>
Top 20 Portfolio Russell 1000 Russell 2000
9/1998 $9,505 $10,000 $10,000
10/1998 $9,800 $10,790 $10,408
11/1998 $10,560 $11,458 $10,953
12/1998 $11,929 $12,188 $11,631
1/1999 $13,602 $12,622 $11,786
2/1999 $12,632 $12,222 $10,831
3/1999 $13,849 $12,690 $11,000
4/1999 $14,524 $13,221 $11,986
5/1999 $13,754 $12,935 $12,161
6/1999 $16,120 $13,595 $12,711
7/1999 $15,883 $13,180 $12,362
8/1999 $16,529 $13,056 $11,905
9/1999 $15,740 $12,697 $11,907
10/1999 $16,662 $13,551 $11,956
11/1999 $17,575 $13,899 $12,670
12/1999 $20,984 $14,737 $14,104
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
NAVELLIER MILLENNIUM FUNDS
TOP 20
PORTFOLIO
-------
TOTAL RETURNS FOR PERIODS ENDED DECEMBER 31, 1999 RUSSELL RUSSELL
(LOAD ADJUSTED) 1000 2000
- --------------------------------------------------------- ------- -------
One Year 67.20% 20.92% 21.25%
Annualized Since Inception+ 80.75% 36.30% 31.61%
Value of a $10,000 investment over Life of Fund+ $20,984 $14,737 $14,104
+Inception September 30, 1998
</TABLE>
Last year, the U.S. economy was absolutely phenomenal. In 1999 it grew at an
annual rate in excess of 5%. The productivity gains in the U.S. continued to
accelerate and averaged well over 4% annual gains. Furthermore, the core rate of
inflation remained flat. Looking forward, the labor market remains tight, but as
long as productivity gains continue, wages can grow moderately without igniting
inflation. Although the Fed raised interest rates three times in 1999, the stock
market largely ignored these increases. There is now massive speculation about
whether or not the Federal Reserve Board will increase interest rates again at
their next Federal Open Market Committee (FOMC). Many on Wall Street believe
that the Federal Reserve Board is trying to raise interest rates to cool off the
soaring stock
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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 out despite record earnings growth for the entire stock
market. Instead, the stock market is becoming increasingly cautious and
primarily technology stocks continue to prosper. Technology stocks continue to
dominate investor attention and are attracting 90% of the new money that is
flowing into the stock market. Fortunately, most technology stocks are immune to
the impact of rising interest rates, so the Federal Reserve Board's next
decision at the FOMC meeting in mid-March should have almost no impact on the
best technology stocks. As a result, we are continuing to realign our Portfolios
to capitalize on more technology stocks.
The new inflows into the stock market via mutual funds continue to favor the
small-to-mid capitalization arena. As many large capitalization stocks that were
former stock market flagships continue to flounder, institutional investors are
increasingly turning towards small-to-mid capitalization stocks. We believe that
this persistent institutional buying pressure in small-to-mid capitalization
stocks will continue to make them the safest place to be.
Please call us if we can address any questions or concerns for you at
1-800-887-8671 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>
/s/ Louis G. Navellier /s/ Alan Alpers
LOUIS G. NAVELLIER ALAN ALPERS
</TABLE>
This material has been preceded by a Navellier Millennium 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:
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 1000-Registered Trademark- Index measures the performance of the 1,000
largest companies in the Russell 3000 Index, which represents approximately 89%
of the total market capitalization of the Russell 3000 Index.
Russell 2000-Registered Trademark- Index measures the performance of the 2,000
smallest companies in the Russell 3000 Index, which represents approximately 11%
of the total market capitalization of the Russell 3000 Index.
Russell 3000-Registered Trademark- 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.
Russell Midcap-Registered Trademark- Index measures the performance of the 800
smallest companies in the Russell 1000 Index, which represents approximately 26%
of the total market capitalization of the Russell 1000 Index.
THESE INDICES ARE CONSIDERED REPRESENTATIVE OF PERTINENT MARKET SECTORS IN
GENERAL. NONE ARE INVESTMENT PRODUCTS AVAILABLE FOR SALE.
**The Board of Trustees voted to change the name of the fund family from
American Tiger Funds to the Navellier Millennium Funds and to change the name of
the portfolio from American Tiger Top 20 Portfolio to the Navellier Top 20
Portfolio. This name change will become effective with next printing of the
prospectus.
