<PAGE>
SEMIANNUAL REPORT, June 30, 1998
NAVELLIER SERIES FUND
1 East Liberty, Third Floor
Reno, NV 89501
(800) 887-8671
- --------------------------------------------------------------------------------
July 31, 1998
Dear Shareholder:
We are pleased to announce that the Navellier Series Fund, Aggressive Small
Cap Equity Portfolio was merged into the Navellier Performance Funds on July 24,
1998. The investment strategy and objective remain the same, as well as the
symbol for the fund (NASCX). You may not be familiar with some of the funds
mentioned in the letter below, as they are part of the Navellier Performance
Funds family.
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
<S> <C> <C> <C>
Series Fund Russell 2000 NASDAQ Composite
4/1/94 $10,000.00 $10,000.00 $10,000.00
Apr-94 $10,229.00 $10,059.00 $9,870.60
May-94 $9,750.00 $9,946.00 $9,888.76
Jun-94 $9,521.00 $9,608.00 $9,495.60
Jul-94 $9,719.00 $9,766.00 $9,713.50
Aug-94 $9,906.00 $10,310.00 $10,298.07
Sep-94 $10,427.00 $10,276.00 $10,280.18
Oct-94 $10,770.00 $10,236.00 $10,457.72
Nov-94 $10,957.00 $9,822.00 $10,092.27
Dec-94 $11,426.00 $10,086.00 $10,114.33
Jan-95 $10,614.00 $9,959.00 $10,157.91
Feb-95 $11,124.00 $10,374.00 $10,676.16
Mar-95 $11,655.00 $10,552.00 $10,991.98
Apr-95 $12,258.00 $10,786.00 $11,352.05
May-95 $12,341.00 $10,972.00 $11,629.14
Jun-95 $14,048.00 $11,541.00 $12,555.48
Jul-95 $16,306.00 $12,206.00 $13,466.90
Aug-95 $15,682.00 $12,459.00 $13,721.11
Sep-95 $16,514.00 $12,682.00 $14,036.26
Oct-95 $15,619.00 $12,115.00 $13,935.65
Nov-95 $16,348.00 $12,624.00 $14,246.90
Dec-95 $16,429.00 $12,957.00 $14,151.80
Jan-96 $15,481.00 $12,943.00 $14,254.83
Feb-96 $16,760.00 $13,346.00 $14,796.36
Mar-96 $18,007.00 $13,619.00 $14,814.51
Apr-96 $20,939.00 $14,347.00 $16,013.23
May-96 $22,816.00 $14,912.00 $16,724.90
Jun-96 $20,971.00 $14,300.00 $15,939.25
Jul-96 $17,656.00 $13,051.00 $14,534.61
Aug-96 $18,839.00 $13,810.00 $15,353.88
Sep-96 $20,321.00 $14,349.00 $16,502.84
Oct-96 $19,308.00 $14,128.00 $16,430.07
Nov-96 $19,287.00 $14,711.00 $17,386.41
Dec-96 $18,967.00 $15,096.00 $17,365.16
Jan-97 $18,935.00 $15,398.00 $18,559.84
Feb-97 $17,165.00 $15,025.00 $17,606.86
Mar-97 $16,014.00 $14,316.00 $16,432.62
Apr-97 $16,024.00 $14,356.00 $16,958.01
May-97 $18,114.00 $15,953.00 $18,835.17
Jun-97 $19,255.00 $16,637.00 $19,396.74
Jul-97 $20,428.00 $17,411.00 $21,437.73
Aug-97 $20,726.00 $17,809.00 $21,350.44
Sep-97 $22,027.00 $19,113.00 $22,673.58
Oct-97 $21,536.00 $18,274.00 $21,435.04
Nov-97 $21,579.00 $18,155.00 $21,528.39
Dec-97 $21,099.00 $18,473.00 $21,122.18
Jan-98 $20,097.00 $18,181.00 $21,781.40
Feb-98 $21,231.00 $19,524.00 $23,814.46
Mar-98 $21,798.00 $20,329.00 $24,691.04
Apr-98 $22,035.00 $20,441.00 $25,131.27
May-98 $21,389.00 $19,339.00 $23,926.90
Jun-98 $21,890.00 $19,380.00 $25,485.43
</TABLE>
<TABLE>
<CAPTION>
AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
RUSSELL NASDAQ
TOTAL RETURNS FOR PERIODS ENDING JUNE 30, 1998 FUND 2000 COMPOSITE
- -------------------------------------------------------- ------- ------------ ------------
<S> <C> <C> <C>
Six Months 3.75% 4.93% 20.66%
Twelve Months 13.69% 16.50% 31.39%
Since Inception* 118.90% 93.78% 154.85%
Annualized Since Inception* 20.25% 16.84% 24.63%
Value of a $10,000 investment over Life of Fund* $21,890 $19,380 $25,485
*Inception April 1, 1994
</TABLE>
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>
The first half of 1998 was a turbulent period for the market. First quarter
returns for virtually all sectors of the market were very strong. Then in the
second quarter the markets began to sag and posted relatively disappointing
returns in spite of a brief rally during the last part of June. The S&P 500
refused to take a breather from its long upward climb and posted a return of
17.63% for the first six months of 1998. The same can not be said about the
broader market indices such as the Russell 2000, which was up a scant 4.93%. Mid
cap stocks fared slightly better with the S&P Mid Cap Index returning 8.80%.
