Navellier Power Dividend Portfolio Taking Advantage of Opportunities in Dividend Stocks as of September 30, 2017

Transcription

1 Navellier Power Dividend Portfolio Taking Advantage of Opportunities in Dividend Stocks as of September 30, 2017 NCD

2 Getting to know Navellier Founded by Louis Navellier in 1987 Currently Managing over $1.9 billion in investor assets. Independent & run by highly experienced professionals Technologically savvy & resourceful Time tested & proven techniques Serving institutions, brokerages & individuals 2 See important disclosures at the end of this presentation.

3 What does Navellier offer? A Powerful Tool Chest The Right Team Applying Our Experience As a global financial data provider, FactSet offers an exclusive, proprietary set of advanced mathematically based tools for the investment industry Among the first users of FactSet, Navellier team members collectively have over 20 years of hands on experience in getting results from mathematically driven investment ideas. Developing quantitative models to test new ideas and validate existing strategies. 3 See important disclosures at the end of this presentation.

4 Unique FactSet capabilities drive the investment process Tools for portfolio development Access to decades of historical company level data Ability to mathematically sort and statistically evaluate complex financial relationships at a company level using proprietary programming coding Investment strategies and security selection criteria can be thoroughly tested statistically for validity Historical performance anomalies can be examined at a security level to help understand why peculiarities of performance occurred 4 See important disclosures at the end of this presentation.

5 Factor focus leads to market insight Similar to car parts wearing out over time, stock factors change our approach plans for and adapts to constant change. Navellier s team tests proven models continuously to find new possibilities. Factor flexibility, the ability to change the model as we find factors that are working in the market. Our team has a disciplined methodology to identify attractive factors, determine if they are statistically valid, then implement a change to the model to take advantage of such factors. 5 See important disclosures at the end of this presentation.

6 Factor examples A few examples of the factors that we can evaluate Free cash flow per share Free cash flow growth Free cash flow/market value Free cash flow/current liabilities Working capital growth Capital expenditures Price/Networking capital Book price Present value growth opportunities Dividend yield coverage Return on equity (ROE) Margins change Equity turnover Net profit margin Asset turnover Price/sales Liquidation value/price Earnings to price Operating margins Dividend yield persistence Navellier accesses thousands of data elements that can be used for evaluation 6 See important disclosures at the end of this presentation.

7 Snapshot of an effective factor 4.00 Stocks segmented into buckets based on exposure to a factor 3.50 Stocks with the greatest exposure to an effective factor the most desirable Factor Return (%) Stocks with the lowest exposure to an effective factor the least desirable Fractile Universe Return Source: Navellier Research, FactSet. 7 See important disclosures at the end of this presentation.

8 Example of a performance factor that is working in the market Cumulative impact of the analyst earnings revisions factor over time Stocks with the greatest analyst earnings revisions offering above market returns 0 12/01/1997 1/01/1998 2/01/1998 3/01/1998 4/01/1998 5/01/1998 6/01/1998 7/01/1998 8/01/1998 9/01/ /01/ /01/ /01/1998 1/01/1999 2/01/1999 3/01/1999 4/01/1999 5/01/1999 6/01/1999 7/01/1999 8/01/1999 9/01/ /01/ /01/ /01/1999 1/01/2000 2/01/2000 3/01/2000 4/01/2000 5/01/2000 6/01/2000 7/01/2000 8/01/2000 9/01/ /01/ /01/ /01/2000 Cumulative growth of 100 Stocks with the poorest analyst earnings revisions offering below market returns Benchmark Time period: 12/01/ /01/2000 Analyst Revisions (Highest) Analyst Revisions (Lowest) R.1000G Source: Navellier Research, FactSet. 8 See important disclosures at the end of this presentation.

