Navellier Tactical Portfolios Defensive ETF Portfolios Designed for All Market Cycles As of December 31, 2015 Please see important disclosures at end of presentation. For Financial Consultant Use Only Please see important disclosures at end of presentation NCD 16 141
Navellier & Associates at aglance Founded by Louis Navellier in 1987 Supplemental Information Currently managing over $2.0 billion in investor assets. Independent & run by highly experienced professionals Technologically savvy & resourceful Time tested & proven techniques Serving institutions, brokerages & high net worth individuals 2 For Financial Consultant Use Only.
Libertas 30 Universe *The Libertas 30 accounts may invest in a cash equivalent, such as money market funds, in place of short term Treasuries. As of August 24, 2015, the following ETFs were added to the Fixed Income sleeve of the investment universe: ishares Barclays 20+ Year Treasury Bond and ishares Barclays 1 3 Year Treasury Bond. Potential investors should consult with their financial advisor before investing in any investment product. Investment in financial instruments involves substantial risk and has the potential for partial or complete loss of funds invested. Results presented do not necessarily indicate future performance. All performance figures include reinvestment of dividends, interest, and other income. Please read important disclosures at the end of this presentation. 3 For Financial Consultant Use Only.
Tactical Global Allocation Plus Universe Supplemental Information * *Please Note: For the 4/1/03 to 3/31/14 analysis period, results are based on SPDR ETFs in the U.S. Equity sleeve. Effective May 22, 2014, the U.S. Equity ETF universe changed from the SPDRs to ishares. XLY (Consumer Discretionary) was replaced with IYC, XLP (Consumer Staples) was replaced with IYK, XLE (Energy) was replaced with IYE, XLF (Financials) was replaced with IYF, XLV (Health Care) was replaced with IYH, XLI (Industrials) was replaced with IYJ, XLB (Materials) was replaced with IYM, and XLK (Technology) was replaced with IYW. *Navellier Tactical Global Allocation Plus accounts may invest in a cash equivalent, such as money market funds, in place of SHY. Effective February 15, 2014, the following ETFs were added to the investment universe. U.S. Equity sleeve: Consumer Staples, Financial, Health Care, Biotechnology, and PowerShares; International Equity sleeve: MSCI Small Cap, MSCI ACWI, and FTSE All World ex US; Alternatives sleeve: Agribusiness and Silver; Fixed Income sleeve: Convertibles, Utilities, High Yield, 0 5 Year High Yield, Mortgages, and U.S. Aggregate. Potential investors should consult with their financial advisor before investing in any investment product. Investment in financial instruments involves substantial risk and has the potential for partial or complete loss of funds invested. Results presented do not necessarily indicate future performance. All performance figures include reinvestment of dividends, interest, and other income. Please read important disclosures at the end of this presentation. 4 For Financial Consultant Use Only.
Tactical U.S. Equity Sector Plus featuring AlphaDEX Universe *Navellier Tactical U.S. Equity Sector Plus featuring AlphaDEX accounts may invest in a cash equivalent, such as money market funds, in place of SHY. Effective February 15, 2014, the following ETFs were added to the investment universe: Consumer Staples, Financial, Health Care, Biotechnology, and NASDAQ 100. Potential investors should consult with their financial advisor before investing in any investment product. Investment in financial instruments involves substantial risk and has the potential for partial or complete loss of funds invested. Results presented do not necessarily indicate future performance. All performance figures include reinvestment of dividends, interest, and other income. Please read important disclosures at the end of this presentation. 5 For Financial Consultant Use Only.
