<PAGE>
SEMI-ANNUAL REPORT, June 30, 1996
NAVELLIER SERIES FUND
1 East Liberty, Third Floor
Reno, NV 89501
(800) 887-8671
- -------------------------------------------------------------------------------
August 16, 1996
Dear Shareholder:
The first six months of 1996 were quite exceptional for the stock market as a
whole and particularly impressive for NASDAQ stocks. However, investors were
subjected to a great deal of volatility during this period. Small cap stocks
dramatically outpaced large cap stocks during the first half of 1996. The
NASDAQ Industrials were up 15.11% compared to 10.10% for the S&P 500. We are
quite pleased with the performance of our Navellier Aggressive Small Cap
Equity Portfolio ("Portfolio")*. For the first two quarters of 1996, the
Portfolio had a return of 27.64% (23.79% after the maximum load) compared to
15.11% for the NASDAQ Industrials for the same period. Since public offering
(April 1, 1994) the Portfolio's Net Asset Value (NAV) is up 109.71% (103.36%
after the maximum load).
[LINE GRAPH OF NAVELLIER AGGRESSIVE SMALL CAP EQUITY PORTFOLIO APPEARS HERE]
The above chart indicates the return of $10,000 invested in the NAVELLIER
AGGRESSIVE SMALL CAP EQUITY PORTFOLIO on April 1, 1994. As the chart shows by
June 30, 1996, the value of the investment would have grown to $20,336, a
103.36% increase. For comparison purposes, look at how the NASDAQ Industrials
performed over the same period. An investment of $10,000 in the NASDAQ
Industrials over the same period would have grown to $14,254, a 42.54%
increase.
The above 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.
<PAGE>
After a slow start in January, the market surged at a torrid pace through the
end of May. Stock funds brought in almost $100 billion in new assets during the
period from January to April. This tremendous flow of funds into the market
served to push stock prices dramatically higher. Of this $100 billion, nearly
$25 billion was invested in aggressive growth funds. As the market climbed to
new highs in the beginning of June, the inevitable correction was just around
the corner. When analysts became pessimistic about second quarter earnings we
saw the market begin to correct. As the selloff began, market makers moved to
the sidelines and liquidity started to dry up. The flow of net assets into
stock mutual funds slowed from over $20 billion in May to slightly more than
$15 billion in June. Another major contributing factor in the sharp selloff
occurred when bond yields cracked the 7% barrier in June. Wall Street reacted
quickly and negatively, expressing fear over higher interest rates.
Since the correction, the flow of funds into money market funds has
accelerated, indicative of the massive cash reserves that are now on the
sidelines. Although it is not unusual for the flow of funds into the stock
market to slow down during the summer months, the current inflows into the
stock market remain very healthy and should help propel the stock market higher
in subsequent months. As the liquidity returns to the stock market, we expect
our favorite stocks to continue to attract institutional buying pressure and
move substantially higher.
As of this writing, there are many recent positive events that we expect will
help fuel a strong stock market recovery. First, the second quarter earnings
reports were much stronger than previously anticipated. The stock market
plummeted in early July after Hewlett Packard, Motorola and other leading
stocks warned that their earnings outlooks were poor. By late July, leading
stocks, such as IBM, Compaq, Intel and Sun Microsystems, announced strong
second quarter earnings that positively surprised Wall Street and helped
inspire confidence in the overall stock market. Although earnings surprises are
common because analysts tend to underestimate earnings, the proportion of
earnings surprises so far in the second quarter have been much higher than
anyone anticipated. Second, the bond market has staged a big rally as long-term
Treasury bond yields fell over the past few months. Once long-term Treasury
bond yields broke out of their trading range into new low territory, it became
a very bullish event for bonds as well as stocks.
The earnings outlook for the remainder of the year remains uncertain. Top-down
market strategists are estimating slightly more than 4% corporate earnings
growth in 1996, while the consensus of all the bottom-up analysts are
estimating approximately 9% corporate earnings growth in 1996. Obviously, there
is a lot of confusion about the 1996 earnings outlook. The strong earnings
growth associated with our stocks should continue to attract institutional
buying pressure which should drive them substantially higher in the upcoming
months. Overall, this is a wonderful time to purchase powerful growth stocks at
reasonable prices. We believe that even in a volatile environment our
quantitative, disciplined approach to investing will continue to help us to
uncover those fundamentally superior stocks that hold the greatest promise.
