UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-7527
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)
Turner Funds
P.O. Box 219805
Kansas City, MO 64121-9805
(Name and address of agent for service)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-800-224-6312
DATE OF FISCAL YEAR END: SEPTEMBER 30, 2003
DATE OF REPORTING PERIOD: MARCH 31, 2003
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
unless the Form displays a currently valid Office of Management and Budget
("OMB") control number. Please direct comments concerning the accuracy of the
information collection burden estimate and any suggestions for reducing the
burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW,
Washington, DC 20549-0609. The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1.
[TURNER LOGO OMITTED] Semiannual Report
March 31, 2003 (unaudited)
GROWTH FUNDS
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Turner Disciplined Large Cap
Growth Fund
Turner Large Cap Growth
Opportunities Fund
Turner Midcap Growth Fund
Turner Small Cap Growth Fund
Turner Micro Cap Growth Fund
VALUE FUNDS
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Turner Large Cap Value Fund
Turner Core Value Fund
Turner Small Cap Value Fund
Turner Small Cap Value
Opportunities Fund
CORE FUNDS
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Turner Small Cap Equity Fund
SECTOR/SPECIALTY FUNDS
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Turner Technology Fund
Turner Concentrated Growth Fund
Turner New Enterprise Fund
Turner Financial Services Fund
Turner Healthcare & Biotechnology Fund
Turner Tax Managed U.S. Equity Fund
Turner Strategic Value and High Income Fund
FIXED INCOME FUNDS
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Turner Core Fixed Income Fund
Turner Total Return Fixed Income Fund
Turner High Yield Fund
Turner Ultra Short Duration Fixed Income Fund
Turner Short Duration Fixed Income Fund
CONTENTS
1 Letter to Shareholders
5 Total returns of Turner Funds
8 Investment review:
Turner Disciplined Large Cap
Growth Fund
9 Investment review:
Turner Large Cap Growth
Opportunities Fund
10 Investment review:
Turner Midcap Growth Fund
11 Investment review:
Turner Small Cap Growth Fund
12 Investment review:
Turner Micro Cap Growth Fund
13 Investment review:
Turner Large Cap Value Fund
14 Investment review:
Turner Core Value Fund
15 Investment review:
Turner Small Cap Value Fund
16 Investment review:
Turner Small Cap Value
Opportunities Fund
17 Investment review:
Turner Small Cap Equity Fund
18 Investment review:
Turner Technology Fund
19 Investment review:
Turner Concentrated Growth Fund
20 Investment review:
Turner New Enterprise Fund
21 Investment review:
Turner Financial Services Fund
22 Investment review:
Turner Healthcare & Biotechnology Fund
23 Investment review:
Turner Tax Managed U.S. Equity Fund
24 Investment review:
Turner Strategic Value and High Income Fund
25 Investment review:
Turner Core Fixed Income Fund
26 Investment review:
Turner Total Return Fixed Income Fund
27 Investment review:
Turner High Yield Fund
28 Investment review:
Turner Ultra Short Duration Fixed Income Fund
29 Investment review:
Turner Short Duration Fixed Income Fund
30 Financial Statements
120 Notes to Financial Statements
127 Trustees and Officers of the Trust
TURNER FUNDS
The Turner Funds currently offer a series of twenty two no-load mutual funds to
individual and institutional investors. The minimum initial investment in a
Turner Fund for regular accounts is $2,500 and $2,000 for individual retirement
accounts. The minimum amount for subsequent investments is $50.
Turner Investment Management, LLC, an affiliate of Turner Investment Partners,
serves as the investment adviser for the Small Cap Equity and Small Cap Value
Opportunities Funds. Turner Investment Partners, Inc., based in Berwyn,
Pennsylvania, serves as the investment adviser for the remaining Funds. Turner
Investment Partners, Inc., founded in 1990, invests more than $8 billion in
equity, fixed-income, and balanced portfolios on behalf of individuals and
institutions.
Clover Capital Management, Inc., based in Pittsford, New York, serves as the
investment sub-adviser to the Large Cap Value, Core Value and Small Cap Value
Funds and the Core Fixed Income Fund.
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,
visit our website, www.turnerinvestments.com. Or they may write to Turner Funds,
P.O. Box 219805, Kansas City, Missouri 64121-9805.
LETTER TO SHAREHOLDERS
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March 2003
TO OUR SHAREHOLDERS
The past three years have altogether been a bearish time for stocks (indeed,
it's been the worst market for stocks in modern times) and a bullish time for
bonds (bonds returned almost 10% annualized, the kind of returns normally
associated with stocks). In the process, we saw a degree of mispricing tingeing
stocks and bonds, reflecting extreme pessimism for stocks and extreme optimism
for bonds.