Why Choose Navellier Tactical ETF Portfolios? Supplemental Information Liquidity The ETF universe we employ only consists of highly liquid ETFs. This is designed to reduce expenses and trading costs and help overall performance by reducing spread risk when placing trades. Diversification Our ETF universe for each strategy provides balanced portfolio diversification and prevents us from being overly concentrated in any sector. Low costs/fees The ETF universe we employ offers efficiency and low expense ratios while our management fee is market competitive. We also have the ability to offer a performance based fee option (10% of profits) for qualified investors. Transparency Our ETF managed accounts allow investors to see exactly what they own at all times and also when we make changes to the portfolio. On top of that, each ETF is fully transparent, you can view a prospectus to see each individual ETF s holdings. Market Overlay Navellier utilizes a SineWave overlay that adapts to market conditions to prevent us from being whipsawed, but also provides a robust system that allows us to raise cash and/or hide in fixed income during extended market downturns. * This is only a feature in the Libertas portfolios, U.S. Equity Sector Plus Portfolio, and Global Allocation Plus Portfolio. 6 For Financial Consultant Use Only.
7 For Financial Consultant Use Only. How We Work Navellier s system is designed to respond to market conditions to preserve capital during periods of extreme volatility, and also put investor assets to work during sustained bull markets. Major Standard Deviation Event Protection Introducing Navellier s Sine~Wave Overlay: Sine~Waves are mathematical curves that identify smooth, repetitive trends around an oscillation in this case, the oscillation is based around the harmonic waveform of the S&P 500 Index superimposed over other indexes and technical indicators. When Sine~Waves cross, Navellier s research shows they typically trigger long, short, and neutral signals indicating moving in or out of stock positions or cash/fixed income positions. We align investor goals with a system of risk management and healthy market participation. Sine ~ Wave is engaged in the business of acting solely in the capacity of a technical analytics, theoretical modeling and monitoring service provider to other Registered Investment Adviser Third Parties which directly manage client accounts. Sine ~ Wave Technology does not directly manage any client assets or engage with or do business with any retail clients of the public. Please read important disclosures at the end of this presentation.
Identifying Trends and Patterns in Various Market Sectors Sector leadership is fleeting. Navellier analysis seeks to optimize portfolios through innovative market rotation calculations. We aim to add alpha throughout the continuously evolving series of market cycles and by characterizing and identifying trends within full market cycles ishares ETF Sectors ishares U.S. Consumer Services ETF (IYC) ishares U.S. Consumer Goods ETF (IYK) ishares U.S. Energy ETF (IYE) ishares U.S. Financials ETF (IYF) ishares U.S. Healthcare ETF (IYH) ishares U.S. Industrials ETF (IYJ) ishares U.S. Basic Materials ETF (IYM) ishares US Technology ETF (IYW) ishares Nasdaq Biotechnology ETF ((IBB) ishares Core S&P 500 ETF (IVV) Yearly Returns: through December 31, 2015 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 11.56% 33.83% 65.54% 32.13% 11.72% 31.01% 64.34% 12.28% 35.75% 20.14% 34.68% 31.74% 6.17% 25.14% 41.24% 25.91% 11.26% 25.50% 63.80% 22.88% 32.17% 18.74% 5.73% 16.34% 6.10% 19.46% 41.09% 23.44% 8.42% 23.25% 32.63% 26.00% 14.96% 17.06% 4.87% 13.02% 5.75% 14.46% 40.06% 18.72% 6.74% 19.00% 26.60% 30.55% 13.01% 15.95% 4.22% 12.24% 3.69% 14.18% 33.98% 17.25% 3.70% 18.97% 25.80% 37.02% 9.15% 14.31% 4.13% 11.99% 1.30% 13.56% 32.30% 16.06% 1.86% 15.09% 23.32% 37.22% 8.01% 13.80% 4.06% 10.72% 0.38% 11.55% 30.18% 12.01% 0.13% 14.83% 20.97% 39.76% 5.30% 13.20% 2.77% 10.48% 1.97% 6.72% 26.56% 11.68% 1.20% 12.42% 19.24% 43.14% 4.52% 9.68% 2.44% 4.79% 12.79% 3.02% 25.71% 9.94% 13.25% 12.23% 16.82% 50.26% 7.70% 6.17% 1.52% 4.22% 22.18% 9.64% 19.88% 4.26% 15.20% 4.13% 15.17% 50.72% 18.05% 0.67% 2.33% 1.34% Source: Navellier, FactSet. Please read important disclosures at the end of presentation. Illustration is for discussion purposes only. Past performance does not guarantee future results. Sector returns do not reflect deduction for fees, expenses, or taxes. 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. 8 For Financial Consultant Use Only.
