UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811-07527 | |||||||
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Turner Funds | ||||||||
(Exact name of registrant as specified in charter) | ||||||||
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1205 Westlakes Drive, Suite 100 Berwyn, PA |
| 19312 | ||||||
(Address of principal executive offices) |
| (Zip code) | ||||||
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Michael P. Malloy Drinker Biddle & Reath LLP One Logan Square, Suite 2000 Philadelphia, PA 19103 | ||||||||
(Name and address of agent for service) | ||||||||
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Registrant’s telephone number, including area code: | 1-800-224-6312 |
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Date of fiscal year end: | September 30 |
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Date of reporting period: | March 31, 2014 |
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Item 1. Reports to Stockholders.
Semiannual Report
March 31, 2014 (unaudited)
Long/short equity funds
Turner Market Neutral Fund
Turner Medical Sciences Long/Short Fund
Turner Spectrum Fund
Turner Titan Fund
U.S. growth equity funds
Turner All Cap Growth Fund
Turner Emerging Growth Fund
Turner Large Growth Fund
Turner Midcap Growth Fund
Turner Small Cap Growth Fund
Emerging markets equity fund
Turner Emerging Markets Fund
Contents
2 | Letter to shareholders | ||||||
| 3 | Schedules of investments | ||||||
| 29 | Sector Weightings | ||||||
| 32 | Financial statements | ||||||
| 54 | Notes to financial statements | ||||||
| 64 | Board of Trustees considerations in approving the Advisory Agreement | ||||||
| 65 | Disclosure of fund expenses | ||||||
Turner Funds
As of March 31, 2014, the Turner Funds offered a series of 10 mutual funds to individual and institutional investors. The minimum initial investment for Institutional Class Shares in a Turner Fund is $250,000 (except for $100,000 for the Turner Market Neutral Fund, the Turner Medical Sciences Long/Short Fund, the Turner Spectrum Fund, and the Turner Titan Fund) for regular accounts and $100,000 for individual retirement accounts. The minimum initial investment for Investor Class Shares, Retirement Class Shares, and Class C Shares is $2,500 for regular accounts and $2,000 for individual retirement accounts.
Turner Investments, L.P., based in Berwyn, Pennsylvania, serves as the investment adviser for the Turner Funds. Turner Investments, L.P., founded in 1990, manages more than $5.8 billion in stock investments as of March 31, 2014.
Shareholder services
Turner Funds shareholders receive annual and semiannual reports, quarterly account statements, and a quarterly newsletter. Shareholders who have questions about their accounts may call a toll-free telephone number, 1.800.224.6312, may visit our website, www.turnerinvestments.com, or may write to Turner Funds, P.O. Box 219805, Kansas City, Missouri 64121-9805.
TURNER FUNDS 2014 SEMIANNUAL REPORT 1
LETTER TO SHAREHOLDERS
To our shareholders
The stock market closed out a strong 2013 as all global equity indices posted absolute gains for the last three months of the year. For all of the noise in 2013 — the U.S. government shutdown, tapering fears, the threat of military action in Syria, and Cyprus seeking a bailout — markets showed tremendous resiliency. Despite all of the macroeconomic concerns, investors chose to focus on the prospects of a growing global economy led by the U.S. Then, as investors entered the new year, they experienced a period of seesawing markets. Equity markets stumbled out of the gate in January and by the first trading day of February global and U.S. equity markets had plummeted over 5%, as measured by the MSCI World Index and Russell 3000 Index, respectively. Weaker than expected U.S. manufacturing, disappointing data from China that adversely affected emerging markets, and worries over deflation in the euro zone all combined to drive investors to safer assets. From that low, however, markets retraced their steps steadily through the rest of February and into March, as the Ukrainian crisis eased and China hinted at stimulus for its slowing economy. Overall, the markets recorded strong positive returns for the six-months ended March 31, 2014 with U.S. markets faring better than non-U.S. markets. The Russell 3000 Index posted a 12.3% return while the MSCI World ex-US Index returned 6.51%.
All along the capitalization and style spectra, stocks were up considerably. The large-cap Russell 1000 Index posted a return of 12.5%, outpacing the 9.9% return of the small-cap Russell 2000 Index for the six-months ended March 31, 2014. From a style perspective, value stocks outpaced growth stocks across the market cap spectrum. All nine sectors of the Russell 3000 Index produced positive returns during the period. The best-performing sectors were the health care and technology sectors while the consumer staples and consumer discretionary sectors lagged.
After a robust 2013, we anticipated markets cooling in 2014 and continue to believe we will not likely witness a repeat performance for the current calendar year. While central bank policy globally appears to be supportive of market improvement, there remain concerns about slowing growth in China and whether Russia will remain at bay with regard to Ukraine. We view the style shift toward value during the period emanating largely from profit-taking after several strong quarters for growth stocks and a temporary move to yield stocks in light of low current bond yields. While that shift may not be a harbinger of prolonged investor risk aversion, it could remain in place for a number of months. Going forward, however, the expectation of advancing interest rates could take some of the luster off of higher yielding stocks relative to growth stocks and could aid equity markets, in general, as investors continue to migrate
from bonds. We continue to believe in the power of some of the long-term secular growth trends we have identified and expect those companies with the ability to capitalize on them to generate solid risk-adjusted returns.
Again, we appreciate your investment in the Turner Funds, and we look forward to continuing to serve you in the years ahead.
Sincerely,
Bob Turner
Chairman and Chief Investment Officer
Turner Investments
Past performance is no guarantee of future results. The views expressed are those of Turner Investments as of March 31, 2014, and are not intended as a forecast or investment recommendations. The indexes mentioned are not available for investment.
Bob Turner
2 TURNER FUNDS 2014 SEMIANNUAL REPORT
(Unaudited)
Schedule of investments
Turner Market Neutral Fund
March 31, 2014
Shares | Value (000) | ||||||||||
Common stock—81.5% | |||||||||||
Consumer discretionary—12.0% | |||||||||||
CBS, Cl B^ | 1,330 | $ | 82 | ||||||||
Dollar General* | 1,460 | 81 | |||||||||
Home Depot^ | 1,030 | 82 | |||||||||
Liberty Global, Cl C*^ | 960 | 39 | |||||||||
Liberty Global, Cl A*^ | 960 | 40 | |||||||||
Urban Outfitters*^ | 4,030 | 147 | |||||||||
Total Consumer discretionary | 471 | ||||||||||
Consumer staples—5.3% | |||||||||||
Colgate-Palmolive^ | 640 | 42 | |||||||||
Constellation Brands*^ | 960 | 82 | |||||||||
WhiteWave Foods, Cl A* | 2,980 | 84 | |||||||||
Total Consumer staples | 208 | ||||||||||
Energy—3.0% | |||||||||||
PetroChina ADR^ | 1,100 | 119 | |||||||||
Total Energy | 119 | ||||||||||
Financials—15.6% | |||||||||||
Affiliated Managers Group*^ | 870 | 174 | |||||||||
Allstate^ | 1,420 | 80 | |||||||||
Countrywide | 7,855 | 86 | |||||||||
Discover Financial Services^ | 1,510 | 88 | |||||||||
Morgan Stanley^ | 2,660 | 83 | |||||||||
Plum Creek Timber^ | 2,350 | 99 | |||||||||
Total Financials | 610 | ||||||||||
Health care—9.9% | |||||||||||
AstraZeneca ADR^ | 1,470 | 95 | |||||||||
Cardinal Health^ | 1,280 | 90 | |||||||||
DepoMed*^ | 11,240 | 163 | |||||||||
Icon*^ | 860 | 41 | |||||||||
Total Health care | 389 | ||||||||||
Industrials—11.2% | |||||||||||
Canadian Pacific Railway^ | 500 | 75 | |||||||||
Interface^ | 6,320 | 130 | |||||||||
Kansas City Southern^ | 820 | 84 | |||||||||
Precision Castparts^ | 600 | 151 | |||||||||
Total Industrials | 440 | ||||||||||
Shares | Value (000) | ||||||||||
Information technology—19.7% | |||||||||||
Bottomline Technologies*^ | 2,200 | $ | 77 | ||||||||
CalAmp*^ | 2,060 | 57 | |||||||||
Cavium*^ | 1,740 | 76 | |||||||||
JDS Uniphase*^ | 6,190 | 87 | |||||||||
LinkedIn, Cl A*^ | 370 | 68 | |||||||||
NCR*^ | 4,990 | 183 | |||||||||
NXP Semiconductors*^ | 2,020 | 120 | |||||||||
TE Connectivity^ | 1,700 | 102 | |||||||||
Total Information technology | 770 | ||||||||||
Materials—4.8% | |||||||||||
Lyondellbasell Industries, Cl A^ | 1,700 | 151 | |||||||||
Methanex^ | 600 | 38 | |||||||||
Total Materials | 189 | ||||||||||
| Total Common stock (Cost $2,969)** | 3,196 | ||||||||||
Cash equivalent—1.4% | |||||||||||
| BlackRock Liquidity Funds TempCash Portfolio, Dollar Shares, 0.045%‡ | 53,103 | 53 | |||||||||
| Total Cash equivalent (Cost $53)** | 53 | ||||||||||
| Total Investments—82.9% (Cost $3,022)** | 3,249 | ||||||||||
| Segregated cash with brokers—96.7% | 3,787 | ||||||||||
| Securities sold short—(80.7)% (Proceeds $(3,054))** | (3,161 | ) | |||||||||
Net Other assets (liabilities)—1.1% | 43 | ||||||||||
Net Assets—100.0% | $ | 3,918 | |||||||||
* Non-income producing security.
** This number is listed in thousands.
^ All or a portion of the shares have been committed as collateral for open short positions.
‡ Rate shown is the 7-day effective yield as of March 31, 2014.
ADR — American Depositary Receipt
Cl — Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 3
FINANCIAL STATEMENTS
Schedule of securities sold short
Turner Market Neutral Fund
March 31, 2014
Shares | Value (000) | ||||||||||
Common stock—80.7% | |||||||||||
Consumer discretionary—12.2% | |||||||||||
Bed Bath & Beyond | 2,430 | $ | 168 | ||||||||
Darden Restaurants | 1,560 | 79 | |||||||||
PetSmart | 1,050 | 72 | |||||||||
TJX | 1,240 | 75 | |||||||||
Tupperware Brands | 990 | 83 | |||||||||
Total Consumer discretionary | 477 | ||||||||||
Consumer staples—5.1% | |||||||||||
Costco Wholesale | 340 | 38 | |||||||||
JM Smucker | 820 | 80 | |||||||||
PepsiCo | 980 | 82 | |||||||||
Total Consumer staples | 200 | ||||||||||
Energy—7.2% | |||||||||||
China Petroleum & Chemical ADR | 1,560 | 140 | |||||||||
Ultra Petroleum | 5,360 | 144 | |||||||||
Total Energy | 284 | ||||||||||
Financials—15.4% | |||||||||||
Arch Capital Group | 1,280 | 74 | |||||||||
B of I Holdings | 1,000 | 86 | |||||||||
Eaton Vance | 2,250 | 86 | |||||||||
Franklin Resources | 1,580 | 86 | |||||||||
Home Properties of NY | 1,460 | 88 | |||||||||
| Mid-America Apartment Communities | 1,450 | 98 | |||||||||
MSCI, Cl A | 1,950 | 84 | |||||||||
Total Financials | 602 | ||||||||||
Health care—9.8% | |||||||||||
GlaxoSmithKline ADR | 2,420 | 129 | |||||||||
Hologic | 7,510 | 161 | |||||||||
Sirona Dental Systems | 1,240 | 93 | |||||||||
Total Health care | 383 | ||||||||||
Industrials—8.1% | |||||||||||
Boeing | 1,240 | 155 | |||||||||
Canadian National Railway | 1,370 | 77 | |||||||||
Norfolk Southern | 870 | 85 | |||||||||
Total Industrials | 317 | ||||||||||
Shares | Value (000) | ||||||||||
Information technology—22.9% | |||||||||||
| Fairchild Semiconductor International | 6,090 | $ | 84 | ||||||||
International Business Machines | 410 | 79 | |||||||||
Jabil Circuit | 5,410 | 97 | |||||||||
Micros Systems | 3,120 | 164 | |||||||||
Oracle | 2,290 | 94 | |||||||||
Power Integrations | 1,010 | 66 | |||||||||
Texas Instruments | 1,790 | 84 | |||||||||
Trimble Navigation | 4,080 | 159 | |||||||||
Vantive | 2,340 | 71 | |||||||||
Total Information technology | 898 | ||||||||||
| Total Common stock (Proceeds $3,054)* | 3,161 | ||||||||||
| Total Securities sold short—80.7% (Proceeds $3,054)* | $ | 3,161 | |||||||||
Percentages disclosed are based on total net assets of the Fund at March 31, 2014.
* This number is listed in thousands.
ADR — American Depositary Receipt
Cl — Class
The accompanying notes are an integral part of the financial statements.
4 TURNER FUNDS 2014 SEMIANNUAL REPORT
(Unaudited)
Schedule of investments
Turner Medical Sciences Long/Short Fund
March 31, 2014
Shares | Value (000) | ||||||||||
Common stock—73.7%† | |||||||||||
Biotechnology—10.1% | |||||||||||
Aegerion Pharmaceuticals* | 8,870 | $ | 409 | ||||||||
Amarin ADR* | 133,440 | 242 | |||||||||
Amicus Therapeutics* | 88,784 | 184 | |||||||||
Cepheid* | 6,430 | 332 | |||||||||
Cubist Pharmaceuticals* | 17,550 | 1,284 | |||||||||
Discovery Laboratories* | 282,390 | 607 | |||||||||
Dynavax Technologies* | 124,030 | 223 | |||||||||
Enanta Pharmaceuticals* | 2,610 | 104 | |||||||||
Keryx Biopharmaceuticals* | 17,300 | 295 | |||||||||
NPS Pharmaceuticals* | 17,750 | 531 | |||||||||
Puma Biotechnology* | 4,450 | 463 | |||||||||
Rigel Pharmaceuticals* | 78,590 | 305 | |||||||||
Total Biotechnology | 4,979 | ||||||||||
Food & Staples Retailing—1.1% | |||||||||||
Rite AID* | 86,050 | 540 | |||||||||
Total Food & Staples Retailing | 540 | ||||||||||
Health care equipment & supplies—8.6% | |||||||||||
Align Technology* | 5,060 | 262 | |||||||||
Carefusion* | 8,200 | 330 | |||||||||
CONMED | 4,900 | 213 | |||||||||
Cooper^ | 7,170 | 985 | |||||||||
Cyberonics* | 6,110 | 399 | |||||||||
Natus Medical* | 7,170 | 185 | |||||||||
Teleflex | 6,490 | 696 | |||||||||
Unilife* | 294,860 | 1,199 | |||||||||
Total Health care equipment & supplies | 4,269 | ||||||||||
Health care providers & services—22.4% | |||||||||||
Catamaran* | 17,810 | 797 | |||||||||
Envision Healthcare Holdings* | 9,070 | 307 | |||||||||
Express Scripts Holding*^ | 11,950 | 897 | |||||||||
HCA Holdings* | 38,490 | 2,022 | |||||||||
Humana | 4,040 | 455 | |||||||||
McKesson^ | 5,030 | 888 | |||||||||
Quest Diagnostics | 12,500 | 724 | |||||||||
Tenet Healthcare* | 41,140 | 1,761 | |||||||||
UnitedHealth Group, Cl B | 11,480 | 941 | |||||||||
Shares | Value (000) | ||||||||||
Universal Health Services, Cl B^ | 10,330 | $ | 848 | ||||||||
WellPoint | 14,040 | 1,398 | |||||||||
| Total Health care providers & services | 11,038 | ||||||||||
Life sciences tools & services—1.5% | |||||||||||
| Charles River Laboratories International* | 4,580 | $ | 276 | ||||||||
Covance* | 4,340 | 451 | |||||||||
Total Life sciences tools & services | 727 | ||||||||||
Pharmaceuticals—27.0% | |||||||||||
Akorn* | 15,970 | 351 | |||||||||
Allergan | 5,010 | 622 | |||||||||
Auxilium Pharmaceuticals* | 7,300 | 198 | |||||||||
Bayer AG | 3,152 | 426 | |||||||||
Biodelivery Sciences International* | 76,690 | 647 | |||||||||
Bristol-Myers Squibb^ | 23,740 | 1,233 | |||||||||
Cardiome Pharma* | 26,600 | 210 | |||||||||
DepoMed*^ | 47,690 | 692 | |||||||||
Eli Lilly | 25,620 | 1,509 | |||||||||
Endo International* | 5,750 | 395 | |||||||||
Horizon Pharma* | 26,920 | 407 | |||||||||
Impax Laboratories*^ | 32,190 | 850 | |||||||||
Mylan* | 22,020 | 1,075 | |||||||||
Roche Holding AG ADR^ | 31,080 | 1,172 | |||||||||
Teva Pharmaceutical Industries ADR | 39,800 | 2,104 | |||||||||
The Medicines* | 16,730 | 475 | |||||||||
UCB | 12,550 | 1,005 | |||||||||
Total Pharmaceuticals | 13,371 | ||||||||||
Professional services—1.6% | |||||||||||
Towers Watson, Cl A | 6,900 | 787 | |||||||||
Total Professional services | 787 | ||||||||||
Specialty Retail—1.4% | |||||||||||
Vitamin Shoppe* | 14,380 | 683 | |||||||||
Total Specialty Retail | 683 | ||||||||||
| Total Common stock (Cost $34,596)** | 36,394 | ||||||||||
TURNER FUNDS 2014 SEMIANNUAL REPORT 5
FINANCIAL STATEMENTS
Schedule of investments
Turner Medical Sciences Long/Short Fund
Shares | Value (000) | ||||||||||
Cash equivalent—13.7% | |||||||||||
| BlackRock Liquidity Funds TempCash Portfolio, Dollar Shares, 0.045%‡ | 6,749,059 | $ | 6,749 | ||||||||
| Total Cash equivalent (Cost $6,749)** | 6,749 | ||||||||||
| Total Investments—87.4% (Cost $41,345)** | 43,143 | ||||||||||
Segregated cash with brokers—63.6% | 31,396 | ||||||||||
| Securities sold short—(49.9)% (Proceeds $(24,646))** | (24,650 | ) | |||||||||
Net Other assets (liabilities)—(1.1)% | (527 | ) | |||||||||
Net Assets—100.0% | $ | 49,362 | |||||||||
* Non-income producing security.
** This number is listed in thousands.
^ All or a portion of the shares have been committed as collateral for open short positions.
† More narrow industries are utilized for compliance purposes, whereas broad sectors are utilized for reporting purposes.
‡ Rate shown is the 7-day effective yield as of March 31, 2014.
ADR — American Depositary Receipt
Cl — Class
The accompanying notes are an integral part of the financial statements.
6 TURNER FUNDS 2014 SEMIANNUAL REPORT
(Unaudited)
Schedule of securities sold short
Turner Medical Sciences Long/Short Fund
March 31, 2014
Shares | Value (000) | ||||||||||
Common stock—28.7% | |||||||||||
Biotechnology—12.8% | |||||||||||
Agios Pharmaceuticals | 17,850 | $ | 699 | ||||||||
Amgen | 4,630 | 571 | |||||||||
Arena Pharmaceuticals | 31,020 | 195 | |||||||||
Celgene | 6,220 | 869 | |||||||||
Celladon | 16,900 | 201 | |||||||||
Dicerna Pharmaceuticals | 6,280 | 177 | |||||||||
Fate Therapeutics | 4,886 | 46 | |||||||||
Foundation Medicine | 8,520 | 276 | |||||||||
Halozyme Therapeutics | 81,260 | 1,033 | |||||||||
Incyte | 15,720 | 841 | |||||||||
Insys Therapeutics | 8,390 | 348 | |||||||||
Isis Pharmaceuticals | 9,440 | 408 | |||||||||
MacroGenics | 7,500 | 209 | |||||||||
Organovo Holdings | 33,500 | 256 | |||||||||
Seattle Genetics | 4,900 | 223 | |||||||||
Total Biotechnology | 6,352 | ||||||||||
Health care equipment & supplies—8.6% | |||||||||||
Baxter International | 6,870 | 505 | |||||||||
Cynosure, Cl A | 9,230 | 270 | |||||||||
Dexcom | 15,360 | 635 | |||||||||
Edwards Lifesciences | 6,640 | 492 | |||||||||
Endologix | 7,300 | 94 | |||||||||
Hologic | 43,020 | 926 | |||||||||
Mazor Robotics ADR | 23,100 | 472 | |||||||||
Neogen | 2,710 | 122 | |||||||||
Sirona Dental Systems | 9,850 | 736 | |||||||||
Total Health care equipment & supplies | 4,252 | ||||||||||
Health care technology—1.4% | |||||||||||
Castlight Health, Cl B | 9,780 | 208 | |||||||||
HMS Holdings | 19,500 | 371 | |||||||||
Vocera Communications | 7,210 | 118 | |||||||||
Total Health care technology | 697 | ||||||||||
Life sciences tools & services—0.9% | |||||||||||
Fluidigm | 10,380 | 457 | |||||||||
Total Life sciences tools & services | 457 | ||||||||||
Pharmaceuticals—4.4% | |||||||||||
Mallinckrodt | 13,200 | 836 | |||||||||
Merck KGaA | 2,420 | 408 | |||||||||
Shares | Value (000) | ||||||||||
Nektar Therapeutics | 32,040 | $ | 388 | ||||||||
Pacira Pharmaceuticals | 7,780 | 545 | |||||||||
Total Pharmaceuticals | 2,177 | ||||||||||
Real Estate Investment Trusts—0.6% | |||||||||||
Health Care REIT | 4,720 | 281 | |||||||||
Total Real Estate Investment Trusts | 281 | ||||||||||
| Total Common stock (Proceeds $14,726)* | 14,216 | ||||||||||
Exchange traded funds—21.2% | |||||||||||
Health Care Select Sector SPDR | 39,050 | 2,284 | |||||||||
| iShares NASDAQ Biotechnology Index Fund | 10,539 | 2,493 | |||||||||
Market Vectors Biotech ETF | 15,590 | 1,418 | |||||||||
Market Vectors Pharmaceutical ETF | 24,660 | 1,439 | |||||||||
SPDR S&P Biotech ETF | 19,650 | 2,800 | |||||||||
| Total Exchange traded funds (Proceeds $9,920)* | 10,434 | ||||||||||
| Total Securities sold short—49.9% (Proceeds $24,646)* | $ | 24,650 | |||||||||
Percentages disclosed are based on total net assets of the Fund at March 31, 2014.
* This number is listed in thousands.
ADR — American Depositary Receipt
Cl — Class
ETF — Exchange Traded Fund
SPDR — Standard & Poor's Depositary Receipt
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 7
FINANCIAL STATEMENTS
Schedule of investments
Turner Spectrum Fund
March 31, 2014
Shares | Value (000) | ||||||||||
Common stock—90.5% | |||||||||||
Consumer discretionary—15.0% | |||||||||||
Ann* | 18,900 | $ | 784 | ||||||||
Big Lots* | 30,790 | 1,166 | |||||||||
Buffalo Wild Wings* | 3,470 | 517 | |||||||||
Burlington Stores*^ | 20,620 | 609 | |||||||||
Cabela's* | 16,860 | 1,104 | |||||||||
CBS, Cl B | 25,500 | 1,576 | |||||||||
Chipotle Mexican Grill* | 1,540 | 875 | |||||||||
Cracker Barrel Old Country Store^ | 4,790 | 466 | |||||||||
Domino's Pizza | 11,410 | 878 | |||||||||
General Motors^ | 29,980 | 1,032 | |||||||||
Home Depot^ | 25,440 | 2,013 | |||||||||
HomeAway*^ | 16,400 | 618 | |||||||||
Installed Building Products* | 34,500 | 481 | |||||||||
Jarden* | 16,400 | 981 | |||||||||
Kate Spade* | 30,970 | 1,149 | |||||||||
Lululemon Athletica* | 14,150 | 744 | |||||||||
MarineMax* | 40,170 | 610 | |||||||||
MGM Resorts International* | 52,630 | 1,361 | |||||||||
Michael Kors Holdings* | 5,740 | 535 | |||||||||
Monro Muffler Brake | 14,990 | 853 | |||||||||
Nike, Cl B | 13,110 | 968 | |||||||||
O'Reilly Automotive* | 5,870 | 871 | |||||||||
PVH | 10,720 | 1,338 | |||||||||
Ralph Lauren | 10,820 | 1,741 | |||||||||
Red Robin Gourmet Burgers*^ | 16,310 | 1,169 | |||||||||
Skechers U.S.A., Cl A* | 21,310 | 779 | |||||||||
Starbucks | 9,080 | 666 | |||||||||
| Starwood Hotels & Resorts Worldwide^ | 22,030 | 1,754 | |||||||||
Toll Brothers* | 17,160 | 616 | |||||||||
TripAdvisor* | 28,820 | 2,610 | |||||||||
Urban Outfitters*^ | 28,640 | 1,045 | |||||||||
Vitamin Shoppe*^ | 53,225 | 2,529 | |||||||||
Walt Disney^ | 31,480 | 2,521 | |||||||||
Wynn Resorts | 3,900 | 866 | |||||||||
Total Consumer discretionary | 37,825 | ||||||||||
Consumer staples—4.1% | |||||||||||
Anheuser-Busch InBev ADR | 10,460 | 1,101 | |||||||||
Boulder Brands* | 37,300 | 657 | |||||||||
Colgate-Palmolive | 9,610 | 623 | |||||||||
Constellation Brands* | 18,670 | 1,587 | |||||||||
CVS Caremark | 30,910 | 2,315 | |||||||||
Shares | Value (000) | ||||||||||
Estee Lauder, Cl A | 10,830 | $ | 724 | ||||||||
Hershey | 13,730 | 1,433 | |||||||||
Keurig Green Mountain | 5,990 | 632 | |||||||||
Monster Beverage* | 6,900 | 479 | |||||||||
Rite AID* | 113,490 | 712 | |||||||||
Total Consumer staples | 10,263 | ||||||||||
Energy—9.2% | |||||||||||
Cabot Oil & Gas^ | 52,670 | 1,784 | |||||||||
Caracal Energy* | 138,486 | 801 | |||||||||
Diamondback Energy* | 12,860 | 866 | |||||||||
EOG Resources^ | 11,250 | 2,207 | |||||||||
Goodrich Petroleum* | 98,550 | 1,559 | |||||||||
Gulfport Energy*^ | 32,730 | 2,330 | |||||||||
Halliburton^ | 46,000 | 2,708 | |||||||||
Kodiak Oil & Gas* | 120,360 | 1,461 | |||||||||
Lehigh Gas Partners^ | 75,162 | 2,026 | |||||||||
Lekoil* | 2,482,552 | 2,183 | |||||||||
Oasis Petroleum* | 24,470 | 1,021 | |||||||||
PDC Energy* | 16,070 | 1,001 | |||||||||
Penn-Virginia*^ | 103,320 | 1,807 | |||||||||
SemGroup, Cl A | 23,120 | 1,519 | |||||||||
Total Energy | 23,273 | ||||||||||
Financials—15.0% | |||||||||||
Affiliated Managers Group* | 7,960 | 1,592 | |||||||||
AIA Group | 250,853 | 1,190 | |||||||||
American Tower | 10,334 | 846 | |||||||||
Artisan Partners Asset Management | 13,910 | 894 | |||||||||
Atlas Mara Co-Nvest* | 461,660 | 5,264 | |||||||||
Bank of the Ozarks^ | 16,619 | 1,131 | |||||||||
Bryn Mawr Bank | 24,191 | 695 | |||||||||
Comerica | 30,130 | 1,561 | |||||||||
Discover Financial Services^ | 41,122 | 2,394 | |||||||||
East West BanCorp^ | 27,730 | 1,012 | |||||||||
Essent Group* | 41,160 | 924 | |||||||||
Evercore Partners^ | 19,950 | 1,102 | |||||||||
Fannie Mae* | 71,630 | 279 | |||||||||
Hanmi Financial | 37,250 | 868 | |||||||||
IntercontinentalExchange Group^ | 8,340 | 1,650 | |||||||||
Invesco | 32,000 | 1,184 | |||||||||
Kennedy-Wilson Holdings | 60,470 | 1,361 | |||||||||
LaSalle Hotel Properties | 35,860 | 1,123 | |||||||||
MetLife | 23,130 | 1,221 | |||||||||
Morgan Stanley | 69,810 | 2,177 | |||||||||
8 TURNER FUNDS 2014 SEMIANNUAL REPORT
(Unaudited)
Schedule of investments
Turner Spectrum Fund
Shares | Value (000) | ||||||||||
PacWest Bancorp^ | 40,070 | $ | 1,723 | ||||||||
Plum Creek Timber | 39,750 | 1,671 | |||||||||
Realogy Holdings* | 33,130 | 1,439 | |||||||||
Signature Bank*^ | 12,950 | 1,626 | |||||||||
Swedbank AB, A Shares | 46,528 | 1,249 | |||||||||
T. Rowe Price Group | 7,800 | 642 | |||||||||
Talmer BanCorp, Cl A* | 45,780 | 670 | |||||||||
Wisdomtree Investments* | 34,040 | 447 | |||||||||
Total Financials | 37,935 | ||||||||||
Health care—17.9% | |||||||||||
Actavis* | 3,260 | 671 | |||||||||
Aegerion Pharmaceuticals* | 10,570 | 487 | |||||||||
Akorn* | 22,050 | 485 | |||||||||
Align Technology*^ | 21,750 | 1,126 | |||||||||
Allergan | 6,920 | 859 | |||||||||
Amarin ADR* | 137,750 | 249 | |||||||||
Amicus Therapeutics* | 87,730 | 182 | |||||||||
Auxilium Pharmaceuticals* | 9,630 | 262 | |||||||||
Bayer AG | 4,353 | 589 | |||||||||
Biodelivery Sciences International* | 78,440 | 662 | |||||||||
Bristol-Myers Squibb^ | 33,430 | 1,738 | |||||||||
Cardiome Pharma* | 27,460 | 217 | |||||||||
Carefusion* | 11,480 | 462 | |||||||||
Catamaran* | 24,590 | 1,101 | |||||||||
Cepheid* | 8,480 | 437 | |||||||||
| Charles River Laboratories International* | 6,160 | 372 | |||||||||
CONMED | 8,700 | 378 | |||||||||
Cooper | 9,770 | 1,342 | |||||||||
Covance* | 5,860 | 609 | |||||||||
Cubist Pharmaceuticals*^ | 15,925 | 1,165 | |||||||||
Cyberonics* | 8,220 | 536 | |||||||||
DepoMed* | 49,237 | 714 | |||||||||
Discovery Laboratories* | 269,920 | 580 | |||||||||
Dynavax Technologies* | 147,020 | 265 | |||||||||
Eli Lilly | 23,250 | 1,368 | |||||||||
Enanta Pharmaceuticals* | 3,610 | 144 | |||||||||
Endo International* | 7,590 | 521 | |||||||||
Envision Healthcare Holdings* | 12,280 | 415 | |||||||||
Express Scripts Holding*^ | 14,260 | 1,071 | |||||||||
Gilead Sciences*^ | 6,510 | 461 | |||||||||
HCA Holdings* | 34,920 | 1,834 | |||||||||
Horizon Pharma* | 27,790 | 420 | |||||||||
Humana | 4,820 | 543 | |||||||||
Shares | Value (000) | ||||||||||
Impax Laboratories*^ | 44,450 | $ | 1,174 | ||||||||
Johnson & Johnson | 7,630 | 749 | |||||||||
Keryx Biopharmaceuticals* | 28,430 | 484 | |||||||||
McKesson^ | 10,850 | 1,917 | |||||||||
Mylan* | 33,870 | 1,654 | |||||||||
Natus Medical* | 9,470 | 244 | |||||||||
NPS Pharmaceuticals*^ | 17,130 | 513 | |||||||||
Puma Biotechnology* | 6,029 | 628 | |||||||||
Quest Diagnostics | 14,920 | 864 | |||||||||
Rigel Pharmaceuticals* | 139,270 | 540 | |||||||||
Roche Holding AG ADR | 37,700 | 1,422 | |||||||||
Team Health Holdings*^ | 14,270 | 639 | |||||||||
Teleflex^ | 8,960 | 961 | |||||||||
Tenet Healthcare* | 37,330 | 1,598 | |||||||||
Teva Pharmaceutical Industries ADR | 36,110 | 1,909 | |||||||||
The Medicines* | 16,150 | 459 | |||||||||
Thermo Fisher Scientific | 7,170 | 862 | |||||||||
UCB | 11,980 | 959 | |||||||||
Unilife* | 281,250 | 1,145 | |||||||||
UnitedHealth Group, Cl B | 19,410 | 1,591 | |||||||||
Universal Health Services, Cl B^ | 18,300 | 1,502 | |||||||||
WellPoint | 14,500 | 1,443 | |||||||||
Total Health care | 45,522 | ||||||||||
Industrials—14.2% | |||||||||||
AMETEK | 22,850 | 1,177 | |||||||||
CAI International*^ | 42,499 | 1,048 | |||||||||
Canadian Pacific Railway^ | 10,924 | 1,643 | |||||||||
Cypress Energy Partners*^ | 67,928 | 1,467 | |||||||||
Delta Air Lines | 27,350 | 948 | |||||||||
Eaton PLC^ | 9,730 | 731 | |||||||||
Hertz Global Holdings*^ | 60,720 | 1,618 | |||||||||
Honeywell International^ | 7,340 | 681 | |||||||||
Hunt (JB) Transportation Services | 18,740 | 1,348 | |||||||||
Huron Consulting Group*^ | 30,497 | 1,933 | |||||||||
Interface | 62,380 | 1,282 | |||||||||
Kansas City Southern | 10,570 | 1,079 | |||||||||
Landstar System | 35,460 | 2,100 | |||||||||
Louis XIII Holdings* | 2,271,582 | 2,485 | |||||||||
Macquarie Infrastructure^ | 29,350 | 1,681 | |||||||||
Middleby*^ | 4,610 | 1,218 | |||||||||
On Assignment* | 29,518 | 1,139 | |||||||||
Providence Resources* | 91,740 | 283 | |||||||||
Quanta Services* | 27,420 | 1,012 | |||||||||
Rockwell Automation | 8,500 | 1,059 | |||||||||
TURNER FUNDS 2014 SEMIANNUAL REPORT 9
FINANCIAL STATEMENTS
Schedule of investments
Turner Spectrum Fund
Shares | Value (000) | ||||||||||
Saia*^ | 35,275 | $ | 1,348 | ||||||||
Scorpio Bulkers* | 113,690 | 1,149 | |||||||||
Spirit Airlines* | 13,200 | 784 | |||||||||
Swift Transportation* | 35,200 | 871 | |||||||||
Towers Watson, Cl A^ | 39,830 | 4,542 | |||||||||
Union Pacific | 2,300 | 432 | |||||||||
United Rentals*^ | 9,560 | 908 | |||||||||
Total Industrials | 35,966 | ||||||||||
Information technology—11.7% | |||||||||||
A10 Networks* | 14,490 | 218 | |||||||||
Alliance Data Systems* | 4,270 | 1,163 | |||||||||
Cardtronics*^ | 17,991 | 699 | |||||||||
| Check Point Software Technologies* | 6,440 | 436 | |||||||||
| Cognizant Technology Solutions, Cl A* | 12,830 | 649 | |||||||||
DealerTrack Technologies* | 19,060 | 938 | |||||||||
Digimarc^ | 68,142 | 2,140 | |||||||||
Electronics for Imaging*^ | 37,059 | 1,605 | |||||||||
EMC | 20,100 | 551 | |||||||||
Facebook, Cl A*^ | 30,360 | 1,829 | |||||||||
Google, Cl A*^ | 2,000 | 2,228 | |||||||||
Hewlett-Packard | 13,280 | 430 | |||||||||
LinkedIn, Cl A* | 10,440 | 1,931 | |||||||||
Linx | 55,473 | 1,096 | |||||||||
Manhattan Associates*^ | 55,050 | 1,928 | |||||||||
Microchip Technology | 30,160 | 1,440 | |||||||||
Qualcomm | 13,400 | 1,057 | |||||||||
Red Hat* | 10,580 | 561 | |||||||||
Remark Media* | 173,060 | 954 | |||||||||
Salesforce.com*^ | 20,200 | 1,153 | |||||||||
ServiceNow*^ | 11,000 | 659 | |||||||||
SunPower*^ | 50,000 | 1,613 | |||||||||
TE Connectivity | 14,280 | 860 | |||||||||
Tyler Technologies*^ | 10,280 | 860 | |||||||||
Visa, Cl A^ | 6,760 | 1,459 | |||||||||
Western Digital | 6,420 | 589 | |||||||||
Xilinx | 7,900 | 429 | |||||||||
Total Information technology | 29,475 | ||||||||||
Materials—3.4% | |||||||||||
Louisiana-Pacific*^ | 22,190 | 374 | |||||||||
Lyondellbasell Industries, Cl A | 4,960 | 441 | |||||||||
Methanex | 24,110 | 1,542 | |||||||||
Shares | Value (000) | ||||||||||
Monsanto | 4,890 | $ | 556 | ||||||||
Rockwood Holdings^ | 50,350 | 3,747 | |||||||||
Senomyx* | 79,180 | 845 | |||||||||
Westlake Chemical^ | 16,310 | 1,079 | |||||||||
Total Materials | 8,584 | ||||||||||
| Total Common stock (Cost $203,341)** | 228,843 | ||||||||||
Warrant—0.3% | |||||||||||
Financials—0.3% | |||||||||||
Atlas Mara Co-Nvest* | 472,160 | 708 | |||||||||
Total Financials | 708 | ||||||||||
| Total Warrant (Cost $92)** | 708 | ||||||||||
Cash equivalent—9.9% | |||||||||||
| BlackRock Liquidity Funds TempCash Portfolio, Dollar Shares, 0.045%‡ | 25,041,462 | 25,041 | |||||||||
| Total Cash equivalent (Cost $25,041)** | 25,041 | ||||||||||
| Total Investments—100.7% (Cost $228,474)** | 254,592 | ||||||||||
Segregated cash with brokers—57.0% | 144,050 | ||||||||||
| Securities sold short—(54.7)% (Proceeds $(135,782))** | (138,312 | ) | |||||||||
| Net Other assets (liabilities)—(3.0)% | (7,572 | ) | |||||||||
Net Assets—100.0% | $ | 252,758 | |||||||||
* Non-income producing security.