Overall the international markets fared surprisingly well with the Morgan
Stanley EAFE (Europe, Australia and Far East) returning 15.10%. Naturally, the
big economic news during the period was the Asian currency problems and the
unknown impact of these devaluations on our own markets.
The first half of 1998 was very favorable to U.S. large cap investors. Two
contributing factors to the superior performance of the S&P 500 were, stronger
than expected earnings reports and the continued inflow of capital from domestic
investors. These investors have tended to invest in well-recognized companies
such as those in the S&P 500. The Navellier Large Cap Growth Portfolio, was a
direct beneficiary of the S&P 500's popularity and delivered a very strong
return of 19.61% for the first half of 1998. Growth strategies were clearly in
favor during the period as evidenced by the Russell 1000 Growth Index return of
20.38% versus the Russell 1000 Value Index return of 12.16%. The Navellier Large
Cap Value Portfolio posted a respectable return of 12.36%.
The first half of 1998 has been highlighted by the continued
under-performance of the small-cap sector. Despite superior fundamental
valuations and stronger relative price to earnings (p/e) ratios, the small cap
sector continues to be plagued by a serious lack of liquidity. Without the
required liquidity and rising trading volume to drive these stocks higher,
investors continue to turn towards large cap stocks and index funds with their
investment dollars. The period was characterized by very narrow market
leadership, which of course, consisted of primarily the mega-cap stocks.
According to Ned Davis Research, there has not been a period (going back to
1980) where so few stocks (only 29%) have outperformed the S&P 500. Relative
valuation levels have only been this low on two occasions over the past 20
years; 1987 and 1990. On both occasions, these sectors of the market rallied
strongly. Earnings strength also favors small and mid cap stocks. These sectors
of the market have exhibited stronger earnings growth than the large cap stocks
for six consecutive quarters. This combination of historic low relative
valuations and relative earnings strength has led to dramatic gains in the past,
and this cycle should prove to be no different.
The recent U.S. economic slowdown to 1.4% annual growth in the second
quarter down from 5.5% annual growth in the first quarter caught many economists
by surprise. However, the slowdown is not as bad as it may appear, since the
first quarter's economic growth was unquestionably artificially distorted upward
by the mild winter weather that bolstered housing and consumer spending patterns
relative to the same period one year earlier. Furthermore, much of the slowdown
in the second quarter is attributable to inventory reduction, which reduced
second quarter growth by 2.3%. In other words, had inventories held steady, the
U.S. economy would have had 3.7% annual growth in the second quarter. The
consumer continues to carry the entire U.S. economy. Although consumer spending
slowed down in June, it re-accelerated in July, which is a very good omen for
economic growth in the third quarter. As long as retail sales and housing sales
remain strong, the U.S. economy will continue to experience healthy economic
growth.
Outside of the U.S. things are not so bright. There is no doubt that many
economies, such as in Canada, have slowed down due to the Asian crisis. The
bottom line is that when Asia got sick, many other economies caught a cold. The
manufacturing sector within the U.S. has also slowed precipitously,
2
<PAGE>
especially for those companies that export internationally. Over 40% of U.S.
manufacturers that export recently reported that demand is declining, compared
to less than 10% that reported declining export demand several months ago.
Despite the slowdown in the U.S. manufacturing sector, the primary reason that
the U.S. economy appears largely immune to the Asian crisis is that the U.S.
consumer is too busy spending money to worry about the Asian crisis. In fact,
now that the prices of many popular Asian imported goods are cheaper, U.S.
consumers will likely continue spending. Overall, we expect that the consumer
will continue to carry the U.S. economy and that predominately consumer-related
stocks will prosper.