For instance, the gloom shrouding stocks could be seen in the equity-risk
premium (the excess return that investors expect from stocks over the 10-year
Treasury bond), which averaged between 5% and 6% throughout the six-month period
ended March 31, 2003, the period covered by this SEMIANNUAL REPORT. Since 1970
the equity-risk premium has exceeded 5% only five times. (An aside to students
of the capital markets: in each case the S&P 500 Index rose an average of 55%
over the next two years.) Conversely, the yield of the 10-year Treasury as of
March 31 stood at 3.80%, close to a 40-year low and an indication that bonds are
richly priced (since bond yields correlate inversely with bond prices).
STOCK, BOND MISPRICINGS LESSEN
However, in the past six months, the relative mispricing phenomena we had
spotted began to diminish. Stocks generated positive returns -- a quiet, almost
unnoticed rally that gave investors a bit of long-awaited relief from the bear
market. The S&P 500 Index gained 5.02% in the six-month period. In contrast,
bonds, as represented by the Lehman Aggregate Bond Index, cooled down from their
previous torrid pace, rising just 2.98%.
Among the perceived catalysts driving stocks upward: better-than-expected
corporate earnings reports; bargain hunting by investors who believed beaten-up
stock prices now offered a margin of safety; a half-point cut of interest rates
by the Federal Reserve Board; the start of the Iraq war, which removed the
uncertainty hovering over the market for months about whether the U.S. would in
fact take action militarily to remove Saddam Hussein's government from power;
and the revival of the technology sector, a key growth sector, which generated
the strongest returns of any sector in response to reports that demand for tech
products and services was improving.
During the period, growth stocks did better than value stocks. Growth stocks had
generally performed dismally over the past three years; the cumulative margin of
underperformance by the growth-stock indexes versus the value indexes was as
great as 40 percentage points going into the period. That kind of spread never
persists, so growth stocks were due to revert to the mean and improve their
relative performance. In the best instance of the past six months, the Russell
Midcap Growth Index rose 9.14%, outpacing its value counterpart by 6.41
percentage points.
TREASURIES FALL, CORPORATES FLOURISH
Bond-market performance was driven by the underperformance of Treasury
securities and the outperformance of corporate securities. The yield spread
between Treasury and corporate bonds had expanded to an uncommonly wide gap at
the start of the period -- "a once-in-a-generation phenomenon," noted Roger
Early, our fixed-income chief investment officer -- and narrowed to a more
reasonable 1.84 percentage points by the end of the period.
As a result of investor appetite for their higher yields, corporates surged
5.87% during the period. In contrast, Treasuries, the ultimate safe-haven
investment, returned just 1.45%. Corporate and foreign-government securities
were the only ones to outperform during the period. High-yield corporate bonds,
which tend to move in sync with the stock market, outperformed their
investment-grade counterparts.
The performance of our own stock and bond funds mirrored market patterns. Our
stock funds generally produced positive returns, with our growth funds posting
the best results -- in some cases, double-digit gains. The bulk of those gains
came in the first half of the period. In fact, three-fourths of all of our stock
funds recorded gains -- a higher percentage of winners than the industry as a
whole; about half of all stock funds made money in the past six months,
according to Morningstar.
Our bond funds also generally produced positive returns, but those returns were
lower than they had been previously. Our bond funds performed slightly better in
the first half of the period than they did in the second half. As a rule, the
more corporates that any bond fund held, the better its performance tended to
be. In general, our bond funds would have benefited from larger corporate
positions.
Here's how each of our Funds fared during the past six months:
PERFORMANCE OF GROWTH FUNDS
We keep our growth funds, which are geared to specific capitalization segments,
sector neutral or sector diversified -- that is, their sector weightings closely
resemble those of the target indexes. We do that because we think the practice
of overweighting or underweighting sectors can lead to erratic investment
performance. The positive returns that our growth funds recorded in the past six
months reflect in no small part the rebound in the three growth sectors --
technology, healthcare, and consumer discretionary/services -- that constituted
40% or more of the Funds' sector weightings. All in all, it's yet another
reminder that the performance of market sectors has over time conformed to the
Biblical prophecy, "Many that are first shall be last; and the last shall be
first."
TURNER FUNDS 2003 SEMIANNUAL REPORT 1
LETTER TO SHAREHOLDERS (continued)
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March 2003
The performance of our growth funds was adversely affected by the market's
sudden, sharp decline in December, when the most beaten-up, low-priced growth
stocks turned in the best relative performance. It seemed as if the better the
company had been doing, the worse its stock performed then. Our Funds' holdings
in companies with favorable earnings prospects generally didn't have the lowest
valuations and underperformed the market. The losses in December largely
accounted for any underperformance that our Funds suffered in the period as a
whole.