** This number is listed in thousands.
^ All or a portion of the shares have been committed as collateral for open short positions and open written option contacts.
‡ Rate shown is the 7-day effective yield as of March 31, 2014.
ADR — American Depositary Receipt
Cl — Class
The accompanying notes are an integral part of the financial statements.
10 TURNER FUNDS 2014 SEMIANNUAL REPORT
(Unaudited)
Schedule of securities sold short
Turner Spectrum Fund
March 31, 2014
Shares | Value (000) | ||||||||||
Common stock—37.8% | |||||||||||
Consumer discretionary—6.3% | |||||||||||
AutoZone | 950 | $ | 510 | ||||||||
Bed Bath & Beyond | 15,870 | 1,092 | |||||||||
Children's Place Retail Stores | 8,880 | 442 | |||||||||
Ctrip.com International SP ADR | 11,860 | 598 | |||||||||
D.R. Horton | 30,850 | 668 | |||||||||
Darden Restaurants | 6,600 | 335 | |||||||||
Dillard's, Cl A | 9,160 | 846 | |||||||||
Ford Motor | 86,920 | 1,356 | |||||||||
L Brands | 9,870 | 560 | |||||||||
LKQ | 19,950 | 526 | |||||||||
Lowe's | 24,710 | 1,208 | |||||||||
Lumber Liquidators Holdings | 3,770 | 354 | |||||||||
Newell Rubbermaid | 15,190 | 454 | |||||||||
Nordstrom | 14,410 | 900 | |||||||||
Panera Bread, Cl A | 4,950 | 874 | |||||||||
PetSmart | 19,570 | 1,348 | |||||||||
Time Warner | 13,370 | 873 | |||||||||
TJX | 14,700 | 892 | |||||||||
Twenty-First Century Fox | 16,320 | 522 | |||||||||
Under Armour, Cl A | 4,540 | 520 | |||||||||
Volkswagen, Preferred Shares | 1,670 | 433 | |||||||||
Wyndham Worldwide | 8,960 | 656 | |||||||||
Total Consumer discretionary | 15,967 | ||||||||||
Consumer staples—2.8% | |||||||||||
Clorox | 13,350 | 1,175 | |||||||||
ConAgra Foods | 17,530 | 544 | |||||||||
Costco Wholesale | 3,930 | 439 | |||||||||
General Mills | 14,610 | 757 | |||||||||
JM Smucker | 12,290 | 1,195 | |||||||||
McCormick | 7,450 | 534 | |||||||||
Procter & Gamble | 13,680 | 1,103 | |||||||||
Wal-Mart Stores | 15,750 | 1,204 | |||||||||
Total Consumer staples | 6,951 | ||||||||||
Energy—5.2% | |||||||||||
Apache | 16,470 | 1,366 | |||||||||
Chesapeake Energy | 41,550 | 1,065 | |||||||||
Continental Resources | 6,510 | 809 | |||||||||
Diamond Offshore Drilling | 18,370 | 896 | |||||||||
Dresser-Rand Group | 15,610 | 912 | |||||||||
Enbridge Energy Management LLC | 45,175 | 1,252 | |||||||||
Exxon Mobil | 16,340 | 1,595 | |||||||||
Shares | Value (000) | ||||||||||
Golar LNG | 20,450 | $ | 853 | ||||||||
Northern Oil & Gas | 42,950 | 628 | |||||||||
Southwestern Energy | 27,920 | 1,285 | |||||||||
Swift Energy | 74,620 | 803 | |||||||||
Ultra Petroleum | 61,260 | 1,646 | |||||||||
Total Energy | 13,110 | ||||||||||
Financials—7.2% | |||||||||||
Arch Capital Group | 13,800 | 794 | |||||||||
Assurant | 16,450 | 1,069 | |||||||||
B of I Holdings | 15,600 | 1,338 | |||||||||
Bank Pekao SA | 14,370 | 935 | |||||||||
Digital Realty Trust | 11,920 | 633 | |||||||||
Eaton Vance | 23,700 | 904 | |||||||||
Extra Space Storage | 23,200 | 1,125 | |||||||||
Financial Engine | 16,630 | 844 | |||||||||
Franklin Resources | 24,000 | 1,300 | |||||||||
Hancock Holding | 23,700 | 869 | |||||||||
Health Care REIT | 15,560 | 927 | |||||||||
Home Properties of NY | 14,390 | 865 | |||||||||
| Mid-America Apartment Communities | 16,950 | 1,157 | |||||||||
MSCI, Cl A | 32,880 | 1,414 | |||||||||
Renaissancere Holdings | 5,320 | 519 | |||||||||
Springleaf Holdings | 70,730 | 1,780 | |||||||||
The NASDAQ Omx Group | 22,950 | 848 | |||||||||
Zions Bancorp | 38,650 | 1,197 | |||||||||
Total Financials | 18,518 | ||||||||||
Health care—6.5% | |||||||||||
Agios Pharmaceuticals | 18,430 | 722 | |||||||||
Amgen | 6,394 | 789 | |||||||||
Arena Pharmaceuticals | 77,400 | 488 | |||||||||
Baxter International | 8,150 | 600 | |||||||||
Castlight Health, Cl B | 9,440 | 200 | |||||||||
Celgene | 7,370 | 1,029 | |||||||||
Celladon | 20,170 | 240 | |||||||||
Cynosure, Cl A | 12,490 | 366 | |||||||||
Dexcom | 13,940 | 577 | |||||||||
Dicerna Pharmaceuticals | 7,200 | 203 | |||||||||
Edwards Lifesciences | 6,350 | 471 | |||||||||
Endologix | 10,080 | 130 | |||||||||
Fate Therapeutics | 12,900 | 122 | |||||||||
Fluidigm | 10,710 | 472 | |||||||||
Foundation Medicine | 10,150 | 329 | |||||||||
TURNER FUNDS 2014 SEMIANNUAL REPORT 11
FINANCIAL STATEMENTS
Schedule of securities sold short
Turner Spectrum Fund
Shares | Value (000) | ||||||||||
Halozyme Therapeutics | 73,730 | $ | 936 | ||||||||
HMS Holdings | 31,260 | 596 | |||||||||
Hologic | 51,270 | 1,102 | |||||||||
Illumina | 1,490 | 222 | |||||||||
Incyte | 16,230 | 869 | |||||||||
Insys Therapeutics | 7,610 | 315 | |||||||||
Isis Pharmaceuticals | 11,270 | 487 | |||||||||
MacroGenics | 7,240 | 201 | |||||||||
Mallinckrodt | 15,730 | 997 | |||||||||
Mazor Robotics ADR | 15,720 | 321 | |||||||||
Merck KGaA | 3,330 | 561 | |||||||||
Nektar Therapeutics | 38,240 | 463 | |||||||||
Neogen | 3,750 | 169 | |||||||||
Organovo Holdings | 32,020 | 245 | |||||||||
Pacira Pharmaceuticals | 7,060 | 494 | |||||||||
Seattle Genetics | 6,480 | 295 | |||||||||
Sirona Dental Systems | 16,210 | 1,210 | |||||||||
Vocera Communications | 9,950 | 162 | |||||||||
Total Health care | 16,383 | ||||||||||
Industrials—5.2% | |||||||||||
Armstrong World Industries | 15,680 | 835 | |||||||||
Atlas Air Worldwide Holdings | 56,180 | 1,982 | |||||||||
C.H. Robinson Worldwide | 12,740 | 667 | |||||||||
Canadian National Railway | 17,350 | 975 | |||||||||
Con-way | 17,895 | 735 | |||||||||
CSX | 31,600 | 915 | |||||||||
Emerson Electric | 11,460 | 766 | |||||||||
Lindsay | 4,720 | 416 | |||||||||
Nordson | 8,000 | 564 | |||||||||
Norfolk Southern | 8,050 | 782 | |||||||||
Stericycle | 4,740 | 539 | |||||||||
Team | 15,800 | 677 | |||||||||
United Technologies | 3,700 | 432 | |||||||||
Valmont Industries | 5,180 | 771 | |||||||||
W.W. Grainger | 4,300 | 1,087 | |||||||||
Werner Enterprises | 41,612 | 1,062 | |||||||||
Total Industrials | 13,205 | ||||||||||
Information technology—3.4% | |||||||||||
Accenture PLC | 4,780 | 381 | |||||||||
Aruba Networks | 16,990 | 319 | |||||||||
Control4 | 11,612 | 246 | |||||||||
| Fairchild Semiconductor International | 27,500 | 379 | |||||||||
Shares | Value (000) | ||||||||||
Ingenico | 9,000 | $ | 842 | ||||||||
OpenTable | 7,150 | 550 | |||||||||
SanDisk | 7,300 | 593 | |||||||||
Tech Data | 6,110 | 372 | |||||||||
Teradata | 5,610 | 276 | |||||||||
Trimble Navigation | 17,120 | 665 | |||||||||
Vantive | 34,600 | 1,046 | |||||||||
VeriSign | 12,890 | 695 | |||||||||
Western Union | 102,690 | 1,680 | |||||||||
Wipro ADR | 40,070 | 537 | |||||||||
Total Information technology | 8,581 | ||||||||||
Materials—0.5% | |||||||||||
E.I. du Pont de Nemours | 4,950 | 332 | |||||||||
Quimica y Minera Chile ADR | 18,740 | 595 | |||||||||
Rio Tinto PLC ADR | 7,000 | 391 | |||||||||
Total Materials | 1,318 | ||||||||||
Utilities—0.7% | |||||||||||
AmeriGas Partners | 14,330 | 605 | |||||||||
Hong Kong & China Gas | 513,351 | 1,120 | |||||||||
Total Utilities | 1,725 | ||||||||||
| Total Common stock (Proceeds $95,863)* | 95,758 | ||||||||||
Exchange traded funds—16.9% | |||||||||||
| Consumer Staples Select Sector SPDR Fund | 18,450 | 794 | |||||||||
| First Trust Dow Jones Internet Index Fund | 14,890 | 879 | |||||||||
Health Care Select Sector SPDR | 47,690 | 2,789 | |||||||||
iShares Core S&P Small-Cap ETF | 48,310 | 5,321 | |||||||||
| iShares NASDAQ Biotechnology Index Fund | 13,661 | 3,230 | |||||||||
iShares Russell 1000 Growth ETF | 6,190 | 536 | |||||||||
| iShares Russell 2000 Growth Index Fund | 60,580 | 8,244 | |||||||||
iShares Russell 2000 Index Fund | 42,730 | 4,971 | |||||||||
iShares Transporation Average ETF | 6,470 | 876 | |||||||||
| iShares U.S. Home Construction ETF | 56,140 | 1,360 | |||||||||
Market Vectors Biotech ETF | 21,532 | 1,959 | |||||||||
Market Vectors Oil Service ETF | 25,000 | 1,258 | |||||||||
Market Vectors Pharmaceutical ETF | 34,050 | 1,987 | |||||||||
12 TURNER FUNDS 2014 SEMIANNUAL REPORT
(Unaudited)
Schedule of securities sold short
Turner Spectrum Fund
Shares | Value (000) | ||||||||||
SPDR S&P 500 ETF Trust | 18,460 | $ | 3,453 | ||||||||
SPDR S&P Biotech ETF | 26,160 | 3,727 | |||||||||
| VelocityShares Daily Inverse VIX Short-Term ETN | 37,010 | 1,170 | |||||||||
| Total Exchange traded funds (Proceeds $39,919)* | 42,554 | ||||||||||
| Total Securities sold short—54.7% (Proceeds $135,782)* | $ | 138,312 | |||||||||
Percentages disclosed are based on total net assets of the Fund at March 31, 2014.
* This number is listed in thousands.
ADR — American Depositary Receipt
Cl — Class
ETF — Exchange Traded Fund
ETN — Exchange Traded Note
SPDR — Standard & Poor's Depositary Receipt
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 13
FINANCIAL STATEMENTS
Schedule of investments
Turner Titan Fund
March 31, 2014
Shares | Value (000) | ||||||||||
Common stock—94.6%† | |||||||||||
Consumer discretionary—16.0% | |||||||||||
CBS, Cl B^ | 6,830 | $ | 422 | ||||||||
Home Depot^ | 5,430 | 430 | |||||||||
Kate Spade* | 7,660 | 284 | |||||||||
Michael Kors Holdings* | 3,820 | 356 | |||||||||
Ralph Lauren | 2,690 | 433 | |||||||||
| Starwood Hotels & Resorts Worldwide | 5,050 | 402 | |||||||||
TripAdvisor* | 8,660 | 784 | |||||||||
Walt Disney^ | 10,750 | 860 | |||||||||
Wynn Resorts | 2,600 | 578 | |||||||||
Total Consumer discretionary | 4,549 | ||||||||||
Consumer staples—8.6% | |||||||||||
Constellation Brands* | 5,110 | 434 | |||||||||
CVS Caremark | 11,460 | 859 | |||||||||
Estee Lauder, Cl A | 7,210 | 482 | |||||||||
Hershey | 3,390 | 354 | |||||||||
Monster Beverage* | 4,540 | 315 | |||||||||
Total Consumer staples | 2,444 | ||||||||||
Energy—5.5% | |||||||||||
EOG Resources | 1,790 | 351 | |||||||||
Gulfport Energy* | 6,100 | 434 | |||||||||
Halliburton^ | 9,710 | 572 | |||||||||
Kodiak Oil & Gas* | 18,040 | 219 | |||||||||
Total Energy | 1,576 | ||||||||||
Financials—12.9% | |||||||||||
Affiliated Managers Group* | 1,860 | 372 | |||||||||
American Tower | 6,890 | 564 | |||||||||
Comerica | 5,700 | 295 | |||||||||
Discover Financial Services^ | 9,990 | 582 | |||||||||
IntercontinentalExchange Group^ | 1,440 | 285 | |||||||||
Morgan Stanley | 13,730 | 428 | |||||||||
PacWest Bancorp | 8,450 | 363 | |||||||||
Signature Bank* | 2,890 | 363 | |||||||||
T. Rowe Price Group | 5,200 | 428 | |||||||||
Total Financials | 3,680 | ||||||||||
Health care—12.7% | |||||||||||
Actavis* | 2,170 | 447 | |||||||||
Bristol-Myers Squibb | 7,890 | 410 | |||||||||
Shares | Value (000) | ||||||||||
Gilead Sciences*^ | 4,340 | $ | 308 | ||||||||
Johnson & Johnson | 5,090 | 500 | |||||||||
McKesson^ | 3,180 | 561 | |||||||||
Mylan* | 8,240 | 402 | |||||||||
Thermo Fisher Scientific | 4,780 | 575 | |||||||||
UnitedHealth Group, Cl B | 5,040 | 413 | |||||||||
Total Health care | 3,616 | ||||||||||
Industrials—9.4% | |||||||||||
Eaton PLC^ | 6,490 | 488 | |||||||||
Honeywell International | 4,850 | 450 | |||||||||
Landstar System | 6,480 | 384 | |||||||||
Rockwell Automation^ | 5,570 | 693 | |||||||||
Towers Watson, Cl A | 3,240 | 370 | |||||||||
Union Pacific | 1,530 | 287 | |||||||||
Total Industrials | 2,672 | ||||||||||
Information technology—28.4% | |||||||||||
A10 Networks* | 9,680 | 146 | |||||||||
Check Point Software Technologies* | 4,300 | 291 | |||||||||
| Cognizant Technology Solutions, Cl A* | 8,560 | 433 | |||||||||
EMC | 13,060 | 358 | |||||||||
Facebook, Cl A*^ | 11,020 | 664 | |||||||||
Google, Cl A*^ | 315 | 351 | |||||||||
Hewlett-Packard | 8,840 | 286 | |||||||||
LinkedIn, Cl A* | 3,650 | 675 | |||||||||
Microchip Technology^ | 20,120 | 960 | |||||||||
Qualcomm | 8,950 | 706 | |||||||||
Red Hat*^ | 7,050 | 374 | |||||||||
Salesforce.com*^ | 13,470 | 768 | |||||||||
ServiceNow* | 7,190 | 431 | |||||||||
TE Connectivity | 9,530 | 574 | |||||||||
Visa, Cl A^ | 2,005 | 433 | |||||||||
Western Digital | 4,230 | 388 | |||||||||
Xilinx | 5,380 | 292 | |||||||||
Total Information technology | 8,130 | ||||||||||
Materials—1.1% | |||||||||||
Methanex | 4,900 | 314 | |||||||||
Total Materials | 314 | ||||||||||
| Total Common stock (Cost $25,141)** | 26,981 | ||||||||||
14 TURNER FUNDS 2014 SEMIANNUAL REPORT
(Unaudited)
Schedule of investments
Turner Titan Fund
Shares | Value (000) | ||||||||||
Cash equivalent—2.6% | |||||||||||
| BlackRock Liquidity Funds TempCash Portfolio, Dollar Shares, 0.045%‡ | 729,615 | $ | 730 | ||||||||
| Total Cash equivalent (Cost $730)** | 730 | ||||||||||
| Total Investments—97.2% (Cost $25,871)** | 27,711 | ||||||||||
Segregated cash with brokers—54.3% | 15,471 | ||||||||||
| Securities sold short—(48.9)% (Proceeds $(13,760))** | (13,941 | ) | |||||||||
Net Other assets (liabilities)—(2.6)% | (740 | ) | |||||||||
Net Assets—100.0% | $ | 28,501 | |||||||||
* Non-income producing security.
** This number is listed in thousands.
^ All or a portion of the shares have been committed as collateral for open short positions.
† More narrow industries are utilized for compliance purposes, whereas broad sectors are utilized for reporting purposes.
‡ Rate shown is the 7-day effective yield as of March 31, 2014.
Cl — Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 15
FINANCIAL STATEMENTS
Schedule of securities sold short
Turner Titan Fund
March 31, 2014
Shares | Value (000) | ||||||||||
Common stock—37.6% | |||||||||||
Consumer discretionary—8.5% | |||||||||||
Bed Bath & Beyond | 3,520 | $ | 242 | ||||||||
Ctrip.com International SP ADR | 7,910 | 398 | |||||||||
Darden Restaurants | 4,240 | 215 | |||||||||
Ford Motor | 13,740 | 214 | |||||||||
Lowe's | 7,170 | 351 | |||||||||
Nordstrom | 4,620 | 289 | |||||||||
PetSmart | 5,210 | 359 | |||||||||
Time Warner | 5,450 | 356 | |||||||||
Total Consumer discretionary | 2,424 | ||||||||||
Consumer staples—5.0% | |||||||||||
Clorox | 4,250 | 374 | |||||||||
JM Smucker | 4,110 | 399 | |||||||||
McCormick | 4,970 | 357 | |||||||||
Procter & Gamble | 3,630 | 293 | |||||||||
Total Consumer staples | 1,423 | ||||||||||
Energy—1.6% | |||||||||||
Apache | 2,050 | 170 | |||||||||
Exxon Mobil | 2,940 | 287 | |||||||||
Total Energy | 457 | ||||||||||
Financials—6.5% | |||||||||||
Digital Realty Trust | 7,950 | 423 | |||||||||
Eaton Vance | 6,380 | 243 | |||||||||
Franklin Resources | 4,490 | 243 | |||||||||
Health Care REIT | 4,790 | 286 | |||||||||
MSCI, Cl A | 5,050 | 217 | |||||||||
Springleaf Holdings | 8,440 | 212 | |||||||||
Zions Bancorp | 7,010 | 217 | |||||||||
Total Financials | 1,841 | ||||||||||
Health care—1.3% | |||||||||||
Illumina | 1,000 | 149 | |||||||||
Sirona Dental Systems | 2,880 | 215 | |||||||||
Total Health care | 364 | ||||||||||
Industrials—5.2% | |||||||||||
Nordson | 5,330 | 376 | |||||||||
Stericycle | 3,120 | 354 | |||||||||
United Technologies | 2,470 | 289 | |||||||||
Valmont Industries | 1,460 | 217 | |||||||||
Shares | Value (000) | ||||||||||
Werner Enterprises | 9,600 | $ | 245 | ||||||||
Total Industrials | 1,481 | ||||||||||
Information technology—8.6% | |||||||||||
Aruba Networks | 11,330 | 212 | |||||||||
| Fairchild Semiconductor International | 18,160 | 250 | |||||||||
OpenTable | 4,770 | 367 | |||||||||
SanDisk | 4,870 | 395 | |||||||||
Tech Data | 4,080 | 249 | |||||||||
Teradata | 3,550 | 175 | |||||||||
VeriSign | 3,120 | 168 | |||||||||
Western Union | 17,780 | 291 | |||||||||
Wipro ADR | 26,420 | 354 | |||||||||
Total Information technology | 2,461 | ||||||||||
Materials—0.9% | |||||||||||
Rio Tinto PLC ADR | 4,670 | 261 | |||||||||
Total Materials | 261 | ||||||||||
| Total Common stock (Proceeds $10,529)* | 10,712 | ||||||||||
Exchange traded funds—11.3% | |||||||||||
iShares Russell 1000 Growth ETF | 4,130 | 357 | |||||||||
| iShares Russell 2000 Growth Index Fund | 10,600 | 1,443 | |||||||||
SPDR S&P 500 ETF Trust | 7,640 | 1,429 | |||||||||
| Total Exchange traded funds (Proceeds $3,231)* | 3,229 | ||||||||||
| Total Securities sold short—48.9% (Proceeds $13,760)* | $ | 13,941 | |||||||||
Percentages disclosed are based on total net assets of the Fund at March 31, 2014.
* This number is listed in thousands.
ADR — American Depositary Receipt
Cl — Class
ETF — Exchange Traded Fund
SPDR — Standard & Poor's Depositary Receipt
The accompanying notes are an integral part of the financial statements.
16 TURNER FUNDS 2014 SEMIANNUAL REPORT
(Unaudited)
Schedule of investments
Turner All Cap Growth Fund
March 31, 2014
Shares | Value (000) | ||||||||||
Common stock—98.3%† | |||||||||||
Consumer discretionary—15.4% | |||||||||||
Dunkin' Brands Group | 6,930 | $ | 348 | ||||||||
HomeAway* | 12,800 | 482 | |||||||||
Kate Spade* | 12,380 | 459 | |||||||||
MGM Resorts International* | 11,040 | 285 | |||||||||
Michael Kors Holdings* | 3,000 | 280 | |||||||||
Ralph Lauren | 1,790 | 288 | |||||||||
Wynn Resorts | 3,260 | 725 | |||||||||
Total Consumer discretionary | 2,867 | ||||||||||
Energy—1.5% | |||||||||||
Schlumberger | 2,820 | 275 | |||||||||
Total Energy | 275 | ||||||||||
Financials—13.3% | |||||||||||
Affiliated Managers Group* | 2,730 | 546 | |||||||||
AON | 6,860 | 578 | |||||||||
Atlas Mara Co-Nvest* | 65,000 | 742 | |||||||||
IntercontinentalExchange Group | 3,090 | 611 | |||||||||
Total Financials | 2,477 | ||||||||||
Health care—17.0% | |||||||||||
Alexion Pharmaceuticals* | 2,710 | 412 | |||||||||
Biogen Idec* | 1,080 | 330 | |||||||||
Cubist Pharmaceuticals* | 3,870 | 283 | |||||||||
Endo International* | 4,040 | 277 | |||||||||
NPS Pharmaceuticals* | 19,000 | 569 | |||||||||
Regeneron Pharmaceuticals* | 1,900 | 570 | |||||||||
Roche Holding AG ADR | 13,210 | 498 | |||||||||
Veeva Systems, Cl A* | 8,000 | 214 | |||||||||
Total Health care | 3,153 | ||||||||||
Industrials—4.6% | |||||||||||
Louis XIII Holdings* | 515,000 | 564 | |||||||||
Roper Industries | 2,180 | 291 | |||||||||
Total Industrials | 855 | ||||||||||
Information technology—44.3% | |||||||||||
Apple | 1,110 | 596 | |||||||||
Applied Micro Circuits* | 50,250 | 497 | |||||||||
Avago Technologies | 16,940 | 1,090 | |||||||||
Cavium* | 18,270 | 799 | |||||||||
Google, Cl A* | 530 | 591 | |||||||||
LinkedIn, Cl A* | 3,370 | 623 | |||||||||
Shares | Value (000) | ||||||||||
Monolithic Power Systems* | 16,070 | $ | 623 | ||||||||
NVIDIA | 23,500 | 421 | |||||||||
NXP Semiconductors* | 16,210 | 953 | |||||||||
ServiceNow* | 6,460 | 387 | |||||||||
Splunk* | 3,660 | 262 | |||||||||
Tableau Software, Cl A* | 1,880 | 143 | |||||||||
Visa, Cl A | 2,760 | 596 | |||||||||
Workday, Cl A* | 2,820 | 258 | |||||||||
Yelp* | 4,600 | 354 | |||||||||
Total Information technology | 8,193 | ||||||||||
Materials—2.2% | |||||||||||
Methanex | 6,500 | 416 | |||||||||
Total Materials | 416 | ||||||||||
| Total Common stock (Cost $13,954)** | 18,236 | ||||||||||
Warrant—0.5% | |||||||||||
Financials—0.5% | |||||||||||
Atlas Mara Co-Nvest* | 65,000 | 98 | |||||||||
Total Financials | 98 | ||||||||||
| Total Warrant (Cost $12)** | 98 | ||||||||||
Cash equivalent—2.2% | |||||||||||
| BlackRock Liquidity Funds TempCash Portfolio, Dollar Shares, 0.045%‡ | 406,907 | 407 | |||||||||
| Total Cash equivalent (Cost $407)** | 407 | ||||||||||
| Total Investments—101.0% (Cost $14,373)** | 18,741 | ||||||||||
Net Other assets (liabilities)—(1.0)% | (184 | ) | |||||||||
Net Assets—100.0% | $ | 18,557 | |||||||||
* Non-income producing security.
** This number is listed in thousands.
† More narrow industries are utilized for compliance purposes, whereas broad sectors are utilized for reporting purposes.
‡ Rate shown is the 7-day effective yield as of March 31, 2014.