2
<PAGE>
The Navellier Aggressive Small Cap Equity Portfolio closed to new investors on
April 15, 1996. Although it remains open to existing shareholders and
investment advisors and their clients, we believe that keeping the fund
relatively small will help us to manage the portfolio more effectively. We wish
to assure you that we remain dedicated to striving for the best performance
possible with our mutual funds. We want to thank all the shareholders in the
Navellier Aggressive Small Cap Equity Portfolio for your continued support and
confidence in the Fund. Please feel free to contact us if you have any
questions or if we can help in any way.
Sincerely,
/s/ Louis G. Navellier
LOUIS G. NAVELLIER
* This material has been preceded by a Navellier Series Fund: Aggressive Small
Cap Equity Portfolio prospectus.
3
<PAGE>
June 30, 1996 NAVELLIER AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
<TABLE>
- -------------------------------------------------------
<CAPTION>
Market Value
Shares (Note 1)
<C> <S> <C>
- -------------------------------------------------------
COMMON STOCKS
ADVANCED MEDICAL DEVICES -- 6.22%
34,400 BioSource International, Inc.* $ 310,677
106,500 Hologic, Inc.* 4,712,625
100,000 Kent Electronics Corp.* 3,125,000
63,000 Thermotrex Corp.* 3,102,750
131,000 VISX, Inc.* 4,470,375
------------
15,721,427
------------
AGRICULTURAL -- 0.84%
50,000 Delta and Pine Land Co. 2,112,500
------------
AIRLINES -- 2.14%
127,500 Comair Holdings, Inc. 3,442,500
174,200 Mesaba Holdings, Inc.* 1,981,525
------------
5,424,025
------------
ALUMINUM/METALS -- 0.15%
10,100 Reliance Steel and Aluminum Co. 368,650
------------
APPAREL/FABRIC -- 1.28%
93,000 Ross Stores, Inc. 3,231,750
------------
BIOTECHNOLOGY -- 2.41%
108,000 Cyanotech Corp.* 810,000
97,500 Martek Biosciences Corp.* 2,851,875
140,400 Prime Medical Services, Inc.* 2,439,450
------------
6,101,325
------------
CLOTHING/FABRIC -- 0.48%
149,500 Paul Harris Stores, Inc.* 1,214,687
------------
COMPUTER HARDWARE -- 2.40%
200,000 Iomega Corp.* 5,800,000
30,000 Meridian Data, Inc.* 266,250
------------
6,066,250
------------
COMPUTER SOFTWARE -- 3.06%
140,000 Brooktrout Technology, Inc.* 3,920,000
84,000 Control Data Systems, Inc.* 1,795,500
110,800 Quality Systems, Inc.* 2,022,100
------------
7,737,600
------------
CONSUMER NON-CYCLICAL -- 0.24%
10,000 Culbro Corp.* 596,250
------------
COSMETICS/PERSONAL CARE -- 0.16%
16,200 Natures Sunshine Products, Inc. 413,100
------------
</TABLE>
<TABLE>
- ----------------------------------------------------------
<CAPTION>
Market Value
Shares (Note 1)
<C> <S> <C>
- ----------------------------------------------------------
COMMON STOCKS (CONTINUED)
DATA COMMUNICATIONS/NETWORKING -- 3.63%
106,000 Ascend Communications, Inc.* $ 5,962,500
80,000 Proxim, Inc.* 3,220,000
------------
9,182,500
------------
DIVERSIFIED TECHNOLOGY -- 3.43%
68,100 Computer Horizons Corp.* 2,689,950
42,000 Lindsay Manufacturing Co. 1,690,500
125,200 Zoltek Companies, Inc.* 4,288,100
------------
8,668,550
------------
EDUCATION -- 3.92%
159,525 Apollo Group, Inc.* 4,466,700
50,300 Childrens Comprehensive Services* 1,081,450
306,000 National Education Corp.* 4,360,500
------------
9,908,650
------------
ELECTRONICS -- 7.99%
217,700 Computer Products, Inc.* 3,728,112
27,600 Keithley Instruments, Inc. 389,850
153,600 LaBarge, Inc.* 1,411,200
150,000 Rexel, Inc.* 2,118,750
90,000 Stanford Telecommunications, Inc.* 5,062,500
111,000 Universal Electronics, Inc.* 1,290,375
175,000 WPI Group, Inc.* 1,706,250
248,000 Zytec* 4,495,000
------------
20,202,037
------------
ENGINEERING/DESIGN -- 1.49%
335,900 IMP, Inc.* 3,778,875
------------
ENTERTAINMENT -- 0.25%
65,000 Iwerks Entertainment, Inc.* 641,875