Sine~ Wave Technology Data and visualization sources: Helix Technology Ltd., Tradestation and Reuters. The graphs and illustrations contained are for discussion purposes only. The historical Change Point scenario results presented herein do not predict of indicate future performance, and do not guarantee a positive result for future transactions. The historical scenario results as illustrated represent the hypothetical outcome of all of the back tested Long to Neutral Change Points for the period of 1991 2012 for the proprietary Sine ~ Wave Technology S&P 500 theoretical market analysis program, which is owned by Helix Technology Ltd. The illustrated scenario analysis from January 1, 2013 to August 30, 2015 is based on the actual decision making Change Point results of the proprietary Sine ~ Wave modeling program as it is presently being operated by Sine ~ Wave Technology and offered within the financial marketplace by Navellier & Associates. While the information is based upon sources that Sine ~ Wave Technology believes to be reliable, it may be incomplete or condensed information and Sine ~ Wave does not guarantee its accuracy or completeness. 9 For Financial Consultant Use Only. Please read important disclosures at the end of the presentation..
Sine~ Wave Technology Data and visualization sources: Helix Technology Ltd., Tradestation and Reuters. The graphs and illustrations contained are for discussion purposes only. The historical Change Point scenario results presented herein do not predict of indicate future performance, and do not guarantee a positive result for future transactions. The historical scenario results as illustrated represent the hypothetical outcome of all of the back tested Long to Neutral Change Points for the period of 1991 2012 for the proprietary Sine ~ Wave Technology S&P 500 theoretical market analysis program, which is owned by Helix Technology Ltd. The illustrated scenario analysis from January 1, 2013 to August 30, 2015 is based on the actual decision making Change Point results of the proprietary Sine ~ Wave modeling program as it is presently being operated by Sine ~ Wave Technology and offered within the financial marketplace by Navellier & Associates. While the information is based upon sources that Sine ~ Wave Technology believes to be reliable, it may be incomplete or condensed information and Sine ~ Wave does not guarantee its accuracy or completeness. 10 For Financial Consultant Use Only. Please read important disclosures at the end of the presentation..
Sine~ Wave Technology Data and visualization sources: Helix Technology Ltd., Tradestation and Reuters. The graphs and illustrations contained are for discussion purposes only. The historical Change Point scenario results presented herein do not predict of indicate future performance, and do not guarantee a positive result for future transactions. The historical scenario results as illustrated represent the hypothetical outcome of all of the back tested Long to Neutral Change Points for the period of 1991 2012 for the proprietary Sine ~ Wave Technology S&P 500 theoretical market analysis program, which is owned by Helix Technology Ltd. The illustrated scenario analysis from January 1, 2013 to August 30, 2015 is based on the actual decision making Change Point results of the proprietary Sine ~ Wave modeling program as it is presently being operated by Sine ~ Wave Technology and offered within the financial marketplace by Navellier & Associates. While the information is based upon sources that Sine ~ Wave Technology believes to be reliable, it may be incomplete or condensed information and Sine ~ Wave does not guarantee its accuracy or completeness. 11 For Financial Consultant Use Only. Please read important disclosures at the end of the presentation..
Sine~ Wave Technology Data and visualization sources: Helix Technology Ltd., Tradestation and Reuters. The graphs and illustrations contained are for discussion purposes only. The historical Change Point scenario results presented herein do not predict of indicate future performance, and do not guarantee a positive result for future transactions. The historical scenario results as illustrated represent the hypothetical outcome of all of the back tested Long to Neutral Change Points for the period of 1991 2012 for the proprietary Sine ~ Wave Technology S&P 500 theoretical market analysis program, which is owned by Helix Technology Ltd. The illustrated scenario analysis from January 1, 2013 to August 30, 2015 is based on the actual decision making Change Point results of the proprietary Sine ~ Wave modeling program as it is presently being operated by Sine ~ Wave Technology and offered within the financial marketplace by Navellier & Associates. While the information is based upon sources that Sine ~ Wave Technology believes to be reliable, it may be incomplete or condensed information and Sine ~ Wave does not guarantee its accuracy or completeness. 12 For Financial Consultant Use Only. Please read important disclosures at the end of the presentation..