ADR — American Depositary Receipt
Cl — Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 17
FINANCIAL STATEMENTS
Schedule of investments
Turner Emerging Growth Fund
March 31, 2014
Shares | Value (000) | ||||||||||
Common stock—88.6%† | |||||||||||
Consumer discretionary—19.0% | |||||||||||
| American Axle & Manufacturing Holdings* | 48,110 | $ | 891 | ||||||||
Ann* | 105,540 | 4,377 | |||||||||
Asbury Automotive Group* | 15,849 | 877 | |||||||||
Boyd Gaming* | 100,900 | 1,332 | |||||||||
Buffalo Wild Wings* | 30,170 | 4,491 | |||||||||
Cracker Barrel Old Country Store | 48,030 | 4,669 | |||||||||
Dorman Products*^ | 47,660 | 2,815 | |||||||||
E.W. Scripps* | 78,870 | 1,398 | |||||||||
| E-Commerce China Dangdang, Cl A ADR*^ | 59,280 | 851 | |||||||||
Fox Factory Holding*^ | 109,570 | 2,071 | |||||||||
Gray Television* | 41,530 | 431 | |||||||||
Krispy Kreme Doughnuts* | 55,607 | 986 | |||||||||
Lifelock* | 153,700 | 2,630 | |||||||||
Lithia Motors, Cl A | 25,771 | 1,713 | |||||||||
Meritage Homes* | 6,440 | 270 | |||||||||
Multimedia Games Holdings* | 95,821 | 2,783 | |||||||||
Nexstar Broadcasting Group | 45,270 | 1,699 | |||||||||
Oxford Industries | 38,703 | 3,027 | |||||||||
Red Robin Gourmet Burgers* | 51,710 | 3,707 | |||||||||
Rentrak* | 20,100 | 1,212 | |||||||||
Shutterfly* | 47,040 | 2,008 | |||||||||
Vitamin Shoppe* | 97,719 | 4,643 | |||||||||
Total Consumer discretionary | 48,881 | ||||||||||
Consumer staples—4.6% | |||||||||||
B&G Foods, Cl A | 65,250 | 1,965 | |||||||||
Boston Beer, Cl A*^ | 12,220 | 2,991 | |||||||||
| Natural Grocers By Vitamin Cottage* | 13,920 | 608 | |||||||||
Susser Holdings*^ | 29,664 | 1,853 | |||||||||
TreeHouse Foods* | 10,947 | 788 | |||||||||
United Natural Foods* | 51,108 | 3,624 | |||||||||
Total Consumer staples | 11,829 | ||||||||||
Energy—4.5% | |||||||||||
Bonanza Creek Energy* | 37,120 | 1,648 | |||||||||
Callon Petroleum* | 104,470 | 874 | |||||||||
Diamondback Energy* | 36,495 | 2,456 | |||||||||
Kodiak Oil & Gas* | 136,740 | 1,660 | |||||||||
PDC Energy* | 34,820 | 2,168 | |||||||||
Shares | Value (000) | ||||||||||
Rex Energy* | 151,460 | $ | 2,835 | ||||||||
Total Energy | 11,641 | ||||||||||
Financials—2.1% | |||||||||||
Hanmi Financial | 78,830 | 1,837 | |||||||||
Independent Bank* | 99,760 | 1,295 | |||||||||
Umpqua Holdings^ | 116,260 | 2,167 | |||||||||
Total Financials | 5,299 | ||||||||||
Health care—16.2% | |||||||||||
Acadia Healthcare* | 63,510 | 2,866 | |||||||||
Air Methods* | 43,310 | 2,314 | |||||||||
Akorn* | 169,410 | 3,727 | |||||||||
ANI Pharmaceuticals* | 22,900 | 718 | |||||||||
Arrowhead Research*^ | 31,890 | 524 | |||||||||
Atricure* | 50,780 | 955 | |||||||||
| Biodelivery Sciences International*^ | 199,690 | 1,685 | |||||||||
Cardiovascular Systems* | 34,220 | 1,088 | |||||||||
Cyberonics* | 69,514 | 4,535 | |||||||||
DepoMed* | 90,040 | 1,306 | |||||||||
Enanta Pharmaceuticals* | 71,860 | 2,874 | |||||||||
Furiex Pharmaceuticals* | 20,360 | 1,771 | |||||||||
GW Pharmaceuticals ADR* | 15,830 | 940 | |||||||||
Horizon Pharma* | 103,140 | 1,559 | |||||||||
Ironwood Pharmaceuticals* | 103,520 | 1,275 | |||||||||
Keryx Biopharmaceuticals*^ | 37,710 | 643 | |||||||||
Natus Medical* | 86,562 | 2,233 | |||||||||
Neurocrine Biosciences* | 71,990 | 1,159 | |||||||||
NPS Pharmaceuticals* | 86,910 | 2,601 | |||||||||
PAREXEL International* | 60,804 | 3,289 | |||||||||
Receptos* | 58,890 | 2,470 | |||||||||
Sarepta Therapeutics*^ | 46,470 | 1,117 | |||||||||
Total Health care | 41,649 | ||||||||||
Industrials—14.4% | |||||||||||
American Railcar Industries | 8,280 | 580 | |||||||||
Chart Industries* | 29,138 | 2,318 | |||||||||
CIRCOR International | 12,500 | 917 | |||||||||
EnPro Industries* | 28,940 | 2,103 | |||||||||
Genesee & Wyoming, Cl A* | 27,620 | 2,688 | |||||||||
Huron Consulting Group* | 131,851 | 8,357 | |||||||||
Middleby* | 33,673 | 8,896 | |||||||||
On Assignment* | 122,930 | 4,744 | |||||||||
PGT* | 117,820 | 1,356 | |||||||||
18 TURNER FUNDS 2014 SEMIANNUAL REPORT
(Unaudited)
Schedule of investments
Turner Emerging Growth Fund
Shares | Value (000) | ||||||||||
Primoris Services | 63,340 | $ | 1,899 | ||||||||
| Roadrunner Transportation System* | 35,505 | 896 | |||||||||
WageWorks* | 39,110 | 2,194 | |||||||||
Total Industrials | 36,948 | ||||||||||
Information technology—26.1% | |||||||||||
Ambarella*^ | 120,901 | 3,229 | |||||||||
Applied Optoelectronics* | 88,560 | 2,185 | |||||||||
Autobytel* | 12,290 | 153 | |||||||||
Bottomline Technologies* | 78,422 | 2,757 | |||||||||
CalAmp* | 74,530 | 2,077 | |||||||||
Callidus Software* | 222,662 | 2,788 | |||||||||
Canadian Solar*^ | 52,960 | 1,697 | |||||||||
Cardtronics* | 99,389 | 3,861 | |||||||||
Channeladvisor* | 31,780 | 1,199 | |||||||||
Coherent* | 35,294 | 2,306 | |||||||||
Diodes* | 59,970 | 1,566 | |||||||||
Electronics for Imaging* | 141,660 | 6,135 | |||||||||
Heartland Payment Systems^ | 15,220 | 631 | |||||||||
Immersion* | 33,290 | 351 | |||||||||
Imperva* | 49,730 | 2,770 | |||||||||
Interactive Intelligence Group* | 28,800 | 2,088 | |||||||||
Intralinks Holdings* | 87,280 | 893 | |||||||||
Manhattan Associates* | 181,070 | 6,342 | |||||||||
Methode Electronics | 65,230 | 2,000 | |||||||||
Monolithic Power Systems* | 69,900 | 2,710 | |||||||||
Monotype Imaging Holdings | 62,330 | 1,879 | |||||||||
Proofpoint* | 70,320 | 2,607 | |||||||||
QIWI ADR | 24,887 | 862 | |||||||||
SPS Commerce* | 15,940 | 980 | |||||||||
Stamps.com* | 40,760 | 1,368 | |||||||||
SunPower*^ | 106,900 | 3,449 | |||||||||
Trulia*^ | 78,410 | 2,603 | |||||||||
Tyler Technologies* | 40,630 | 3,400 | |||||||||
Virtusa* | 58,420 | 1,958 | |||||||||
Total Information technology | 66,844 | ||||||||||
Materials—1.4% | |||||||||||
KapStone Paper & Packaging* | 127,140 | 3,667 | |||||||||
Total Materials | 3,667 | ||||||||||
Shares | Value (000) | ||||||||||
Utilities—0.3% | |||||||||||
Artesian Resources, Cl A | 36,475 | $ | 819 | ||||||||
Total Utilities | 819 | ||||||||||
| Total Common stock (Cost $141,356)** | 227,577 | ||||||||||
Cash equivalent—16.7% | |||||||||||
| BlackRock Liquidity Funds TempCash Portfolio, Dollar Shares, 0.045%‡ (1) | 43,030,727 | 43,031 | |||||||||
| Total Cash equivalent (Cost $43,031)** | 43,031 | ||||||||||
| Total Investments—105.3% (Cost $184,387)** | 270,608 | ||||||||||
Net Other assets (liabilities)—(5.3)% | (13,610 | ) | |||||||||
Net Assets—100.0% | $ | 256,998 | |||||||||
�� * Non-income producing security.
** This number is listed in thousands.
(1) A portion of the Fund's position in this security was purchased with cash collateral received from securities lending. The total value of such security at March 31, 2014 was $20,959**.
^ Security fully or partially on loan at March 31, 2014. The total value of securities on loan at March 31, 2014 was $20,856**. Certain of these securities may have been sold prior to period end and are included in receivable for investment securities sold on the Statement of assets and liabilities.
† More narrow industries are utilized for compliance purposes, whereas broad sectors are utilized for reporting purposes.
‡ Rate shown is the 7-day effective yield as of March 31, 2014.
ADR — American Depositary Receipt
Cl — Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 19
FINANCIAL STATEMENTS
Schedule of investments
Turner Large Growth Fund
March 31, 2014
Shares | Value (000) | ||||||||||
Common stock—98.3%† | |||||||||||
Consumer discretionary—22.6% | |||||||||||
Amazon.com* | 3,400 | $ | 1,145 | ||||||||
Chipotle Mexican Grill* | 1,020 | 579 | |||||||||
Comcast, Cl A | 17,030 | 852 | |||||||||
General Motors | 16,760 | 577 | |||||||||
Hilton Worldwide Holdings* | 20,020 | 445 | |||||||||
Home Depot | 11,080 | 877 | |||||||||
Las Vegas Sands | 9,550 | 771 | |||||||||
Liberty Global, Cl C* | 13,250 | 539 | |||||||||
Liberty Global, Cl A*^ | 13,250 | 551 | |||||||||
Michael Kors Holdings* | 6,620 | 617 | |||||||||
Nike, Cl B | 7,220 | 533 | |||||||||
Priceline.com* | 500 | 596 | |||||||||
Starbucks | 10,590 | 777 | |||||||||
Walt Disney | 11,890 | 953 | |||||||||
Total Consumer discretionary | 9,812 | ||||||||||
Consumer staples—5.4% | |||||||||||
Colgate-Palmolive | 16,920 | 1,098 | |||||||||
Estee Lauder, Cl A | 7,560 | 506 | |||||||||
Monster Beverage* | 6,450 | 448 | |||||||||
Whole Foods Market | 6,278 | 318 | |||||||||
Total Consumer staples | 2,370 | ||||||||||
Energy—4.9% | |||||||||||
Concho Resources* | 5,758 | 705 | |||||||||
Halliburton | 12,230 | 720 | |||||||||
Schlumberger | 7,450 | 727 | |||||||||
Total Energy | 2,152 | ||||||||||
Financials—5.7% | |||||||||||
Affiliated Managers Group* | 3,170 | 634 | |||||||||
AON | 7,870 | 663 | |||||||||
IntercontinentalExchange Group | 3,830 | 758 | |||||||||
Morgan Stanley | 14,330 | 447 | |||||||||
Total Financials | 2,502 | ||||||||||
Health care—11.2% | |||||||||||
Biogen Idec* | 3,400 | 1,040 | |||||||||
Bristol-Myers Squibb | 16,070 | 835 | |||||||||
Cerner* | 9,740 | 548 | |||||||||
Gilead Sciences* | 11,910 | 844 | |||||||||
McKesson | 5,240 | 925 | |||||||||
Shares | Value (000) | ||||||||||
Mylan* | 8,550 | $ | 417 | ||||||||
Pharmacyclics* | 2,670 | 268 | |||||||||
Total Health care | 4,877 | ||||||||||
Industrials—13.4% | |||||||||||
AMETEK | 17,380 | 895 | |||||||||
Canadian Pacific Railway | 5,360 | 806 | |||||||||
Eaton PLC | 6,770 | 509 | |||||||||
Honeywell International | 10,180 | 945 | |||||||||
Kirby* | 5,070 | 513 | |||||||||
Pentair | 10,580 | 839 | |||||||||
Precision Castparts | 2,860 | 723 | |||||||||
Rockwell Automation | 4,880 | 608 | |||||||||
Total Industrials | 5,838 | ||||||||||
Information technology—31.9% | |||||||||||
Amphenol | 5,530 | 507 | |||||||||
Apple | 3,080 | 1,653 | |||||||||
Cavium* | 11,160 | 488 | |||||||||
Ciena* | 14,770 | 336 | |||||||||
Facebook, Cl A* | 19,680 | 1,186 | |||||||||
Google, Cl A* | 1,925 | 2,144 | |||||||||
LinkedIn, Cl A* | 3,170 | 586 | |||||||||
Microchip Technology | 13,900 | 664 | |||||||||
NXP Semiconductors* | 19,200 | 1,129 | |||||||||
Red Hat* | 6,960 | 369 | |||||||||
Salesforce.com* | 15,020 | 857 | |||||||||
ServiceNow* | 9,170 | 549 | |||||||||
Splunk* | 7,020 | 502 | |||||||||
Stratasys*^ | 6,150 | 652 | |||||||||
Tableau Software, Cl A* | 6,620 | 504 | |||||||||
Visa, Cl A | 6,110 | 1,319 | |||||||||
Workday, Cl A* | 4,460 | 408 | |||||||||
Total Information technology | 13,853 | ||||||||||
Materials—3.2% | |||||||||||
Methanex | 6,700 | 428 | |||||||||
Monsanto | 8,365 | 951 | |||||||||
Total Materials | 1,379 | ||||||||||
| Total Common stock (Cost $34,871)** | 42,783 | ||||||||||
20 TURNER FUNDS 2014 SEMIANNUAL REPORT
(Unaudited)
Schedule of investments
Turner Large Growth Fund
Shares | Value (000) | ||||||||||
Cash equivalent—4.8% | |||||||||||
| BlackRock Liquidity Funds TempCash Portfolio, Dollar Shares, 0.045%‡ (1) | 2,106,576 | $ | 2,107 | ||||||||
| Total Cash equivalent (Cost $2,107)** | 2,107 | ||||||||||
| Total Investments—103.1% (Cost $36,978)** | 44,890 | ||||||||||
Net Other assets (liabilities)—(3.1)% | (1,333 | ) | |||||||||
Net Assets—100.0% | $ | 43,557 | |||||||||
* Non-income producing security.
** This number is listed in thousands.
(1) A portion of the Fund's position in this security was purchased with cash collateral received from securities lending. The total value of such security at March 31, 2014 was $1,184**.
^ Security fully or partially on loan at March 31, 2014. The total value of securities on loan at March 31, 2014 was $1,175**. Certain of these securities may have been sold prior to period end and are included in receivable for investment securities sold on the Statement of assets and liabilities.
† More narrow industries are utilized for compliance purposes, whereas broad sectors are utilized for reporting purposes.
‡ Rate shown is the 7-day effective yield as of March 31, 2014.
ADR — American Depositary Receipt
Cl — Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 21
FINANCIAL STATEMENTS
Schedule of investments
Turner Midcap Growth Fund
March 31, 2014
Shares | Value (000) | ||||||||||
Common stock—97.6% | |||||||||||
Consumer discretionary—23.0% | |||||||||||
BorgWarner | 120,010 | $ | 7,378 | ||||||||
Dunkin' Brands Group | 120,850 | 6,064 | |||||||||
Fossil* | 24,260 | 2,829 | |||||||||
Harley-Davidson | 76,620 | 5,104 | |||||||||
HomeAway* | 148,150 | 5,581 | |||||||||
Kate Spade* | 194,330 | 7,208 | |||||||||
Liberty Global, Cl C* | 67,350 | 2,742 | |||||||||
Liberty Global, Cl A*^ | 67,350 | 2,802 | |||||||||
MGM Resorts International* | 131,930 | 3,412 | |||||||||
Michael Kors Holdings* | 58,070 | 5,416 | |||||||||
Netflix* | 14,000 | 4,928 | |||||||||
Polaris Industries | 35,240 | 4,923 | |||||||||
PVH | 50,160 | 6,258 | |||||||||
Ralph Lauren | 37,280 | 5,999 | |||||||||
| Starwood Hotels & Resorts Worldwide | 83,480 | 6,645 | |||||||||
Toll Brothers* | 94,150 | 3,380 | |||||||||
Tractor Supply | 38,370 | 2,710 | |||||||||
TripAdvisor* | 73,140 | 6,626 | |||||||||
Wynn Resorts | 32,225 | 7,159 | |||||||||
Total Consumer discretionary | 97,164 | ||||||||||
Consumer staples—7.2% | |||||||||||
Church & Dwight | 47,880 | 3,307 | |||||||||
Hershey | 93,120 | 9,722 | |||||||||
Kroger | 111,140 | 4,851 | |||||||||
WhiteWave Foods, Cl A* | 195,340 | 5,575 | |||||||||
Whole Foods Market | 133,500 | 6,770 | |||||||||
Total Consumer staples | 30,225 | ||||||||||
Energy—3.8% | |||||||||||
Cabot Oil & Gas | 139,750 | 4,735 | |||||||||
Concho Resources* | 43,768 | 5,362 | |||||||||
Gulfport Energy* | 82,780 | 5,892 | |||||||||
Total Energy | 15,989 | ||||||||||
Financials—8.1% | |||||||||||
Affiliated Managers Group* | 38,910 | 7,784 | |||||||||
AON | 79,200 | 6,675 | |||||||||
IntercontinentalExchange Group | 40,010 | 7,915 | |||||||||
Ocwen Financial* | 82,110 | 3,217 | |||||||||
PacWest Bancorp^ | 66,510 | 2,861 | |||||||||
Shares | Value (000) | ||||||||||
Signature Bank* | 43,810 | $ | 5,502 | ||||||||
Total Financials | 33,954 | ||||||||||
Health care—17.3% | |||||||||||
Actavis* | 42,000 | 8,645 | |||||||||
Alexion Pharmaceuticals* | 49,324 | 7,504 | |||||||||
AmerisourceBergen, Cl A | 87,470 | 5,737 | |||||||||
Cerner* | 104,910 | 5,901 | |||||||||
Cooper | 38,290 | 5,260 | |||||||||
Covance* | 33,410 | 3,471 | |||||||||
Cubist Pharmaceuticals* | 92,830 | 6,791 | |||||||||
Endo International* | 69,410 | 4,765 | |||||||||
HCA Holdings* | 97,420 | 5,115 | |||||||||
Mylan* | 83,400 | 4,072 | |||||||||
NPS Pharmaceuticals* | 102,120 | 3,056 | |||||||||
Perrigo | 26,560 | 4,108 | |||||||||
Regeneron Pharmaceuticals* | 14,850 | 4,459 | |||||||||
Veeva Systems, Cl A* | 148,115 | 3,955 | |||||||||
Total Health care | 72,839 | ||||||||||
Industrials—8.8% | |||||||||||
Delta Air Lines | 242,700 | 8,409 | |||||||||
Genesee & Wyoming, Cl A* | 38,800 | 3,776 | |||||||||
MasTec* | 82,980 | 3,605 | |||||||||
Pentair | 47,150 | 3,741 | |||||||||
Rockwell Automation | 52,180 | 6,499 | |||||||||
Roper Industries | 55,590 | 7,422 | |||||||||
United Rentals* | 37,700 | 3,579 | |||||||||
Total Industrials | 37,031 | ||||||||||
Information technology—22.7% | |||||||||||
Alliance Data Systems* | 32,820 | 8,942 | |||||||||
Avago Technologies | 159,620 | 10,281 | |||||||||
Cardtronics* | 108,210 | 4,204 | |||||||||
Cavium* | 144,979 | 6,340 | |||||||||
Ciena* | 156,070 | 3,549 | |||||||||
Cornerstone OnDemand* | 117,200 | 5,610 | |||||||||
KLA-Tencor | 81,680 | 5,647 | |||||||||
LinkedIn, Cl A* | 43,060 | 7,964 | |||||||||
NXP Semiconductors* | 163,860 | 9,637 | |||||||||
ServiceNow* | 107,040 | 6,414 | |||||||||
Splunk* | 51,860 | 3,707 | |||||||||
Tableau Software, Cl A* | 56,430 | 4,293 | |||||||||
Teradyne* | 292,590 | 5,820 | |||||||||
Workday, Cl A* | 50,882 | 4,652 | |||||||||
22 TURNER FUNDS 2014 SEMIANNUAL REPORT
(Unaudited)
Schedule of investments
Turner Midcap Growth Fund
Shares | Value (000) | ||||||||||
Xilinx | 98,840 | $ | 5,364 | ||||||||
Yelp* | 43,210 | 3,324 | |||||||||
Total Information technology | 95,748 | ||||||||||
Materials—5.7% | |||||||||||
Eastman Chemical | 46,030 | 3,968 | |||||||||
International Flavors & Fragrances | 54,920 | 5,254 | |||||||||
Methanex | 98,880 | 6,322 | |||||||||
PPG Industries | 21,590 | 4,177 | |||||||||
Rock-Tenn, Cl A | 39,270 | 4,146 | |||||||||
Total Materials | 23,867 | ||||||||||
Telecommunication services—1.0% | |||||||||||
SBA Communications, Cl A* | 48,530 | 4,414 | |||||||||
Total Telecommunication services | 4,414 | ||||||||||
| Total Common stock (Cost $309,128)** | 411,231 | ||||||||||
Cash equivalent—3.7% | |||||||||||
| BlackRock Liquidity Funds TempCash Portfolio, Dollar Shares, 0.045%‡ (1) | 15,734,451 | 15,734 | |||||||||
| Total Cash equivalent (Cost $15,734)** | 15,734 | ||||||||||
| Total Investments—101.3% (Cost $324,862)** | 426,965 | ||||||||||
Net Other assets (liabilities)—(1.3)% | (5,600 | ) | |||||||||
Net Assets—100.0% | $ | 421,365 | |||||||||
* Non-income producing security.
** This number is listed in thousands.
(1) A portion of the Fund's position in this security was purchased with cash collateral received from securities lending. The total value of such security at March 31, 2014 was $5,676**.
^ Security fully or partially on loan at March 31, 2014. The total value of securities on loan at March 31, 2014 was $5,660**. Certain of these securities may have been sold prior to period end and are included in receivable for investment securities sold on the Statement of assets and liabilities.
‡ Rate shown is the 7-day effective yield as of March 31, 2014.
Cl — Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 23
FINANCIAL STATEMENTS
Schedule of investments
Turner Small Cap Growth Fund
March 31, 2014
Shares | Value (000) | ||||||||||
Common stock—98.8%† | |||||||||||
Consumer discretionary—16.1% | |||||||||||
Ann* | 76,368 | $ | 3,169 | ||||||||
Brunswick | 38,800 | 1,757 | |||||||||
Burlington Stores* | 6,030 | 178 | |||||||||
Chuy's Holdings* | 62,690 | 2,704 | |||||||||
del Frisco's Restaurant Group* | 57,400 | 1,601 | |||||||||
Five Below*^ | 54,820 | 2,329 | |||||||||
G-III Apparel Group* | 4,510 | 323 | |||||||||
HomeAway* | 57,410 | 2,163 | |||||||||
Imax*^ | 80,170 | 2,191 | |||||||||
Kate Spade* | 73,910 | 2,741 | |||||||||
Lifelock* | 94,020 | 1,609 | |||||||||
Multimedia Games Holdings* | 69,060 | 2,006 | |||||||||
Restoration Hardware Holdings* | 25,210 | 1,855 | |||||||||
Skechers U.S.A., Cl A* | 6,220 | 227 | |||||||||
Sotheby's | 48,474 | 2,111 | |||||||||
Tenneco* | 51,930 | 3,016 | |||||||||
Vail Resorts | 31,740 | 2,212 | |||||||||
Vitamin Shoppe* | 41,950 | 1,993 | |||||||||
Total Consumer discretionary | 34,185 | ||||||||||
Consumer staples—4.4% | |||||||||||
Boston Beer, Cl A* | 7,740 | 1,894 | |||||||||
| Natural Grocers By Vitamin Cottage* | 37,470 | 1,636 | |||||||||
Rite AID* | 324,710 | 2,036 | |||||||||
Susser Holdings* | 26,990 | 1,686 | |||||||||
United Natural Foods* | 30,123 | 2,136 | |||||||||
Total Consumer staples | 9,388 | ||||||||||
Energy—4.4% | |||||||||||
Kodiak Oil & Gas* | 254,100 | 3,084 | |||||||||
Penn-Virginia* | 135,900 | 2,377 | |||||||||
Rex Energy* | 119,720 | 2,240 | |||||||||
SemGroup, Cl A | 25,650 | 1,685 | |||||||||
Total Energy | 9,386 | ||||||||||
Financials—7.5% | |||||||||||
Bank of the Ozarks | 30,190 | 2,055 | |||||||||
eHealth* | 39,480 | 2,006 | |||||||||
Essent Group* | 96,580 | 2,169 | |||||||||
Evercore Partners | 28,550 | 1,577 | |||||||||
Infinity Property & Casualty | 15,830 | 1,071 | |||||||||
Kennedy-Wilson Holdings | 80,960 | 1,822 | |||||||||
Shares | Value (000) | ||||||||||
MarketAxess Holdings | 21,510 | $ | 1,274 | ||||||||
PacWest Bancorp^ | 49,410 | 2,125 | |||||||||
Wisdomtree Investments* | 148,630 | 1,950 | |||||||||
Total Financials | 16,049 | ||||||||||
Health care—19.8% | |||||||||||
Acadia Healthcare* | 47,530 | 2,145 | |||||||||
Air Methods* | 35,510 | 1,897 | |||||||||
Akorn* | 92,466 | 2,034 | |||||||||
Align Technology* | 57,360 | 2,970 | |||||||||
Bruker* | 82,570 | 1,882 | |||||||||
Cepheid*^ | 46,000 | 2,373 | |||||||||
Cubist Pharmaceuticals* | 34,490 | 2,523 | |||||||||
Cyberonics* | 39,100 | 2,551 | |||||||||
Impax Laboratories* | 83,270 | 2,200 | |||||||||
Insulet* | 52,360 | 2,483 | |||||||||
Ironwood Pharmaceuticals* | 201,540 | 2,483 | |||||||||
Neurocrine Biosciences* | 108,860 | 1,753 | |||||||||
NPS Pharmaceuticals* | 87,060 | 2,606 | |||||||||
PAREXEL International* | 44,490 | 2,406 | |||||||||
Puma Biotechnology* | 26,220 | 2,731 | |||||||||
Team Health Holdings* | 47,140 | 2,110 | |||||||||
Teleflex | 26,483 | 2,839 | |||||||||
West Pharmaceutical Services | 49,290 | 2,171 | |||||||||
Total Health care | 42,157 | ||||||||||
Industrials—16.0% | |||||||||||
Acuity Brands | 14,540 | 1,928 | |||||||||
Generac Holdings | 31,390 | 1,851 | |||||||||
H&e Equipment Services* | 5,630 | 228 | |||||||||
HEICO^ | 49,192 | 2,959 | |||||||||
Interface | 107,100 | 2,201 | |||||||||
MasTec* | 55,910 | 2,429 | |||||||||
Middleby* | 10,100 | 2,669 | |||||||||
On Assignment* | 81,850 | 3,158 | |||||||||
Proto Labs*^ | 31,040 | 2,100 | |||||||||
Saia* | 75,040 | 2,867 | |||||||||
Spirit Airlines* | 52,680 | 3,129 | |||||||||
Swift Transportation* | 94,330 | 2,335 | |||||||||
Thermon Group Holdings* | 53,845 | 1,248 | |||||||||
USG* | 39,720 | 1,300 | |||||||||
Watsco | 23,070 | 2,305 | |||||||||
Watts Water Technologies | 23,496 | 1,379 | |||||||||
Total Industrials | 34,086 | ||||||||||
24 TURNER FUNDS 2014 SEMIANNUAL REPORT
(Unaudited)
Schedule of investments
Turner Small Cap Growth Fund
Shares | Value (000) | ||||||||||
Information technology—26.7% | |||||||||||
A10 Networks* | 62,780 | $ | 944 | ||||||||
Applied Micro Circuits* | 187,590 | 1,857 | |||||||||
Aspen Technology* | 61,020 | 2,585 | |||||||||
Belden | 28,590 | 1,990 | |||||||||
Benefitfocus* | 17,980 | 845 | |||||||||
Bottomline Technologies* | 84,740 | 2,979 | |||||||||
CalAmp* | 93,600 | 2,609 | |||||||||
Cardtronics* | 39,320 | 1,528 | |||||||||
Cavium* | 63,670 | 2,784 | |||||||||
Ciena* | 118,860 | 2,703 | |||||||||
Cognex* | 68,800 | 2,330 | |||||||||
Constant Contact* | 74,090 | 1,812 | |||||||||
Cornerstone OnDemand* | 50,460 | 2,416 | |||||||||
DealerTrack Technologies* | 54,680 | 2,690 | |||||||||
Demandware* | 46,790 | 2,997 | |||||||||
Digimarc | 32,120 | 1,009 | |||||||||
Guidewire Software* | 56,200 | 2,757 | |||||||||
MAXIMUS | 47,800 | 2,144 | |||||||||
Monolithic Power Systems* | 85,380 | 3,309 | |||||||||
Proofpoint* | 83,880 | 3,110 | |||||||||
Sunedison* | 123,110 | 2,319 | |||||||||
Synaptics* | 48,950 | 2,938 | |||||||||
The Ultimate Software Group* | 16,570 | 2,270 | |||||||||
Yelp* | 19,340 | 1,488 | |||||||||
Zillow, Cl A*^ | 23,170 | 2,041 | |||||||||
Total Information technology | 56,454 | ||||||||||
Materials—3.9% | |||||||||||
Chemtura* | 83,270 | 2,106 | |||||||||
Graphic Packaging Holding* | 200,810 | 2,040 | |||||||||
Louisiana-Pacific* | 91,400 | 1,542 | |||||||||
PolyOne | 70,120 | 2,570 | |||||||||
Total Materials | 8,258 | ||||||||||
| Total Common stock (Cost $159,512)** | 209,963 | ||||||||||
Shares | Value (000) | ||||||||||
Cash equivalent—5.9% | |||||||||||
| BlackRock Liquidity Funds TempCash Portfolio, Dollar Shares, 0.045%‡ (1) | 12,553,404 | $ | 12,553 | ||||||||
| Total Cash equivalent (Cost $12,553)** | 12,553 | ||||||||||
| Total Investments—104.7% (Cost $172,065)** | 222,516 | ||||||||||
Net Other assets (liabilities)—(4.7)% | (9,924 | ) | |||||||||
Net Assets—100.0% | $ | 212,592 | |||||||||
* Non-income producing security.
** This number is listed in thousands.
(1) A portion of the Fund's position in this security was purchased with cash collateral received from securities lending. The total value of such security at March 31, 2014 was $11,586**.
^ Security fully or partially on loan at March 31, 2014. The total value of securities on loan at March 31, 2014 was $11,005**. Certain of these securities may have been sold prior to period end and are included in receivable for investment securities sold on the Statement of assets and liabilities.
† More narrow industries are utilized for compliance purposes, whereas broad sectors are utilized for reporting purposes.
‡ Rate shown is the 7-day effective yield as of March 31, 2014.
Cl — Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 25
FINANCIAL STATEMENTS
Schedule of investments
Turner Emerging Markets Fund
March 31, 2014
Shares | Value (000) | ||||||||||
Common stock—97.1%† | |||||||||||
Consumer discretionary—7.3% | |||||||||||
Grupo Sanborns | 2,320 | $ | 4 | ||||||||
Hyundai Motor | 40 | 9 | |||||||||
Hyundai Precision Industry | 30 | 9 | |||||||||
Naspers | 80 | 9 | |||||||||
Qunar Cayman Islands ADR | 150 | 5 | |||||||||
Tata Motors ADR | 180 | 6 | |||||||||
Total Consumer discretionary | 42 | ||||||||||
Consumer staples—8.3% | |||||||||||
Ambev ADR | 850 | 6 | |||||||||
Amorepacific | 4 | 5 | |||||||||
Arca Continental | 797 | 5 | |||||||||
Grupo Lala | 4,525 | 9 | |||||||||
HengAn International Group | 461 | 5 | |||||||||
ITC, Participatory Note | 1,050 | 6 | |||||||||
LG Household & Health Care | 3 | 1 | |||||||||
Magnit | 90 | 5 | |||||||||
Universal Robina | 1,950 | 6 | |||||||||
Total Consumer staples | 48 | ||||||||||
Energy—12.4% | |||||||||||
Afren | 2,190 | 5 | |||||||||
Caracal Energy* | 955 | 6 | |||||||||
China Oilfield Services | 1,700 | 4 | |||||||||
CNOOC | 3,170 | 5 | |||||||||
Cosan, Cl A | 490 | 6 | |||||||||
Eurasia Drilling, Registered Shares | 160 | 4 | |||||||||
Ezion Holdings | 3,232 | 6 | |||||||||
Hilong Holdings | 5,116 | 3 | |||||||||
Lekoil* | 2,970 | 3 | |||||||||
OAO Rosneft Oil | 1,150 | 7 | |||||||||
Ophir Energy* | 920 | 4 | |||||||||
Petroleo Brasileiro | 1,180 | 7 | |||||||||
Sapurakencana Petroleum* | 4,064 | 6 | |||||||||
| SK Innovation | 60 | 6 | |||||||||
Total Energy | 72 | ||||||||||
Financials—25.4% | |||||||||||
AIA Group | 1,647 | 8 | |||||||||
Atlas Mara Co-Nvest* | 500 | 6 | |||||||||
Banco do Brasil | 620 | 6 | |||||||||
Banco Santander-Chile ADR | 260 | 6 | |||||||||
BR Malls Participacoes | 470 | 4 | |||||||||
Shares | Value (000) | ||||||||||
CETIP | 675 | $ | 8 | ||||||||
CITIC Securities, H Shares | 3,128 | 7 | |||||||||
| Concentradora Fibra Hotelera Mexicana | 880 | 1 | |||||||||
Credicorp | 65 | 9 | |||||||||
Credito Real | 4,781 | 8 | |||||||||
CTBC Financial Holding | 10,020 | 6 | |||||||||
HDFC Bank ADR | 100 | 4 | |||||||||
| Industrial & Commercial Bank of China, H Shares | 25,970 | 16 | |||||||||
Kasikornbank | 1,390 | 8 | |||||||||
KWG Property Holding | 7,170 | 4 | |||||||||
Metro Pacific Investments | 44,233 | 5 | |||||||||
Metropolitan Bank & Trust | 3,099 | 5 | |||||||||
Ping An Insurance Group, H Shares | 590 | 5 | |||||||||
Qatar National Bank | 110 | 6 | |||||||||
Sberbank of Russia ADR | 530 | 5 | |||||||||
Shinhan Financial Group | 190 | 8 | |||||||||
Turkiye Garanti Bankasi | 1,200 | 4 | |||||||||
UEM Sunrise Berhad | 6,330 | 4 | |||||||||
Yes Bank, Participatory Note | 540 | 4 | |||||||||
Total Financials | 147 | ||||||||||
Health care—3.5% | |||||||||||
Aspen Pharmacare Holdings | 280 | 7 | |||||||||
| Glenmark Pharmaceuticals, Participatory Note | 840 | 8 | |||||||||
Kalbe Farma | 34,910 | 5 | |||||||||
Total Health care | 20 | ||||||||||
Industrials—8.5% | |||||||||||
| China Railway Construction, H Shares | 5,410 | 5 | |||||||||
CIMC Enric Holdings | 3,452 | 5 | |||||||||
Copa Holdings, Cl A | 30 | 4 | |||||||||
Gamuda | 1,879 | 3 | |||||||||
| Hyundai Engineering & Construction | 101 | 5 | |||||||||
Localiza Rent a Car | 530 | 7 | |||||||||
Louis XIII Holdings* | 2,411 | 3 | |||||||||
| Mills Estruturas e Servicos de Engenharia | 518 | 6 | |||||||||
MiX Telematics ADR | 420 | 5 | |||||||||
PT Jasa Marga Persero | 10,450 | 6 | |||||||||
Total Industrials | 49 | ||||||||||
26 TURNER FUNDS 2014 SEMIANNUAL REPORT
(Unaudited)
Schedule of investments
Turner Emerging Markets Fund
Shares | Value (000) | ||||||||||
Information technology—21.1% | |||||||||||
AAC Technologies Holdings | 1,610 | $ | 8 | ||||||||
Baidu SP ADR* | 25 | 4 | |||||||||
Epistar | 3,400 | 8 | |||||||||
| HCL Technologies, Participatory Note | 400 | 9 | |||||||||
Hon Hai Precision Industry | 1,907 | 5 | |||||||||
Largan Precision | 100 | 5 | |||||||||
Linx | 432 | 9 | |||||||||
MediaTek | 489 | 7 | |||||||||
Samsung Electronics | 21 | 27 | |||||||||
| SK Hynix* | 110 | 4 | |||||||||
Sonda | 2,250 | 5 | |||||||||
| Taiwan Semiconductor Manufacturing ADR | 990 | 20 | |||||||||
Tencent Holdings | 120 | 8 | |||||||||
Yandex* | 105 | 3 | |||||||||
Total Information technology | 122 | ||||||||||
Materials—6.7% | |||||||||||
African Rainbow Minerals | 200 | 4 | |||||||||
Cemex* | 7,120 | 10 | |||||||||
Formosa Chemicals & Fibre | 1,750 | 4 | |||||||||
Indocement Tunggal Prakarsa | 3,820 | 8 | |||||||||
LG Chem | 30 | 7 | |||||||||
Mondi | 365 | 6 | |||||||||
Total Materials | 39 | ||||||||||
Telecommunication services—2.9% | |||||||||||
Axiata Group | 2,018 | 4 | |||||||||
China Unicom (Hong Kong) | 3,770 | 5 | |||||||||
MTN Group | 380 | 8 | |||||||||
Total Telecommunication services | 17 | ||||||||||
Utilities—1.0% | |||||||||||
Power Grid, Participatory Note | 3,600 | 6 | |||||||||
Total Utilities | 6 | ||||||||||
| Total Common stock (Cost $522)** | 562 | ||||||||||
Shares | Value (000) | ||||||||||
Warrant—0.2% | |||||||||||
Financials—0.2% | |||||||||||
Atlas Mara Co-Nvest* | 500 | 1 | |||||||||
Total Financials | 1 | ||||||||||
| Total Warrant (Cost $—)** | 1 | ||||||||||
Cash equivalent—1.7% | |||||||||||
| BlackRock Liquidity Funds TempCash Portfolio, Dollar Shares, 0.045%‡ | 10,087 | 10 | |||||||||
| Total Cash equivalent (Cost $10)** | 10 | ||||||||||
| Total Investments—99.0% (Cost $532)** | 573 | ||||||||||
Net Other assets (liabilities)—1.0% | 6 | ||||||||||
Net Assets—100.0% | $ | 579 | |||||||||
* Non-income producing security.