------------
FINANCIAL SERVICES -- 3.39%
70,000 Aames Financial Corp. 2,511,250
91,200 American Physicians Service Group* 877,800
181,500 PMT Services, Inc.* 5,195,438
------------
8,584,488
------------
HEAVY MACHINERY/CONSTRUCTION -- 3.28%
60,800 Gardner Denver Machinery* 1,603,600
90,000 JLG Industries, Inc. 6,682,500
------------
8,286,100
------------
</TABLE>
* Non-income producing.
See Notes to Financial Statements.
4
<PAGE>
June 30, 1996 NAVELLIER AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONTINUED)
<TABLE>
- -----------------------------------------------------------
<CAPTION>
Market Value
Shares (Note 1)
<C> <S> <C>
- -----------------------------------------------------------
COMMON STOCKS (CONTINUED)
HOME CONSTRUCTION -- 1.46%
150,000 Cavalier Homes, Inc. $ 3,468,750
20,000 NVR, Inc.* 222,500
------------
3,691,250
------------
INDUSTRIAL AND COMMERCIAL SERVICES -- 2.43%
6,686 Illinois Tool Works, Inc. 452,141
92,500 Memtec Ltd. 3,399,375
122,000 Shaw Group, Inc.* 2,302,750
------------
6,154,266
------------
MEDICAL SUPPLIES -- 0.90%
11,000 Microtek Medical, Inc.* 165,000
165,000 Orthologic Corp.* 2,103,750
------------
2,268,750
------------
NONCLASSIFIABLE ESTABLISHMENT -- 0.80%
110,000 Pre Paid Legal Services, Inc.* 2,035,000
------------
OIL -- 1.13%
84,400 Cliffs Drilling Co.* 2,869,600
------------
OIL AND GAS EXPLORATION -- 4.48%
80,432 Diamond Offshore Drilling, Inc.* 4,604,732
110,000 Seacor Holdings, Inc.* 4,922,500
50,000 United Meridian Corp.* 1,800,000
------------
11,327,232
------------
PHARMACEUTICALS -- 6.62%
75,000 Biovail Corp. International* 2,343,750
124,875 Jones Medical Industries, Inc. 4,152,094
100,000 Medicis Pharmaceutical Corp.* 4,125,000
190,000 Neurex Corp.* 4,156,250
100,000 PCI Services, Inc.* 1,975,000
------------
16,752,094
------------
PRINTING/PAPER PRODUCTS -- 1.12%
109,500 Day Runner, Inc.* 2,833,312
------------
RESTAURANTS -- 1.11%
112,400 Long Horn Steaks, Inc.* 2,810,000
------------
RETAILERS -- 7.30%
257,000 Action Performance Companies, Inc.* 3,758,625
195,000 Claires Stores, Inc. 5,386,875
</TABLE>
<TABLE>
- -------------------------------------------------------------
<CAPTION>
Market Value
Shares (Note 1)
<C> <S> <C>
- -------------------------------------------------------------
COMMON STOCKS (CONTINUED)
RETAILERS (CONTINUED)
143,000 Orchard Supply Hardware Stores Corp.* $ 4,307,875
104,000 Wet Seal, Inc.* 2,476,500
150,000 Zale Corp.* 2,531,250
------------
18,461,125
------------
SAVINGS AND LOANS -- 1.09%
91,000 Imperial Credit Industries, Inc.* 2,752,750
------------
SEMICONDUCTORS AND RELATED -- 0.09%
17,900 Cerprobe Corp.* 214,800
------------
STEEL -- 0.55%
70,000 Chaparral Steel Co. 918,750
17,300 Olympic Steel, Inc.* 482,238
------------
1,400,988
------------
SURVEILLANCE SYSTEMS -- 2.60%
191,000 Checkpoint Systems, Inc.* 6,565,625
------------
TELECOMMUNICATIONS -- 6.31%
267,100 ATC Communications, Inc.* 3,505,687
183,000 California Amplifier, Inc.* 4,209,000
118,000 Computer Telephone Corp.* 1,534,000
108,000 Pairgain Technologies, Inc.* 6,696,000
------------
15,944,687
------------
TEMPORARY STAFFING -- 4.14%
225,000 AccuStaff, Inc.* 6,131,250
138,000 Employee Solutions, Inc.* 4,347,000
------------
10,478,250
------------
TRANSPORTATION EQUIPMENT -- 1.07%
73,000 Greenwich Air Services, Inc. Class A 1,788,500
46,500 Greenwich Air Services, Inc. Class B* 906,750
------------
2,695,250
------------
TOTAL COMMON STOCKS -- 89.96%
(COST $180,190,634) 227,495,618
------------
REPURCHASE AGREEMENTS -- 10.04%
With PaineWebber at 5.35%, dated 6/28/96, due
7/1/96, collateralized by U.S. Treasury
Notes, due 11/15/97
(Cost $25,378,000) 25,378,000
------------
TOTAL INVESTMENTS -- 100.00%