Territory & Contact Information Internal Marketing Associates: Brent Farber Sr. Marketing Associate 775 785 9452 brentf@navellier.com Cheryl Czyz Sr. Marketing Associate 775 785 9411 cherylc@navellier.com David Kornhauser Marketing Associate 775 785 9410 davidk@navellier.com Regional Consultants: Andrew Harris Regional Consultant Pac North/Central Vice President National Sales 775 785 9438 andrewh@navellier.com Seth Lee Regional Consultant Mountain West/Mid West Vice President 775 785 9426 sethl@navellier.com Peter Nicolas, CFA Regional Consultant Eastern Senior Vice President 775 813 3433 petern@navellier.com info@navellier.com 800 887 8671 13 For Financial Consultant Use Only.
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. As a matter of normal and important disclosures to you, as a potential investor, please consider the following: The performances presented in the accompanying Reward/Risk Ratio Analysis and Fundamental Factor charts and graphs are not based on any actual securities trading, portfolio, or accounts, and should be considered mere "paper" or proforma performance results based on Navellier s research. The model portfolios, charts and other information presented do not represent actual funded trades and are not actual funded portfolios. There are material differences between Navellier Investment Products' portfolios and the model portfolios, research, and performance figures presented here. The model portfolios and the research results (1) may contain stocks that are illiquid and difficult to trade; (2) may contain stock holdings materially different from actual funded Navellier Investment Product portfolios; (3) do not include trading costs, commissions, or management fees; and, (4) may not reflect prices obtained in an actual funded Navellier Investment Product portfolio. In most cases, Navellier's Investment Products have materially lower performance results than the performances of the model portfolios presented. As a matter of important disclosure regarding the Reward/Risk Ratio Analysis and Fundamental Factor charts and graphs, the following factors must be considered when evaluating the performance figures presented: 1. Historical or illustrated results presented herein do not necessarily indicate future performance; Investment in securities involves significant risk and has the potential for partial or complete loss of funds invested. 2. The results presented were generated during a period of mixed (improving and deteriorating) economic conditions in the U.S. and positive market performance. There can be no assurance that these favorable market conditions will occur again in the future. Navellier has no data regarding actual performance in different economic or market cycles or conditions. 3. The results portrayed reflect the reinvestment of dividends and other income. 4. The results portrayed do not include any investment advisory fees, administrative fees, or transaction expenses, or other expenses that a client would have paid or actually paid. 5. LIMITATIONS INHERENT IN MODEL RESULTS: The performance results presented are from a model portfolio, not an actually funded portfolio, and may not reflect the impact that material economic and market factors might have had on the adviser s decision making if the adviser were actually managing clients money, and thus present returns which are greater than what a potential investor would have experienced for the time period. The results are presented for informational purposes only. No real money has been invested in this model portfolio. The model performance results should be considered mere 'paper' or pro forma performance results. The model results do not represent actual funded trades and may not reflect actual prices paid or received for actual funded trades. 6. The model results may or may not relate, or only partially relate, to the type of advisory services currently offered by Navellier & Associates, Inc. 7. In most cases, the adviser s clients had investment results materially lower than the results portrayed in the model. FactSet Disclosure Navellier does not calculate the statistical information included in the Statistical reports. The calculations are provided by FactSet, a company not related to Navellier. Although information contained in the Manager Statistical reports has been obtained from FactSet 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 FactSet 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. FactSet sourced information is the exclusive property of FactSet. Without prior written permission of FactSet, this information may not be reproduced, redisseminated or used to create any financial products. 14 For Financial Consultant Use Only.