** This number is listed in thousands.
† More narrow industries are utilized for compliance purposes, whereas broad sectors are utilized for reporting purposes.
‡ Rate shown is the 7-day effective yield as of March 31, 2014.
ADR — American Depositary Receipt
Cl — Class
Amounts designated as " — " have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 27
FINANCIAL STATEMENTS
Schedule of investments
Turner Emerging Markets Fund
Country Allocation as of 3/31/14†† | |||||||
Republic of Korea (South) | 14.3 | % | |||||
Taiwan, Province Of China | 9.8 | ||||||
Brazil | 9.8 | ||||||
China | 7.8 | ||||||
South Africa | 6.8 | ||||||
India | 6.5 | ||||||
Mexico | 6.3 | ||||||
Cayman Islands | 5.0 | ||||||
Hong Kong | 5.0 | ||||||
Russian Federation | 3.1 | ||||||
Indonesia | 3.1 | ||||||
Malaysia | 2.9 | ||||||
Philippines | 2.8 | ||||||
Bermuda | 2.5 | ||||||
Chile | 2.0 | ||||||
United States | 1.8 | ||||||
Netherlands | 1.6 | ||||||
United Kingdom | 1.5 | ||||||
Thailand | 1.3 | ||||||
Virgin Islands, British | 1.1 | ||||||
Canada | 1.0 | ||||||
Qatar | 1.0 | ||||||
Singapore | 1.0 | ||||||
Panama | 0.8 | ||||||
Turkey | 0.7 | ||||||
Nigeria | 0.5 | ||||||
Total | 100.0 | % | |||||
†† Country allocation based on country of incorporation. Percentages are based on total investments.
28 TURNER FUNDS 2014 SEMIANNUAL REPORT
SECTOR WEIGHTINGS (Unaudited)
The following tables show the fund composition allocated by sector. The fund composition is subject to change, and the percentages are based on total investments.
TURNER FUNDS 2014 SEMIANNUAL REPORT 29
SECTOR WEIGHTINGS (Unaudited)
1 Cash equivalent includes short-term investment held as collateral for securities lending activity. Please see Note 8 in the Notes to financial statements for more detailed information.
30 TURNER FUNDS 2014 SEMIANNUAL REPORT
THIS PAGE WAS INTENTIONALLY LEFT BLANK
TURNER FUNDS 2014 SEMIANNUAL REPORT 31
FINANCIAL STATEMENTS
Statements of assets and liabilities (000)
March 31, 2014
| Turner Market Neutral Fund | Turner Medical Sciences Long/Short Fund | Turner Spectrum Fund | |||||||||||||
Assets: | |||||||||||||||
Investment securities, at cost | $ | 3,022 | $ | 41,345 | $ | 228,474 | |||||||||
Investment securities, at value | $ | 3,249 | $ | 43,143 | $ | 254,592 | |||||||||
Deposits with brokers for securities sold short | 3,787 | 31,396 | 144,050 | ||||||||||||
Foreign currency, at value | — | — | 61 | ||||||||||||
Receivable for investment securities sold | 268 | 4,011 | 27,403 | ||||||||||||
Receivable for capital shares sold | 28 | 213 | 105 | ||||||||||||
Prepaid expenses | 26 | 27 | 29 | ||||||||||||
Receivable for dividend income | 1 | 28 | 123 | ||||||||||||
Receivable from investment adviser | 7 | — | — | ||||||||||||
Reclaim receivable | — | — | 15 | ||||||||||||
Total assets | 7,366 | 78,818 | 426,378 | ||||||||||||
Liabilities: | |||||||||||||||
Securities sold short, at proceeds | 3,054 | 24,646 | 135,782 | ||||||||||||
Securities sold short, at value | 3,161 | 24,650 | 138,312 | ||||||||||||
Cash overdraft | — | — | 6,709 | ||||||||||||
Foreign currency overdraft, at value | — | 3 | — | ||||||||||||
Payable for investment securities purchased | 271 | 4,731 | 27,412 | ||||||||||||
Payable for capital shares redeemed | — | 2 | 537 | ||||||||||||
Dividends payable on securities sold short (Note 2) | 1 | 9 | 35 | ||||||||||||
Broker fees and charges on short securities payable | 6 | 22 | 114 | ||||||||||||
Payable due to investment adviser | — | 17 | 138 | ||||||||||||
Payable due to administrator | — | 4 | 32 | ||||||||||||
Payable due to shareholder servicing | — | 5 | 8 | ||||||||||||
Payable due to distributor | — | 2 | 3 | ||||||||||||
Payable due to transfer agent | 1 | 4 | 112 | ||||||||||||
Payable due to custodian | 3 | 2 | 46 | ||||||||||||
Payable due to trustees | — | 1 | 35 | ||||||||||||
Other accrued expenses | 5 | 4 | 127 | ||||||||||||
Total liabilities | 3,448 | 29,456 | 173,620 | ||||||||||||
Net assets | $ | 3,918 | $ | 49,362 | $ | 252,758 | |||||||||
Net assets: | |||||||||||||||
Portfolio capital | $ | 6,916 | $ | 45,705 | $ | 227,446 | |||||||||
Distributions in excess of investment income | (184 | ) | (377 | ) | (8,619 | ) | |||||||||
| Accumulated net realized gain (loss) from investments, securities sold short, written options and foreign currency transactions | (2,934 | ) | 2,240 | 10,342 | |||||||||||
| Net unrealized appreciation on investments, securities sold short, foreign currencies and translation of other assets and liabilities denominated in foreign currencies | 120 | 1,794 | 23,589 | ||||||||||||
Net assets | $ | 3,918 | $ | 49,362 | $ | 252,758 | |||||||||
Outstanding shares of beneficial interest Institutional Shares (1) | 277 | 1,950 | 18,152 | ||||||||||||
Outstanding shares of beneficial interest Investor Shares (1) | 92 | 1,725 | 2,715 | ||||||||||||
Outstanding shares of beneficial interest Class C Shares (1) | 7 | 237 | 353 | ||||||||||||
Net assets — Institutional Shares | $ | 2,889 | $ | 24,724 | $ | 216,730 | |||||||||
Net assets — Investor Shares | $ | 959 | $ | 21,730 | $ | 32,000 | |||||||||
Net assets — Class C Shares | $ | 70 | $ | 2,908 | $ | 4,028 | |||||||||
Net asset value, offering and redemption price per share — Institutional Shares | $ | 10.45 | † | $ | 12.68 | $ | 11.94 | ||||||||
Net asset value, offering and redemption price per share — Investor Shares | $ | 10.37 | † | $ | 12.59 | † | $ | 11.79 | |||||||
Net asset value, offering and redemption price per share — Class C Shares | $ | 10.14 | † | $ | 12.30 | † | $ | 11.41 | |||||||
32 TURNER FUNDS 2014 SEMIANNUAL REPORT
(Unaudited)
| Turner Titan Fund | Turner All Cap Growth Fund | ||||||||||
Assets: | |||||||||||
Investment securities, at cost | $ | 25,871 | $ | 14,373 | |||||||
Investment securities, at value | $ | 27,711 | $ | 18,741 | |||||||
Deposits with brokers for securities sold short | 15,471 | — | |||||||||
Foreign currency, at value | — | — | |||||||||
Receivable for investment securities sold | 6,757 | — | |||||||||
Receivable for capital shares sold | 117 | 29 | |||||||||
Prepaid expenses | 27 | 6 | |||||||||
Receivable for dividend income | 11 | 10 | |||||||||
Receivable from investment adviser | — | — | |||||||||
Reclaim receivable | — | — | |||||||||
Total assets | 50,094 | 18,786 | |||||||||
Liabilities: | |||||||||||
Securities sold short, at proceeds | 13,760 | — | |||||||||
Securities sold short, at value | 13,941 | — | |||||||||
Cash overdraft | — | — | |||||||||
Foreign currency overdraft, at value | — | — | |||||||||
Payable for investment securities purchased | 7,591 | 139 | |||||||||
Payable for capital shares redeemed | 10 | 66 | |||||||||
Dividends payable on securities sold short (Note 2) | 1 | — | |||||||||
Broker fees and charges on short securities payable | 8 | — | |||||||||
Payable due to investment adviser | 23 | 9 | |||||||||
Payable due to administrator | 3 | 2 | |||||||||
Payable due to shareholder servicing | — | 4 | |||||||||
Payable due to distributor | — | — | |||||||||
Payable due to transfer agent | 3 | 4 | |||||||||
Payable due to custodian | 4 | 1 | |||||||||
Payable due to trustees | 1 | 1 | |||||||||
Other accrued expenses | 8 | 3 | |||||||||
Total liabilities | 21,593 | 229 | |||||||||
Net assets | $ | 28,501 | $ | 18,557 | |||||||
Net assets: | |||||||||||
Portfolio capital | $ | 26,451 | $ | 23,471 | |||||||
Distributions in excess of investment income | (396 | ) | (50 | ) | |||||||
| Accumulated net realized gain (loss) from investments, securities sold short, written options and foreign currency transactions | 787 | (9,232 | ) | ||||||||
| Net unrealized appreciation on investments, securities sold short, foreign currencies and translation of other assets and liabilities denominated in foreign currencies | 1,659 | 4,368 | |||||||||
Net assets | $ | 28,501 | $ | 18,557 | |||||||
Outstanding shares of beneficial interest Institutional Shares (1) | 2,482 | — | |||||||||
Outstanding shares of beneficial interest Investor Shares (1) | 54 | 1,615 | |||||||||
Outstanding shares of beneficial interest Class C Shares (1) | 24 | — | |||||||||
Net assets — Institutional Shares | $ | 27,643 | $ | — | |||||||
Net assets — Investor Shares | $ | 599 | $ | 18,557 | |||||||
Net assets — Class C Shares | $ | 259 | $ | — | |||||||
Net asset value, offering and redemption price per share — Institutional Shares | $ | 11.13 | † | $ | — | ||||||
Net asset value, offering and redemption price per share — Investor Shares | $ | 11.05 | † | $ | 11.49 | ||||||
Net asset value, offering and redemption price per share — Class C Shares | $ | 10.77 | † | $ | — | ||||||
(1) Unlimited authorization — par value $0.00001.
† Differences in net asset value recalculation and net asset value stated are caused by rounding differences.
Amounts designated as "—" are either not applicable, $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 33
FINANCIAL STATEMENTS
Statements of assets and liabilities (000)
March 31, 2014
| Turner Emerging Growth Fund | Turner Large Growth Fund | Turner Midcap Growth Fund | |||||||||||||
Assets: | |||||||||||||||
Investment securities, at cost | $ | 184,387 | $ | 36,978 | $ | 324,862 | |||||||||
Investment securities, at value | $ | 270,608 | * | $ | 44,890 | * | $ | 426,965 | * | ||||||
Foreign currency, at value | — | — | — | ||||||||||||
Receivable for investment securities sold | 198 | — | 2,087 | ||||||||||||
Receivable for capital shares sold | 7,959 | 5 | 383 | ||||||||||||
Prepaid expenses | 51 | 16 | 36 | ||||||||||||
Receivable for dividend income | 81 | 14 | 55 | ||||||||||||
Receivable from investment adviser | — | — | — | ||||||||||||
Total assets | 278,897 | 44,925 | 429,526 | ||||||||||||
Liabilities: | |||||||||||||||
Payable for investment securities purchased | 422 | — | 1,143 | ||||||||||||
Obligation to return securities lending collateral | 20,959 | 1,184 | 5,676 | ||||||||||||
Payable for capital shares redeemed | 200 | 101 | 861 | ||||||||||||
Payable due to investment adviser | 171 | 8 | 205 | ||||||||||||
Payable due to administrator | 25 | 4 | 41 | ||||||||||||
Payable due to shareholder servicing | 38 | 5 | 59 | ||||||||||||
Payable due to distributor | — | — | 1 | ||||||||||||
Payable due to transfer agent | 26 | 27 | 58 | ||||||||||||
Payable due to custodian | 3 | 5 | 6 | ||||||||||||
Payable due to trustees | 13 | 7 | 26 | ||||||||||||
Other accrued expenses | 42 | 27 | 85 | ||||||||||||
Total liabilities | 21,899 | 1,368 | 8,161 | ||||||||||||
Net assets | $ | 256,998 | $ | 43,557 | $ | 421,365 | |||||||||
*Includes market value of securities on loan | $ | 20,856 | $ | 1,175 | $ | 5,660 | |||||||||
Net assets: | |||||||||||||||
Portfolio capital | $ | 146,706 | $ | 89,554 | $ | 283,919 | |||||||||
Undistributed net investment income (distributions in excess of investment income) | (2,576 | ) | 64 | (689 | ) | ||||||||||
Accumulated net realized gain (loss) from investment transactions | 26,647 | (53,973 | ) | 36,032 | |||||||||||
Net unrealized appreciation on investments | 86,221 | 7,912 | 102,103 | ||||||||||||
Net assets | $ | 256,998 | $ | 43,557 | $ | 421,365 | |||||||||
Outstanding shares of beneficial interest Institutional Shares (1) | 1,287 | 1,368 | 3,739 | ||||||||||||
Outstanding shares of beneficial interest Investor Shares (1) | 3,094 | 1,289 | 7,158 | ||||||||||||
Outstanding shares of beneficial interest Retirement Class Shares (1) | — | — | 132 | ||||||||||||
Net assets — Institutional Shares | $ | 76,414 | $ | 22,527 | $ | 144,683 | |||||||||
Net assets — Investor Shares | $ | 180,584 | $ | 21,030 | $ | 271,918 | |||||||||
Net assets — Retirement Class Shares | $ | — | $ | — | $ | 4,764 | |||||||||
Net asset value, offering and redemption price per share — Institutional Shares | $ | 59.38 | † | $ | 16.47 | $ | 38.70 | ||||||||
Net asset value, offering and redemption price per share — Investor Shares | $ | 58.37 | $ | 16.31 | $ | 37.99 | |||||||||
Net asset value, offering and redemption price per share — Retirement Class Shares | $ | — | $ | — | $ | 35.94 | † | ||||||||
34 TURNER FUNDS 2014 SEMIANNUAL REPORT
(Unaudited)
| Turner Small Cap Growth Fund | Turner Emerging Markets Fund | ||||||||||
Assets: | |||||||||||
Investment securities, at cost | $ | 172,065 | $ | 532 | |||||||
Investment securities, at value | $ | 222,516 | * | $ | 573 | ||||||
Foreign currency, at value | — | 4 | |||||||||
Receivable for investment securities sold | 7,274 | — | |||||||||
Receivable for capital shares sold | 171 | — | |||||||||
Prepaid expenses | 23 | 8 | |||||||||
Receivable for dividend income | 34 | 1 | |||||||||
Receivable from investment adviser | — | 5 | |||||||||
Total assets | 230,018 | 591 | |||||||||
Liabilities: | |||||||||||
Payable for investment securities purchased | 4,942 | — | |||||||||
Obligation to return securities lending collateral | 11,586 | — | |||||||||
Payable for capital shares redeemed | 618 | — | |||||||||
Payable due to investment adviser | 123 | — | |||||||||
Payable due to administrator | 22 | — | |||||||||
Payable due to shareholder servicing | 49 | — | |||||||||
Payable due to distributor | — | — | |||||||||
Payable due to transfer agent | 26 | — | |||||||||
Payable due to custodian | 3 | 6 | |||||||||
Payable due to trustees | 12 | — | |||||||||
Other accrued expenses | 45 | 6 | |||||||||
Total liabilities | 17,426 | 12 | |||||||||
Net assets | $ | 212,592 | $ | 579 | |||||||
*Includes market value of securities on loan | $ | 11,005 | $ | — | |||||||
Net assets: | |||||||||||
Portfolio capital | $ | 144,404 | $ | 517 | |||||||
Undistributed net investment income (distributions in excess of investment income) | (854 | ) | (2 | ) | |||||||
Accumulated net realized gain (loss) from investment transactions | 18,591 | 23 | |||||||||
Net unrealized appreciation on investments | 50,451 | 41 | |||||||||
Net assets | $ | 212,592 | $ | 579 | |||||||
Outstanding shares of beneficial interest Institutional Shares (1) | — | 49 | |||||||||
Outstanding shares of beneficial interest Investor Shares (1) | 5,542 | 3 | |||||||||
Outstanding shares of beneficial interest Retirement Class Shares (1) | — | — | |||||||||
Net assets — Institutional Shares | $ | — | $ | 540 | |||||||
Net assets — Investor Shares | $ | 212,592 | $ | 39 | |||||||
Net assets — Retirement Class Shares | $ | — | $ | — | |||||||
Net asset value, offering and redemption price per share — Institutional Shares | $ | — | $ | 11.21 | † | ||||||
Net asset value, offering and redemption price per share — Investor Shares | $ | 38.36 | $ | 11.20 | † | ||||||
Net asset value, offering and redemption price per share — Retirement Class Shares | $ | — | $ | — | |||||||
(1) Unlimited authorization — par value $0.00001.
† Differences in net asset value recalculation and net asset value stated are caused by rounding differences.
Amounts designated as "—" are either not applicable, $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 35
FINANCIAL STATEMENTS
Statements of operations (000)
| Turner Market Neutral Fund | Turner Medical Sciences Long/Short Fund | Turner Spectrum Fund | |||||||||||||
| period ended 3/31/14 | period ended 3/31/14 | period ended 3/31/14 | |||||||||||||
Investment income: | |||||||||||||||
Dividend | $ | 8 | $ | 67 | $ | 1,631 | |||||||||
Securities lending | — | — | — | ||||||||||||
Foreign taxes withheld | — | — | (28 | ) | |||||||||||
Total investment income | 8 | 67 | 1,603 | ||||||||||||
Expenses: | |||||||||||||||
Investment advisory fees | 26 | 212 | 3,309 | ||||||||||||
Administration fees | 3 | 21 | 329 | ||||||||||||
Shareholder service fees (1) | 1 | 9 | 45 | ||||||||||||
Shareholder service fees (2) | — | 2 | 6 | ||||||||||||
Distribution fees (2) | — | 6 | 18 | ||||||||||||
Accounting agent fees | 4 | 4 | 10 | ||||||||||||
Dividend expense | 16 | 39 | 780 | ||||||||||||
Broker fees and charges on short sales | 41 | 91 | 957 | ||||||||||||
Custodian fees | 6 | 6 | 86 | ||||||||||||
Transfer agent fees | 2 | 10 | 217 | ||||||||||||
Registration fees | 14 | 13 | 47 | ||||||||||||
Professional fees | 1 | 5 | 111 | ||||||||||||
Trustees' fees | — | 3 | 58 | ||||||||||||
Insurance and other fees | 4 | 10 | 168 | ||||||||||||
Total expenses | 118 | 431 | 6,141 | ||||||||||||
Less: | |||||||||||||||
Investment advisory fee waiver | (83 | ) | (140 | ) | (1,814 | ) | |||||||||
Net expenses | 35 | 291 | 4,327 | ||||||||||||
Net investment loss | (27 | ) | (224 | ) | (2,724 | ) | |||||||||
Net realized gain from securities sold | 337 | 3,861 | 83,679 | ||||||||||||
Net realized loss from securities sold short | (222 | ) | (710 | ) | (34,872 | ) | |||||||||
Net realized gain from written option contracts | — | — | 217 | ||||||||||||
Net realized loss on foreign currency transactions | — | (2 | ) | (56 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) on investments | 40 | (144 | ) | (32,968 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) on securities sold short | (64 | ) | 536 | 7,348 | |||||||||||
Net change in unrealized appreciation (depreciation) on written option contracts | — | — | (31 | ) | |||||||||||
| Net change in unrealized appreciation (depreciation) on foreign currencies and translation of other assets and liabilities denominated in foreign currencies | — | — | 4 | ||||||||||||
Net realized and unrealized gain from investments, options and foreign currencies | 91 | 3,541 | 23,321 | ||||||||||||
Net increase in net assets resulting from operations | $ | 64 | $ | 3,317 | $ | 20,597 | |||||||||
36 TURNER FUNDS 2014 SEMIANNUAL REPORT
(Unaudited)
| Turner Titan Fund | Turner All Cap Growth Fund | ||||||||||
| period ended 3/31/14 | period ended 3/31/14 | ||||||||||
Investment income: | |||||||||||
Dividend | $ | 113 | $ | 70 | |||||||
Securities lending | — | 2 | |||||||||
Foreign taxes withheld | (1 | ) | — | ||||||||
Total investment income | 112 | 72 | |||||||||
Expenses: | |||||||||||
Investment advisory fees | 191 | 74 | |||||||||
Administration fees | 19 | 13 | |||||||||
Shareholder service fees (1) | 1 | 23 | |||||||||
Shareholder service fees (2) | — | — | |||||||||
Distribution fees (2) | — | — | |||||||||
Accounting agent fees | 4 | — | |||||||||
Dividend expense | 25 | — | |||||||||
Broker fees and charges on short sales | 60 | — | |||||||||
Custodian fees | 10 | 3 | |||||||||
Transfer agent fees | 8 | 14 | |||||||||
Registration fees | 15 | 8 | |||||||||
Professional fees | 5 | 4 | |||||||||
Trustees' fees | 3 | 2 | |||||||||
Insurance and other fees | 11 | 7 | |||||||||
Total expenses | 352 | 148 | |||||||||
Less: | |||||||||||
Investment advisory fee waiver | (104 | ) | (51 | ) | |||||||
Net expenses | 248 | 97 | |||||||||
Net investment loss | (136 | ) | (25 | ) | |||||||
Net realized gain from securities sold | 3,139 | 1,078 | |||||||||
Net realized loss from securities sold short | (1,170 | ) | — | ||||||||
Net realized gain from written option contracts | — | — | |||||||||
Net realized loss on foreign currency transactions | (2 | ) | — | ||||||||
Net change in unrealized appreciation (depreciation) on investments | (33 | ) | 794 | ||||||||
Net change in unrealized appreciation (depreciation) on securities sold short | (119 | ) | — | ||||||||
Net change in unrealized appreciation (depreciation) on written option contracts | — | — | |||||||||
| Net change in unrealized appreciation (depreciation) on foreign currencies and translation of other assets and liabilities denominated in foreign currencies | — | — | |||||||||
Net realized and unrealized gain from investments, options and foreign currencies | 1,815 | 1,872 | |||||||||
Net increase in net assets resulting from operations | $ | 1,679 | $ | 1,847 | |||||||
(1) Attributable to Investor Class Shares only.
(2) Attributable to Class C Shares only.
Amounts designated as "—" are either not applicable, $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 37
FINANCIAL STATEMENTS
Statements of operations (000)
| Turner Emerging Growth Fund | Turner Large Growth Fund | Turner Midcap Growth Fund | |||||||||||||
| period ended 3/31/14 | period ended 3/31/14 | period ended 3/31/14 | |||||||||||||
Investment income: | |||||||||||||||
Dividend | $ | 259 | $ | 245 | $ | 1,474 | |||||||||
Securities lending | 132 | 40 | 77 | ||||||||||||
Foreign taxes withheld | (1 | ) | (1 | ) | (2 | ) | |||||||||
Total investment income | 390 | 284 | 1,549 | ||||||||||||
Expenses: | |||||||||||||||
Investment advisory fees | 1,268 | 174 | 1,545 | ||||||||||||
Administration fees | 188 | 44 | 306 | ||||||||||||
Shareholder service fees (1) | 223 | 31 | 313 | ||||||||||||
Shareholder service fees (2) | — | — | 6 | ||||||||||||
Distribution fees (2) | — | — | 6 | ||||||||||||
Accounting agent fees | 1 | — | 1 | ||||||||||||
Custodian fees | 9 | 6 | 13 | ||||||||||||
Transfer agent fees | 76 | 30 | 139 | ||||||||||||
Registration fees | 14 | 16 | 25 | ||||||||||||
Professional fees | 49 | 15 | 87 | ||||||||||||
Trustees' fees | 33 | 6 | 54 | ||||||||||||
Insurance and other fees | 86 | 20 | 145 | ||||||||||||
Total expenses | 1,947 | 342 | 2,640 | ||||||||||||
Less: | |||||||||||||||
Investment advisory fee waiver | (267 | ) | (112 | ) | (401 | ) | |||||||||
Reimbursements of other operating expenses | — | — | — | ||||||||||||
Net expenses | 1,680 | 230 | 2,239 | ||||||||||||
Net investment income (loss) | (1,290 | ) | 54 | (690 | ) | ||||||||||
Net realized gain from securities sold | 30,424 | 12,370 | 51,292 | ||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (10,711 | ) | (4,010 | ) | (4,357 | ) | |||||||||
Net realized and unrealized gain from investments | 19,713 | 8,360 | 46,935 | ||||||||||||
Net increase in net assets resulting from operations | $ | 18,423 | $ | 8,414 | $ | 46,245 | |||||||||
38 TURNER FUNDS 2014 SEMIANNUAL REPORT
(Unaudited)
| Turner Small Cap Growth Fund | Turner Emerging Markets Fund | ||||||||||
| period ended 3/31/14 | period ended 3/31/14 | ||||||||||
Investment income: | |||||||||||
Dividend | $ | 526 | $ | 3 | |||||||
Securities lending | 75 | — | |||||||||
Foreign taxes withheld | — | — | |||||||||
Total investment income | 601 | 3 | |||||||||
Expenses: | |||||||||||
Investment advisory fees | 1,165 | 2 | |||||||||
Administration fees | 173 | — | |||||||||
Shareholder service fees (1) | 291 | — | |||||||||
Shareholder service fees (2) | — | — | |||||||||
Distribution fees (2) | — | — | |||||||||
Accounting agent fees | 1 | 16 | |||||||||
Custodian fees | 10 | 16 | |||||||||
Transfer agent fees | 66 | — | |||||||||
Registration fees | 11 | 3 | |||||||||
Professional fees | 45 | — | |||||||||
Trustees' fees | 30 | — | |||||||||
Insurance and other fees | 78 | 2 | |||||||||
Total expenses | 1,870 | 39 | |||||||||
Less: | |||||||||||
Investment advisory fee waiver | (415 | ) | (2 | ) | |||||||
Reimbursements of other operating expenses | — | (34 | ) | ||||||||
Net expenses | 1,455 | 3 | |||||||||
Net investment income (loss) | (854 | ) | — | ||||||||
Net realized gain from securities sold | 25,029 | 28 | |||||||||
Net change in unrealized appreciation (depreciation) on investments | (14,397 | ) | 2 | ||||||||
Net realized and unrealized gain from investments | 10,632 | 30 | |||||||||
Net increase in net assets resulting from operations | $ | 9,778 | $ | 30 | |||||||
(1) Attributable to Investor Class Shares only.
(2) Attributable to Retirement Shares only.