9 Example of a performance factor falling out of favor Cumulative impact of the analyst earnings revisions factor over time /01/2000 1/01/2001 2/01/2001 3/01/2001 4/01/2001 5/01/2001 6/01/2001 7/01/2001 8/01/2001 9/01/ /01/ /01/ /01/2001 1/01/2002 2/01/2002 3/01/2002 4/01/2002 5/01/2002 6/01/2002 7/01/2002 8/01/2002 9/01/ /01/ /01/ /01/2002 1/01/2003 2/01/2003 3/01/2003 4/01/2003 5/01/2003 6/01/2003 7/01/2003 8/01/2003 9/01/ /01/ /01/ /01/2003 Cumulative growth of 100 Questions over the integrity of analyst earnings estimates contributed to revisions falling out of favor as a market driving factor Benchmark Time period: 12/01/ /01/2003 Analyst Revisions (Highest) Analyst Revisions (Lowest) R.1000G Source: Navellier Research, FactSet. 9 See important disclosures at the end of this presentation.

10 Example of the same performance factor returning to favor in the market Cumulative impact of the analyst earnings revisions factor over time Cumulative growth of Stocks with the greatest analyst earnings revisions again asserts itself as a meaningful performance factor Stocks with the poorest analyst earnings revisions Benchmark /01/2003 2/01/2004 4/01/2004 6/01/2004 8/01/ /01/ /01/2004 2/01/2005 4/01/2005 6/01/2005 8/01/ /01/ /01/2005 2/01/2006 4/01/2006 6/01/2006 8/01/ /01/ /01/2006 2/01/2007 4/01/2007 6/01/2007 8/01/ /01/ /01/2007 Time period: 12/01/ /01/2007 Analyst Revisions (Highest) Analyst Revisions (Lowest) R.1000G Source: Navellier Research, FactSet. 10 See important disclosures at the end of this presentation.

11 Why dividends? Why now? Historically, dividend paying stocks demonstrate a performance advantage over non payers.

12 Even a low inflationary environment is costly Purchasing Power of the US Dollar for the Past Ten Years Average annual inflation rate under 2.01% Growth of $ % decline in buying power in the past 10 years Source: Navellier Research, St. Louis Federal Reserve FRED A dollar ten years ago is only worth 84 cents today. Dividend yield can help to offset inflationary erosion. 12 See important disclosures at the end of this presentation.

13 Dividend payer performance advantage over non payers 400 Dividend Paying Stocks In the R 3000 Dividend Payers* Benchmark* Non Dividend Paying Stocks Russell 3000 Total Return /01/1997 8/01/1998 4/01/ /01/1999 8/01/2000 4/01/ /01/2001 8/01/2002 4/01/ /01/2003 8/01/2004 4/01/ /01/2005 8/01/2006 4/01/ /01/2007 8/01/2008 4/01/ /01/2009 8/01/2010 4/01/ /01/2011 8/01/2012 4/01/ /01/2013 Value of $100 Non Dividend payers* Source: Navellier Research, FactSet. * Please see definitions at the end of this presentation 13 See important disclosures at the end of this presentation.

14 Navellier Research identified a unique opportunity in dividend stocks Dividend Higher than 150% of Russell 3000 (Power Div targets these stocks) Pays Dividend less than 150% of Russell 3000 Non Dividend Paying Stocks Russell 3000 Total Return Dividend yield 150% of the benchmark /01/1997 6/01/ /01/1998 6/01/ /01/1999 6/01/ /01/2000 6/01/ /01/2001 6/01/ /01/2002 6/01/ /01/2003 6/01/ /01/2004 6/01/ /01/2005 6/01/ /01/2006 6/01/ /01/2007 6/01/ /01/2008 6/01/ /01/2009 6/01/ /01/2010 6/01/ /01/2011 6/01/ /01/2012 6/01/ /01/2013 Value of $100 Source: Navellier Research, FactSet. 14 See important disclosures at the end of this presentation.

15 How do you take advantage of our dividend research? The Navellier Power Dividend Portfolio A portfolio with a focus on the growth of dividend income and capital appreciation.

16 Same experienced portfolio management team since inception Tim Hope Portfolio Manager Michael Garaventa Portfolio Manager Louis Navellier Chief Investment Officer Investment Professional Functional Role Industry Experience (yrs.) Firm Tenure (yrs.) Tim Hope Co Manager Michael Garaventa Co Manager Louis Navellier Chief Inv. Officer Pete Koelewyn Trader See important disclosures at the end of this presentation.