Sine~Wave Technology Disclosures Within the context of this report, Sine ~ Wave Technology is providing technical analytics, theoretical modeling and investment security monitoring services in support of Navellier & Associates, an unrelated Third Party RIA management company which offers Registered Investment Advisory managed account programs and services at the institutional and retail level. Sine ~ Wave is engaged in the business of acting solely in the capacity of a technical analytics, theoretical modeling and monitoring service provider to other Registered Investment Adviser Third Parties which directly manage client accounts. Sine ~ Wave Technology does not directly manage any client assets or engage with or do business with any retail clients of the public. Our services are exclusively offered to licensed unaffiliated ''RIA'' Registered Investment Advisers and Third Party financial industry professional asset management and distribution network entities such as broker dealer firms, insurance, trust and mutual fund companies. Sine ~ Wave Technology does not make a market in any security, maintain or have access to client funds, does not engage in any trading activities, does not provide introductions to custodians or engage in any custodial activities or functions, and does not engage in any principal or agency transactions within the retail or institutional marketplace. The timing and actionable implications of various Change Points which are expressed within this visualization series is limited to the management decision making strategies employed by Navellier & Associates to manage a series of Tactical Asset Management Portfolio offerings. The subject portfolios are operated within aconstruct of a proprietary process of defining Long, Neutral and Sell Short investment periods, and the corresponding actions which are taken within these accounts are the direct result of the timing and methods of decision making of the investment management strategies governing the accounts. The recent announcement and timing of the present S&P 500 market status of Neutral is not intended to be viewed as a universal Sell recommendation which applies to all market participants. As a clarification, within the construct of the strategies being employed, the market comment status of Neutral is not a prediction of future events. The change in status is intended to convey the opinion that the momentum of the previous long term up trend has been broken; and that future actions to be taken will depend on the emergence of a newly defined trend in either a long or short direction which has yet to be established. Suitability standards and the details of your age, income, investment experience, liquidity, desired frequency of trading and investment risk profile ~ as well as the specific details of the method and strategy for investment decision which you employ, will form the reasoned basis of the timing and nature of the decisions that you ultimately choose to make. Please consult with qualified investment counsel and review the product discussion + detailed disclosure statements regarding risks which is contained within the product offering documents for investments you may be considering prior to making investment decisions. In the process of analyzing previous cycles, no direct cause and effect representations can be reliably applied to the present market circumstances... Stock market waveform patterns are not repeating waveforms and as they continuously evolve, no two patterns are the same. Calculation results and signal measurement applications which analyze and react in response to the unique characteristics and extremes of the data stream being characterized will vary accordingly with each use, and over time. The visualizations contained within this report illustrate various global indexes and primarily focus on the S&P 500 and are intended for information purposes only. From an actual trading standpoint, it is not possible to trade indexes [theoretical calculations of combinations of securities which make up an industry group or major markets such as the Standard and Poors 500] except to individually trade the underlying securities or to invest in Exchange Traded Funds [ETFs] which are synthetically created simulations of indexes which are designed to correlate to the performance of the index being tracked. The potential correlation of major market indexes with ETFs that track those indexes is not absolute and can diverge significantly on an intra day and cumulative time period basis. Depending on the methods and design of synthetic ETF construction, the specifics of daily volatility, the bid to ask spreads and the mechanics of market liquidity, the tracking divergence effect can be profoundly magnified on a case by case basis, especially with inverse and leveraged ETF index Product Offerings. This visualization summary is not an offer to purchase securities, and is not in and of itself a complete analysis of the investment scenarios which are described. For a detailed discussion of a product offering that you may have an interest in, please consult with qualified investment counsel, and review the product discussion and detailed disclosure statements regarding risks, which are contained within the product offering information documents that you may be considering. The illustrations contained are for discussion purposes only. The historical Change Point scenario results presented herein do not predict or indicate future performance, and do not guarantee a positive result for future transactions. Investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. The