Amounts designated as "—" are either not applicable, $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 39
FINANCIAL STATEMENTS
Statements of changes in net assets (000)
| Turner Market Neutral Fund | Turner Medical Sciences Long/Short Fund | ||||||||||||||||||
| period ended 3/31/14 (Unaudited) | year ended 9/30/13 | period ended 3/31/14 (Unaudited) | year ended 9/30/13 | ||||||||||||||||
Investment activities: | |||||||||||||||||||
Net investment loss | $ | (27 | ) | $ | (203 | ) | $ | (224 | ) | $ | (393 | ) | |||||||
Net realized gain (loss) from securities sold and securities sold short | 115 | (1,862 | ) | 3,151 | 3,301 | ||||||||||||||
Net realized gain on written options contracts | — | — | — | — | |||||||||||||||
Net realized loss on foreign currency transactions | — | (14 | ) | (2 | ) | (6 | ) | ||||||||||||
Net change in unrealized appreciation (depreciation) on investments and securities sold short | (24 | ) | 137 | 392 | (397 | ) | |||||||||||||
Net change in unrealized appreciation (depreciation) on written options contracts | — | — | — | — | |||||||||||||||
| Net change in unrealized appreciation (depreciation) on foreign currencies and translation of other assets and liabilities denominated in foreign currencies | — | — | — | 2 | |||||||||||||||
Net increase (decrease) in net assets resulting from operations | 64 | (1,942 | ) | 3,317 | 2,507 | ||||||||||||||
Dividends and distributions to shareholders: | |||||||||||||||||||
Realized capital gains: | |||||||||||||||||||
Institutional Class Shares | — | — | (524 | ) | — | ||||||||||||||
Investor Class Shares | — | — | (145 | ) | — | ||||||||||||||
Class C Shares | — | — | (47 | ) | — | ||||||||||||||
Total dividends and distributions | — | — | (716 | ) | — | ||||||||||||||
Capital share transactions: | |||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||
Proceeds from shares issued | 200 | 781 | 8,208 | 2,380 | |||||||||||||||
Proceeds from shares issued in lieu of cash distributions | — | — | 472 | — | |||||||||||||||
Cost of shares redeemed | (662 | ) | (43,717 | ) | (2,510 | ) | (24,867 | ) | |||||||||||
Net increase (decrease) in net assets resulting from Institutional Class Shares transactions | (462 | ) | (42,936 | ) | 6,170 | (22,487 | ) | ||||||||||||
Investor Class Shares | |||||||||||||||||||
Proceeds from shares issued | 428 | 122 | 19,644 | 548 | |||||||||||||||
Proceeds from shares issued in lieu of cash distributions | — | — | 141 | — | |||||||||||||||
Cost of shares redeemed | (77 | ) | (5,087 | ) | (1,753 | ) | (7,356 | ) | |||||||||||
Net increase (decrease) in net assets resulting from Investor Class Shares transactions | 351 | (4,965 | ) | 18,032 | (6,808 | ) | |||||||||||||
Class C Class Shares | |||||||||||||||||||
Proceeds from shares issued | — | — | 1,397 | 361 | |||||||||||||||
Proceeds from shares issued in lieu of cash distributions | — | — | 45 | — | |||||||||||||||
Cost of shares redeemed | — | (16 | ) | (61 | ) | (2,007 | ) | ||||||||||||
Net increase (decrease) in net assets resulting from Class C Class Shares transactions | — | (16 | ) | 1,381 | (1,646 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (111 | ) | (47,917 | ) | 25,583 | (30,941 | ) | ||||||||||||
Total increase (decrease) in net assets | (47 | ) | (49,859 | ) | 28,184 | (28,434 | ) | ||||||||||||
Net assets: | |||||||||||||||||||
Beginning of period | 3,965 | 53,824 | 21,178 | 49,612 | |||||||||||||||
End of period | $ | 3,918 | $ | 3,965 | $ | 49,362 | $ | 21,178 | |||||||||||
Distributions in excess of investment income | $ | (184 | ) | $ | (157 | ) | $ | (377 | ) | $ | (153 | ) | |||||||
Share issued and redeemed: | |||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||
Issued | 19 | 78 | 664 | 228 | |||||||||||||||
Issued in lieu of cash distributions | — | — | 41 | — | |||||||||||||||
Redeemed | (65 | ) | (4,476 | ) | (205 | ) | (2,419 | ) | |||||||||||
Net increase (decrease) in Institutional Class Shares | (46 | ) | (4,398 | ) | 500 | (2,191 | ) | ||||||||||||
Investor Class Shares | |||||||||||||||||||
Issued | 41 | 12 | 1,591 | 53 | |||||||||||||||
Issued in lieu of cash distributions | — | — | 12 | — | |||||||||||||||
Redeemed | (8 | ) | (514 | ) | (145 | ) | (732 | ) | |||||||||||
Net increase (decrease) in Investor Class Shares | 33 | (502 | ) | 1,458 | (679 | ) | |||||||||||||
Class C Class Shares | |||||||||||||||||||
Issued | — | — | 116 | 35 | |||||||||||||||
Issued in lieu of cash distributions | — | — | 4 | — | |||||||||||||||
Redeemed | — | (2 | ) | (5 | ) | (201 | ) | ||||||||||||
Net increase (decrease) in Class C Class Shares | — | (2 | ) | 115 | (166 | ) | |||||||||||||
Net increase (decrease) in share transactions | (13 | ) | (4,902 | ) | 2,073 | (3,036 | ) | ||||||||||||
40 TURNER FUNDS 2014 SEMIANNUAL REPORT
| Turner Spectrum Fund | Turner Titan Fund | ||||||||||||||||||
| period ended 3/31/14 (Unaudited) | year ended 9/30/13 | period ended 3/31/14 (Unaudited) | year ended 9/30/13 | ||||||||||||||||
Investment activities: | |||||||||||||||||||
Net investment loss | $ | (2,724 | ) | $ | (5,419 | ) | $ | (136 | ) | $ | (329 | ) | |||||||
Net realized gain (loss) from securities sold and securities sold short | 48,807 | 22,449 | 1,969 | 242 | |||||||||||||||
Net realized gain on written options contracts | 217 | 65 | — | — | |||||||||||||||
Net realized loss on foreign currency transactions | (56 | ) | (284 | ) | (2 | ) | (6 | ) | |||||||||||
Net change in unrealized appreciation (depreciation) on investments and securities sold short | (25,620 | ) | 16,276 | (152 | ) | 814 | |||||||||||||
Net change in unrealized appreciation (depreciation) on written options contracts | (31 | ) | 31 | — | — | ||||||||||||||
| Net change in unrealized appreciation (depreciation) on foreign currencies and translation of other assets and liabilities denominated in foreign currencies | 4 | (2 | ) | — | — | ||||||||||||||
Net increase (decrease) in net assets resulting from operations | 20,597 | 33,116 | 1,679 | 721 | |||||||||||||||
Dividends and distributions to shareholders: | |||||||||||||||||||
Realized capital gains: | |||||||||||||||||||
Institutional Class Shares | — | — | (275 | ) | (341 | ) | |||||||||||||
Investor Class Shares | — | — | (3 | ) | (20 | ) | |||||||||||||
Class C Shares | — | — | — | (6 | ) | ||||||||||||||
Total dividends and distributions | — | — | (278 | ) | (367 | ) | |||||||||||||
Capital share transactions: | |||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||
Proceeds from shares issued | 64,816 | 295,417 | 7,854 | 48,123 | |||||||||||||||
Proceeds from shares issued in lieu of cash distributions | — | — | 268 | 334 | |||||||||||||||
Cost of shares redeemed | (348,768 | ) | (676,075 | ) | (3,032 | ) | (53,640 | ) | |||||||||||
Net increase (decrease) in net assets resulting from Institutional Class Shares transactions | (283,952 | ) | (380,658 | ) | 5,090 | (5,183 | ) | ||||||||||||
Investor Class Shares | |||||||||||||||||||
Proceeds from shares issued | 3,467 | 23,320 | 317 | 202 | |||||||||||||||
Proceeds from shares issued in lieu of cash distributions | — | — | 3 | 20 | |||||||||||||||
Cost of shares redeemed | (17,176 | ) | (108,927 | ) | (127 | ) | (4,711 | ) | |||||||||||
Net increase (decrease) in net assets resulting from Investor Class Shares transactions | (13,709 | ) | (85,607 | ) | 193 | (4,489 | ) | ||||||||||||
Class C Class Shares | |||||||||||||||||||
Proceeds from shares issued | 24 | 351 | 238 | 286 | |||||||||||||||
Proceeds from shares issued in lieu of cash distributions | — | — | — | 6 | |||||||||||||||
Cost of shares redeemed | (1,758 | ) | (5,427 | ) | — | (775 | ) | ||||||||||||
Net increase (decrease) in net assets resulting from Class C Class Shares transactions | (1,734 | ) | (5,076 | ) | 238 | (483 | ) | ||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (299,395 | ) | (471,341 | ) | 5,521 | (10,155 | ) | ||||||||||||
Total increase (decrease) in net assets | (278,798 | ) | (438,225 | ) | 6,922 | (9,801 | ) | ||||||||||||
Net assets: | |||||||||||||||||||
Beginning of period | 531,556 | 969,781 | 21,579 | 31,380 | |||||||||||||||
End of period | $ | 252,758 | $ | 531,556 | $ | 28,501 | $ | 21,579 | |||||||||||
Distributions in excess of investment income | $ | (8,619 | ) | $ | (5,895 | ) | $ | (396 | ) | $ | (260 | ) | |||||||
Share issued and redeemed: | |||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||
Issued | 5,556 | 26,718 | 720 | 4,796 | |||||||||||||||
Issued in lieu of cash distributions | — | — | 25 | 34 | |||||||||||||||
Redeemed | (29,545 | ) | (61,031 | ) | (277 | ) | (5,338 | ) | |||||||||||
Net increase (decrease) in Institutional Class Shares | (23,989 | ) | (34,313 | ) | 468 | (508 | ) | ||||||||||||
Investor Class Shares | |||||||||||||||||||
Issued | 299 | 2,130 | 29 | 20 | |||||||||||||||
Issued in lieu of cash distributions | — | — | — | 2 | |||||||||||||||
Redeemed | (1,490 | ) | (9,945 | ) | (12 | ) | (479 | ) | |||||||||||
Net increase (decrease) in Investor Class Shares | (1,191 | ) | (7,815 | ) | 17 | (457 | ) | ||||||||||||
Class C Class Shares | |||||||||||||||||||
Issued | 2 | 33 | 21 | 29 | |||||||||||||||
Issued in lieu of cash distributions | — | — | — | 1 | |||||||||||||||
Redeemed | (156 | ) | (509 | ) | — | (80 | ) | ||||||||||||
Net increase (decrease) in Class C Class Shares | (154 | ) | (476 | ) | 21 | (50 | ) | ||||||||||||
Net increase (decrease) in share transactions | (25,334 | ) | (42,604 | ) | 506 | (1,015 | ) | ||||||||||||
Amounts designated as "—" are either not applicable, $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 41
FINANCIAL STATEMENTS
Statements of changes in net assets (000)
| Turner All Cap Growth Fund | Turner Emerging Growth Fund | ||||||||||||||||||
| period ended 3/31/14 (Unaudited) | year ended 9/30/13 | period ended 3/31/14 (Unaudited) | year ended 9/30/13 | ||||||||||||||||
Investment activities: | |||||||||||||||||||
Net investment income (loss) | $ | (25 | ) | $ | (25 | ) | $ | (1,290 | ) | $ | (894 | ) | |||||||
Net realized gain from securities sold | 1,078 | 2,004 | 30,424 | 36,788 | |||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 794 | 61 | (10,711 | ) | 29,719 | ||||||||||||||
Net increase in net assets resulting from operations | 1,847 | 2,040 | 18,423 | 65,613 | |||||||||||||||
Dividends and distributions to shareholders: | |||||||||||||||||||
Net investment income: | |||||||||||||||||||
Institutional Class Shares | — | — | — | — | |||||||||||||||
Investor Class Shares | — | — | — | — | |||||||||||||||
Realized capital gains: | |||||||||||||||||||
Institutional Class Shares | — | — | (11,300 | ) | (8,753 | ) | |||||||||||||
Investor Class Shares | — | — | (27,452 | ) | (24,111 | ) | |||||||||||||
Return of capital: | |||||||||||||||||||
Investor Class Shares | — | (73 | ) | — | — | ||||||||||||||
Total dividends and distributions | — | (73 | ) | (38,752 | ) | (32,864 | ) | ||||||||||||
Capital share transactions: | |||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||
Proceeds from shares issued | — | — | 9,462 | 9,023 | |||||||||||||||
Proceeds from shares issued in lieu of cash distributions | — | — | 10,821 | 8,473 | |||||||||||||||
Cost of shares redeemed | — | — | (10,406 | ) | (23,483 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from Institutional Class Shares transactions | — | — | 9,877 | (5,987 | ) | ||||||||||||||
Investor Class Shares | |||||||||||||||||||
Proceeds from shares issued | 2,254 | 1,709 | 38,625 | 24,834 | |||||||||||||||
Proceeds from Fund acquisition (Note 11) | — | — | — | — | |||||||||||||||
Proceeds from shares issued in lieu of cash distributions | — | 56 | 26,301 | 21,988 | |||||||||||||||
Cost of shares redeemed | (3,519 | ) | (11,597 | ) | (50,209 | ) | (59,232 | ) | |||||||||||
Net increase (decrease) in net assets resulting from Investor Class Shares transactions | (1,265 | ) | (9,832 | ) | 14,717 | (12,410 | ) | ||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (1,265 | ) | (9,832 | ) | 24,594 | (18,397 | ) | ||||||||||||
Total increase (decrease) in net assets | 582 | (7,865 | ) | 4,265 | 14,352 | ||||||||||||||
Net assets: | |||||||||||||||||||
Beginning of period | 17,975 | 25,840 | 252,733 | 238,381 | |||||||||||||||
End of period | $ | 18,557 | $ | 17,975 | $ | 256,998 | $ | 252,733 | |||||||||||
Undistributed net investment income (distributions in excess of investment income) | $ | (50 | ) | $ | (25 | ) | $ | (2,576 | ) | $ | (1,286 | ) | |||||||
Share issued and redeemed: | |||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||
Issued | — | — | 154 | 166 | |||||||||||||||
Issued in lieu of cash distributions | — | — | 191 | 177 | |||||||||||||||
Redeemed | — | — | (168 | ) | (436 | ) | |||||||||||||
Net increase (decrease) in Institutional Class Shares | — | — | 177 | (93 | ) | ||||||||||||||
Investor Class Shares | |||||||||||||||||||
Issued | 193 | 195 | 642 | 451 | |||||||||||||||
Shares from Fund acquisition (Note 11) | — | — | — | — | |||||||||||||||
Issued in lieu of cash distributions | — | 7 | 471 | 464 | |||||||||||||||
Redeemed | (319 | ) | (1,328 | ) | (820 | ) | (1,072 | ) | |||||||||||
Net increase (decrease) in Investor Class Shares | (126 | ) | (1,126 | ) | 293 | (157 | ) | ||||||||||||
Net increase (decrease) in share transactions | (126 | ) | (1,126 | ) | 470 | (250 | ) | ||||||||||||
42 TURNER FUNDS 2014 SEMIANNUAL REPORT
| Turner Large Growth Fund | |||||||||||
| period ended 3/31/14 (Unaudited) | year ended 9/30/13 | ||||||||||
Investment activities: | |||||||||||
Net investment income (loss) | $ | 54 | $ | 740 | |||||||
Net realized gain from securities sold | 12,370 | 33,884 | |||||||||
Net change in unrealized appreciation (depreciation) on investments | (4,010 | ) | (19,979 | ) | |||||||
Net increase in net assets resulting from operations | 8,414 | 14,645 | |||||||||
Dividends and distributions to shareholders: | |||||||||||
Net investment income: | |||||||||||
Institutional Class Shares | — | (1,087 | ) | ||||||||
Investor Class Shares | — | (92 | ) | ||||||||
Realized capital gains: | |||||||||||
Institutional Class Shares | — | — | |||||||||
Investor Class Shares | — | — | |||||||||
Return of capital: | |||||||||||
Investor Class Shares | — | — | |||||||||
Total dividends and distributions | — | (1,179 | ) | ||||||||
Capital share transactions: | |||||||||||
Institutional Class Shares | |||||||||||
Proceeds from shares issued | 1,565 | 14,890 | |||||||||
Proceeds from shares issued in lieu of cash distributions | — | 1,034 | |||||||||
Cost of shares redeemed | (38,297 | ) | (172,365 | ) | |||||||
Net increase (decrease) in net assets resulting from Institutional Class Shares transactions | (36,732 | ) | (156,441 | ) | |||||||
Investor Class Shares | |||||||||||
Proceeds from shares issued | 3,147 | 7,080 | |||||||||
Proceeds from Fund acquisition (Note 11) | — | 15,614 | |||||||||
Proceeds from shares issued in lieu of cash distributions | — | 91 | |||||||||
Cost of shares redeemed | (15,860 | ) | (44,134 | ) | |||||||
Net increase (decrease) in net assets resulting from Investor Class Shares transactions | (12,713 | ) | (21,349 | ) | |||||||
Net increase (decrease) in net assets resulting from capital share transactions | (49,445 | ) | (177,790 | ) | |||||||
Total increase (decrease) in net assets | (41,031 | ) | (164,324 | ) | |||||||
Net assets: | |||||||||||
Beginning of period | 84,588 | 248,912 | |||||||||
End of period | $ | 43,557 | $ | 84,588 | |||||||
Undistributed net investment income (distributions in excess of investment income) | $ | 64 | $ | 10 | |||||||
Share issued and redeemed: | |||||||||||
Institutional Class Shares | |||||||||||
Issued | 97 | 1,153 | |||||||||
Issued in lieu of cash distributions | — | 83 | |||||||||
Redeemed | (2,406 | ) | (13,194 | ) | |||||||
Net increase (decrease) in Institutional Class Shares | (2,309 | ) | (11,958 | ) | |||||||
Investor Class Shares | |||||||||||
Issued | 195 | 546 | |||||||||
Shares from Fund acquisition (Note 11) | — | 1,216 | |||||||||
Issued in lieu of cash distributions | — | 7 | |||||||||
Redeemed | (1,010 | ) | (3,423 | ) | |||||||
Net increase (decrease) in Investor Class Shares | (815 | ) | (1,654 | ) | |||||||
Net increase (decrease) in share transactions | (3,124 | ) | (13,612 | ) | |||||||
Amounts designated as "—" are either not applicable, $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 43
FINANCIAL STATEMENTS
Statements of changes in net assets (000)
| Turner Midcap Growth Fund | Turner Small Cap Growth Fund | ||||||||||||||||||
| period ended 3/31/14 (Unaudited) | year ended 9/30/13 | period ended 3/31/14 (Unaudited) | year ended 9/30/13 | ||||||||||||||||
Investment activities: | |||||||||||||||||||
Net investment loss | $ | (690 | ) | $ | (1,982 | ) | $ | (854 | ) | $ | (986 | ) | |||||||
Net realized gain from securities sold | 51,292 | 82,710 | 25,029 | 43,625 | |||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (4,357 | ) | 19,404 | (14,397 | ) | 23,107 | |||||||||||||
Net increase in net assets resulting from operations | 46,245 | 100,132 | 9,778 | 65,746 | |||||||||||||||
Dividends and distributions to shareholders: | |||||||||||||||||||
Net investment income: | |||||||||||||||||||
Institutional Class Shares | — | — | — | — | |||||||||||||||
Investor Class Shares | — | — | — | — | |||||||||||||||
Realized capital gains: | |||||||||||||||||||
Institutional Class Shares | (33,824 | ) | (2,966 | ) | — | — | |||||||||||||
Investor Class Shares | (50,614 | ) | (5,108 | ) | (40,979 | ) | (15,983 | ) | |||||||||||
Retirement Class Shares | (993 | ) | (72 | ) | — | — | |||||||||||||
Total dividends and distributions | (85,431 | ) | (8,146 | ) | (40,979 | ) | (15,983 | ) | |||||||||||
Capital share transactions: | |||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||
Proceeds from shares issued | 23,172 | 59,903 | — | — | |||||||||||||||
Proceeds from shares issued in lieu of cash distributions | 27,598 | 2,364 | — | — | |||||||||||||||
Cost of shares redeemed | (95,962 | ) | (131,596 | ) | — | — | |||||||||||||
Net increase (decrease) in net assets resulting from Institutional Class Shares transactions | (45,192 | ) | (69,329 | ) | — | — | |||||||||||||
Investor Class Shares | |||||||||||||||||||
Proceeds from shares issued | 54,321 | 40,974 | 18,024 | 20,912 | |||||||||||||||
Proceeds from shares issued in lieu of cash distributions | 48,871 | 4,946 | 40,735 | 15,896 | |||||||||||||||
Cost of shares redeemed | (65,596 | ) | (245,432 | ) | (48,005 | ) | (103,631 | ) | |||||||||||
Net increase (decrease) in net assets resulting from Investor Class Shares transactions | 37,596 | (199,512 | ) | 10,754 | (66,823 | ) | |||||||||||||
Retirement Class Shares | |||||||||||||||||||
Proceeds from shares issued | 310 | 576 | — | — | |||||||||||||||
Proceeds from shares issued in lieu of cash distributions | 993 | 72 | — | — | |||||||||||||||
Cost of shares redeemed | (310 | ) | (2,024 | ) | — | — | |||||||||||||
Net increase (decrease) in net assets resulting from Retirement Class Shares transactions | 993 | (1,376 | ) | — | — | ||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (6,603 | ) | (270,217 | ) | 10,754 | (66,823 | ) | ||||||||||||
Total increase (decrease) in net assets | (45,789 | ) | (178,231 | ) | (20,447 | ) | (17,060 | ) | |||||||||||
Net assets: | |||||||||||||||||||
Beginning of period | 467,154 | 645,385 | 233,039 | 250,099 | |||||||||||||||
End of period | $ | 421,365 | $ | 467,154 | $ | 212,592 | $ | 233,039 | |||||||||||
Undistributed net investment income (distributions in excess of investment income) | $ | (689 | ) | $ | 1 | $ | (854 | ) | $ | — | |||||||||
Share issued and redeemed: | |||||||||||||||||||
Institutional Class Shares | |||||||||||||||||||
Issued | 577 | 1,600 | — | — | |||||||||||||||
Issued in lieu of cash distributions | 778 | 69 | — | — | |||||||||||||||
Redeemed | (2,352 | ) | (3,604 | ) | — | — | |||||||||||||
Net increase (decrease) in Institutional Class Shares | (997 | ) | (1,935 | ) | — | — | |||||||||||||
Investor Class Shares | |||||||||||||||||||
Issued | 1,391 | 1,098 | 423 | 558 | |||||||||||||||
Issued in lieu of cash distributions | 1,403 | 147 | 1,096 | 473 | |||||||||||||||
Redeemed | (1,639 | ) | (6,793 | ) | (1,183 | ) | (2,781 | ) | |||||||||||
Net increase (decrease) in Investor Class Shares | 1,155 | (5,548 | ) | 336 | (1,750 | ) | |||||||||||||
Retirement Class Shares | |||||||||||||||||||
Issued | 7 | 17 | — | — | |||||||||||||||
Issued in lieu of cash distributions | 30 | 2 | — | — | |||||||||||||||
Redeemed | (8 | ) | (59 | ) | — | — | |||||||||||||
Net increase (decrease) in Retirement Class Shares | 29 | (40 | ) | — | — | ||||||||||||||
Net increase (decrease) in share transactions | 187 | (7,523 | ) | 336 | (1,750 | ) | |||||||||||||
44 TURNER FUNDS 2014 SEMIANNUAL REPORT
| Turner Emerging Markets Fund | |||||||||||
| period ended 3/31/14 (Unaudited) | 8/28/13(1) through 9/30/13 | ||||||||||
Investment activities: | |||||||||||
Net investment loss | $ | — | $ | — | |||||||
Net realized gain from securities sold | 28 | — | |||||||||
Net change in unrealized appreciation (depreciation) on investments | 2 | 39 | |||||||||
Net increase in net assets resulting from operations | 30 | 39 | |||||||||
Dividends and distributions to shareholders: | |||||||||||
Net investment income: | |||||||||||
Institutional Class Shares | (1 | ) | — | ||||||||
Investor Class Shares | — | — | |||||||||
Realized capital gains: | |||||||||||
Institutional Class Shares | (6 | ) | — | ||||||||
Investor Class Shares | — | — | |||||||||
Retirement Class Shares | — | — | |||||||||
Total dividends and distributions | (7 | ) | — | ||||||||
Capital share transactions: | |||||||||||
Institutional Class Shares | |||||||||||
Proceeds from shares issued | — | 475 | |||||||||
Proceeds from shares issued in lieu of cash distributions | 7 | — | |||||||||
Cost of shares redeemed | — | — | |||||||||
Net increase (decrease) in net assets resulting from Institutional Class Shares transactions | 7 | 475 | |||||||||
Investor Class Shares | |||||||||||
Proceeds from shares issued | — | 35 | |||||||||
Proceeds from shares issued in lieu of cash distributions | — | — | |||||||||
Cost of shares redeemed | — | — | |||||||||
Net increase (decrease) in net assets resulting from Investor Class Shares transactions | — | 35 | |||||||||
Retirement Class Shares | |||||||||||
Proceeds from shares issued | — | — | |||||||||
Proceeds from shares issued in lieu of cash distributions | — | — | |||||||||
Cost of shares redeemed | — | — | |||||||||
Net increase (decrease) in net assets resulting from Retirement Class Shares transactions | — | — | |||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 7 | 510 | |||||||||
Total increase (decrease) in net assets | 30 | 549 | |||||||||
Net assets: | |||||||||||
Beginning of period | 549 | — | |||||||||
End of period | $ | 579 | $ | 549 | |||||||
Undistributed net investment income (distributions in excess of investment income) | $ | (2 | ) | $ | (1 | ) | |||||
Share issued and redeemed: | |||||||||||
Institutional Class Shares | |||||||||||
Issued | — | 48 | |||||||||
Issued in lieu of cash distributions | 1 | — | |||||||||
Redeemed | — | — | |||||||||
Net increase (decrease) in Institutional Class Shares | 1 | 48 | |||||||||
Investor Class Shares | |||||||||||
Issued | — | 3 | |||||||||
Issued in lieu of cash distributions | — | — | |||||||||
Redeemed | — | — | |||||||||
Net increase (decrease) in Investor Class Shares | — | 3 | |||||||||
Retirement Class Shares | |||||||||||
Issued | — | — | |||||||||
Issued in lieu of cash distributions | — | — | |||||||||
Redeemed | — | — | |||||||||
Net increase (decrease) in Retirement Class Shares | — | — | |||||||||
Net increase (decrease) in share transactions | 1 | 51 | |||||||||
(1) Commencement of operations.
Amounts designated as "—" are either not applicable, $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 45
FINANCIAL STATEMENTS
Financial highlights
For a share outstanding throughout each period
| Net asset value, beginning of period | Net investment income (loss)(1) | Realized and unrealized gains (losses) on investments | Total from investment operations | Dividends from net investment income | Distributions from capital gains | Total dividends and distributions | |||||||||||||||||||||||||
Market Neutral Fund | |||||||||||||||||||||||||||||||
Turner Market Neutral Fund — Institutional Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 10.21 | (0.08 | ) | 0.32 | 0.24 | — | — | — | ||||||||||||||||||||||
2013 | $ | 10.18 | (0.09 | ) | 0.12 | 0.03 | — | — | — | ||||||||||||||||||||||
2012 | $ | 10.53 | (0.11 | ) | (0.02 | ) | (0.13 | ) | — | (0.22 | ) | (0.22 | ) | ||||||||||||||||||
| 2011 (5) | $ | 10.00 | (0.09 | ) | 0.62 | 0.53 | — | — | — | ||||||||||||||||||||||
Turner Market Neutral Fund — Investor Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 10.14 | (0.09 | ) | 0.32 | 0.23 | — | — | — | ||||||||||||||||||||||
2013 | $ | 10.13 | (0.10 | ) | 0.11 | 0.01 | — | — | — | ||||||||||||||||||||||
2012 | $ | 10.52 | (0.14 | ) | (0.03 | ) | (0.17 | ) | — | (0.22 | ) | (0.22 | ) | ||||||||||||||||||
| 2011 (5) | $ | 10.00 | (0.10 | ) | 0.62 | 0.52 | — | — | — | ||||||||||||||||||||||
Turner Market Neutral Fund — Class C Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 9.95 | (0.12 | ) | 0.31 | 0.19 | — | — | — | ||||||||||||||||||||||
2013 | $ | 10.01 | (0.19 | ) | 0.13 | (0.06 | ) | — | — | — | |||||||||||||||||||||
2012 | $ | 10.46 | (0.20 | ) | (0.03 | ) | (0.23 | ) | — | (0.22 | ) | (0.22 | ) | ||||||||||||||||||
| 2011 (5) | $ | 10.00 | (0.15 | ) | 0.61 | 0.46 | — | — | — | ||||||||||||||||||||||
Medical Sciences Long/Short Fund | |||||||||||||||||||||||||||||||
Turner Medical Sciences Long/Short Fund — Institutional Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 11.54 | (0.09 | ) | 1.59 | 1.50 | — | (0.36 | ) | (0.36 | ) | ||||||||||||||||||||
2013 | $ | 10.19 | (0.13 | ) | 1.48 | 1.35 | — | — | — | ||||||||||||||||||||||
2012 | $ | 10.35 | (0.15 | ) | (0.01 | ) | (0.16 | ) | — | — | — | ||||||||||||||||||||
| 2011 (5) | $ | 10.00 | (0.12 | ) | 0.47 | 0.35 | — | — | — | ||||||||||||||||||||||
Turner Medical Sciences Long/Short Fund — Investor Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 11.48 | (0.10 | ) | 1.57 | 1.47 | — | (0.36 | ) | (0.36 | ) | ||||||||||||||||||||
2013 | $ | 10.16 | (0.16 | ) | 1.48 | 1.32 | — | — | — | ||||||||||||||||||||||
2012 | $ | 10.34 | (0.18 | ) | — | (0.18 | ) | — | — | — | |||||||||||||||||||||
| 2011 (5) | $ | 10.00 | (0.13 | ) | 0.47 | 0.34 | — | — | — | ||||||||||||||||||||||
Turner Medical Sciences Long/Short Fund — Class C Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 11.26 | (0.14 | ) | 1.54 | 1.40 | — | (0.36 | ) | (0.36 | ) | ||||||||||||||||||||
2013 | $ | 10.04 | (0.23 | ) | 1.45 | 1.22 | — | — | — | ||||||||||||||||||||||
2012 | $ | 10.30 | (0.25 | ) | (0.01 | ) | (0.26 | ) | — | — | — | ||||||||||||||||||||
| 2011 (5) | $ | 10.00 | (0.18 | ) | 0.48 | 0.30 | — | — | — | ||||||||||||||||||||||
46 TURNER FUNDS 2014 SEMIANNUAL REPORT
| Net asset value, end of period | Total return | Net assets end of period (000) | Ratio of net expenses to average net assets* | Ratio of total expenses to average net assets | Ratio of net investment income (loss) to average net assets* | Portfolio turnover rate** | |||||||||||||||||||||||||
Market Neutral Fund | |||||||||||||||||||||||||||||||
Turner Market Neutral Fund — Institutional Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 10.45 | 2.35 | %† | $ | 2,889 | 1.94 | %†† (2) | 6.72 | %†† | (1.49 | )%†† | 290 | % | |||||||||||||||||
2013 | $ | 10.21 | 0.29 | % | $ | 3,296 | 1.95 | %†† (3) | 2.98 | %†† | (0.87 | )%†† | 973 | % | |||||||||||||||||
2012 | $ | 10.18 | (1.23 | )% | $ | 48,054 | 1.94 | %†† (4) | 2.57 | %†† | (1.00 | )%†† | 1,520 | % | |||||||||||||||||
| 2011 (5) | $ | 10.53 | 5.30 | %† | $ | 8,679 | 1.95 | % (6) | 3.92 | % | (1.27 | )% | 1,184 | % | |||||||||||||||||
Turner Market Neutral Fund — Investor Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 10.37 | 2.27 | %† | $ | 959 | 2.19 | %†† (2) | 6.97 | %†† | (1.74 | )%†† | 290 | % | |||||||||||||||||
2013 | $ | 10.14 | 0.10 | % | $ | 601 | 2.20 | %†† (3) | 3.23 | %†† | (1.12 | )%†† | 973 | % | |||||||||||||||||
2012 | $ | 10.13 | (1.62 | )% | $ | 5,685 | 2.19 | %†† (4) | 2.82 | %†† | (1.25 | )%†† | 1,520 | % | |||||||||||||||||
| 2011 (5) | $ | 10.52 | 5.20 | %† | $ | 3,233 | 2.20 | % (6) | 4.18 | % | (1.54 | )% | 1,184 | % | |||||||||||||||||
Turner Market Neutral Fund — Class C Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 10.14 | 1.91 | %† | $ | 70 | 2.94 | %†† (2) | 7.72 | %†† | (2.49 | )%†† | 290 | % | |||||||||||||||||
2013 | $ | 9.95 | (0.60 | )% | $ | 68 | 2.94 | %†† (3) | 3.98 | %†† | (1.87 | )%†† | 973 | % | |||||||||||||||||
2012 | $ | 10.01 | (2.21 | )% | $ | 85 | 2.94 | %†† (4) | 3.57 | %†† | (2.00 | )%†† | 1,520 | % | |||||||||||||||||
| 2011 (5) | $ | 10.46 | 4.60 | %† | $ | — | 2.95 | % (6) | 4.77 | % | (2.26 | )% | 1,184 | % | |||||||||||||||||
Medical Sciences Long/Short Fund | |||||||||||||||||||||||||||||||
Turner Medical Sciences Long/Short Fund — Institutional Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 12.68 | 13.28 | %† | $ | 24,724 | 1.92 | %†† (7) | 2.91 | %†† | (1.45 | )%†† | 165 | % | |||||||||||||||||
2013 | $ | 11.54 | 13.25 | % | $ | 16,742 | 1.98 | %†† (8) | 2.99 | %†† | (1.26 | )%†† | 492 | % | |||||||||||||||||
2012 | $ | 10.19 | (1.55 | )% | $ | 37,117 | 1.87 | %†† (9) | 2.09 | %†† | (1.45 | )%†† | 900 | % | |||||||||||||||||
| 2011 (5) | $ | 10.35 | 3.50 | %† | $ | 45,147 | 1.93 | % (10) | 2.74 | % | (1.74 | )% | 608 | % | |||||||||||||||||
Turner Medical Sciences Long/Short Fund — Investor Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 12.59 | 13.08 | %† | $ | 21,730 | 2.17 | %†† (7) | 3.16 | %†† | (1.70 | )%†† | 165 | % | |||||||||||||||||
2013 | $ | 11.48 | 12.99 | % | $ | 3,062 | 2.23 | %†† (8) | 3.24 | %†† | (1.51 | )%†† | 492 | % | |||||||||||||||||
2012 | $ | 10.16 | (1.74 | )% | $ | 9,606 | 2.12 | %†† (9) | 2.34 | %†† | (1.70 | )%†† | 900 | % | |||||||||||||||||
| 2011 (5) | $ | 10.34 | 3.40 | %† | $ | 12,777 | 2.14 | % (10) | 2.89 | % | (1.93 | )% | 608 | % | |||||||||||||||||
Turner Medical Sciences Long/Short Fund — Class C Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 12.30 | 12.71 | %† | $ | 2,908 | 2.92 | %†† (7) | 3.91 | %†† | (2.45 | )%†† | 165 | % | |||||||||||||||||
2013 | $ | 11.26 | 12.15 | % | $ | 1,374 | 2.98 | %†† (8) | 3.99 | %†† | (2.26 | )%†† | 492 | % | |||||||||||||||||
2012 | $ | 10.04 | (2.52 | )% | $ | 2,889 | 2.87 | %†† (9) | 3.09 | %†† | (2.45 | )%†† | 900 | % | |||||||||||||||||
| 2011 (5) | $ | 10.30 | 3.00 | %† | $ | 2,165 | 2.93 | % (10) | 3.63 | % | (2.71 | )% | 608 | % | |||||||||||||||||
* Inclusive of fees paid indirectly, waivers and/or reimbursements.
** Excludes effect of in-kind transfers and mergers, as applicable. Not annualized for periods less than one year.
^ For the six-month period ended March 31, 2014 (unaudited). All ratios for the period have been annualized unless otherwise noted.
† Total return is for the period indicated and has not been annualized.
†† Does not include acquired fund fees or expenses.
(1) Based on average shares outstanding.