17 Power dividend factor based competitive advantage Portfolio uses a variation of the factor modeling developed and continuously refined by Navellier & Associates over 30 years ago. Through the use of performance influencing factors, the model is able to adjust to changing market conditions. Attempt to avoid Wall Street herd mentality through a screening process that can identify underfollowed stocks. 17 See important disclosures at the end of this presentation.

18 Power dividend stock portfolio assembly Portfolio Construction The top quartile of stocks passing the initial factor screening are advanced for further evaluation: Dividend yield must be greater than or equal to 150% of the benchmark average dividend yield. Initial stock position weight will be 2% 5% Examine stocks for red flags Reason for unusually high yield Check FactSet dividend estimates Check recent corporate news events Check Street sentiment Occasionally, due to market conditions (such as buyouts, extraordinary dividend payouts, or internal portfolio turnover), the portfolio may have relatively high cash positions. 18 See important disclosures at the end of this presentation.

19 Sell discipline Multiple sell triggers Sell when stock factor scoring deteriorates. Analyze negative material company changes that may not get captured in the traditional quantitative screening process. Partial sell (trim position) if stock price moves reduce dividend yield below the benchmark average. 19 See important disclosures at the end of this presentation.

20 Performance, Attributes, and Characteristics

21 Statistical characteristics Ending September 30, 2017 supplemental information Trailing 5 years (annualized) Navellier Power Dividend (pure gross) Russell 3000 Alpha 3.14% 0.00% Beta Standard Deviation 9.11% 9.71% R Squared 71.41% % Sharpe Ratio Down Capture 63.16% % Sortino Ratio* *The Sortino Ratio is similar to the Sharpe Ratio except the Sortino Ratio uses annualized downside deviation for the denominator, whereas Sharpe uses annualized standard deviation. Source: Navellier, FactSet Please read important disclosures at the end of the presentation. Graphs are for discussion purposes only. Performance results presented herein do not necessarily indicate future performance. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. Results presented include reinvestment of all dividends and other earnings. 21 See important disclosures at the end of this presentation.

22 Portfolio sectors and top holdings Power Dividend Portfolio as of September 30, 2017 Top 10 Sectors Electronic Technology 21.48% Producer Manufacturing 16.77% Finance 15.24% Process Industries 9.48% Consumer Non Durables 5.93% Technology Services 5.14% [Cash] 5.14% Energy Minerals 4.10% Health Technology 3.89% Utilities 2.97% Dividend Yield* = 3.25% Top 10 Stock Positions Packaging Corporation of America 5.64% Douglas Dynamics Inc. 4.18% Marathon Petroleum Corporation 4.16% Schweitzer Mauduit International 3.91% Boeing Company 3.89% AbbVie Inc. 3.88% Cummins Inc. 3.61% Eaton Corp. Plc 3.46% Digital Realty Trust Inc. 3.35% First American Financial Corp. 3.35% Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. The Top Ten Stock Positions and Sectors reflect security holdings as of the close of business on September 30, The holdings identified do not represent all of the securities purchased, sold, or recommended for advisory clients and it should not be assumed that investments in securities identified were or will be profitable. Your portfolio may or may not include any or all of these securities. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in this list. Please read important disclosures at the end of the presentation.* Weighted Average Dividend Yield 22 See important disclosures at the end of this presentation.

23 Performance Supplemental Information 300,000 Product Performance 01/01/2006 to 09/30/2017 Initial Wealth ($) 250, , , ,000 50,000 0 Dec 2005 Dec 2006 Dec 2007 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Navellier Power Dividend Wrap (Pure Gross) Navellier Power Dividend Wrap (Net) Russell 3000 Total Return Performance Table Portfolio Performance Vs. Benchmark Annualized Return (%) Cumulative Return (%) Std Dev(%) Annualized Excess Return (%) Cumulative Excess Return (%) Info Ratio Significance Level (%) Explained Variance (%) Navellier Power Dividend Wrap (Pure Gross) Navellier Power Dividend Wrap (Net) Source: Navellier, FactSet SPAR. Please read important disclosures at the end of presentation. Graphs are for discussion purposes only. Performance results presented herein do not necessarily indicate future performance. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. Results presented include reinvestment of all dividends and other earnings. All returns over one year are annualized.