historical scenario results as illustrated represent the hypothetical outcome of all of the back tested Long to Neutral Change Points for the period of 1991 ~ 2012 for the proprietary Sine ~ Wave Technology S&P 500 theoretical modeling market analysis program, which is owned by Helix Technology Ltd. The illustrated scenario analysis from January 1, 2013 through to August 30, 2015 is based on the actual decision making Change Point results of the proprietary Sine ~ Wave modeling program ~ as it is presently being operated by Sine ~ Wave Technology and offered within the financial marketplace by Navellier & Associates. The graphic elements contained in this report are based upon data and visualization sources which include Helix Technology, Tradestation, Reuters and Yahoo. While the information is based upon sources that Sine ~ Wave Technology believes to be reliable, it may be incomplete or condensed information and Sine ~ Wave does not guarantee its accuracy or completeness. 15
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 March 31, 2014 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 1987. 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. 3. Composite Description The Navellier Dynamic Libertas 30 Institutional Composite includes all discretionary Navellier Dynamic Libertas 30 equity accounts managed with similar objectives for a full month, including those accounts no longer with the firm. This global balanced strategy is a tactical, defensive portfolio that has the potential to invest in domestic equity sector ETFs, international ETFs, fixed income ETFs, ETFs representing alternative investments, and takes defensive positions by investing in a cash equivalent, such as money market funds. The strategy can raise up to 100% cash when conditions warrant. All ETFs in the universe are ranked based on a weighted, quantitative multi factor model relative to the S&P 500 and to cash to determine timing, allocation, positioning, and overall portfolio risk. Based on the model ranking, the strategy typically holds 8 to 10 ETFs. The strategy uses sine waves to measure the wave heights of the market. These sine waves produce signals that indicate when the portfolio should move in and out of ETFs and cash. This strategy is more aggressive than other similar Libertas strategies and may have lower allocations. From inception, there is one non management fee paying account included in the composite. Performance is calculated on a time weighted and asset weighted basis. Performance figures that are net of fees take into account advisory fees and any brokerage fees or commissions that have been deducted from the account. Gross of fees returns reflect the deduction of transaction costs/commissions, but do not reflect the deduction of any investment management fees. Performance results are total returns and include the reinvestment of all income, including dividends. The composite was created June 30, 2013. Valuations and returns are computed and stated in U.S. Dollars. 4. Management Fees The management fee schedule for accounts ranges from 60 to 90 basis points, depending on account size and brokerage selected. 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. Fees are negotiable, and not all accounts included in the composite are charged the same rate. 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 returns represented within the composite for the full year. 6. Benchmark The Global Balanced Blended Benchmark is a blended benchmark using the following indices: S&P 500 (45%), MSCI World ex U.S. (25%), and Barclays Capital U.S. Aggregate Bond Index (30%). The benchmark is rebalanced monthly. Prior to July 2013, this blended benchmark was referred to as the Allocator Blended Benchmark. The S&P 500 Index measures the performance of the 500 leading companies in leading industries of the U.S. economy, focusing on the large cap segment of the market, with approximately 75% coverage of U.S. equities. The MSCI World ex U.S. Index is a free float adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. As of June 2014, the MSCI World ex U.S. Index consisted of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. MSCI World ex U.S. Index targets 85% of the free float adjusted market capitalization. The Barclays Capital U.S. Aggregate Bond Index is a broad based benchmark that measures the investment grade, U.S. dollar denominated, fixed rate taxable bond market, including Treasuries, government related and corporate securities, MBS (agency fixed rate and hybrid ARM passthroughs), ABS, and CMBS. The returns for the index includes the reinvestment of any dividends and interest income. The asset mix of the composite may not be precisely comparable to the presented index. Presentation of index data does not reflect a belief by the Firm that the Global Balanced Blended Benchmark, or any other index, constitutes an investment alternative to any investment strategy presented in these materials or is necessarily comparable to such strategies. 7. General Disclosure The three year annualized standard deviation is not presented because 36 months of history is 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 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. 16