(2) Dividend expense totaled 0.88% of average net assets for the period ended March 31, 2014, 0.88% of which was waived. Broker fees and charges on short sales totaled 2.35% of average net assets for the period ended March 31, 2014, 2.35% of which was waived. If dividend expense and broker fees and charges on short sales had not been contractually waived, the ratios of net expenses to average net assets would have been 5.17%, 5.42% and 6.17% for the Institutional, Investor and Class C Shares, respectively.
(3) Dividend expense totaled 0.43% of average net assets for the year ended September 30, 2013, 0.43% of which was waived. Broker fees and charges on short sales totaled 0.38% of average net assets for the year ended September 30, 2013, 0.38% of which was waived. If dividend expense and broker fees and charges on short sales had not been contractually waived, the ratios of net expenses to average net assets would have been 2.74%, 2.99% and 3.73% for the Institutional, Investor and Class C Shares, respectively.
(4) Dividend expense totaled 0.37% of average net assets for the year ended September 30, 2012, 0.37% of which was waived. Broker fees and charges on short sales totaled 0.22% of average net assets for the year ended September 30, 2012, 0.22% of which was waived. If dividend expense and broker fees and charges on short sales had not been contractually waived, the ratios of net expenses to average net assets would have been 2.53%, 2.78% and 3.53% for the Institutional, Investor and Class C Shares, respectively.
(5) Commenced operations on February 7, 2011. All ratios for the period have been annualized.
(6) Dividend expense totaled 0.44% of average net assets for the year ended September 30, 2011, 0.34% of which was waived. Broker fees and charges on short sales totaled 0.25% of average net assets for the year ended September 30, 2011, 0.19% of which was waived. If dividend expense and broker fees and charges on short sales had not been contractually waived, the ratios of net expenses to average net assets would have been 2.48%, 2.73% and 3.48% for the Institutional, Investor and Class C Shares, respectively.
(7) Dividend expense totaled 0.28% of average net assets for the period ended March 31, 2014, 0.28% of which was waived. Broker fees and charges on short sales totaled 0.64% of average net assets for the year ended March 31, 2014, 0.64% of which was waived. If dividend expense and broker fees and charges on short sales had not been contractually waived, the ratios of net expenses to average net assets would have been 2.84%, 3.09% and 3.84% for the Institutional, Investor and Class C Shares, respectively.
(8) Dividend expense totaled 0.45% of average net assets for the year ended September 30, 2013, 0.45% of which was waived. Broker fees and charges on short sales totaled 0.41% of average net assets for the year ended September 30, 2013, 0.41% of which was waived. If dividend expense and broker fees and charges on short sales had not been contractually waived, the ratios of net expenses to average net assets would have been 2.79%, 3.04% and 3.79% for the Institutional, Investor and Class C Shares, respectively.
(9) Dividend expense totaled 0.04% of average net assets for the year ended September 30, 2012, 0.04% of which was waived. Broker fees and charges on short sales totaled 0.15% of average net assets for the year ended September 30, 2012, 0.15% of which was waived. If dividend expense and broker fees and charges on short sales had not been contractually waived, the ratios of net expenses to average net assets would have been 2.06%, 2.31% and 3.06% for the Institutional, Investor and Class C Shares, respectively.
(10) Dividend expense totaled 0.15% of average net assets for the year ended September 30, 2011, 0.12% of which was waived. Broker fees and charges on short sales totaled 0.47% of average net assets for the year ended September 30, 2011, 0.39% of which was waived. If dividend expense and broker fees and charges on short sales had not been contractually waived, the ratios of net expenses to average net assets would have been 2.44%, 2.65% and 3.44% for the Institutional, Investor and Class C Shares, respectively.
Amounts designated as "—" are either not applicable, $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 47
FINANCIAL STATEMENTS
Financial highlights
For a share outstanding throughout each period
| Net asset value, beginning of period | Net investment income (loss)(1) | Realized and unrealized gains (losses) on investments | Total from investment operations | Dividends from net investment income | Distributions from capital gains | Total dividends and distributions | |||||||||||||||||||||||||
Spectrum Fund | |||||||||||||||||||||||||||||||
Turner Spectrum Fund — Institutional Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 11.43 | (0.07 | ) | 0.58 | 0.51 | — | — | — | ||||||||||||||||||||||
2013 | $ | 10.89 | (0.07 | ) | 0.61 | 0.54 | — | — | — | ||||||||||||||||||||||
2012 | $ | 11.45 | (0.13 | ) | 0.04 | (0.09 | ) | — | (0.47 | ) | (0.47 | ) | |||||||||||||||||||
2011 | $ | 10.82 | (0.16 | ) | 0.79 | 0.63 | — | — | — | ||||||||||||||||||||||
2010 | $ | 10.81 | (0.13 | ) | 0.21 | 0.08 | — | (0.07 | ) | (0.07 | ) | ||||||||||||||||||||
| 2009 (7) | $ | 10.00 | (0.07 | ) | 0.88 | 0.81 | — | — | — | ||||||||||||||||||||||
Turner Spectrum Fund — Investor Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 11.30 | (0.08 | ) | 0.57 | 0.49 | — | — | — | ||||||||||||||||||||||
2013 | $ | 10.80 | (0.09 | ) | 0.59 | 0.50 | — | — | — | ||||||||||||||||||||||
2012 | $ | 11.38 | (0.16 | ) | 0.05 | (0.11 | ) | — | (0.47 | ) | (0.47 | ) | |||||||||||||||||||
2011 | $ | 10.78 | (0.19 | ) | 0.79 | 0.60 | — | — | — | ||||||||||||||||||||||
2010 | $ | 10.80 | (0.16 | ) | 0.21 | 0.05 | — | (0.07 | ) | (0.07 | ) | ||||||||||||||||||||
| 2009 (7) | $ | 10.00 | (0.09 | ) | 0.89 | 0.80 | — | — | — | ||||||||||||||||||||||
Turner Spectrum Fund — Class C Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 10.98 | (0.12 | ) | 0.55 | 0.43 | — | — | — | ||||||||||||||||||||||
2013 | $ | 10.57 | (0.17 | ) | 0.58 | 0.41 | — | — | — | ||||||||||||||||||||||
2012 | $ | 11.23 | (0.24 | ) | 0.05 | (0.19 | ) | — | (0.47 | ) | (0.47 | ) | |||||||||||||||||||
2011 | $ | 10.72 | (0.27 | ) | 0.78 | 0.51 | — | — | — | ||||||||||||||||||||||
2010 | $ | 10.80 | (0.24 | ) | 0.23 | (0.01 | ) | — | (0.07 | ) | (0.07 | ) | |||||||||||||||||||
| 2009 (9) | $ | 9.98 | (0.07 | ) | 0.89 | 0.82 | — | — | — | ||||||||||||||||||||||
Titan Fund | |||||||||||||||||||||||||||||||
Turner Titan Fund — Institutional Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 10.51 | (0.06 | ) | 0.80 | 0.74 | — | (0.12 | ) | (0.12 | ) | ||||||||||||||||||||
2013 | $ | 10.24 | (0.08 | ) | 0.43 | 0.35 | — | (0.08 | ) | (0.08 | ) | ||||||||||||||||||||
2012 | $ | 9.77 | (0.11 | ) | 0.67 | 0.56 | — | (0.09 | ) | (0.09 | ) | ||||||||||||||||||||
| 2011 (13) | $ | 10.00 | (0.10 | ) | (0.13 | ) | (0.23 | ) | — | — | — | ||||||||||||||||||||
Turner Titan Fund — Investor Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 10.44 | (0.07 | ) | 0.80 | 0.73 | — | (0.12 | ) | (0.12 | ) | ||||||||||||||||||||
2013 | $ | 10.20 | (0.10 | ) | 0.42 | 0.32 | — | (0.08 | ) | (0.08 | ) | ||||||||||||||||||||
2012 | $ | 9.76 | (0.13 | ) | 0.66 | 0.53 | — | (0.09 | ) | (0.09 | ) | ||||||||||||||||||||
| 2011 (13) | $ | 10.00 | (0.11 | ) | (0.13 | ) | (0.24 | ) | — | — | — | ||||||||||||||||||||
Turner Titan Fund — Class C Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 10.22 | (0.11 | ) | 0.78 | 0.67 | — | (0.12 | ) | (0.12 | ) | ||||||||||||||||||||
2013 | $ | 10.07 | (0.16 | ) | 0.39 | 0.23 | — | (0.08 | ) | (0.08 | ) | ||||||||||||||||||||
2012 | $ | 9.72 | (0.21 | ) | 0.65 | 0.44 | — | (0.09 | ) | (0.09 | ) | ||||||||||||||||||||
| 2011 (13) | $ | 10.00 | (0.16 | ) | (0.12 | ) | (0.28 | ) | — | — | — | ||||||||||||||||||||
48 TURNER FUNDS 2014 SEMIANNUAL REPORT
| Net asset value, end of period | Total return | Net assets end of period (000) | Ratio of net expenses to average net assets* | Ratio of total expenses to average net assets | Ratio of net investment income (loss) to average net assets* | Portfolio turnover rate** | |||||||||||||||||||||||||
Spectrum Fund | |||||||||||||||||||||||||||||||
Turner Spectrum Fund — Institutional Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 11.94 | 4.46 | %† | $ | 216,730 | 1.93 | %†† (2) | 2.76 | %†† | (1.20 | )%†† | 213 | % | |||||||||||||||||
2013 | $ | 11.43 | 4.96 | % | $ | 481,845 | 1.93 | %†† (3) | 2.75 | %†† | (0.64 | )%†† | 580 | % | |||||||||||||||||
2012 | $ | 10.89 | (0.77 | )% | $ | 832,857 | �� | 1.89 | %†† (4) | 2.34 | %†† | (1.15 | )% †† | 996 | % | ||||||||||||||||
2011 | $ | 11.45 | 5.82 | % | $ | 448,554 | 1.93 | % (5) | 2.48 | % | (1.34 | )% | 1,153 | % | |||||||||||||||||
2010 | $ | 10.82 | 0.77 | % | $ | 179,526 | 1.91 | % (6) | 2.85 | % | (1.23 | )% | 1,808 | % | |||||||||||||||||
| 2009 (7) | $ | 10.81 | 8.10 | %† | $ | 8,681 | 2.44 | % (8) | 5.63 | % | (1.78 | )% | 663 | % | |||||||||||||||||
Turner Spectrum Fund — Investor Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 11.79 | 4.34 | %† | $ | 32,000 | 2.18 | %†† (2) | 3.01 | %†† | (1.45 | )%†† | 213 | % | |||||||||||||||||
2013 | $ | 11.30 | 4.63 | % | $ | 44,139 | 2.18 | %†† (3) | 3.00 | %†† | (0.89 | )%†† | 580 | % | |||||||||||||||||
2012 | $ | 10.80 | (0.95 | )% | $ | 126,533 | 2.14 | %†† (4) | 2.59 | %†† | (1.40 | )% †† | 996 | % | |||||||||||||||||
2011 | $ | 11.38 | 5.57 | % | $ | 161,401 | 2.18 | % (5) | 2.70 | % | (1.61 | )% | 1,153 | % | |||||||||||||||||
2010 | $ | 10.78 | 0.49 | % | $ | 52,361 | 2.17 | % (6) | 3.12 | % | (1.52 | )% | 1,808 | % | |||||||||||||||||
| 2009 (7) | $ | 10.80 | 8.00 | %† | $ | 4,567 | 2.71 | % (8) | 5.84 | % | (2.09 | )% | 663 | % | |||||||||||||||||
Turner Spectrum Fund — Class C Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 11.41 | 3.92 | %† | $ | 4,028 | 2.93 | %†† (2) | 3.76 | %†† | (2.20 | )%†† | 213 | % | |||||||||||||||||
2013 | $ | 10.98 | 3.88 | % | $ | 5,572 | 2.93 | %†† (3) | 3.75 | %†† | (1.64 | )%†† | 580 | % | |||||||||||||||||
2012 | $ | 10.57 | (1.71 | )% | $ | 10,391 | 2.89 | %†† (4) | 3.34 | %†† | (2.15 | )% †† | 996 | % | |||||||||||||||||
2011 | $ | 11.23 | 4.76 | % | $ | 12,478 | 2.93 | % (5) | 3.39 | % | (2.33 | )% | 1,153 | % | |||||||||||||||||
2010 | $ | 10.72 | (0.07 | )% | $ | 7,169 | 2.92 | % (6) | 3.82 | % | (2.19 | )% | 1,808 | % | |||||||||||||||||
| 2009 (9) | $ | 10.80 | 8.22 | %† | $ | — | 2.35 | % (8) | 5.28 | % | (3.12 | )% | 663 | % | |||||||||||||||||
Titan Fund | |||||||||||||||||||||||||||||||
Turner Titan Fund — Institutional Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 11.13 | 7.11 | %† | $ | 27,643 | 1.94 | %†† (10) | 2.75 | %†† | (1.06 | )%†† | 337 | % | |||||||||||||||||
2013 | $ | 10.51 | 3.43 | % | $ | 21,166 | 1.94 | %†† (11) | 2.42 | %†† | (0.76 | )%†† | 788 | % | |||||||||||||||||
2012 | $ | 10.24 | 5.75 | % | $ | 25,811 | 1.92 | %†† (12) | 2.41 | %†† | (1.03 | )%†† | 834 | % | |||||||||||||||||
| 2011 (13) | $ | 9.77 | (2.30 | )%† | $ | 11,374 | 1.92 | % (14) | 3.54 | % | (1.47 | )% | 647 | % | |||||||||||||||||
Turner Titan Fund — Investor Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 11.05 | 7.06 | %† | $ | 599 | 2.19 | %†† (10) | 3.00 | %†† | (1.31 | )%†† | 337 | % | |||||||||||||||||
2013 | $ | 10.44 | 3.14 | % | $ | 387 | 2.19 | %†† (11) | 2.67 | %†† | (1.01 | )%†† | 788 | % | |||||||||||||||||
2012 | $ | 10.20 | 5.44 | % | $ | 5,038 | 2.17 | %†† (12) | 2.66 | %†† | (1.28 | )%†† | 834 | % | |||||||||||||||||
| 2011 (13) | $ | 9.76 | (2.40 | )%† | $ | 2,711 | 2.16 | % (14) | 4.66 | % | (1.65 | )% | 647 | % | |||||||||||||||||
Turner Titan Fund — Class C Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 10.77 | 6.63 | %† | $ | 259 | 2.94 | %†† (10) | 3.75 | %†† | (2.06 | )%†† | 337 | % | |||||||||||||||||
2013 | $ | 10.22 | 2.28 | % | $ | 26 | 2.94 | %†† (11) | 3.42 | %†† | (1.76 | )%†† | 788 | % | |||||||||||||||||
2012 | $ | 10.07 | 4.53 | % | $ | 531 | 2.92 | %†† (12) | 3.41 | %†† | (2.03 | )%†† | 834 | % | |||||||||||||||||
| 2011 (13) | $ | 9.72 | (2.80 | )%† | $ | 29 | 2.92 | % (14) | 2.31 | % | (2.44 | )% | 647 | % | |||||||||||||||||
* Inclusive of fees paid indirectly, waivers and/or reimbursements.
** Excludes effect of in-kind transfers and mergers, as applicable. Not annualized for periods less than one year.
^ For the six-month period ended March 31, 2014 (unaudited). All ratios for the period have been annualized unless otherwise noted.
† Total return is for the period indicated and has not been annualized.
†† Does not include acquired fund fees or expenses.
(1) Based on average shares outstanding.
(2) Dividend expense totaled 0.36% of average net assets for the period ended March 31, 2014, 0.36% of which was waived. Broker fees and charges on short sales totaled 0.43% of average net assets for the period ended March 31, 2014, 0.43% of which was waived. If dividend expense and broker fees and charges on short sales had not been contractually waived, the ratios of net expenses to average net assets would have been 2.72%, 2.97% and 3.72% for the Institutional, Investor and Class C Shares, respectively.
(3) Dividend expense totaled 0.45% of average net assets for the year ended September 30, 2013, 0.45% of which was waived. Broker fees and charges on short sales totaled 0.45% of average net assets for the year ended September 30, 2013, 0.45% of which was waived. If dividend expense and broker fees and charges on short sales had not been contractually waived, the ratios of net expenses to average net assets would have been 2.83%, 3.08% and 3.83% for the Institutional, Investor and Class C Shares, respectively.
(4) Dividend expense totaled 0.20% of average net assets for the year ended September 30, 2012, 0.20% of which was waived. Broker fees and charges on short sales totaled 0.33% of average net assets for the year ended September 30, 2012, 0.33% of which was waived. If dividend expense and broker fees and charges on short sales had not been contractually waived, the ratios of net expenses to average net assets would have been 2.42%, 2.67% and 3.42% for the Institutional, Investor and Class C Shares, respectively.
(5) Dividend expense totaled 0.28% of average net assets for the year ended September 30, 2011, 0.22% of which was waived. Broker fees and charges on short sales totaled 0.32% of average net assets for the year ended September 30, 2011, 0.25% of which was waived. If dividend expense and broker fees and charges on short sales had not been contractually waived, the ratios of net expenses to average net assets would have been 2.40%, 2.65% and 3.40% for the Institutional, Investor and Class C Shares, respectively.
(6) Dividend expense totaled 0.45% of average net assets for the year ended September 30, 2010, 0.42% of which was waived. Broker fees and charges on short sales totaled 0.38% of average net assets for the year ended September 30, 2010, 0.37% of which was waived beginning on January 13, 2010. If dividend expense and broker fees and charges on short sales had not been contractually waived, the ratios of net expenses to average net assets would have been 2.70%, 2.96% and 3.71% for the Institutional, Investor and Class C Shares, respectively.
(7) Commenced operations on May 7, 2009. All ratios for the period have been annualized.
(8) Dividend expense totaled 0.70% of average net assets for the period ended September 30, 2009. If dividend expense had not been contractually waived, the ratios of net expenses to average net assets would have been 3.14%, 3.41% and 3.05% for the Institutional, Investor and Class C Shares, respectively. If Broker fees and charges on short sales had not been included, the ratios of net expenses to average net assets would have been 1.94%, 2.20% and 1.95% for the Institutional, Investor and Class C Shares, respectively.
(9) Commenced operations on July 14, 2009. All ratios for the period have annualized.
(10) Dividend expense totaled 0.20% of average net assets for the period ended March 31, 2014, 0.20% of which was waived. Broker fees and charges on short sales totaled 0.47% of average net assets for the period ended March 31, 2014, 0.47% of which was waived. If dividend expense and broker fees and charges on short sales had not been contractually waived, the ratios of net expenses to average net assets would have been 2.61%, 2.86% and 3.61% for the Institutional, Investor and Class C Shares, respectively.
(11) Dividend expense totaled 0.14% of average net assets for the year ended September 30, 2013, 0.14% of which was waived. Broker fees and charges on short sales totaled 0.27% of average net assets for the year ended September 30, 2013, 0.27% of which was waived. If dividend expense and broker fees and charges on short sales had not been contractually waived, the ratios of net expenses to average net assets would have been 2.35%, 2.60% and 3.35% for the Institutional, Investor and Class C Shares, respectively.
(12) Dividend expense totaled 0.08% of average net assets for the year ended September 30, 2012, 0.08% of which was waived. Broker fees and charges on short sales totaled 0.23% of average net assets for the year ended September 30, 2012, 0.23% of which was waived. If dividend expense and broker fees and charges on short sales had not been contractually waived, the ratios of net expenses to average net assets would have been 2.23%, 2.48% and 3.23% for the Institutional, Investor and Class C Shares, respectively.
(13) Commenced operations on February 7, 2011. All ratios for the period have annualized.
(14) Dividend expense totaled 0.28% of average net assets for the year ended September 30, 2011, 0.22% of which was waived. Broker fees and charges on short sales totaled 0.32% of average net assets for the year ended September 30, 2011, 0.25% of which was waived. If dividend expense and broker fees and charges on short sales had not been contractually waived, the ratios of net expenses to average net assets would have been 2.20%, 2.44% and 3.20% for the Institutional, Investor and Class C Shares, respectively.
Amounts designated as " — " are either not applicable, $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 49
FINANCIAL STATEMENTS
Financial highlights
For a share outstanding throughout each period
| Net asset value, beginning of period | Net investment income (loss)(1) | Realized and unrealized gains (losses) on investments | Total from investment operations | Dividends from net investment income | Distributions from capital gains | Return of capital | Total dividends and distributions | ||||||||||||||||||||||||||||
All Cap Growth Fund | |||||||||||||||||||||||||||||||||||
Turner All Cap Growth Fund — Investor Class Shares | |||||||||||||||||||||||||||||||||||
| 2014^ | $ | 10.32 | (0.02 | ) | 1.19 | 1.17 | — | — | — | — | |||||||||||||||||||||||||
2013 | $ | 9.01 | (0.01 | ) | 1.35 | 1.34 | — | — | (0.03 | ) | (0.03 | ) | |||||||||||||||||||||||
2012 | $ | 7.67 | (0.02 | ) | 1.36 | 1.34 | — | — | — | — | |||||||||||||||||||||||||
2011 | $ | 7.03 | (0.11 | ) | 0.75 | 0.64 | — | — | — | — | |||||||||||||||||||||||||
2010 | $ | 5.95 | (0.09 | ) | 1.18 | 1.09 | (0.01 | ) | — | — | (0.01 | ) | |||||||||||||||||||||||
2009 | $ | 5.60 | — | 0.35 | 0.35 | — | — | — | — | ||||||||||||||||||||||||||
Emerging Growth Fund | |||||||||||||||||||||||||||||||||||
Turner Emerging Growth Fund — Institutional Class Shares | |||||||||||||||||||||||||||||||||||
| 2014^ | $ | 65.25 | (0.26 | ) | 4.75 | 4.49 | — | (10.36 | ) | — | (10.36 | ) | |||||||||||||||||||||||
2013 | $ | 57.68 | (0.12 | ) | 16.10 | 15.98 | — | (8.41 | ) | — | (8.41 | ) | |||||||||||||||||||||||
2012 | $ | 45.83 | (0.34 | ) | 12.19 | 11.85 | — | — | — | — | |||||||||||||||||||||||||
2011 | $ | 42.51 | (0.40 | ) | 3.72 | 3.32 | — | — | — | — | |||||||||||||||||||||||||
2010 | $ | 37.78 | (0.31 | ) | 5.04 | 4.73 | — | — | — | — | |||||||||||||||||||||||||
| 2009 (3) | $ | 28.45 | (0.12 | ) | 9.45 | 9.33 | — | — | — | — | |||||||||||||||||||||||||
Turner Emerging Growth Fund — Investor Class Shares | |||||||||||||||||||||||||||||||||||
| 2014^ | $ | 64.38 | (0.34 | ) | 4.69 | 4.35 | — | (10.36 | ) | — | (10.36 | ) | |||||||||||||||||||||||
2013 | $ | 57.16 | (0.25 | ) | 15.88 | 15.63 | — | (8.41 | ) | — | (8.41 | ) | |||||||||||||||||||||||
2012 | $ | 45.52 | (0.47 | ) | 12.11 | 11.64 | — | — | — | — | |||||||||||||||||||||||||
2011 | $ | 42.32 | (0.52 | ) | 3.72 | 3.20 | — | — | — | — | |||||||||||||||||||||||||
2010 | $ | 37.71 | (0.41 | ) | 5.02 | 4.61 | — | — | — | — | |||||||||||||||||||||||||
2009 | $ | 46.42 | (0.22 | ) | (7.31 | ) | (7.53 | ) | — | (1.18 | ) | — | (1.18 | ) | |||||||||||||||||||||
Large Growth Fund | |||||||||||||||||||||||||||||||||||
Turner Large Growth Fund — Institutional Class Shares | |||||||||||||||||||||||||||||||||||
| 2014^ | $ | 14.68 | 0.02 | 1.77 | 1.79 | — | — | — | — | ||||||||||||||||||||||||||
2013 | $ | 12.86 | 0.07 | 1.83 | 1.90 | (0.08 | ) | — | — | (0.08 | ) | ||||||||||||||||||||||||
2012 | $ | 10.50 | 0.02 | 2.34 | 2.36 | — | — | — | — | ||||||||||||||||||||||||||
2011 | $ | 10.56 | — | (0.04 | ) | (0.04 | ) | (0.02 | ) | — | — | (0.02 | ) | ||||||||||||||||||||||
2010 | $ | 9.93 | 0.02 | 0.65 | 0.67 | (0.04 | ) | — | — | (0.04 | ) | ||||||||||||||||||||||||
2009 | $ | 10.41 | 0.05 | (0.48 | ) | (0.43 | ) | (0.05 | ) | — | — | (0.05 | ) | ||||||||||||||||||||||
Turner Large Growth Fund — Investor Class Shares | |||||||||||||||||||||||||||||||||||
| 2014^ | $ | 14.55 | — | 1.76 | 1.76 | — | — | — | — | ||||||||||||||||||||||||||
2013 | $ | 12.74 | 0.02 | 1.82 | 1.84 | (0.03 | ) | — | — | (0.03 | ) | ||||||||||||||||||||||||
2012 | $ | 10.42 | (0.01 | ) | 2.33 | 2.32 | — | — | — | — | |||||||||||||||||||||||||
2011 | $ | 10.49 | (0.03 | ) | (0.04 | ) | (0.07 | ) | — | — | — | — | |||||||||||||||||||||||
2010 | $ | 9.87 | — | 0.64 | 0.64 | (0.02 | ) | — | — | (0.02 | ) | ||||||||||||||||||||||||
2009 | $ | 10.34 | 0.03 | (0.47 | ) | (0.44 | ) | (0.03 | ) | — | — | (0.03 | ) | ||||||||||||||||||||||
50 TURNER FUNDS 2014 SEMIANNUAL REPORT
| Net asset value, end of period | Total return | Net assets end of period (000) | Ratio of net expenses to average net assets* | Ratio of total expenses to average net assets | Ratio of net investment income (loss) to average net assets* | Portfolio turnover rate** | |||||||||||||||||||||||||
All Cap Growth Fund | |||||||||||||||||||||||||||||||
Turner All Cap Growth Fund — Investor Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 11.49 | 11.34 | %† | $ | 18,557 | 1.08 | % | 1.64 | % | (0.27 | )% | 39 | % | |||||||||||||||||
2013 | $ | 10.32 | 14.93 | % | $ | 17,975 | 0.85 | % | 1.43 | % | (0.13 | )% | 105 | % | |||||||||||||||||
2012 | $ | 9.01 | 17.47 | % | $ | 25,840 | 0.86 | % | 1.34 | % | (0.25 | )% | 182 | % | |||||||||||||||||
2011 | $ | 7.67 | 9.10 | % | $ | 33,053 | 1.73 | % | 2.12 | % | (1.29 | )% | 205 | % | |||||||||||||||||
2010 | $ | 7.03 | 18.25 | % | $ | 23,227 | 1.64 | % | 2.15 | % | (1.38 | )% | 115 | % | |||||||||||||||||
2009 | $ | 5.95 | 6.25 | % | $ | 26,324 | 0.62 | % (2) | 1.23 | % | 0.09 | % | 220 | % | |||||||||||||||||
Emerging Growth Fund | |||||||||||||||||||||||||||||||
Turner Emerging Growth Fund — Institutional Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 59.38 | 7.63 | %† | $ | 76,414 | 1.15 | % | 1.36 | % | (0.84 | )% | 29 | % | |||||||||||||||||
2013 | $ | 65.25 | 32.98 | % | $ | 72,442 | 1.15 | % | 1.31 | % | (0.21 | )% | 62 | % | |||||||||||||||||
2012 | $ | 57.68 | 25.86 | % | $ | 69,391 | 1.15 | % | 1.30 | % | (0.62 | )% | 75 | % | |||||||||||||||||
2011 | $ | 45.83 | 7.81 | % | $ | 67,035 | 1.15 | % | 1.27 | % | (0.77 | )% | 74 | % | |||||||||||||||||
2010 | $ | 42.51 | 12.52 | % | $ | 276,445 | 1.15 | % | 1.28 | % | (0.77 | )% | 96 | % | |||||||||||||||||
| 2009 (3) | $ | 37.78 | 32.79 | %† | $ | 243,790 | 1.15 | % | 1.33 | % | (0.54 | )% | 78 | % | |||||||||||||||||
Turner Emerging Growth Fund — Investor Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 58.37 | 7.51 | %† | $ | 180,584 | 1.40 | % | 1.61 | % | (1.09 | )% | 29 | % | |||||||||||||||||
2013 | $ | 64.38 | 32.63 | % | $ | 180,291 | 1.40 | % | 1.56 | % | (0.46 | )% | 62 | % | |||||||||||||||||
2012 | $ | 57.16 | 25.57 | % | $ | 168,990 | 1.40 | % | 1.55 | % | (0.87 | )% | 75 | % | |||||||||||||||||
2011 | $ | 45.52 | 7.56 | % | $ | 159,127 | 1.40 | % | 1.55 | % | (1.01 | )% | 74 | % | |||||||||||||||||
2010 | $ | 42.32 | 12.22 | % | $ | 176,823 | 1.40 | % | 1.53 | % | (1.02 | )% | 96 | % | |||||||||||||||||
2009 | $ | 37.71 | (15.58 | )% | $ | 188,812 | 1.40 | % | 1.56 | % | (0.71 | )% | 78 | % | |||||||||||||||||
Large Growth Fund | |||||||||||||||||||||||||||||||
Turner Large Growth Fund — Institutional Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 16.47 | 12.19 | %† | $ | 22,527 | 0.69 | % | 1.07 | % | 0.29 | % | 22 | % | |||||||||||||||||
2013 | $ | 14.68 | 14.87 | % | $ | 53,965 | 0.69 | % | 0.96 | % | 0.52 | % | 71 | % (4) | |||||||||||||||||
2012 | $ | 12.86 | 22.48 | % | $ | 201,051 | 0.69 | % | 0.91 | % | 0.15 | % | 105 | % | |||||||||||||||||
2011 | $ | 10.50 | (0.39 | )% | $ | 382,336 | 0.69 | % | 0.89 | % | (0.03 | )% | 182 | % | |||||||||||||||||
2010 | $ | 10.56 | 6.76 | % | $ | 377,650 | 0.69 | % | 0.87 | % | 0.20 | % | 178 | % | |||||||||||||||||
2009 | $ | 9.93 | (3.97 | )% | $ | 381,277 | 0.69 | % | 0.92 | % | 0.65 | % | 126 | % | |||||||||||||||||
Turner Large Growth Fund — Investor Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 16.31 | 12.10 | %† | $ | 21,030 | 0.94 | % | 1.32 | % | 0.04 | % | 22 | % | |||||||||||||||||
2013 | $ | 14.55 | 14.50 | % | $ | 30,623 | 0.94 | % | 1.21 | % | 0.27 | % | 71 | % (4) | |||||||||||||||||
2012 | $ | 12.74 | 22.26 | % | $ | 47,861 | 0.94 | % | 1.16 | % | (0.10 | )% | 105 | % | |||||||||||||||||
2011 | $ | 10.42 | (0.67 | )% | $ | 56,661 | 0.94 | % | 1.13 | % | (0.28 | )% | 182 | % | |||||||||||||||||
2010 | $ | 10.49 | 6.51 | % | $ | 163,750 | 0.94 | % | 1.12 | % | (0.05 | )% | 178 | % | |||||||||||||||||
2009 | $ | 9.87 | (4.21 | )% | $ | 252,916 | 0.94 | % | 1.17 | % | 0.41 | % | 126 | % | |||||||||||||||||
* Inclusive of fees paid indirectly, waivers and/or reimbursements.
** Excludes effect of in-kind transfers and mergers, as applicable. Not annualized for periods less than one year.
^ For the six-month period ended March 31, 2014 (unaudited). All ratios for the period have been annualized unless otherwise noted.
† Total return is for the period indicated and has not been annualized.
(1) Based on average shares outstanding.
(2) Excluding fees paid indirectly, the ratio of net expenses to average net assets would have been 0.63%.
(3) Commenced operations on February 1, 2009. All ratios for the period have been annualized.
(4) If purchases of portfolio securities in connection with the reorganization of the Turner Concentrated Growth Fund into the Turner Large Growth Fund had been included, the portfolio turnover rate would have been 81%.