With interest rates still remaining extremely favorable, and signs of
inflation non-existent, the long-term market outlook remains positive. The
short-term picture is not quite as clear. For the second half of the year, we
should continue to see a volatile equity environment. With the effect of any
future Asian currency devaluations on the U.S. economy unknown, the stocks of
large multi-national companies will struggle to post any further gains. The
fundamental picture still favors small and mid-cap stocks outperforming the
general market. As the fourth quarter nears, many vacationers will return to the
equity markets and inject the needed liquidity into the mid-cap and small-cap
sectors, driving valuations back in line towards historic norms.
Please call our new Navellier Marketline for the latest fund prices and
weekly market commentary at (800) 730-9005 and look for our new website at
www.navellier.com.
Once again, thank you for allowing us to manage some of your assets. We are
strongly committed to our shareholders and promise to make every effort to
maintain our high performance standards. As always, please feel free to contact
us if you have any questions or if we can help you in any way.
Sincerely,
<TABLE>
<S> <C>
[SIGNATURE] [SIGNATURE]
LOUIS G. NAVELLIER ALAN ALPERS
</TABLE>
THIS MATERIAL HAS BEEN PRECEDED BY A NAVELLIER SERIES FUND PROSPECTUS.
* THE RUSSELL 2000 INDEX IS AN UNMANAGED INDEX CONSISTING OF THE SMALLEST 2000
STOCKS IN THE RUSSELL 3000 INDEX. THE NASDAQ COMPOSITE IS AN UNMANAGED INDEX
CONSISTING OF APPROXIMATELY 5,500 STOCKS AND IS CONSIDERED REPRESENTATIVE OF
THE STOCK MARKET AS A WHOLE. THE S&P 500 IS AN UNMANAGED INDEX CONSISTING OF
500 LARGE CAP STOCKS AND IS ALSO CONSIDERED REPRESENTATIVE OF THE STOCK MARKET
AS A WHOLE. THE RUSSELL 1000 GROWTH INDEX CONSISTS OF THE 1000 LARGEST GROWTH
STOCKS AND THE RUSSELL 1000 VALUE INDEX CONSISTS OF THE 1000 LARGEST VALUE
STOCKS. THE S&P MID CAP INDEX CONSISTS OF 400 MID CAP STOCKS. THESE INDEXES
ARE CONSIDERED REPRESENTATIVE OF PERTINENT MARKET SECTORS IN GENERAL. NONE ARE
INVESTMENT PRODUCTS AVAILABLE FOR SALE.
3
<PAGE>
NAVELLIER AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
COMMON STOCKS -- 93.0%
<C> <S> <C>
AIRLINES -- 7.2%
19,000 Alaska Air Group, Inc.* $1,036,687
34,000 Atlantic Coast Airlines* 1,020,000
71,200 SkyWest, Inc. 1,993,600
-------------
4,050,287
-------------
APPAREL -- 5.4%
40,000 Buckle, Inc.* 1,180,000
41,800 Oshkosh B Gosh, Inc. 1,860,100
-------------
3,040,100
-------------
BANKS -- 2.8%
80,500 Independent Bank Corp. 1,559,687
-------------
BUILDING MATERIALS -- 4.4%
35,000 Centex Construction
Products, Inc. 1,347,500
16,000 Southdown, Inc. 1,142,000
-------------
2,489,500
-------------
CATALOG AND SPECIALTY
DISTRIBUTION -- 1.6%
28,900 Blair Corp. 924,800
-------------
COMMERCIAL SERVICES -- 7.9%
100,000 Automobile Protection
Corp.* 993,750
16,500 Duff & Phelps Credit Rating
Co. 919,875
54,000 Labor Ready, Inc.* 1,630,125
11,800 PDS Financial Corp.* 887,250
-------------
4,431,000
-------------
COMPUTER AND VIDEO CHAINS -- 2.3%
30,000 Trans World Entertainment
Corp.* 1,293,750
-------------
CONSUMER SERVICES -- 2.1%
38,500 Ambassadors International,
Inc.* 1,167,031
-------------
CONTAINERS AND PACKAGING -- 1.3%
33,500 BWAY Corp.* 720,250
-------------
DISCOUNT STORES -- 2.5%
53,000 Ames Department Stores* 1,394,562
-------------
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
ELECTRONICS -- 3.4%
72,200 EFTC Corp.* $ 938,600
50,000 Optec Technology, Inc.* 956,250
-------------
1,894,850
-------------
FLUID CONTROLS -- 1.1%
29,340 ESSEF Corp.* 603,304
-------------
HOME FURNISHINGS -- 1.9%
30,000 Department 56, Inc.* 1,065,000
-------------
HOMEBUILDING -- 10.5%
66,500 M I Schottenstein Homes,
Inc. 1,438,063
90,000 MDC Holdings, Inc. 1,777,500
40,000 NVR, Inc.* 1,642,500
37,800 Ryland Group, Inc. 992,250
-------------
5,850,313
-------------
INDUSTRIAL MACHINERY -- 5.5%
32,800 Astec Industries, Inc.* 1,131,600
40,000 Gencor Industries, Inc. 805,000
40,000 Terex Corp.* 1,140,000
-------------
3,076,600
-------------
INDUSTRIAL SPECIALTIES -- 1.2%
47,400 Chase Corp. 645,825
-------------
INSURANCE -- 8.6%
32,000 Enhance Financial Services
Group 1,080,000
25,000 Farm Family Holding, Inc.* 973,438
30,000 Fidelity National
Financial, Inc. 1,194,375
75,000 Hooper Holmes, Inc. 1,575,000
-------------
4,822,813
-------------
MANUFACTURING -- 2.2%
14,200 Tredegar Industries, Inc. 1,205,225
-------------
MEDICAL SPECIALTIES -- 0.3%
10,000 Osteotech, Inc.* 177,500
-------------
METAL FABRICATIONS -- 2.3%
32,900 Reliance Steel & Aluminum
Co. 1,270,762
-------------
</TABLE>
4
<PAGE>
NAVELLIER AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
- ------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
JUNE 30, 1998 (UNAUDITED) (CONTINUED)
<TABLE>
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
COMMON STOCKS (CONTINUED)
MILITARY/GOVERNMENT/TECHNICAL -- 2.1%
99,100 Applied Signal Technology,