(COST $205,568,634) $252,873,618
============
</TABLE>
* Non-income producing.
See Notes to Financial Statements.
5
<PAGE>
June 30, 1996 NAVELLIER AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<S> <C>
ASSETS
Securities at Value (Note 1, see portfolio for cost information). $252,873,618
Cash in Custodian Bank.......................................... 60,600
Receivable for Securities Sold.................................. 2,935,729
Receivable for Shares Sold...................................... 1,919,819
Dividends Receivable............................................ 11,494
Interest Receivable............................................. 11,315
Unamortized Organizational Costs (Note 1)....................... 22,145
------------
Total Assets................................................... 257,834,720
------------
LIABILITIES
Payable for Securities Purchased................................ 11,440,445
Payable for Shares Redeemed..................................... 430,187
Investment Advisory Fee Payable (Note 2)........................ 246,570
Commissions Payable............................................. 70,466
Administrative Fee Payable (Note 2)............................. 49,314
Other Payables and Accrued Expenses............................. 49,314
Organizational Expenses Payable to Adviser (Note 1)............. 22,145
------------
Total Liabilities.............................................. 12,308,441
------------
NET ASSETS....................................................... $245,526,279
============
SHARES OUTSTANDING............................................... 12,483,816
============
NET ASSET VALUE PER SHARE........................................ $19.67
======
</TABLE>
See Notes to Financial Statements.
6
<PAGE>
For the Six Months EndedJune 30, 1996
NAVELLIER AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest (Note 1)................................................ $ 340,032
Dividends (Note 1)............................................... 53,339
-----------
Total Investment Income......................................... 393,371
-----------
EXPENSES
Investment Advisory Fee (Note 2)................................. 1,046,108
Administrative Fee (Note 2)...................................... 209,222
Transfer Agent and Custodian Fee (Note 3)........................ 152,604
Legal Fees....................................................... 33,454
Registration Fees................................................ 33,060
Trustees' Fees................................................... 27,381
Postage.......................................................... 18,080
Insurance........................................................ 12,554
Printing......................................................... 11,285
Audit Fees....................................................... 9,943
Organizational Expense (Note 1).................................. 4,026
Other Expenses................................................... 505
-----------
Total Expenses.................................................. 1,558,222
Less Expenses Reimbursed by Investment Adviser (Note 2)......... (93,671)
-----------
Net Expenses.................................................... 1,464,551
-----------
NET INVESTMENT LOSS............................................... (1,071,180)
-----------
Net Realized Gain on Investment Transactions...................... 11,984,651
Net Change in Unrealized Appreciation of Investments.............. 28,893,147
-----------
NET GAIN ON INVESTMENTS........................................... 40,877,798
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. $39,806,618
===========
</TABLE>
See Notes to Financial Statements.