2
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NAVELLIER MILLENNIUM FUNDS
- -----------------------------------------------------------------
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
TOP 20 PORTFOLIO
<TABLE>
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MARKET VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------
<C> <S> <C>
COMMON STOCKS - 95.8%
BUSINESS SERVICES - 4.7%
24,500 Zomax, Inc.* $ 1,108,625
-----------
COMMUNICATION EQUIPMENT AND
SERVICES - 31.9%
11,000 Emulex Corp.* 1,237,500
15,000 Harmonic, Inc.* 1,424,063
38,000 Lightbridge, Inc* 1,054,500
17,000 Powerwave
Technologies, Inc.* 992,375
4,800 QUALCOMM, Inc.* 845,400
12,000 Rural Cellular Corp.* 1,086,000
8,300 United States Cellular
Corp.* 837,781
-----------
7,477,619
-----------
ELECTRONIC PRODUCTS - 10.1%
25,000 KEMET Corp.* 1,126,562
29,990 Three-Five Systems, Inc.* 1,229,590
-----------
2,356,152
-----------
INSTRUMENTS - 4.5%
27,200 Photon Dynamics, Inc.* 1,054,000
-----------
MANUFACTURING - 4.3%
35,000 Meade Instruments Corp.* 997,500
-----------
MEDICAL EQUIPMENT AND SUPPLIES - 7.0%
10,000 VISX, Inc. * 517,500
29,500 Zoll Medical Corp.* 1,126,531
-----------
1,644,031
-----------
SEMICONDUCTORS AND RELATED - 29.8%
12,000 Applied Micro Circuits
Corp.* 1,527,000
26,000 Power Integrations, Inc.
* 1,246,375
12,800 Qlogic Corp.* 2,046,400
14,250 TranSwitch Corp.* 1,034,016
25,000 Xilinx, Inc.* 1,136,720
-----------
6,990,511
-----------
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MARKET VALUE
SHARES (NOTE 1)
- -------------------------------------------------------------------
<C> <S> <C>
TOYS AND CHILDREN'S PRODUCTS - 3.5%
44,038 JAKKS Pacific, Inc.* $ 822,960
-----------
TOTAL COMMON STOCK
(COST $15,381,793) 22,451,398
-----------
MONEY MARKET FUND - 0.7%
167,710 Fund for Government
Investors
(Cost $167,710) 167,710
-----------
TOTAL INVESTMENTS - 96.5%
(COST $15,549,503) $22,619,108
Other Assets Less Liabilities - 3.5% 814,143
-----------
NET ASSETS - 100.0% $23,433,251
===========
NET ASSET VALUE PER SHARE
(BASED ON 1,118,048 SHARES OUTSTANDING)
$20.96
OFFERING PRICE PER SHARE (100/95.05 OF $20.96)
$22.05
NET ASSETS CONSIST OF:
Paid-in-Capital $14,587,159
Accumulated Net Realized Gain on Investments
1,776,487
Net Unrealized Appreciation of Investments
7,069,605
-----------
NET ASSETS $23,433,251
===========
</TABLE>
- --------------------------
* NON-INCOME PRODUCING
SEE NOTES TO FINANCIAL STATEMENTS.
3
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NAVELLIER MILLENNIUM FUNDS
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STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
<TABLE>
<CAPTION>
TOP 20 PORTFOLIO
----------------
<S> <C>
INVESTMENT INCOME
Interest (Note 1)......................................... $ 18,273
Dividends (Note 1)........................................ 4,121
----------
Total Investment Income................................. 22,394
----------
EXPENSES
Investment Advisory Fee (Note 2).......................... 147,790
Distribution Plan Fee (Note 4)............................ 37,158
Transfer Agent and Custodian Fee (Note 3)................. 53,302
Trustees' Fees............................................ 36,000
Printing Expense.......................................... 19,607
Registration Fees......................................... 18,379
Insurance Expense......................................... 17,030
Legal Fees................................................ 10,867
Audit Fees................................................ 7,000
----------
Total Expenses.......................................... 347,133
Less Expenses Reimbursed by Investment Adviser
(Note 2)............................................... (125,238)
----------
Net Expenses.......................................... 221,895
----------
NET INVESTMENT LOSS......................................... (199,501)
----------
Net Realized Gain on Investments............................ 2,920,802
Change in Net Unrealized Appreciation of Investments........ 6,163,825
----------
NET GAIN ON INVESTMENTS..................................... 9,084,627
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $8,885,126
==========
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
4
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NAVELLIER MILLENNIUM FUNDS
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STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
TOP 20 PORTFOLIO
-----------------------------
FOR THE YEAR FOR THE PERIOD
ENDED ENDED
DECEMBER 31, DECEMBER 31,
1999 1998*
------------ --------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Loss....................................... $ (199,501) $ (5,594)
Net Realized Gain on Investment Transactions.............. 2,920,802 211,487
Change in Net Unrealized Appreciation of Investments...... 6,163,825 905,780
----------- ----------
Net Increase in Net Assets Resulting from Operations.... 8,885,126 1,111,673
----------- ----------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Realized Gains................................... (1,150,707) --
----------- ----------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares......................... 10,185,572 6,038,494
Reinvestment of Distributions............................. 1,126,789 --
Cost of Shares Redeemed................................... (2,815,288) (48,408)
----------- ----------
Net Increase in Net Assets Resulting from Share
Transactions.......................................... 8,497,073 5,990,086
----------- ----------
TOTAL INCREASE IN NET ASSETS............................ 16,231,492 7,101,759
NET ASSETS -- Beginning of Period........................... 7,201,759 100,000
----------- ----------
NET ASSETS -- End of Period................................. $23,433,251 $7,201,759
=========== ==========
SHARES
Sold...................................................... 661,011 567,983
Issued in Reinvestment of Distributions................... 55,261 --
Redeemed.................................................. (171,996) (4,211)
----------- ----------
Net Increase in Shares.................................. 544,276 563,772
=========== ==========
</TABLE>
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(*) FROM COMMENCEMENT OF OPERATIONS SEPTEMBER 30 ,1998
SEE NOTES TO FINANCIAL STATEMENTS.