Inc.* $1,176,813
-------------
PRINTING AND FORMS -- 1.5%
40,000 Mail-Well, Inc.* 867,500
-------------
RECREATIONAL PRODUCTS -- 2.4%
30,000 National RV Holdings, Inc.* 1,353,750
-------------
SAVINGS AND LOAN
ASSOCIATIONS -- 10.2%
12,500 Andover Bancorp, Inc. 428,125
27,400 Calumet Bancorp, Inc.* 917,900
44,550 CFSB Bancorp, Inc. 1,280,812
46,500 Columbia Banking Systems,
Inc.* 924,188
30,000 TR Financial Corp. 1,256,250
16,000 Trans Financial, Inc. 918,000
-------------
5,725,275
-------------
<CAPTION>
- ------------------------------------------------------
MARKET VALUE
SHARES (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
TRUCKING -- 2.3%
42,600 Landair Services, Inc.* $ 1,267,350
-------------
TOTAL COMMON STOCK
(COST, $44,541,329) 52,073,847
-------------
AGENCY OBLIGATIONS -- 7.0%
<CAPTION>
- ------------------------------------------------------
VALUE
PRINCIPAL (NOTE 1)
- ------------------------------------------------------
<C> <S> <C>
$3,902,000 Federal Home Loan Bank
Discount Note, 5.40%,
7/1/98 (Cost $3,901,415) $ 3,901,415
-------------
TOTAL INVESTMENTS -- 100.0%
(COST $48,442,744) $ 55,975,262
-------------
-------------
- --------------------------
* NON-INCOME PRODUCING
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<PAGE>
NAVELLIER AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
- ------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS
Securities at Value (Note 1) (Cost $48,442,744)........................................ $55,975,262
Cash in Custodian Bank................................................................. 1,198
Receivable for Shares Sold............................................................. 2,336,845
Dividends Receivable................................................................... 22,757
Other Receivables...................................................................... 4,377
Unamortized Organizational Costs (Note 1).............................................. 1,150
-----------
Total Assets......................................................................... 58,341,589
-----------
LIABILITIES
Payable for Securities Purchased....................................................... 205,120
Payable for Shares Redeemed............................................................ 282,910
Investment Advisory Fee Payable (Note 2)............................................... 53,577
Administrative Fee Payable (Note 2).................................................... 11,647
Other Payables and Accrued Expenses.................................................... 11,647
Organizational Expenses Payable to Adviser (Note 1).................................... 1,150
-----------
Total Liabilities.................................................................... 566,051
-----------
NET ASSETS............................................................................... $57,775,538
-----------
-----------
SHARES OUTSTANDING....................................................................... 3,480,409
-----------
-----------
NET ASSET VALUE PER SHARE................................................................ $16.60
-----------
-----------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<PAGE>
NAVELLIER AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
- ------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
JUNE 30, 1998 (UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest (Note 1)....................................................................... $ 182,853
Dividends (Note 1)...................................................................... 97,051
----------
Total Investment Income............................................................... 279,904
----------
EXPENSES
Investment Advisory Fee (Note 2)........................................................ 384,790
Administrative Fee (Note 2)............................................................. 78,910
Transfer Agent and Custodian Fee (Note 3)............................................... 78,704
Shareholder Reports and Notices......................................................... 43,978
Registration Fees....................................................................... 21,987
Insurance Expense....................................................................... 14,000
Organizational Expense (Note 1)......................................................... 767
Other Expenses.......................................................................... 5,425
----------
Total Expenses........................................................................ 628,561
Less Expenses Reimbursed by Investment Adviser (Note 2)............................... (85,951)
----------
Net Expenses........................................................................ 542,610
----------
NET INVESTMENT LOSS....................................................................... (262,706)
----------