Amounts designated as "—" are either not applicable, $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 51
FINANCIAL STATEMENTS
Financial highlights
For a share outstanding throughout each period
| Net asset value, beginning of period | Net investment income (loss)(1) | Realized and unrealized gains (losses) on investments | Total from investment operations | Dividends from net investment income | Distributions from capital gains | Total dividends and distributions | |||||||||||||||||||||||||
Midcap Growth Fund | |||||||||||||||||||||||||||||||
Turner Midcap Growth Fund — Institutional Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 43.43 | (0.04 | ) | 4.67 | 4.63 | — | (9.36 | ) | (9.36 | ) | ||||||||||||||||||||
2013 | $ | 35.39 | (0.09 | ) | 8.68 | 8.59 | — | (0.55 | ) | (0.55 | ) | ||||||||||||||||||||
2012 | $ | 30.42 | (0.05 | ) | 5.02 | 4.97 | — | — | — | ||||||||||||||||||||||
2011 | $ | 29.90 | (0.06 | ) | 0.58 | 0.52 | — | — | — | ||||||||||||||||||||||
2010 | $ | 26.12 | (0.08 | ) | 3.86 | 3.78 | — | — | — | ||||||||||||||||||||||
2009 | $ | 26.20 | (0.01 | ) | (0.07 | ) | (0.08 | ) | — | — | — | ||||||||||||||||||||
Turner Midcap Growth Fund — Investor Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 42.85 | (0.08 | ) | 4.58 | 4.50 | — | (9.36 | ) | (9.36 | ) | ||||||||||||||||||||
2013 | $ | 35.03 | (0.18 | ) | 8.55 | 8.37 | — | (0.55 | ) | (0.55 | ) | ||||||||||||||||||||
2012 | $ | 30.16 | (0.13 | ) | 5.00 | 4.87 | — | — | — | ||||||||||||||||||||||
2011 | $ | 29.73 | (0.13 | ) | 0.56 | 0.43 | — | — | — | ||||||||||||||||||||||
2010 | $ | 26.03 | (0.15 | ) | 3.85 | 3.70 | — | — | — | ||||||||||||||||||||||
2009 | $ | 26.18 | (0.06 | ) | (0.09 | ) | (0.15 | ) | — | — | — | ||||||||||||||||||||
Turner Midcap Growth Fund — Retirement Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 41.07 | (0.13 | ) | 4.36 | 4.23 | — | (9.36 | ) | (9.36 | ) | ||||||||||||||||||||
2013 | $ | 33.65 | (0.25 | ) | 8.22 | 7.97 | — | (0.55 | ) | (0.55 | ) | ||||||||||||||||||||
2012 | $ | 29.05 | (0.20 | ) | 4.80 | 4.60 | — | — | — | ||||||||||||||||||||||
2011 | $ | 28.71 | (0.22 | ) | 0.56 | 0.34 | — | — | — | ||||||||||||||||||||||
2010 | $ | 25.20 | (0.21 | ) | 3.72 | 3.51 | — | — | — | ||||||||||||||||||||||
2009 | $ | 25.40 | (0.11 | ) | (0.09 | ) | (0.20 | ) | — | — | — | ||||||||||||||||||||
Small Cap Growth Fund | |||||||||||||||||||||||||||||||
Turner Small Cap Growth Fund — Investor Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 44.76 | (0.15 | ) | 1.71 | 1.56 | — | (7.96 | ) | (7.96 | ) | ||||||||||||||||||||
2013 | $ | 35.96 | (0.16 | ) | 11.47 | 11.31 | — | (2.51 | ) | (2.51 | ) | ||||||||||||||||||||
2012 | $ | 27.83 | (0.23 | ) | 8.36 | 8.13 | — | — | — | ||||||||||||||||||||||
2011 | $ | 28.97 | (0.26 | ) | (0.88 | ) | (1.14 | ) | — | — | — | ||||||||||||||||||||
2010 | $ | 25.17 | (0.20 | ) | 4.00 | 3.80 | — | — | — | ||||||||||||||||||||||
2009 | $ | 26.45 | (0.07 | ) | (1.21 | ) | (1.28 | ) | — | — | — | ||||||||||||||||||||
Emerging Markets Fund | |||||||||||||||||||||||||||||||
Turner Emerging Markets Fund — Institutional Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 10.78 | — | 0.58 | 0.58 | (0.03 | ) | (0.12 | ) | (0.15 | ) | ||||||||||||||||||||
| 2013 (2) | $ | 10.00 | — | 0.78 | 0.78 | — | — | — | |||||||||||||||||||||||
Turner Emerging Markets Fund — Investor Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 10.78 | (0.02 | ) | 0.58 | 0.56 | (0.02 | ) | (0.12 | ) | (0.14 | ) | |||||||||||||||||||
| 2013 (2) | $ | 10.00 | — | 0.78 | 0.78 | — | — | — | |||||||||||||||||||||||
52 TURNER FUNDS 2014 SEMIANNUAL REPORT
| Net asset value, end of period | Total return | Net assets end of period (000) | Ratio of net expenses to average net assets* | Ratio of total expenses to average net assets | Ratio of net investment income (loss) to average net assets* | Portfolio turnover rate** | |||||||||||||||||||||||||
Midcap Growth Fund | |||||||||||||||||||||||||||||||
Turner Midcap Growth Fund — Institutional Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 38.70 | 12.62 | %† | $ | 144,683 | 0.93 | % | 1.12 | % | (0.18 | )% | 42 | % | |||||||||||||||||
2013 | $ | 43.43 | 24.69 | % | $ | 205,679 | 0.93 | % | 1.08 | % | (0.24 | )% | 84 | % | |||||||||||||||||
2012 | $ | 35.39 | 16.34 | % | $ | 236,147 | 0.93 | % | 1.04 | % | (0.14 | )% | 121 | % | |||||||||||||||||
2011 | $ | 30.42 | 1.74 | % | $ | 245,480 | 0.93 | % | 1.05 | % | (0.18 | )% | 104 | % | |||||||||||||||||
2010 | $ | 29.90 | 14.47 | % | $ | 164,993 | 0.93 | % | 1.03 | % | (0.29 | )% | 90 | % | |||||||||||||||||
2009 | $ | 26.12 | (0.31 | )% | $ | 136,069 | 0.93 | % | 1.08 | % | (0.05 | )% | 120 | % | |||||||||||||||||
Turner Midcap Growth Fund — Investor Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 37.99 | 12.47 | %† | $ | 271,918 | 1.18 | % | 1.37 | % | (0.43 | )% | 42 | % | |||||||||||||||||
2013 | $ | 42.85 | 24.31 | % | $ | 257,240 | 1.18 | % | 1.33 | % | (0.49 | )% | 84 | % | |||||||||||||||||
2012 | $ | 35.03 | 16.15 | % | $ | 404,427 | 1.18 | % | 1.29 | % | (0.39 | )% | 121 | % | |||||||||||||||||
2011 | $ | 30.16 | 1.45 | % | $ | 471,286 | 1.18 | % | 1.28 | % | (0.38 | )% | 104 | % | |||||||||||||||||
2010 | $ | 29.73 | 14.21 | % | $ | 751,124 | 1.18 | % | 1.28 | % | (0.54 | )% | 90 | % | |||||||||||||||||
2009 | $ | 26.03 | (0.57 | )% | $ | 859,640 | 1.18 | % | 1.33 | % | (0.29 | )% | 120 | % | |||||||||||||||||
Turner Midcap Growth Fund — Retirement Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 35.94 | 12.33 | %† | $ | 4,764 | 1.43 | % | 1.62 | % | (0.68 | )% | 42 | % | |||||||||||||||||
2013 | $ | 41.07 | 24.11 | % | $ | 4,235 | 1.43 | % | 1.58 | % | (0.74 | )% | 84 | % | |||||||||||||||||
2012 | $ | 33.65 | 15.83 | % | $ | 4,811 | 1.43 | % | 1.54 | % | (0.64 | )% | 121 | % | |||||||||||||||||
2011 | $ | 29.05 | 1.18 | % | $ | 3,972 | 1.43 | % | 1.54 | % | (0.63 | )% | 104 | % | |||||||||||||||||
2010 | $ | 28.71 | 13.93 | % | $ | 4,578 | 1.43 | % | 1.53 | % | (0.79 | )% | 90 | % | |||||||||||||||||
2009 | $ | 25.20 | (0.79 | )% | $ | 3,892 | 1.43 | % | 1.58 | % | (0.55 | )% | 120 | % | |||||||||||||||||
Small Cap Growth Fund | |||||||||||||||||||||||||||||||
Turner Small Cap Growth Fund — Investor Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 38.36 | 4.05 | %† | $ | 212,592 | 1.25 | % | 1.61 | % | (0.73 | )% | 52 | % | |||||||||||||||||
2013 | $ | 44.76 | 33.79 | % | $ | 233,039 | 1.25 | % | 1.56 | % | (0.43 | )% | 82 | % | |||||||||||||||||
2012 | $ | 35.96 | 29.21 | % | $ | 250,099 | 1.25 | % | 1.53 | % | (0.68 | )% | 100 | % | |||||||||||||||||
2011 | $ | 27.83 | (3.94 | )% | $ | 229,919 | 1.25 | % | 1.53 | % | (0.76 | )% | 119 | % | |||||||||||||||||
2010 | $ | 28.97 | 15.10 | % | $ | 274,925 | 1.25 | % | 1.52 | % | (0.74 | )% | 89 | % | |||||||||||||||||
2009 | $ | 25.17 | (4.84 | )% | $ | 250,860 | 1.25 | % | 1.58 | % | (0.36 | )% | 113 | % | |||||||||||||||||
Emerging Markets Fund | |||||||||||||||||||||||||||||||
Turner Emerging Markets Fund — Institutional Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 11.21 | 5.39 | %† | $ | 540 | 1.05 | % | 13.65 | % | (0.08 | )% | 25 | % | |||||||||||||||||
| 2013 (2) | $ | 10.78 | 7.80 | %† | $ | 512 | 1.05 | % | 13.81 | % | 0.87 | % | 1 | % | |||||||||||||||||
Turner Emerging Markets Fund — Investor Class Shares | |||||||||||||||||||||||||||||||
| 2014^ | $ | 11.20 | 5.22 | %† | $ | 39 | 1.30 | % | 13.90 | % | (0.33 | )% | 25 | % | |||||||||||||||||
| 2013 (2) | $ | 10.78 | 7.80 | %† | $ | 37 | 1.30 | % | 15.39 | % | 0.62 | % | 1 | % | |||||||||||||||||
* Inclusive of fees paid indirectly, waivers and/or reimbursements.
** Excludes effect of in-kind transfers and mergers, as applicable. Not annualized for periods less than one year.
^ For the six-month period ended March 31, 2014 (unaudited). All ratios for the period have been annualized unless otherwise noted.
† Total return is for the period indicated and has not been annualized.
(1) Based on average shares outstanding.
(2) Commenced operations on August 28, 2013. All ratios for the period have been annualized unless otherwise noted.
Amounts designated as "—" are either not applicable, $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2014 SEMIANNUAL REPORT 53
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Notes to financial statements
March 31, 2014
1. Organization:
Turner Funds (the "Trust"), a Massachusetts business trust, is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The funds included herein are the Turner Market Neutral Fund ("Market Neutral Fund"), Turner Medical Sciences Long/Short Fund ("Medical Sciences Long/Short Fund"), Turner Spectrum Fund ("Spectrum Fund"), Turner Titan Fund ("Titan Fund"), Turner All Cap Growth Fund ("All Cap Growth Fund"), Turner Emerging Growth Fund ("Emerging Growth Fund"), Turner Large Growth Fund ("Large Growth Fund"), Turner Midcap Growth Fund ("Midcap Growth Fund"), Turner Small Cap Growth Fund ("Small Cap Growth Fund"), and Turner Emerging Markets Fund ("Emerging Markets Fund"), each a "Fund" and collectively the "Funds."
Each Fund is registered as a diversified portfolio of the Trust.
The Funds are registered to offer different classes of shares: Institutional Class Shares, Investor Class Shares, Retirement Class Shares, Class C Shares, or a combination of the four. The assets of each Fund are segregated, and a shareholder's interest is limited to the Fund in which shares are held. The Funds' prospectuses provide a description of each Fund's investment objectives, policies and strategies along with information on the classes of shares currently being offered.
On March 25, 2014, the Board of Trustees determined to close and liquidate the Emerging Markets Fund, effective on or about April 15, 2014. This decision was made after careful consideration of the Fund's asset size, strategic importance, current expenses and historical performance.
2. Significant accounting policies:
The following is a summary of the significant accounting policies followed by the Funds.
Use of estimates—The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
Security valuation—In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, fair value is defined as the price that a Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market.
The Trust has a three-tier fair value hierarchy that is dependent upon the various "inputs" used to determine the value of the Funds' investments. These
inputs are summarized in the three broad levels listed below:
Level 1 – quoted prices in active markets for identical investments
Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risks, etc.)
Level 3 – significant unobservable inputs (including a Fund's own assumptions in determining the fair value of investments)
Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ), including American Depositary Receipts ("ADRs"), are valued at the last quoted sale price on the primary exchange or market (foreign or domestic) on which they are traded, or, if there is no such reported sale, at the most recent quoted bid price for long positions and the most recent quoted ask price for short positions. For securities traded on NASDAQ, the NASDAQ Official Closing Price is used. The prices for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates. Prices for most securities held in the Funds are provided daily by recognized independent pricing agents. To the extent these securities are valued at the last sales price or NASDAQ Official Closing Price, they are categorized as Level 1 in the fair value hierarchy.
Investments in other open-end investment companies are valued at net asset value. These valuations are typically categorized as Level 1 in the fair value hierarchy.
If a security price cannot be obtained from an independent, third-party pricing agent, the Funds seek to obtain bid and ask prices from two broker-dealers who make a market in the security and determine the average of the two. In this situation, valuations are typically categorized as Level 2 in the fair value hierarchy.
Securities for which market prices are not "readily available" are valued in accordance with Fair Value Procedures established by the Board of Trustees (the "Board"). The Funds' Fair Value Procedures are implemented through a Fair Value Committee (the "Committee") designated by the Board. Some of the more common reasons that may necessitate that a security be valued using Fair Value Procedures include: the security's trading has been halted or suspended; the security has been delisted from a national exchange; the security's primary trading market is temporarily closed at a time when under normal conditions it would be open; the security has not been traded for an extended period of time; the security's primary pricing source is not able or willing to provide
54 TURNER FUNDS 2014 SEMIANNUAL REPORT
a price; or trading of the security is subject to local government-imposed restrictions. When a security is valued in accordance with the Fair Value Procedures, the Committee will determine the value after taking into consideration relevant information reasonably available to the Committee. Depending on the source or relative significance of the valuation inputs, these securities may be categorized as Level 2 or Level 3 in the fair value hierarchy.
For securities that principally trade on a foreign market or exchange, a significant gap in time can exist between the time of a particular security's last trade and the time at which a Fund calculates its net asset value. The closing prices of such securities may no longer reflect their market value at the time a Fund calculates net asset value if an event that could materially affect the value of those securities (a "Significant Event") has occurred between the time of the security's last close and the time that a Fund calculates net asset value. A Significant Event may relate to a single issuer or to an entire market sector. In addition, the Funds' Sub-administrator, as defined in Note 3, monitors price movements among certain selected indices, securities and/or baskets of securities that may be an indicator that the closing prices received earlier from foreign exchanges or markets may not reflect market value at the time a Fund calculates its net asset value. If price movements in a monitored index or security exceed levels recommended by the Committee for approval by the Board ("trigger points"), the Sub-administrator will notify the Adviser, as defined in Note 3, that such limits have been exceeded. If such trigger points are exceeded, then the close prices for certain foreign markets are systematically adjusted by fair value factors calculated by an independent pricing service. The circumstances described above use significant observable inputs and therefore these valuations are considered as Level 2 in the fair value hierarchy.
In the event that the Adviser believes that the fair values provided by a third party fair valuation vendor are not reliable, or believes that a foreign security held by a Fund should be fair valued for any other reason, the Adviser shall contact the Sub-administrator and request that a meeting of the Committee be held. Depending on the source or relative significance of the valuation inputs, these securities may be categorized as Level 2 or Level 3 in the fair value hierarchy.
For the six months ended March 31, 2014, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.
The following table is a summary of inputs used to value the Funds' investments as of March 31, 2014 (000). The breakdown, by sub-category, of the "common stock" category is disclosed on the Schedule
of investments and Schedule of securities sold short for each Fund, as applicable.
Level 1 | Level 2 | Total | |||||||||||||
Market Neutral Fund | |||||||||||||||
Investments in securities | |||||||||||||||
Common stock | $ | 3,196 | $ | — | $ | 3,196 | |||||||||
Cash equivalent | 53 | — | 53 | ||||||||||||
Total Investments in securities | $ | 3,249 | $ | — | $ | 3,249 | |||||||||
Securities sold short | |||||||||||||||
Common stock | $ | 3,161 | $ | — | $ | 3,161 | |||||||||
Total Securities sold short | $ | 3,161 | $ | — | $ | 3,161 | |||||||||
Medical Sciences Long/Short Fund | |||||||||||||||
Investments in securities | |||||||||||||||
Common stock | $ | 36,394 | $ | — | $ | 36,394 | |||||||||
Cash equivalent | 6,749 | — | 6,749 | ||||||||||||
Total Investments in securities | $ | 43,143 | $ | — | $ | 43,143 | |||||||||
Securities sold short | |||||||||||||||
Common stock | $ | 14,216 | $ | — | $ | 14,216 | |||||||||
Exchange traded funds | 10,434 | — | 10,434 | ||||||||||||
Total Securities sold short | $ | 24,650 | $ | — | $ | 24,650 | |||||||||
Spectrum Fund | |||||||||||||||
Investments in securities | |||||||||||||||
Common stock | $ | 228,843 | $ | — | $ | 228,843 | |||||||||
Warrant | 708 | — | 708 | ||||||||||||
Cash equivalent | 25,041 | — | 25,041 | ||||||||||||
Total Investments in securities | $ | 254,592 | $ | — | $ | 254,592 | |||||||||
Securities sold short | |||||||||||||||
Common stock | $ | 95,758 | $ | — | $ | 95,758 | |||||||||
Exchange traded funds | 42,554 | — | 42,554 | ||||||||||||
Total Securities sold short | $ | 138,312 | $ | — | $ | 138,312 | |||||||||
Titan Fund | |||||||||||||||
Investments in securities | |||||||||||||||
Common stock | $ | 26,981 | $ | — | $ | 26,981 | |||||||||
Cash equivalent | 730 | — | 730 | ||||||||||||
Total Investments in securities | $ | 27,711 | $ | — | $ | 27,711 | |||||||||
Securities sold short | |||||||||||||||
Common stock | $ | 10,712 | $ | — | $ | 10,712 | |||||||||
Exchange traded funds | 3,229 | — | 3,229 | ||||||||||||
Total Securities sold short | $ | 13,941 | $ | — | $ | 13,941 | |||||||||
All Cap Growth Fund | |||||||||||||||
Investments in Securities | |||||||||||||||
Common Stock | $ | 18,236 | $ | — | $ | 18,236 | |||||||||
Warrant | 98 | — | 98 | ||||||||||||
Cash equivalent | 407 | — | 407 | ||||||||||||
Total Investments in securities | $ | 18,741 | $ | — | $ | 18,741 | |||||||||
Emerging Growth Fund | |||||||||||||||
Investments in securities | |||||||||||||||
Common stock | $ | 227,577 | $ | — | $ | 227,577 | |||||||||
Cash equivalent | 43,031 | — | 43,031 | ||||||||||||
Total Investments in securities | $ | 270,608 | $ | — | $ | 270,608 | |||||||||
TURNER FUNDS 2014 SEMIANNUAL REPORT 55
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Level 1 | Level 2 | Total | |||||||||||||
Large Growth Fund | |||||||||||||||
Investments in securities | |||||||||||||||
Common stock | $ | 42,783 | $ | — | $ | 42,783 | |||||||||
Cash equivalent | 2,107 | — | 2,107 | ||||||||||||
Total Investments in securities | $ | 44,890 | $ | — | $ | 44,890 | |||||||||
Midcap Growth Fund | |||||||||||||||
Investments in securities | |||||||||||||||
Common stock | $ | 411,231 | $ | — | $ | 411,231 | |||||||||
Cash equivalent | 15,734 | — | 15,734 | ||||||||||||
Total Investments in securities | $ | 426,965 | $ | — | $ | 426,965 | |||||||||
Small Cap Growth Fund | |||||||||||||||
Investments in securities | |||||||||||||||
Common stock | $ | 209,963 | $ | — | $ | 209,963 | |||||||||
Cash equivalent | 12,553 | — | 12,553 | ||||||||||||
Total Investments in securities | $ | 222,516 | $ | — | $ | 222,516 | |||||||||
Emerging Markets Fund | |||||||||||||||
Investments in securities | |||||||||||||||
Common stock | |||||||||||||||
Consumer staples | $ | 42 | $ | 6 | $ | 48 | |||||||||
Financials | 143 | 4 | 147 | ||||||||||||
Health care | 12 | 8 | 20 | ||||||||||||
Information technology | 113 | 9 | 122 | ||||||||||||
Utilities | — | 6 | 6 | ||||||||||||
Other common stock | 219 | — | 219 | ||||||||||||
Warrant | 1 | — | 1 | ||||||||||||
Cash equivalent | 10 | — | 10 | ||||||||||||
Total Investments in securities | $ | 540 | $ | 33 | $ | 573 | |||||||||
For the six months ended March 31, 2014, there were no significant changes to the Funds' fair valuation methodologies. Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy during the reporting period. For each Fund there were no transfers between the levels as of March 31, 2014 based on the input levels assigned at September 30, 2013.
Security transactions and related income—Security transactions are accounted for on the date the security is purchased or sold (trade date). Dividend income is recognized on the ex-dividend date. Costs used in determining realized gains and losses on the sales of investment securities are those of the specific securities lots sold.
Securities sold short—Consistent with each Fund's investment objectives, the Funds may engage in short sales. Short sales are transactions under which a Fund sells a security it does not own. To complete such a transaction, the Fund must borrow the security to make delivery to the buyer. The Fund is then obligated to replace the security borrowed by purchasing the security at the market price at the time of the replacement. The price at such time may be more or less than the price at which the security was sold by the Fund. Until the security is replaced, the Fund is required to
pay the lender amounts equal to any dividends that accrue during the period of the loan. Dividends declared on open short positions are recorded on ex-date and shown as an expense for financial reporting purposes. To borrow the security, the Fund also may be required to pay a fee, which is shown as an expense for financial reporting purposes. The proceeds of the short sale are retained by the broker, to the extent necessary to meet margin requirements, until the short position is closed out. A gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, will be recognized upon the close of a short sale.
Until a Fund closes its short position or replaces the borrowed security, the Fund will: (a) maintain a segregated account containing cash or liquid securities at such a level that (i) the amount deposited in the account plus the amount deposited with the brokers as collateral will equal the current value of the security sold short; and (ii) the amount deposited in the segregated account plus the amount deposited with the broker as collateral will not be less than the market value of the security at the time the security was sold short, or (b) otherwise cover the short positions. The Market Neutral Fund, Medical Sciences Long/Short Fund, Spectrum Fund and Titan Fund engaged in short sales during the six months ended March 31, 2014.
Participation Notes—The Emerging Markets Fund may invest in participation notes. Some countries, especially emerging markets countries, do not permit foreigners to participate directly in their securities markets or otherwise present difficulties for efficient foreign investment. The Emerging Markets Fund may use participation notes to establish a position in such markets as a substitute for direct investment. Participation notes are issued by banks or broker-dealers and are designed to track the return of a particular underlying equity security or debt security, currency or market. When the participation note matures, the issuer of the participation note will pay to, or receive from, the Emerging Markets Fund the difference between the nominal value of the underlying instrument at the time of purchase and that instrument's value at maturity. Investments in participation notes involve the same risks as are associated with a direct investment in the underlying security, currency or market that they seek to replicate. In addition, participation notes are generally traded over-the-counter and are subject to counterparty risk. Counterparty risk is the risk that the broker-dealer or bank that issues the participation note will not fulfill its contractual obligation to complete the transaction with the Emerging Markets Fund. Participation notes constitute general unsecured contractual obligations of the banks or broker-dealers that issue them, and the Emerging Markets Fund would be relying on the creditworthiness of such banks or broker-dealers and would have
56 TURNER FUNDS 2014 SEMIANNUAL REPORT
no rights under a participation note against the issuer of the underlying assets when it invests in participation notes. In addition, participation notes may trade at a discount to the value of the underlying securities or markets that they seek to replicate.
Option transactions—Consistent with each Fund's investment objectives, the Funds may write covered call options and sell put options as a means of increasing the yield on their portfolios and as a means of providing limited protection against decreases in their market value. The Funds may purchase put and call options to protect against a decline in the market value of the securities in their portfolios or to anticipate an increase in the market value of securities that the Funds may seek to purchase in the future. A put option gives the purchaser of the option the right to sell, and the writer of the option the obligation to buy, the underlying security at any time during the option period. A call option gives the purchaser of the option the right to buy, and the writer of the option the obligation to sell, the underlying security at any time during the option period. The premium paid to the writer is the consideration for undertaking the obligations under the option contract. The initial purchase (sale) of an option contract is an "opening transaction." In order to close out an option position, the Fund may enter into a "closing transaction," which is simply the sale (purchase) of an option contract on the same security with the same exercise price and expiration date as the option contract originally opened. If the Fund is unable to effect a closing purchase transaction with respect to an option it has written, it will not be able to sell the underlying security until the option expires or the Fund delivers the security upon exercise. When the Fund writes (sells) an option, an amount equal to the premium received by the Fund is included in the Statement of assets and liabilities as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current value of the option written.
Option contracts are valued at the last quoted sales price. If there is no such reported sale on the valuation date, long positions are valued at the most recent bid price, and short positions are valued at the most recent ask price. When an option expires on its stipulated expiration date or the Fund enters into a closing purchase transaction, the Fund realizes a gain or loss if the cost of the closing purchase transaction differs from the premium received when the option was sold without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is eliminated. When an option is exercised, the premium originally received decreases the cost basis of the security (or increases the proceeds on a sale of the security). The primary risk exposure from written and purchased options contracts is equity exposure.
As of March 31, 2014, the Funds held no purchased options.
Any realized and unrealized gains and losses on purchase option contracts are included in "Net realized gain from securities sold" and "Net change in unrealized appreciation (depreciation) on investments," respectively, on the Statements of operations. Realized and unrealized gains and (losses) on purchased options for the Spectrum Fund for the six months ended March 31, 2014 were $(1,966) and $0, respectively (000). Any realized and unrealized gains and losses on written option contracts are shown on the Statements of operations under "Net realized gain from written options contracts" and "Net change in unrealized appreciation (depreciation) on written option contracts," respectively. Realized and unrealized gains and (losses) on written options for the Spectrum Fund for the six months ended March 31, 2014 were $217 and $(31), respectively (000). The Spectrum Fund engaged in limited purchased and written option activity during the six months ended March 31, 2014, representing less than 1% of the Fund's average monthly fair value amounts of purchased and written options as compared to net assets.
A summary of option contracts written during the six months ended March 31, 2014 for the Spectrum Fund is as follows:
| Option contracts | Option premiums (000) | ||||||||||
| Options outstanding at beginning of year | 1,448 | $ | 89 | ||||||||
Options written | 5,224 | 143 | |||||||||
| Options cancelled in a closing purchase transaction | (3,159 | ) | (61 | ) | |||||||
Options exercised | — | — | |||||||||
Options expired | (3,513 | ) | (171 | ) | |||||||
Options outstanding at end of period | — | $ | — | ||||||||
Foreign currency translation—The books and records of the Funds are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars on the date of valuation. The Funds do not isolate that portion of realized or unrealized gains and losses resulting from changes in the foreign exchange rate from fluctuations arising from changes in the market prices of the securities. These gains and losses are included in net realized and unrealized gains and losses on investments in the Statements of operations. Net realized and unrealized gains and losses on foreign currency transactions represent net foreign exchange gains or losses from foreign currency exchange contracts, disposition of foreign currencies, currency gains or losses realized between trade and settlement dates on securities transactions and the difference
TURNER FUNDS 2014 SEMIANNUAL REPORT 57
NOTES TO FINANCIAL STATEMENTS (Unaudited)
between the amount of the investment income and foreign withholding taxes recorded on the Funds' books and the U.S. dollar equivalent amounts actually received or paid.
Illiquid Securities—Illiquid securities are securities that cannot be disposed of within seven business days at approximately the price at which they are being carried on a Fund's books. Illiquid securities include demand instruments with demand notice periods exceeding seven days, securities for which there is no active secondary market, and repurchase agreements with maturities of over seven days in length. The Funds may invest in securities that are neither listed on a stock exchange nor traded over the counter, including privately placed securities. Investing in such unlisted emerging country equity securities, including investments in new and early stage companies, may involve a high degree of business and financial risk that can result in substantial losses. As a result of the absence of a public trading market for these securities, they may be less liquid than publicly traded securities. Although these securities may be resold in privately negotiated transactions, the prices realized from these sales could be less than those originally paid by the Fund, or less than what may be considered the fair value of such securities. Further, companies whose securities are not publicly traded may not be subject to the disclosure and other investor protection requirements which might be applicable if their securities were publicly traded. If such securities are required to be registered under the securities laws of one or more jurisdictions before being resold, a Fund may be required to bear the expenses of registration.
Expenses—Expenses that are specifically attributed to one of the Funds are charged to that Fund. Certain other expenses of the Funds are prorated among the Funds on the basis of relative daily net assets.
Classes—Class specific expenses are borne by that class. Income, non-class specific expenses, and realized/unrealized gains and losses are allocated to the respective classes on the basis of the relative daily net assets.
Dividends and distributions—The Funds declare and distribute net investment income, if any, annually, as a dividend to shareholders. Any net realized capital gains on sales of securities for all Funds are distributed to shareholders at least annually.
3. Administration, shareholder servicing, distribution and transfer agent agreements:
Turner Investments, L.P. ("Turner," the "Adviser," or the "Administrator") provides administrative services to the Funds under an Administration Agreement with the
Trust. For its services, Turner receives an annual fee of 0.15% of the aggregate average daily net assets of the Trust up to $2 billion and 0.12% of the aggregate average daily net assets of the Trust over $2 billion. Under a separate Sub-administration Agreement between Turner and Citi Fund Services Ohio, Inc. ("Citi" or the "Sub-administrator"), Citi provides sub-administrative services, including certain fund accounting services, to the Trust. For the six months ended March 31, 2014, Citi was paid $376 (000) by Turner.
Foreside Fund Services, LLC (the "Distributor") provides distribution services to the Funds under a Distribution Services Agreement.
The Funds have adopted a Distribution Plan for Retirement Class Shares and Class C Shares (the "Distribution Plan") under which firms, including the Distributor, that provide distribution services may receive compensation. Under the Distribution Plan, which was adopted pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended, the Distributor is entitled to receive aggregate fees for distribution services not to exceed 0.75% of each Fund's average daily net assets attributable to Retirement Class or Class C Shares that are subject to the arrangement in return for providing a broad range of distribution services. Currently, the Retirement Class Shares of the Midcap Growth Fund pay the Distributor 0.25% and the Class C Shares of the Market Neutral Fund, Medical Sciences Long/Short Fund, Spectrum Fund and Titan Fund pay the Distributor 0.75% in distribution fees.
The Funds have also adopted Shareholder Services Plans (the "Shareholder Services Plans"). Under the Shareholder Services Plans, service providers are entitled to receive aggregate fees for shareholder services not to exceed 0.25% of each Fund's average daily net assets attributable to Investor Class Shares, Retirement Class Shares and Class C Shares that are subject to the arrangement in return for providing shareholder services. Currently, Investor Class Shares of each Fund, Retirement Class Shares of the Midcap Growth Fund and Class C Shares of the Market Neutral Fund, Medical Sciences Long/Short Fund, Spectrum Fund and Titan Fund pay 0.25% in shareholder servicing fees.
DST Systems, Inc. serves as the transfer agent and dividend disbursing agent for the Funds under a Transfer Agency Agreement with the Trust.
Certain officers and trustees of the Trust are also officers or employees of Turner or Citi. With the exception of the Trust's Chief Compliance Officer, such officers are paid no fees by the Trust for serving as officers and trustees of the Trust.
4. Investment advisory agreement:
The Trust and Turner are parties to an Investment Advisory Agreement dated April 28, 1996 under which Turner receives a fee that is calculated daily and paid
58 TURNER FUNDS 2014 SEMIANNUAL REPORT
monthly, based on the average daily net assets of the Funds.
For its services, Turner receives annual fees, which are calculated daily and paid monthly, based on the average daily net assets of the Funds. Turner has contractually agreed to waive all or a portion of its fees and to reimburse expenses in order to limit total Fund operating expenses (excluding acquired fund fees and expenses and interest expense relating to short sales, except for the Market Neutral Fund, Medical Sciences Long/Short Fund, Spectrum Fund and Titan Fund, for which Turner includes acquired fund fees and expenses and interest expense relating to short sales in its contractual waiver) to a specified percentage of the average daily net assets of each Fund, except the All Cap Growth Fund, on an annualized basis through certain dates disclosed in the following table:
| Advisory fee | Expense cap | Date (through) | |||||||||||||
Market Neutral Fund | |||||||||||||||
Institutional Class | 1.50 | % | 1.95 | % | January 31, 2015 | ||||||||||
Investor Class | 1.50 | % | 2.20 | % | January 31, 2015 | ||||||||||
Class C | 1.50 | % | 2.95 | % | January 31, 2015 | ||||||||||
| Medical Sciences Long/Short Fund | |||||||||||||||
Institutional Class | 1.50 | % | 1.95 | % | January 31, 2015 | ||||||||||
Investor Class | 1.50 | % | 2.20 | % | January 31, 2015 | ||||||||||
Class C | 1.50 | % | 2.95 | % | January 31, 2015 | ||||||||||
Spectrum Fund | |||||||||||||||
Institutional Class | 1.50 | % | 1.95 | % | January 31, 2015 | ||||||||||
Investor Class | 1.50 | % | 2.20 | % | January 31, 2015 | ||||||||||
Class C | 1.50 | % | 2.95 | % | January 31, 2015 | ||||||||||
Titan Fund | |||||||||||||||
Institutional Class | 1.50 | % | 1.95 | % | January 31, 2015 | ||||||||||
Investor Class | 1.50 | % | 2.20 | % | January 31, 2015 | ||||||||||
Class C | 1.50 | % | 2.95 | % | January 31, 2015 | ||||||||||
Emerging Growth Fund | |||||||||||||||
Institutional Class | 1.00 | % | 1.15 | % | January 31, 2015 | ||||||||||
Investor Class | 1.00 | % | 1.40 | % | January 31, 2015 | ||||||||||
Large Growth Fund | |||||||||||||||
Institutional Class | 0.60 | % | 0.69 | % | January 31, 2015 | ||||||||||
Investor Class | 0.60 | % | 0.94 | % | January 31, 2015 | ||||||||||
Midcap Growth Fund | |||||||||||||||
Institutional Class | 0.75 | % | 0.93 | % | January 31, 2015 | ||||||||||
Investor Class | 0.75 | % | 1.18 | % | January 31, 2015 | ||||||||||
Retirement Class | 0.75 | % | 1.43 | % | January 31, 2015 | ||||||||||
Small Cap Growth Fund | |||||||||||||||
Investor Class | 1.00 | % | 1.25 | % | January 31, 2015 | ||||||||||
Emerging Markets Fund | |||||||||||||||
Institutional Class | 0.70 | % | 1.05 | % | January 31, 2015 | ||||||||||
Investor Class | 0.70 | % | 1.30 | % | January 31, 2015 | ||||||||||
For the All Cap Growth Fund, the advisory fee is a combination of a base fee and a performance adjustment that increases or decreases the total fee depending upon the performance of the Fund relative to its performance benchmark. The Fund's base fee (1.10%) is accrued daily and paid monthly, based on the Fund's average net assets during the current month.