24 Risk/Return Supplemental Information Product Risk/Return 01/01/2006 to 09/30/ Return % Beta Na vell ier Power Dividend Wrap (Pure Gross) Na vell ier Power Dividend Wrap (Net) Russell 3000 Total Return Risk Return Table Return (%) Std. Dev. (%) Downside Risk (%) Beta Alpha R Squared Sharpe Ratio Observs. Navellier Power Dividend Wrap (Pure Gross) Navellier Power Dividend Wrap (Net) Russell 3000 Total Return Source: Navellier, FactSet SPAR. Please read important disclosures at the end of presentation. Graphs are for discussion purposes only. Performance results presented herein do not necessarily indicate future performance. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. Results presented include reinvestment of all dividends and other earnings. All returns over one year are annualized.

25 Upside/Downside Supplemental Information Upside Downside 01/01/2006 to 09/30/ Upside Capture % Downside Capture % Navellier Power Dividend Wrap (Pure Gross) Navellier Power Dividend Wrap (Net) Russell 3000 Total Return # of Months Average Return (%) Up Down Up Down Up/Down Table Average Return (%) vs. Market Up Market Down Market Month (%) 1 Year (%) Market Benchmark (%) Best Worst Best Worst Up Capture Down Capture R Squared Navellier Power Dividend Wrap (Pure Gross) Navellier Power Dividend Wrap (Net) Russell 3000 Total Return Source: Navellier, FactSet SPAR. Please read important disclosures at the end of presentation. Graphs are for discussion purposes only. Performance results presented herein do not necessarily indicate future performance. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. Results presented include reinvestment of all dividends and other earnings. All returns over one year are annualized.

26 Calendar Year Return Return 40% 30% 20% 10% 0% 10% 20% 30% 40% Calendar Year Return Supplemental Information 50% Year Navellier Power Dividend Wrap (Pure Gross) Navellier Power Dividend Wrap (Net) Russell 3000 Total Return Calendar Year Return Navellier Power Dividend Wrap (Pure Gross) Navellier Power Dividend Wrap (Net) 18.64% 5.83% 6.54% 35.76% 24.14% 1.02% 21.53% 27.09% 38.59% 11.65% 8.78% 16.78% 3.81% 4.99% 34.14% 22.17% 2.16% 19.34% 24.70% 39.61% 10.37% 7.55% Russell 3000 Total Return 12.74% 0.48% 12.56% 33.55% 16.42% 1.03% 16.93% 28.34% 37.31% 5.14% 15.72% 26 Source: Navellier, FactSet SPAR. Please read important disclosures at the end of presentation. Graphs are for discussion purposes only. Performance results presented herein do not necessarily indicate future performance. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. Results presented include reinvestment of all dividends and other earnings. All returns over one year are annualized.

27 Annualized Performance Supplemental Information Return 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% Product vs Benchmark: Returns through September 30, /01/2006 to 09/30/2017 QTD YTD 1 Year 3 Year 5 Year 7 Year Analysis Period Navellier Power Dividend Wrap (Pure Gross) Navellier Power Dividend Wrap (Net) Russell 3000 Total Return Product vs. Benchmark: through September 30, 2017 QTD YTD 1 Year 3 Year 5 Year 7 Year Analysis Period Navellier Power Dividend Wrap (Pure Gross) 3.95% 8.15% 12.11% 13.23% 14.55% 14.99% 9.09% Navellier Power Dividend Wrap (Net) 3.65% 7.29% 10.84% 11.46% 12.90% 13.33% 7.49% Russell 3000 Total Return 4.57% 13.91% 18.71% 10.74% 14.23% 14.28% 8.51% 27 Source: Navellier, FactSet SPAR. Please read important disclosures at the end of presentation. Graphs are for discussion purposes only. Performance results presented herein do not necessarily indicate future performance. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. Results presented include reinvestment of all dividends and other earnings. All returns over one year are annualized.