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 March 31, 2014 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 1987. 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. 3. Composite Description The Navellier Tactical Global Allocation Plus Wrap Composite includes all discretionary Navellier Tactical Global Allocation Plus equity accounts charged a wrap fee and managed with similar objectives for a full month, including those accounts no longer with the firm. This global strategy is a tactical, defensive portfolio that invests in nine equity sector ETFs, five international ETFs, five ETFs representing alternative investments, ten fixed income ETFs, and takes defensive positions by investing in an additional three bond ETFs staggered along the yield curve when conditions warrant. The strategy may invest in a cash equivalent, such as money market funds. The strategy uses sine waves to measure the wave heights of the market. These sine waves produce signals that indicate when the portfolio should move in and out of stock or bond ETFs. Performance is calculated on a time weighted and asset weighted basis. Performance figures that are net of fees take into account advisory fees and any brokerage fees or commissions that have been deducted from the account. Pure gross of 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 February 1, 2014. Valuations and returns are computed and stated in U.S. Dollars. 4. Management Fees The management fee schedule for accounts is generally 40 to 100 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 returns represented within the composite for the full year. 6. Benchmark The Global Balanced Blended Benchmark is a blended benchmark using the following indices: S&P 500 (45%), MSCI World ex U.S. (25%), and Barclays Capital U.S. Aggregate Bond Index (30%). The benchmark is rebalanced monthly. Prior to July 2013, this blended benchmark was referred to as the Allocator Blended Benchmark. The S&P 500 Index measures the performance of the 500 leading companies in leading industries of the U.S. economy, focusing on the large cap segment of the market, with approximately 75% coverage of U.S. equities. The MSCI World ex U.S. Index is a free float adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. As of June 2014, the MSCI World ex U.S. Index consisted of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and the United Kingdom. MSCI World ex U.S. Index targets 85% of the free float adjusted market capitalization. The Barclays Capital U.S. Aggregate Bond Index is a broad based benchmark that measures the investment grade, U.S. dollar denominated, fixed rate taxable bond market, including Treasuries, government related and corporate securities, MBS (agency fixed rate and hybrid ARM passthroughs), ABS, and CMBS. The returns for the index includes the reinvestment of any dividends and interest income. The asset mix of the composite may not be precisely comparable to the presented index. Presentation of index data does not reflect a belief by the Firm that the Global Balanced Blended Benchmark, or any other index, constitutes an investment alternative to any investment strategy presented in these materials or is necessarily comparable to such strategies. 7. General Disclosure The three year annualized standard deviation is not presented because 36 months of history is 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 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. 17
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 March 31, 2014 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 1987. 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. 3. Composite Description The Navellier Tactical U.S. Equity Sector Plus featuring AlphaDEX Wrap Composite includes all discretionary Navellier Tactical U.S. Equity Sector Plus featuring AlphaDEX equity accounts managed with similar objectives for a full month, including those accounts no longer with the firm. The strategy is a tactical, defensive portfolio that invests in ten equity sector ETFs and takes defensive positions by investing in three bond ETFs staggered along the yield curve when conditions warrant. The strategy may invest in a cash equivalent, such as money market funds. The strategy uses sine waves to measure the wave heights of the market. These sine waves produce signals that indicate when the portfolio should move in and out of stock or bond ETFs. Performance is calculated on a timeweighted and asset weighted basis. Performance figures that are net of fees take into account advisory fees and any brokerage fees or commissions that have been deducted from the account. Pure gross of 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 December 1, 2013. Valuations and returns are computed and stated in U.S. Dollars. 4. Management Fees The management fee schedule for accounts is generally 40 to 100 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 returns represented within the composite for the full year. 6. Benchmark The primary benchmark for the composite is the S&P 500 Index. The S&P 500 consists of 500 stocks chosen for market size, liquidity and industry group representation. It is a market value weighted index with each stock s weight in the index proportionate to its market value. The reported returns reflect a total return for each quarter inclusive of dividends. The asset mix of the composite may not be precisely comparable to the presented indices. Presentation of index data does not reflect a belief by the Firm that the S&P 500 Index, or any other index, constitutes an investment alternative to any investment strategy presented in these materials or is necessarily comparable to such strategies. 7. General Disclosure The three year annualized standard deviation is not presented because 36 months of history is 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 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. 18