The performance adjustment is calculated and paid monthly by comparing the Fund's performance to that of its performance benchmark over the current month plus the previous 11 months (the "performance period"). The annual performance adjustment rate is multiplied by the average net assets of the Fund over the entire performance period, which is then multiplied by a fraction, the numerator of which is the number of days in the month and the denominator of which is 365 (366 in leap years). The resulting amount is then added to (in the case of overperformance) or subtracted from (in the case of underperformance) the Fund's base advisory fee.
In cases where the advisory fee is a combination of a base fee and a performance adjustment, Turner has voluntarily agreed to waive all or a portion of its fees and to reimburse expenses in order to keep such Fund's "other expenses" (excluding distribution fees, acquired fund fees and expenses and interest expense relating to short sales) from exceeding a specified percentage of the average daily net assets of the Fund on an annualized basis. Accordingly, the base advisory fee, annual adjustment rate, over/under performance relative to the benchmark threshold, and other expense cap are as follows:
| Base advisory fee | Annual adjustment rate | Benchmark threshold(1) | Other expenses cap | ||||||||||||||||
All Cap Growth Fund | 1.10 | % | +/-0.40% | +/-2.50% | 0.25 | % | |||||||||||||
(1) See the Fund's Prospectus and Statement of Additional Information for more information regarding the Fund's performance benchmark.
During the six months ended March 31, 2014, the All Cap Growth Fund's advisory fees, before waivers, were adjusted in accordance with the policy described above (000):
| Base adviser fee | Performance adjustment | Net adviser fee before waivers | |||||||||||||
All Cap Growth Fund | $ | 99 | $ | (25 | ) | $ | 74 | ||||||||
5. Contingent deferred sales charges (Class C Shares):
A 1.00% contingent deferred sales charge ("CDSC") will be deducted with respect to Class C Shares of the Market Neutral Fund, Medical Sciences Long/Short Fund, Spectrum Fund and Titan Fund redeemed within 12 months of purchase. The CDSC will be based on the lower of the original purchase price or the value of the Class C Shares redeemed. The CDSC may be waived for certain investors, as described in the Class C Shares statutory prospectus for the Market Neutral Fund, Medical Sciences Long/Short Fund, Spectrum Fund and Titan Fund.
6. Investment transactions:
The cost of security purchases and the proceeds from security sales, other than short-term investments and
TURNER FUNDS 2014 SEMIANNUAL REPORT 59
NOTES TO FINANCIAL STATEMENTS (Unaudited)
option contracts written, for the six months ended March 31, 2014 were as follows (000):
Purchases | Sales | ||||||||||
Market Neutral Fund | $ | 8,086 | $ | 8,260 | |||||||
Medical Sciences Long/Short Fund | 51,964 | 32,983 | |||||||||
Spectrum Fund | 808,124 | 1,151,887 | |||||||||
Titan Fund | 84,416 | 79,246 | |||||||||
All Cap Growth Fund | 6,867 | 8,228 | |||||||||
Emerging Growth Fund | 70,063 | 113,981 | |||||||||
Large Growth Fund | 12,922 | 63,031 | |||||||||
Midcap Growth Fund | 171,244 | 253,700 | |||||||||
Small Cap Growth Fund | 118,692 | 150,266 | |||||||||
Emerging Markets Fund | 140 | 143 | |||||||||
7. Federal tax policies and information:
Each of the Funds is classified as a separate taxable entity for Federal income tax purposes. Each of the Funds intends to continue to qualify as a separate "regulated investment company" under the Internal Revenue Code and make the requisite distributions to shareholders that will be sufficient to relieve it from Federal income tax and Federal excise tax. Therefore, no Federal tax provision is required.
The amounts of dividends from net investment income and distributions from net realized capital gains, if any, are determined in accordance with Federal income tax regulations, which may differ from those amounts determined under GAAP. These book/tax differences are either temporary or permanent in nature. These differences are primarily due to wash sales, REIT adjustments, foreign currency transactions, net operating losses, return of capital distributions, equalization and investments in partnerships and passive foreign investment companies. The character and timing of dividends from net investment income and distributions from net realized gains
distributed during the fiscal year may differ from the year that the income or realized gains (losses) were recorded by the Funds. To the extent these differences are permanent, adjustments are made to the appropriate equity accounts in the period that the differences arise. The Funds may utilize equalization accounting for tax purposes and designate earnings and profits, including net realized gains distributed to shareholders on redemption of shares, as part of the dividends paid deduction for income tax purposes.
Withholding taxes on dividends and net realized capital gains as a result of certain investments in ADRs by the Funds have been provided for in accordance with each investment's applicable country's tax rules and rates.
The tax character of dividends and distributions declared during the years ended September 30, 2013 and September 30, 2012 were as follows (000):
| Ordinary income | Long-term capital gain | Return of capital | Total | ||||||||||||||||
Market Neutral Fund | |||||||||||||||||||
2012 | $ | 457 | $ | 4 | $ | — | $ | 461 | |||||||||||
Spectrum Fund | |||||||||||||||||||
2012 | $ | 30,159 | $ | — | $ | — | $ | 30,159 | |||||||||||
Titan Fund | |||||||||||||||||||
2013 | $ | 367 | $ | — | $ | — | $ | 367 | |||||||||||
2012 | 151 | — | — | 151 | |||||||||||||||
All Cap Growth Fund | |||||||||||||||||||
2013 | $ | — | $ | — | $ | 73 | $ | 73 | |||||||||||
Emerging Growth Fund | |||||||||||||||||||
2013 | $ | — | $ | 32,864 | $ | — | $ | 32,864 | |||||||||||
Large Growth Fund | |||||||||||||||||||
2013 | $ | 1,179 | $ | — | $ | — | $ | 1,179 | |||||||||||
Midcap Growth Fund | |||||||||||||||||||
2013 | $ | 739 | $ | 7,407 | $ | — | $ | 8,146 | |||||||||||
Small Cap Growth Fund | |||||||||||||||||||
2013 | $ | — | $ | 15,983 | $ | — | $ | 15,983 | |||||||||||
As of September 30, 2013, the components of distributable earnings (accumulated losses) on a tax basis were as follows (000):
| Undistributed ordinary income | Undistributed long-term capital gains | Capital loss carryforward | Post- October losses | Post- October currency losses | Unrealized appreciation (depreciation) | Total distributable earnings (accumulated losses) | |||||||||||||||||||||||||
Market Neutral Fund | $ | — | $ | — | $ | (730 | ) | $ | (2,251 | ) | $ | (125 | ) | $ | 44 | $ | (3,062 | ) | |||||||||||||
Medical Sciences Long/Short Fund | — | 293 | — | — | (146 | ) | 909 | 1,056 | |||||||||||||||||||||||
Spectrum Fund | — | — | (13,925 | ) | (2,807 | ) | (5,219 | ) | 26,666 | 4,715 | |||||||||||||||||||||
Titan Fund | — | — | — | (246 | ) | (260 | ) | 1,155 | 649 | ||||||||||||||||||||||
All Cap Growth Fund | — | — | (10,311 | ) | — | (25 | ) | 3,575 | (6,761 | ) | |||||||||||||||||||||
Emerging Growth Fund | — | 35,414 | — | — | (1,035 | ) | 96,242 | 130,621 | |||||||||||||||||||||||
Large Growth Fund | 11 | — | (66,259 | ) | — | — | 11,837 | (54,411 | ) | ||||||||||||||||||||||
Midcap Growth Fund | 12,240 | 58,930 | — | — | — | 105,462 | 176,632 | ||||||||||||||||||||||||
Small Cap Growth Fund | 3,054 | 32,518 | — | — | — | 63,817 | 99,389 | ||||||||||||||||||||||||
Emerging Markets Fund | 1 | — | — | — | — | 38 | 39 | ||||||||||||||||||||||||
60 TURNER FUNDS 2014 SEMIANNUAL REPORT
Under current tax law, capital losses and specified ordinary losses realized after October 31 and non-specified ordinary losses incurred after December 31 (ordinary losses collectively known as "late year ordinary loss") may be deferred and treated as having arisen in the following fiscal year.
As of the end of their latest tax year end of September 30, 2013, the Funds in the following tables had capital loss carryforwards ("CLCFs"). CLCFs not subject to expiration must be used prior to using any CLCFs that are subject to expiration. A summary of these CLCFs is detailed in the tables below.
CLCFs not subject to expiration (000):
Short Term | Long Term | ||||||||||
Market Neutral Fund | $ | 730 | $ | — | |||||||
Spectrum Fund | 13,925 | — | |||||||||
All Cap Growth Fund | 446 | — | |||||||||
CLCFs subject to expiration (000):
Expiring September 30, | |||||||||||||||
2017 | 2018 | Total | |||||||||||||
All Cap Growth Fund | $ | 7,475 | $ | 2,390 | $ | 9,865 | |||||||||
Large Growth Fund | 1,774 | 64,485 | 66,259 | ||||||||||||
As of January 18, 2013, the Large Growth Fund credited accumulated net realized loss $20,921 (000) and charged paid-in-capital $35,249 (000) and unrealized appreciation $1,373 (000) due to the Turner Concentrated Growth Fund merger with Large Growth Fund. As of March 7, 2011, the Large Growth Fund credited accumulated net realized loss $12,828 (000) and charged paid-in-capital $123,626 (000) and unrealized appreciation $31,165 (000) due to the Turner Large Cap Growth Fund's merger with the Large Growth Fund. Internal Revenue Code Section 382 limits the amount of annual CLCFs available for use.
At March 31, 2014, the total cost of securities for Federal income tax purposes and the aggregate gross unrealized appreciation and depreciation for the investments held by each Fund, excluding securities sold short and written options, were as follows (000):
| Federal tax cost | Unrealized appreciation | Unrealized depreciation | Net unrealized appreciation (depreciation) | ||||||||||||||||
Market Neutral Fund | $ | 3,064 | $ | 258 | $ | (73 | ) | $ | 185 | ||||||||||
Medical Sciences Long/Short Fund | 41,506 | 2,356 | (719 | ) | 1,637 | ||||||||||||||
Spectrum Fund | 231,859 | 28,941 | (6,208 | ) | 22,733 | ||||||||||||||
Titan Fund | 26,123 | 2,101 | (513 | ) | 1,588 | ||||||||||||||
All Cap Growth Fund | 14,373 | 4,665 | (297 | ) | 4,368 | ||||||||||||||
Emerging Growth Fund | 185,047 | 88,630 | (3,069 | ) | 85,561 | ||||||||||||||
Large Growth Fund | 36,966 | 8,421 | (497 | ) | 7,924 | ||||||||||||||
Midcap Growth Fund | 325,233 | 106,157 | (4,425 | ) | 101,732 | ||||||||||||||
Small Cap Growth Fund | 173,021 | 53,430 | (3,935 | ) | 49,495 | ||||||||||||||
Emerging Markets Fund | 534 | 60 | (21 | ) | 39 | ||||||||||||||
Management has analyzed the Funds' tax positions taken on Federal income tax returns for all open tax years and has concluded that as of March 31, 2014, no provision for income tax would be required in the Funds' financial statements. The Funds' Federal and State income and Federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state taxing authorities.
8. Loans of portfolio securities:
The Funds may lend securities in their portfolios pursuant to a securities lending agreement ("Lending Agreement") with Morgan Stanley. Unless otherwise agreed, security loans made pursuant to the Lending Agreement are required at all times to be secured by collateral equal to at least 100% of the market value of the securities loaned based on the previous day's market value of the securities loaned, marked-to-market daily. Any collateral shortfalls are adjusted the next business
day. Cash collateral received is invested in the Dollar Shares of the BlackRock Liquidity Funds TempCash, a money market fund. All such investments are made at the risk of the Funds and, as such, the Funds are liable for investment losses. The Funds receive an annual fee for their participation in the Lending Agreement based on the projected lending activity.
In the event of bankruptcy of the borrower, realization/retention of the collateral may be subject to legal proceedings.
Securities lending transactions are entered into by each Fund under a Master Securities Lending Agreement ("MSLA") which permits the Funds, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset amounts payable by the Funds to the same counterparty against amounts to be received and create one single net payment due to or from the Funds.
TURNER FUNDS 2014 SEMIANNUAL REPORT 61
NOTES TO FINANCIAL STATEMENTS (Unaudited)
The following Funds had securities on loan and had invested cash collateral, subject to offset under a MSLA, with the following values as of March 31, 2014 (000):
Fund | Value of Securities on Loan | Value of Collateral Received | Net Amount | ||||||||||||
Emerging Growth Fund | $ | 20,856 | $ | 20,959 | $ | — | |||||||||
Large Growth Fund | 1,175 | 1,184 | — | ||||||||||||
Midcap Growth Fund | 5,660 | 5,676 | — | ||||||||||||
Small Cap Growth Fund | 11,005 | 11,586 | — | ||||||||||||
9. Concentration/risks:
Certain Funds invest a high percentage of their assets in specific market sectors in order to achieve a potentially greater investment return. As a result, these Funds may be more susceptible to positive or negative economic, political, and regulatory developments in a particular market sector of the market and may experience the effect of this increased volatility on the Fund's net asset value and a magnified effect on the Fund's total return.
Governments of some developing countries exercise substantial influence over many aspects of the private sector. In some countries, the government owns or controls many companies, including the largest companies in the country. As such, government actions in the future could have a significant effect on economic conditions in developing countries in these regions, which could affect private sector companies, the Fund and the value of its securities. Furthermore, certain developing countries are among the largest debtors to commercial banks and foreign governments. Trading in debt obligations issued or guaranteed by such governments or their agencies and instrumentalities involves a high degree of risk.
The Funds enter into contracts that contain a variety of indemnifications. The Funds' maximum exposure under these arrangements is unknown. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote.
10. Fund Merger:
On January 18, 2013, the Large Growth Fund acquired all of the net assets of the Turner Concentrated Growth Fund ("Concentrated Growth Fund"), an open-end investment company, pursuant to a Plan of Reorganization approved by the Concentrated Growth Fund shareholders on January 9, 2013. The purpose of the transaction was to combine the two Funds managed by the Adviser with similar investment objectives and policies. The acquisition was accomplished by a tax-free exchange of 1,216,063 Investor Class shares of the Large Growth Fund, valued at $15,614 (000), for the 2,025,116 Investor Class shares of the Concentrated Growth Fund outstanding on January 18, 2013. The exchange ratio (Large Growth Fund shares issued/Concentrated Growth
Fund shares outstanding) was 0.60:1 for the Investor Class.
The investment portfolio of the Concentrated Growth Fund, with a fair value of $16,717 (000) and identified cost of $15,344 (000) at January 18, 2013, was the principal asset acquired by the Large Growth Fund. For financial reporting purposes, assets received and shares issued by the Large Growth Fund were recorded at fair value; however, the cost basis of the investments received from the Concentrated Growth Fund was carried forward to align ongoing reporting of the Large Growth Fund's realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
Upon the business combination of the Funds on January 18, 2013, the net assets of the Concentrated Growth Fund, which included portfolio capital of $35,249 (000), accumulated net investment loss of $87 (000), accumulated realized losses of $20,921 (000) and unrealized gains of $1,373 (000), combined with the Large Growth Fund were $225,958 (000). The undistributed net investment income and unrealized gains of the Concentrated Growth Fund may be distributed by the Large Growth Fund in future periods. Immediately prior to the merger, the net assets (000) of the Concentrated Growth Fund and the Large Growth Fund were $15,614 (000) and $210,344 (000), respectively. All fees and expenses incurred by the Concentrated Growth Fund and the Large Growth Fund directly in connection with the Plan of Reorganization were borne by the Adviser.
Assuming the acquisition had been completed on October 1, 2012, the beginning of the annual reporting period of the Large Growth Fund, the Fund's pro forma results of operations for the year ended September 30, 2013, are as follows (000):
Net investment income/(loss): | $ | 1,012 | |||||
Net realized/unrealized gains/(losses): | 14,238 | ||||||
Change in net assets resulting from operations: | $ | 15,250 | |||||
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Concentrated Growth Fund that have been included in the Large Growth Fund's Statement of changes in net assets since January 18, 2013.
11. Subsequent Events:
Trust has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the financial statements were issued.
On April 17, the Board of Trustees determined to close and liquidate the Market Neutral Fund, effective on or about June 1, 2014. This decision was made after careful consideration of the Fund's asset size, strategic importance, current expenses and historical performance. In
62 TURNER FUNDS 2014 SEMIANNUAL REPORT
connection with the liquidation, the Fund discontinued accepting orders for the purchase of Fund shares or exchanges into the Fund from other Turner Funds as of the close of business on April 21, 2014.
At a meeting of the Board held May 16, 2014, the Board approved the reorganization of the All Cap Growth Fund into the Midcap Growth Fund. The decision is subject to shareholder approval at a Special Meeting expected to take place during the third quarter of 2014. In anticipation of the reorganization, the All Cap Growth Fund will close to new investors effective June 1, 2014.
As of the date the financial statements were issued, Emerging Markets Fund is closed to new investors and is in process of liquidation. It is anticipated to be fully liquidated during the fourth quarter of 2014.
At a meeting of the Board held on May 16, 2014, the Board appointed Stephen J. Negrotti, President and Chief Executive Officer of the Adviser, as Trustee and elected him as President and Chief Executive Officer of the Trust. Mr. Negrotti is considered an "interested person" of the Trust, as the term is defined in the 1940 Act, by virtue of his relationship with Turner. At the same meeting, the Trustees also elected Bashir C. Asad as Controller and Chief Financial Officer of the Trust, effective May 23, 2014.
Based on this evaluation, other than the items noted above, no additional disclosures and/or adjustments were required to the financial statements as of March 31, 2014.
TURNER FUNDS 2014 SEMIANNUAL REPORT 63
BOARD OF TRUSTEES CONSIDERATIONS IN APPROVING THE ADVISORY AGREEMENT (Unaudited)
Board of Trustees considerations in approving the Advisory Agreement
On February 21, 2014, the Board of Trustees (the "Board" or "Trustees") of the Turner Funds (the "Funds" or the "Trust") held an in-person meeting to decide whether to renew the advisory agreement for each of the Turner Funds (the "Advisory Agreement") with Turner Investments, L.P. ("Turner" or the "Adviser") for the upcoming year. In preparation for the meeting, the Board requested and reviewed a wide variety of information from the Adviser. The materials described, among other things: the Adviser's business; the Adviser's organizational structure, personnel and operations; advisory services; the Funds' performance; compliance; advisory fees and expenses paid by the Funds for the fiscal year ended September 30, 2013; and information on trading. A discussion ensued.
The Trustees discussed all the issues regarding the 15(c) contract renewal, including performance, profitability both before and after 12b-1 fees, and the continuing need to receive in depth reports from portfolio managers and analysts for various funds, as had been the Board's practice over the prior year. The Board, including all of the independent Trustees, considered, among other things: (1) the nature, extent and quality of the services provided by the Adviser; (2) the performance of the Funds over the past one, three, five and ten years, where applicable, versus each Fund's respective Lipper peer universe; (3) the contractual and actual compensation to be paid under the agreements as compared to the compensation paid to relevant Lipper peer groups; (4) the expense ratios of the Funds, with expense waivers, as compared to expense ratios for relevant Lipper peer groups; (5) the qualifications of the Adviser's personnel, portfolio management capabilities and investment methodologies, including the recent staff departures from the Adviser and the stability of current management; (6) the Adviser's operations, compliance program and policies; (7) the financial condition of the Adviser, including noting the sharp decline in the Adviser's assets under management over the past year,
but also noting the cost reductions that had been effected; (8) the cost of services provided by the Adviser and the Adviser's profitability from each Fund for the year ended September 30, 2013; (9) "fall-out" benefits to the Adviser and its affiliates from the relationship with the Funds; (10) the extent to which economies of scale are relevant given the Funds' current asset size and current asset growth potential; and (11) a comparison of the fees charged by the Adviser with fees charged by the Adviser to similar clients, to the extent the Board deemed it relevant.
After deliberating on all the materials reviewed and reported, the independent Trustees reached the following conclusions, among others, regarding the Adviser and the advisory agreements; the recent performance of the Funds was, in most cases, within industry norms. They determined that although performance lagged peer groups in the case of a number of Funds, the Funds' performance was, in general satisfactory. The Trustees committed to a continuing close review during the upcoming year of those products where performance lagged. The independent Trustees also concluded that the Funds' net total expense ratios and advisory fees were generally competitive. The independent Trustees also concluded that: they were satisfied with the quality of services provided by the Adviser in advising the existing Funds; the profits earned by the Adviser seemed reasonable in light of the nature, extent and quality of the services provided to each existing Fund; and that each Fund, and the Trust, was not large enough to attain significant economies of scale, beyond those already incorporated into the fee structures.
The Trustees noted that although they were renewing the Advisory Agreement they would continue to exercise a heightened level of scrutiny with respect to the Funds, and would consider taking further action during the year if the situation at the Adviser deteriorates.
64 TURNER FUNDS 2014 SEMIANNUAL REPORT
DISCLOSURE OF FUND EXPENSES (Unaudited)
All mutual funds have operating expenses. As a shareholder of a mutual fund, your investment is affected by these on-going costs, which include (among others) costs for portfolio management, distribution (12b-1) and/or shareholder services and other expenses. It is important for you to understand the impact of these costs on your investment returns. Operating expenses such as these are deducted from a mutual fund's gross income and directly reduce its final investment return. These expenses are expressed as a percentage of a mutual fund's average net assets; this percentage is known as a mutual fund's expense ratio.
The following examples use the expense ratio and are intended to help you understand the ongoing costs (in dollars) of investing in your Fund and to compare these costs with those of other mutual funds. The examples are based on an investment of $1,000 made at the beginning of the period shown and held for the entire period.
The table below and on the next page illustrates your Fund's costs in two ways:
• Actual Fund Return. This section helps you estimate the actual expenses after fee waivers that your Fund incurred over the period. The "Expenses Paid During Period" column shows the actual dollar expense cost incurred by a $1,000 investment in the Fund, and the "Ending Account Value" number is derived from deducting that expense cost from the Fund's gross investment return.
You can use this information, together with the actual amount you invested in the Fund, to estimate the expenses you paid over that period. Simply divide your actual account value by $1,000 to arrive at a ratio (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply that ratio by the number shown for your Fund under "Expenses Paid During Period."
• Hypothetical 5% Return. This section helps you compare your Fund's cost with those of other mutual funds. It provides information about hypothetical account values and expenses based on the Fund's actual expense ratio (column 3) and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. This section is useful in making comparisons because the Securities and Exchange Commission requires all mutual funds to make this 5% calculation. You can assess your Fund's comparative cost by comparing the hypothetical result for your Fund in the "Expenses Paid During Period" column with those that appear in the same charts in the shareholder reports for other mutual funds.
Note: Because the return is set at 5% for comparison purposes — NOT your Fund's actual return — the hypothetical account values and expenses may not be used to estimate your actual ending account balance or expenses you paid for the period.
| Beginning Account Value 10/1/13 | Ending Account Value 3/31/14 | Annualized Expense Ratios | Expenses Paid During Period* | ||||||||||||||||
Turner Market Neutral Fund — Institutional Class Shares | |||||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,023.50 | 1.94 | % | $ | 9.79 | |||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,015.26 | 1.94 | 9.75 | |||||||||||||||
Turner Market Neutral Fund — Investor Class Shares | |||||||||||||||||||
Actual Fund Return | 1,000.00 | 1,022.70 | 2.19 | 11.04 | |||||||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,014.01 | 2.19 | 11.00 | |||||||||||||||
Turner Market Neutral Fund — Class C Shares | |||||||||||||||||||
Actual Fund Return | 1,000.00 | 1,019.10 | 2.94 | 14.80 | |||||||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,010.27 | 2.94 | 14.74 | |||||||||||||||
| Turner Medical Sciences Long/Short Fund — Institutional Class Shares | |||||||||||||||||||
Actual Fund Return | 1,000.00 | 1,132.80 | 1.92 | 10.21 | |||||||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,015.36 | 1.92 | 9.65 | |||||||||||||||
| Beginning Account Value 10/1/13 | Ending Account Value 3/31/14 | Annualized Expense Ratios | Expenses Paid During Period* | ||||||||||||||||
Turner Medical Sciences Long/Short Fund — Investor Class Shares | |||||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,130.80 | 2.17 | % | $ | 11.53 | |||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,014.11 | 2.17 | 10.90 | |||||||||||||||
Turner Medical Sciences Long/Short Fund — Class C Shares | |||||||||||||||||||
Actual Fund Return | 1,000.00 | 1,127.10 | 2.92 | 15.49 | |||||||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,010.37 | 2.92 | 14.64 | |||||||||||||||
Turner Spectrum Fund — Institutional Class Shares | |||||||||||||||||||
Actual Fund Return | 1,000.00 | 1,044.60 | 1.93 | 9.84 | |||||||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,015.31 | 1.93 | 9.70 | |||||||||||||||
Turner Spectrum Fund — Investor Class Shares | |||||||||||||||||||
Actual Fund Return | 1,000.00 | 1,043.40 | 2.18 | 11.11 | |||||||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,014.06 | 2.18 | 10.95 | |||||||||||||||
TURNER FUNDS 2014 SEMIANNUAL REPORT 65
DISCLOSURE OF FUND EXPENSES (Unaudited)
| Beginning Account Value 10/1/13 | Ending Account Value 3/31/14 | Annualized Expense Ratios | Expenses Paid During Period* | ||||||||||||||||
Turner Spectrum Fund — Class C Shares | |||||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,039.20 | 2.93 | % | $ | 14.90 | |||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,010.32 | 2.93 | 14.69 | |||||||||||||||
Turner Titan Fund — Institutional Class Shares | |||||||||||||||||||
Actual Fund Return | 1,000.00 | 1,071.10 | 1.94 | 10.02 | |||||||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,015.26 | 1.94 | 9.75 | |||||||||||||||
Turner Titan Fund — Investor Class Shares | |||||||||||||||||||
Actual Fund Return | 1,000.00 | 1,070.60 | 2.19 | 11.31 | |||||||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,014.01 | 2.19 | 11.00 | |||||||||||||||
Turner Titan Fund — Class C Shares | |||||||||||||||||||
Actual Fund Return | 1,000.00 | 1,066.30 | �� | 2.94 | 15.15 | ||||||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,010.27 | 2.94 | 14.74 | |||||||||||||||
Turner All Cap Growth Fund — Investor Class Shares | |||||||||||||||||||
Actual Fund Return | 1,000.00 | 1,113.40 | 1.08 | 5.69 | |||||||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,019.55 | 1.08 | 5.44 | |||||||||||||||
Turner Emerging Growth Fund — Institutional Class Shares | |||||||||||||||||||
Actual Fund Return | 1,000.00 | 1,076.30 | 1.15 | 5.95 | |||||||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,019.20 | 1.15 | 5.79 | |||||||||||||||
Turner Emerging Growth Fund — Investor Class Shares | |||||||||||||||||||
Actual Fund Return | 1,000.00 | 1,075.10 | 1.40 | 7.24 | |||||||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,017.95 | 1.40 | 7.04 | |||||||||||||||
Turner Large Growth Fund — Institutional Class Shares | |||||||||||||||||||
Actual Fund Return | 1,000.00 | 1,121.90 | 0.69 | 3.65 | |||||||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,021.49 | 0.69 | 3.48 | |||||||||||||||
| Beginning Account Value 10/1/13 | Ending Account Value 3/31/14 | Annualized Expense Ratios | Expenses Paid During Period* | ||||||||||||||||
Turner Large Growth Fund — Investor Class Shares | |||||||||||||||||||
Actual Fund Return | $ | 1,000.00 | $ | 1,121.00 | 0.94 | % | $ | 4.97 | |||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,020.24 | 0.94 | 4.73 | |||||||||||||||
Turner Midcap Growth Fund — Institutional Class Shares | |||||||||||||||||||
Actual Fund Return | 1,000.00 | 1,126.20 | 0.93 | 4.93 | |||||||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,020.29 | 0.93 | 4.68 | |||||||||||||||
Turner Midcap Growth Fund — Investor Class Shares | |||||||||||||||||||
Actual Fund Return | 1,000.00 | 1,124.70 | 1.18 | 6.25 | |||||||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,019.05 | 1.18 | 5.94 | |||||||||||||||
Turner Midcap Growth Fund — Retirement Class Shares | |||||||||||||||||||
Actual Fund Return | 1,000.00 | 1,123.30 | 1.43 | 7.57 | |||||||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,017.80 | 1.43 | 7.19 | |||||||||||||||
Turner Small Cap Growth Fund — Investor Class Shares | |||||||||||||||||||
Actual Fund Return | 1,000.00 | 1,040.50 | 1.25 | 6.36 | |||||||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,018.70 | 1.25 | 6.29 | |||||||||||||||
Turner Emerging Markets Fund — Institutional Class Shares | |||||||||||||||||||
Actual Fund Return | 1,000.00 | 1,053.90 | 1.05 | 5.38 | |||||||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,019.70 | 1.05 | 5.29 | |||||||||||||||
Turner Emerging Markets Fund — Investor Class Shares | |||||||||||||||||||
Actual Fund Return | 1,000.00 | 1,052.20 | 1.30 | 6.65 | |||||||||||||||
| Hypothetical 5% Return | 1,000.00 | 1,018.45 | 1.30 | 6.54 | |||||||||||||||
* Unless otherwise indicated, expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period from 10/1/13 - 3/31/14).
66 TURNER FUNDS 2014 SEMIANNUAL REPORT
Turner Funds
This report was prepared for shareholders of the Turner Funds. It may be distributed to others only if preceded or accompanied by a Turner Funds' Prospectus, which contains detailed information. All Turner Funds are offered by prospectus only.
The Funds file their complete schedules of portfolio holdings with the Securities and Exchange Commission (the "Commission") for the first and third quarters of each fiscal year on Form N-Q within sixty days after the end of the period. The Funds' Forms N-Q are available on the Commission's Web site at http://www.sec.gov, and may be reviewed and copied at the Commission's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
The Board of Trustees of the Turner Funds has delegated responsibility for decisions regarding proxy voting for securities held by each Fund to Turner Investments, L.P. Turner Investments, L.P. will vote such proxies in accordance with its proxy policies and procedures, which are included in Appendix B to the SAI. The Board of Trustees will periodically review each Fund's proxy voting record.
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities, as well as information relating to how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, is available (i) via the Funds' Web site, www.turnerinvestments.com; (ii) on the Commission's Web site at http://www.sec.gov; and (iii) without charge by calling 1.800.224.6312.
TURNER FUNDS 2014 SEMIANNUAL REPORT 67
THIS PAGE WAS INTENTIONALLY LEFT BLANK
68 TURNER FUNDS 2014 SEMIANNUAL REPORT
Turner Funds
P.O. Box 219805
Kansas City, Missouri 64121-9805
Telephone: 1.800.224.6312
Email: mutualfunds@turnerinvestments.com
Web Site: www.turnerinvestments.com
TUR-SA-002-0508
Item 2. Code of Ethics.
Not applicable for semiannual report.
Item 3. Audit Committee Financial Expert.
Not applicable for semiannual report.
Item 4. Principal Accountant Fees and Services.
Not applicable for semiannual report.
Item 5. Audit Committee of Listed Registrants.
Not applicable to open-end management investment companies.
Item 6. Schedule of Investments.
Schedule of Investments is included as part of report to shareholders filed under Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees since the registrant’s last proxy solicitation.
Item 11. Controls and Procedures.
(a) The registrant’s Principal Executive Officer and Principal Financial Officer concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 as amended (the “Act”)) were effective as of a date within 90 days of the filing date of this report, based on their evaluation of the effectiveness of the registrant’s disclosure controls and procedures required by Rule 30a-3(b) under the Act and Rule 13a-15(b) or 15d-15(b) under the Securities and Exchange Act of 1934.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) of the Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Not applicable for semiannual report.
(a)(2) A separate certification for the Principal Executive Officer and the Principal Financial Officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed herewith.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(b)), also accompany this filing as an Exhibit.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant | Turner Funds |
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By (Signature and Title) | /s/ Stephen J. Negrotti |
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| Stephen J. Negrotti, President (Principal Executive Officer) |
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Date | May 22, 2014 |
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title) | /s/ Stephen J. Negrotti |
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| Stephen J. Negrotti, President (Principal Executive Officer) |
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Date | May 22, 2014 |
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By (Signature and Title) | /s/ Ty Edwards |
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| Ty Edwards, Controller and Chief Financial Officer (Principal Financial Officer) |
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Date | May 22, 2014 |
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