Net Realized Gain on Investment Transactions.............................................. 3,015,283
Net Change in Unrealized Appreciation of Investments...................................... (405,458)
----------
NET GAIN ON INVESTMENTS................................................................... 2,609,825
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...................................... $2,347,119
----------
----------
</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
MONTHS ENDED
JUNE 30, 1998 FOR THE YEAR ENDED
(UNAUDITED) DECEMBER 31, 1997
-------------- -------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net Investment Loss....................................................... $ (262,706) $ (1,378,702)
Net Realized Gain on Investment Transactions.............................. 3,015,283 25,247,521
Net Change in Unrealized Appreciation of Investments...................... (405,458) (28,940,108)
-------------- -------------------
Net Increase (Decrease) in Net Assets Resulting from Operations......... 2,347,119 (5,071,289)
-------------- -------------------
DISTRIBUTIONS TO SHAREHOLDERS
From Net Realized Gain.................................................... -- (14,124,008)
-------------- -------------------
FROM SHARE TRANSACTIONS
Net Proceeds from Sales of Shares......................................... 35,705,351 60,192,194
Reinvestment of Distributions............................................. -- 13,539,639
Cost of Shares Redeemed................................................... (53,156,173) (171,691,808)
-------------- -------------------
Net Decrease in Net Assets Resulting from Share Transactions............ (17,450,822) (97,959,975)
-------------- -------------------
TOTAL DECREASE IN NET ASSETS............................................ (15,103,703) (117,155,272)
NET ASSETS -- Beginning of Period........................................... 72,879,241 190,034,513
-------------- -------------------
NET ASSETS -- End of Period................................................. $ 57,775,538 $ 72,879,241
-------------- -------------------
-------------- -------------------
SHARES
Sold...................................................................... 2,196,502 4,277,974
Issued in Reinvestment of Distributions................................... -- 846,228
Redeemed.................................................................. (3,271,209) (11,252,090)
-------------- -------------------
Net Decrease in Shares.................................................. (1,074,707) (6,127,888)
-------------- -------------------
-------------- -------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<PAGE>
NAVELLIER AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
- ------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FOR THE SIX FOR THE
MONTHS ENDED FOR THE YEARS ENDED DECEMBER 31, PERIOD ENDED
JUNE 30, 1998 --------------------------------------- DECEMBER 31,
(UNAUDITED) 1997 1996 1995 1994*
--------------- ----------- ----------- ----------- -------------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net Asset Value -- Beginning of Period....... $16.00 $17.79 $15.41 $10.98 $10.00
------ ----------- ----------- ----------- ------
Income from Investment Operations:
Net Investment Loss........................ (0.08) (0.30) (0.23) (0.16) (0.08)
Net Realized and Unrealized
Gain on Investments...................... 0.68 2.30(C) 2.61 4.97 1.06
------ ----------- ----------- ----------- ------
Total from Investment Operations......... 0.60 2.00 2.38 4.81 0.98
------ ----------- ----------- ----------- ------
Distributions to Shareholders:
From Net Realized Gain..................... -- (3.79) -- (0.38) --
------ ----------- ----------- ----------- ------
Net Increase (Decrease) in Net Asset Value... 0.60 (1.79) 2.38 4.43 0.98
------ ----------- ----------- ----------- ------
Net Asset Value -- End of Period............. $16.60 $16.00 $17.79 $15.41 $10.98
------ ----------- ----------- ----------- ------
------ ----------- ----------- ----------- ------
TOTAL INVESTMENT RETURN(A)................... 3.75% 11.24% 15.44% 43.80% 9.80%
RATIOS TO AVERAGE NET ASSETS:
Expenses After Reimbursement (Note 2)........ 1.72%(B) 2.33% 1.75% 1.75% 1.68%(B)
Expenses Before Reimbursement (Note 2)....... 1.99%(B) 2.62% 1.86% 2.10% 4.52%(B)
Net Investment Loss.......................... (0.83)%(B) (1.37)% (1.33)% (1.15)% (0.81)%(B)
SUPPLEMENTARY DATA:
Portfolio Turnover Rate...................... 55% 184% 137% 170% 140%
Net Assets at End
of Period (000's omitted).................. $57,776 $72,879 $190,035 $105,299 $18,224
Number of Shares Outstanding
at End of Period (000's omitted)........... 3,480 4,555 10,683 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
(C) The per share amount does not coincide with the net realized and unrealized
loss for the period because of the timing of sales and redemptions of Fund
shares and the amount of per share realized and unrealized gain and loss at
such time.