5
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NAVELLIER MILLENNIUM FUNDS
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FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TOP 20 PORTFOLIO
-----------------------------
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.................... $12.55 $10.00
------- ------
Income from Investment Operations:
Net Investment Loss..................................... (0.18) (0.01)
Net Realized and Unrealized Gains on Investments........ 9.68 2.56
------- ------
Total from Investment Operations...................... 9.50 2.55
------- ------
Distributions to Shareholders:
From Net Realized Gains................................. (1.09) --
------- ------
Net Increase in Net Asset Value........................... 8.41 2.55
------- ------
Net Asset Value -- End of Period.......................... $20.96 $12.55
======= ======
TOTAL INVESTMENT RETURN+.................................... 75.91% 25.50%(A)
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note 2)..................... 1.50% 1.50%(B)
Expenses Before Reimbursement (Note 2).................... 2.34% 7.90%(B)
Net Investment Loss After Reimbursement (Note 2).......... (1.34)% (0.64)%(B)
Net Investment Loss Before Reimbursement (Note 2)......... (2.19)% (7.04)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate................................... 235% 82%
Net Assets at End of Period (in thousands)................ $23,433 $7,202
Number of Shares Outstanding at End of Period (in
thousands).............................................. 1,118 574
</TABLE>
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(A) Total returns for periods of less than one year are not annualized.
(B) Annualized
* FROM COMMENCEMENT OF OPERATIONS SEPTEMBER 30, 1998
+ TOTAL RETURN REPRESENTS AGGREGATE TOTAL RETURN FOR THE PERIOD INDICATED AND
DOES NOT REFLECT ANY APPLICABLE SALES CHARGES.
SEE NOTES TO FINANCIAL STATEMENTS.
6
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NAVELLIER MILLENNIUM FUNDS
- -----------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
1. Significant Accounting Policies
The Navellier Millennium Funds (the "Fund"), formerly known as the American
Tiger Funds, are registered under the Investment Company Act of 1940, as
amended, (the "Act") as an open-end management investment company and are
authorized to issue shares of beneficial interests. The investment objective of
the Fund is to achieve long term growth of capital primarily through investments
in stocks of companies with appreciation potential. The Fund currently offers
shares of beneficial interests in one Portfolio, the Navellier Top 20 Portfolio
(the "Portfolio"), formerly known as the American Tiger Top 20 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 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, 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.
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 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 year ended December 31, 1999,
the Adviser paid operating expenses of the portfolio totaling $162,185. Under
the operating expense agreements, the Adviser requested and the Portfolio
reimbursed, $36,947 of such expenses.
Navellier Securities, Inc. (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 service to the Fund pursuant to a distribution
agreement. An officer and trustee of the Fund is also an officer and director of
the Distributor.
For the year ended December 31, 1999, the Fund was advised that the
Distributor received $466,722 from sales loads earned on sales of the Fund's
capital stock.
7
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NAVELLIER MILLENNIUM FUNDS
- -----------------------------------------------------------------
The Fund pays each of its Trustees not affiliated with the Adviser $10,000
annually. For the year ended December 31, 1999, Trustees fees totaled $36,000.
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 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 year ended December 31, 1999, the cost of purchases and the proceeds
from sales (including maturities) of securities (excluding short-term
securities) were $39,949,780 and $33,495,351, respectively.
6. Unrealized Appreciation and Depreciation of Investments
Unrealized appreciation and depreciation as of December 31, 1999, based on
the cost for Federal income tax purposes are as follows:
<TABLE>
<CAPTION>
TOP 20
PORTFOLIO
-----------
<S> <C>
Gross Unrealized Appreciation............................... $ 7,232,466
Gross Unrealized Depreciation............................... (162,861)
-----------
Net Unrealized Appreciation................................. $ 7,069,605
===========
Cost of Investments for Federal Income Tax Purposes......... $15,549,503
===========
</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, $199,501 from accumulated net investment loss were
reclassified to accumulated net realized gain on investments.
8
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
TO THE SHAREHOLDERS AND BOARD OF TRUSTEES
THE NAVELLIER MILLENNIUM FUNDS
RENO, NEVADA
We have audited the accompanying statement of net assets of Navellier Top 20
Portfolio, a series of shares of The Navellier Millennium Funds 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 and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Navellier Top 20 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
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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.