28 Portfolio Fundamentals: 09/30/17 Ticker Company Net Income Margin Reinvestment Rate ABBV Abbvie Inc $144, T At&T Inc $236, BGFV Big 5 Sporting Goods Corp $ BA Boeing Co $153, CSCO Cisco Systems Inc $168, CMI Cummins Inc $28, DLR Digital Realty Trust Inc $19, PLOW Douglas Dynamics Inc $ ETN Eaton Corp Plc $34, FAF First American Financial Cp $5, GIS General Mills Inc $29, HCI Hci Group Inc $ INTC Intel Corp $186, IBM Intl Business Machines Corp $136, KHC Kraft Heinz Co $95, LAZ Lazard Ltd $5, LMT Lockheed Martin Corp $91, MPC Marathon Petroleum Corp $28, MXIM Maxim Integrated Products $13, NEE Nextera Energy Inc $69, PKG Packaging Corp Of America $10, PAYX Paychex Inc $22, PG Procter & Gamble Co $235, QCOM Qualcomm Inc $77, SWM Schweitzer Mauduit Intl Inc $1, SIX Six Flags Entertainment Corp 7.49 #N/A #N/A $5, SCS Steelcase Inc $1, INN Summit Hotel Properties Inc $1, TXN Texas Instruments Inc $90, CASH_USD U.S. Dollar #N/A #N/A #N/A #N/A #N/A $0 #N/A #N/A #N/A WSO Watsco Inc $5, WU Western Union Co $9, Average $59, Navellier Power Dividend Median $25, Russell 1000 Average $32, Growth Index Median $11, S&P 500 Average $47, Index Median $21, Source: FactSet & IBES databases. The portfolio fundamentals reflect security holdings as of the close of business on September 30, Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. Your portfolio may or may not include any or all of these securities. It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the securities in this list. Please read important disclosures at the end of the presentation. ROE Current P/E Forward P/E FY2 Market Value $MM Forward FY2 Earn % Chg 3 Actual Annual Earn % Chg Earnings Surprise % Latest Qtr 28 See important disclosures at the end of this presentation.

29 Summary Navellier s dynamic, disciplined, quantitative approach is designed to build portfolios that outperform the market over the long term, while maintaining style consistency. Implementation of the investment process has resulted in outperformance versus the benchmark since inception.* * Inception date: 1/1/ See important disclosures at the end of this presentation.

30 Q & A For more information, please visit our website at: Contact information: Phone: info@navellier.com 30

31 Disclosures Although information in this presentation has been obtained from and is based upon sources that Navellier believes to be reliable, Navellier does not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute Navellier s judgment as of the date the presentation was created and are subject to change without notice. This presentation is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of a security. This presentation does not constitute an offer of securities. Any decision to purchase securities mentioned in this research must take into account existing public information on such security or any registered prospectus. Dividend Disclosure Dividend payments are not guaranteed. The amount of a dividend payment, if any, can vary over time and issuers may reduce dividends paid on securities in the event of recession or an adverse event effecting a specific industry or issuer.. FactSet Disclosure Navellier does not independently calculate the statistical information included in the Statistical reports. The calculations are provided by FactSet Research Systems, a company not related to Navellier. Although information contained in the Manager Statistical reports has been obtained from by FactSet Research Systems and is based on sources Navellier believes to be reliable, Navellier does not guarantee its accuracy, and it may be incomplete or condensed. The Manager Statistical reports and the related by FactSet Research Systems sourced information are provided on an as is basis. The user assumes the entire risk of any use made of this information. Investors should consider the Manager Statistical reports as only a single factor in making their investment decision. The Manager Statistical reports are for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of a security. by FactSet Research Systems sourced information is the exclusive property of by FactSet Research Systems. Without prior written permission of by FactSet Research Systems, this information may not be reproduced, redisseminated or used to create any financial products. Dividend and non dividend paying stocks: stocks within the Russell 3000 that paid or did not pay dividends over the previous four quarters of the end date indicated in the respective graph. 31