*FROM COMMENCEMENT OF OPERATIONS JANUARY 3, 1994
SEE NOTES TO FINANCIAL STATEMENTS.
9
<PAGE>
NAVELLIER AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
- ------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998 (UNAUDITED)
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. Since December 8, 1997, shares of the Fund are sold
without sales charge. The Fund consists of one portfolio, Navellier Aggressive
Small Cap Equity Portfolio (the "Portfolio"). 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. Short-term obligations, which mature in 60
days or less, are valued at amortized cost, which approximates market value.
Securities for which there are no such quotations or valuations are valued at
fair value in good faith by or at the direction of the Trustees.
(b) Security transactions are recorded on the trade date (the date the
order to buy or sell is executed). Interest income is accrued on a daily
basis. Dividend income is recorded on the ex-dividend date. Realized gain and
loss from securities transactions are computed on an identified cost basis.
(c) Dividends, if any, 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 distributes all net
investment income and net capital gains to its shareholders. Therefore, no
Federal income or excise 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, 1998, unamortized organization costs were $1,150.
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 1.15% of the daily net assets of the 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 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, 1997, the Adviser
voluntarily agreed not to seek future reimbursement of all unreimbursed past
expense incurred on behalf of the Fund. During the period ended June 30, 1998,
the Adviser paid operating expenses of the Portfolio totaling $164,861. Under
the operating expense agreement, the Adviser requested, and the Portfolio
reimbursed $78,910 of such expenses.
10
<PAGE>
NAVELLIER AGGRESSIVE SMALL CAP EQUITY PORTFOLIO
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Navellier Securities Corp. (the "Distributor") acts as the Fund's
Distributor and is registered as a broker-dealer under the Securities and
Exchange Act of 1934. The Distributor, which is the principal underwriter of the
Fund's shares, renders its services to the Fund pursuant to a distribution
agreement. An officer and trustee of the Fund is also an officer and director of
the Distributor.
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 six months ended June 30, 1998, purchases of securities were
$32,742,429 and sales of securities were $51,535,474. These totals exclude
short-term securities.
5. Net Unrealized Appreciation/Depreciation of Investments
As of June 30, 1998, net appreciation of investments for Federal income tax
purposes was $7,532,518, of which $9,522,299 related to appreciated investments
and $1,989,781 related to depreciated investments. At June 30, 1998, the cost of
the Fund's securities for Federal income tax purposes was $48,442,744.
6. Net Assets
At June 30, 1998, net assets consisted of the following:
<TABLE>
<S> <C>
Paid-in-Capital......................................................................... $45,103,831
Undistributed Net Investment Loss....................................................... (262,706)
Accumulated Net Realized Gain on Investment Transactions................................ 5,401,895
Net Unrealized Appreciation of Investments.............................................. 7,532,518
-----------
NET ASSETS.............................................................................. $57,775,538
-----------
-----------
</TABLE>
7. Subsequent Event
On June 26, 1998 a Special Meeting of Shareholders of the Navellier
Aggressive Small Cap Equity Portfolio, a series of the Navellier Series Fund was
held. At the meeting the shareholders voted and approved the Agreement and Plan
of Reorganization ("the Plan"). Under the Plan, the Navellier Aggressive Small
Cap Equity Portfolio has been merged into the Navellier Aggressive Small Cap
Equity Portfolio ("the Acquiring Fund"), a separate portfolio of the Navellier
Performance Funds.
11