7
<PAGE>
NAVELLIER AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX FOR THE SIX
MONTHS ENDED MONTHS ENDED
JUNE 30, 1996 JUNE 30, 1995
------------- -------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Loss............................... $ (1,071,180) $ (152,592)
Net Realized Gain on Investment Transactions...... 11,984,651 334,343
Net Change in Unrealized Appreciation of
Investments...................................... 28,893,147 7,785,763
------------ -----------
Net Increase in Net Assets Resulting from
Operations...................................... 39,806,618 7,967,514
------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Investment Income........................ -- --
From Net Realized Capital Gains................... -- --
------------ -----------
Total Distributions to Shareholders.............. -- --
------------ -----------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares................. 193,504,704 24,502,832
Reinvestment of Distributions..................... -- --
Cost of Shares Redeemed........................... (93,084,197) (9,523,205)
------------ -----------
Net Increase in Net Assets Resulting from Share
Transactions.................................... 100,420,507 14,979,627
------------ -----------
TOTAL INCREASE IN NET ASSETS..................... 140,227,125 22,947,141
NET ASSETS--Beginning of Period.................... 105,299,154 18,223,695
------------ -----------
NET ASSETS--End of Period.......................... $245,526,279 $41,170,836
============ ===========
SHARES
Sold.............................................. 11,157,966 2,189,874
Issued in Reinvestment of Distributions........... -- --
Redeemed.......................................... (5,505,335) (801,278)
------------ -----------
Net Increase in Shares........................... 5,652,631 1,388,596
============ ===========
</TABLE>
See Notes to Financial Statements.
8
<PAGE>
NAVELLIER AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE SIX FOR THE YEAR FOR THE
MONTHS ENDED ENDED PERIOD ENDED
JUNE 30, 1996 DECEMBER 31, 1995 DECEMBER 31, 1994*
------------- ----------------- ------------------
<S> <C> <C> <C>
PER SHARE OPERATING
PERFORMANCE:
Net Asset Value--Beginning
of Period................ $ 15.41 $ 10.98 $ 10.00
-------- -------- -------
Income from Investment
Operations:
Net Investment Loss...... (0.11) (0.16) (0.08)
Net Realized and
Unrealized Gains on
Securities.............. 4.37 4.97 1.06
-------- -------- -------
Total from Investment
Operations.............. 4.26 4.81 0.98
-------- -------- -------
Distributions to
Shareholders:
From Net Investment
Income.................. -- -- --
From Net Realized Capital
Gains................... -- (0.38) --
-------- -------- -------
Total Distributions to
Shareholders............ -- (0.38) --
-------- -------- -------
Net Increase in Net Asset
Value.................... 4.26 4.43 0.98
-------- -------- -------
Net Asset Value--End of
Period................... $ 19.67 $ 15.41 $ 10.98
======== ======== =======
TOTAL INVESTMENT RETURN A.. 27.64 % 43.80 % 9.80 %
RATIOS TO AVERAGE NET
ASSETS:
Expenses After
Reimbursement (Note 2)... 1.75 % B 1.75 % 1.68 %
Expenses Before
Reimbursement (Note 2)... 1.86 % B 2.10 % 4.52 %
Net Investment Loss....... (1.28)% B (1.15)% (0.81)%
SUPPLEMENTARY DATA:
Portfolio Turnover Rate... 64.6 % 169.6 % 139.9 %
Net Assets at End of
Period (000's omitted)... $245,526 $105,299 $18,224
Number of Shares
Outstanding at End of
Period (000's omitted)... 12,484 6,831 1,660
</TABLE>
- --------
A Total returns do not include the maximum sales load. Total returns for
periods of less than one year are not annualized.