32 1. Compliance Statement Navellier & Associates, Inc. claims compliance with the Global Investment Performance Standards (GIPS ) and has prepared and presented this report in compliance with GIPS standards. Navellier & Associates, Inc. has been independently verified for the periods January 1, 1995 through December 31, 2016 by Ashland Partners & Company LLP. A copy of the verification report is available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm wide basis and (2) the firm s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. 2. Definition of Firm Navellier & Associates, Inc. is a registered investment adviser established in Registration does not imply a certain level of skill or training. Navellier & Associates, Inc. manages a variety of equity assets for primarily U.S. and Canadian institutional and retail clients. The firm s list of composite descriptions as well as information regarding the firm s policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. The Navellier Power Dividend Wrap Composite includes all discretionary Power Dividend equity accounts that are charged a wrap fee and are managed with similar objectives for a full month, including those accounts no longer with the firm. The strategy is designed for aggressive investors seeking to capitalize on the best opportunities within the group of publicly traded companies that pay dividends. The strategy invests in U.S. listed securities with market capitalizations greater than $250 million that pay dividends. Statistical measures may be used in an attempt to identify unusual price movements in individual stock prices, which may result in higher than average turnover and cash positions for the portfolio. At any given time, the strategy may hold up to 15% in American Depositary Receipts (ADRs). Stocks in the strategy typically exhibit positive return on equity and positive return on assets, usually have higher free cash flow than what they pay in dividends, and are usually growing dividends faster than the rate of inflation. Typically, the strategy invests in approximately 15 to 30 stocks. The strategy may invest in smaller capitalization stocks that may trade fewer shares than larger capitalization stocks; the liquidity risk among these types of stocks may increase the strategy s risk. Performance figures that are net of fees take into account advisory fees, wrap fees, and any brokerage fees or commissions that have been deducted from the account. Pure grossof fees returns do not reflect the deduction of any trading costs, fees, or expenses, and are presented only as supplemental information. Performance results are total returns and include the reinvestment of all income, including dividends. The composite was created March 31, The 2011 annual gross return has changed from 0.06 to 1.02 and net from 1.09 to Valuations and returns are computed and stated in U.S. Dollars. 4. Management Fees The management fee schedule for accounts is generally 45 to 90 basis points; however, some incentive fee, fixed fee, and fulcrum fee accounts may be included. Fees are negotiable, and not all accounts included in the composite are charged the same rate. Bundled fee accounts make up 100% of the composite for all periods shown. Wrap fee schedules are provided by independent wrap sponsors and are available upon request from the respective wrap sponsor. Wrap fees generally range from 100 to 200 basis points and include custody, trading expenses, and other expenses associated with the management of the account. The client is referred to the firm's Form ADV Part 2A for a full disclosure of the fee schedule. 5. Composite Dispersion If applicable, the dispersion of annual returns is measured by the standard deviation across asset weighted portfolio level gross returns represented within the composite for the full year. 6. Benchmark The primary benchmark for the composite is the Russell 3000 Index. The Russell 3000 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. The secondary benchmark for the composite is the Standard & Poor 500 Index ( S&P 500 Index ). The S&P 500 Index measures the performance of approximately 500 companies listed on U.S. stock exchanges selected by Standard & Poor. These indices are considered reasonable measures of the general performance of the broad U.S. equity market. The returns for the Russell 3000 and S&P 500 indices include the reinvestment of any dividends. The asset mix of Navellier Power Dividend equity accounts may not be precisely comparable to the presented indices. Presentation of index data does not reflect a belief by the Firm that the Russell 3000 or S&P 500 indices, or any other index, constitutes an investment alternative to any investment strategy presented in these materials or is necessarily comparable to such strategies. As of June 2012, the Russell 3000 Index is listed as the primary benchmark because it is a better representation of the investment strategy. The S&P 500 Index has replaced the Russell 1000 Index as the secondary benchmark. 7. General Disclosure The three year annualized standard deviation measures the variability of the composite and the benchmark returns over the preceding 36 month period. The standard deviation is not presented for 2007 because 36 months of history were not available. Actual results may differ from composite results depending upon the size of the account, custodian related costs, the inception date of the account and other factors. Past performance does not guarantee future results. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. Results presented include reinvestment of all dividends and other earnings. The securities identified and described do not represent all of the securities purchased, sold, or recommended for client accounts. It should not be assumed that any securities recommendations made by Navellier & Associates, Inc. in the future will be profitable or equal the performance of securities made in this report. A list of recommendations made by Navellier & Associates, Inc. for the preceding twelve months is available upon request.