B Annualized.
* From Commencement of Operations January 3, 1994.
See Notes to Financial Statements.
9
<PAGE>
June 30, 1996 NAVELLIER AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies
Navellier Series Fund (the "Fund") is registered with the Securities and
Exchange Commission under the Investment Company Act of 1940 as a diversified,
open-end investment company. The Fund consists of one portfolio, Navellier
Aggressive Small Cap Equity Portfolio (the "Portfolio"). Shares of the Fund
are purchased at the public offering price which includes a maximum sales
charge of up to 3.00% depending on the size of the purchase. The Fund is
authorized to issue an unlimited number of shares of capital stock with no
stated par value. 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 Portfolio's securities in
good faith. The Board of Trustees will periodically review this method of
valuation and recommend changes which may be necessary to assure that the
Portfolio'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 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 complies with the provisions of the Internal Revenue Code
applicable to regulated investment companies and distributes all net
investment income to its shareholders. Therefore, no Federal income tax
provision is required.
(e) Organizational expenses of the Fund totaling $143,294 are being
deferred and amortized over 60 months beginning with the public offering of
shares. Any redemption by an initial investor during the amortization period
will be reduced by a prorata portion of any of the unamortized organization
expenses. Such proration is calculated by dividing the number of initial
shares redeemed by the number of initial shares outstanding at the date of
redemption. At June 30, 1996, unamortized organization costs were $22,145.
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 1.25% of the daily net assets for the Navellier Aggressive
Small Cap Equity Portfolio. The Adviser also receives a 0.25% annual fee 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, 1995, the
Adviser voluntarily agreed not to seek future reimbursement of all
unreimbursed past expenses incurred on behalf of the Fund. During the period
ended June 30, 1996, the Adviser paid operating expenses of the Fund totaling
$302,892. Under the operating expense agreement, the Adviser requested, and
the Fund reimbursed, $209,221 of such expenses. The Adviser voluntarily agreed
not to seek future reimbursement of $93,671 of such 1996 expenses.
10
<PAGE>
June 30, 1996
- -------------------------------------------------------------------------------
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 Funds 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.
For the period ended June 30, 1996, the Distributor received $782,768 from
sales loads earned on sales of the Fund's capital stock.
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. Securities Transactions
For the period ended June 30, 1996, purchases of securities were
$192,583,698 and sales of securities were $103,840,269. These totals exclude
short-term securities.
5. Net Unrealized Appreciation/Depreciation of Investments
As of June 30, 1996, net appreciation of investments for Federal income tax
purposes was $47,304,984 of which $53,257,591 related to appreciated
investments and $5,952,607 related to depreciated investments. At June 30,
1996, the cost of the Fund's securities for Federal income tax purposes was
$205,568,634.
6. Net Assets
At June 30, 1996, net assets consisted of the following:
<TABLE>
<S> <C>
Paid-in-Capital.................................................. $189,681,823
Net Investment Loss.............................................. (1,071,180)
Accumulated Realized Gain on Investments......................... 9,610,652
Net Unrealized Appreciation on Investments....................... 47,304,984
------------
NET ASSETS....................................................... $245,526,279
============
</TABLE>
7. Federal Income Tax
No provision is made for Federal income taxes as it is the Fund's intention
to continue to qualify as a regulated investment company and to make requisite
distributions to the shareholders which will be sufficient to relieve it from
all or substantially all Federal income and excise taxes.
Permanent differences between tax and financial reporting of net investment
income and realized gains/(losses) are reclassified to paid-in-capital.
8. Investment in other Regulated Investment Companies
During the period ended June 30, 1996, the Fund invested its daily cash
balance in Fund for Government Investors, Inc. ("FGI"), a regulated investment
company. FGI invested only in U.S. Government Securities. Due to an
interpretation of the Fund's current investment policy, as of January 22,
1996, the Fund will no longer invest in other investment companies.
11
<PAGE>
NAVELLIER
Series Fund
--------------------
Semi-Annual Report
June 30, 1996