Our two large-cap growth funds, the TURNER DISCIPLINED LARGE CAP GROWTH FUND and
the TURNER LARGE CAP GROWTH OPPORTUNITIES FUND, produced similarly strong
returns. Disciplined Large Cap Growth rose 7.15% and Large Cap Growth
Opportunities gained 7.13%, results that outperformed the Russell Top 200 Growth
Index's 5.24%. Healthcare holdings added extra return to both Funds' results and
technology holdings provided a double-digit gain. In the case of Disciplined
Large Cap Growth, however, the technology position underperformed the index
sector and thus detracted from relative performance. Another factor enhancing
results for both Funds -- as well as for its value counterpart, the Turner Large
Cap Value Fund -- was the relative strength of large-cap stocks. For instance,
the large-cap Russell 1000 Index outperformed the small-cap Russell 2000 Index
by 3.59 percentage points.
The TURNER MICRO CAP GROWTH FUND, which has the best performance of any of our
stock funds since inception, turned in an atypical performance: it lost 5.12%,
contrasting with the Russell 2000 Growth Index's 3.34% gain. Impairing
performance was a loss in technology stocks, which represented a 16% weighting.
An especially strong return in energy stocks, an 8% weighting, contributed the
most to the Fund's results, but it wasn't enough to overcome the technology
shortfall.
The TURNER MIDCAP GROWTH FUND (CLASS I SHARES) advanced 7.91%, versus 9.14% for
the Russell Midcap Growth Index. Adding the most value were good results in the
two largest sector positions, consumer discretionary/services and healthcare,
which represented 49% of the Fund's holdings. Autos/transportation stocks
significantly eroded results.
The TURNER SMALL CAP GROWTH FUND returned 3.25%, slightly trailing the 3.34%
performance of the Russell 2000 Growth Index. Consumer-discretionary/services
and healthcare stocks had the biggest positive impact on performance, and
financial-services stocks had a substantial adverse effect.
PERFORMANCE OF SPECIALTY/SECTOR FUNDS
If you wanted to gauge the extent of the growth stocks' surge over the past six
months, you needed to look no further than the performance of our specialty/
sector funds. Our specialty/sector funds tend to be "growthier" than our more
diversified growth funds and in general they capitalized on the market's growth
bias to produce soundly positive returns.
The TURNER CONCENTRATED GROWTH FUND advanced 3.23%, trailing the S&P 500 Index's
5.02%. The Fund's winners included media, semiconductor, and software stocks and
the technology sector in general. The Fund's positions in the
consumer-discretionary/ services sector, especially in retailing stocks,
detracted from performance.
The TURNER FINANCIAL SERVICES FUND was up 0.96%, versus 1.95% for the S&P 500
Financials Index. The Fund's margin of underperformance was largely due to
financial-transaction-processing, brokerage, and banking stocks. Our insurance
and consumer-credit stocks did well.
The TURNER HEALTHCARE & BIOTECHNOLOGY FUND gained 4.78%, versus a 6.29% return
for the S&P 500 Healthcare Index. Hospital-management, medical-device, and
specialty-pharmaceutical stocks added value to the Fund's performance, while
biotechnology stocks hurt results, especially in the first three months of the
period.
The TURNER NEW ENTERPRISE FUND soared 17.62%, beating the NASDAQ Composite
Index's 14.68% gain. Fueling the Fund's gain was a resurgence in technology
stocks -- notably, semiconductor, information-services, and software stocks.
Positions in the consumer-discretionary/services and healthcare sector dragged
down results.
Our newest fund, the TURNER STRATEGIC VALUE AND HIGH INCOME FUND, a balanced
investment consisting of the holdings of the Turner Small Cap Value
Opportunities Fund and the Turner High Yield Fund, returned 4.15% from its
October 31, 2002, inception through March 31, 2003. The Fund markedly
outperformed the S&P 500 Index, which fell 3.47% during that time. The Fund's
stocks lost money, a loss that was more than offset by the return of the High
Yield Fund, which held bonds with BB and B credit ratings. At a time when the
bond market is offering an average yield of only 3.94% as of March 31, the
Fund's SEC 30-day yield was 5.13%.
The TURNER TAX MANAGED U.S. EQUITY FUND was up 4.93%, while the S&P 500 Index
rose 5.02%. Healthcare, utilities/communication, consumer-discretionary/
services, and autos/transportation holdings all boosted the Fund's results.
Conversely, technology holdings posted a strong absolute return, but that return
trailed the S&P 500 Index technology sector and thus impaired the Fund's
relative performance.
The TURNER TECHNOLOGY FUND benefited from the recovery in tech stocks, profiting
especially from semiconductor, information-services, and software holdings. The
Fund gained 8.58%. However, as noted, the most beaten-down tech stocks did best,
especially in the first half of the period, so the Fund's relative performance
suffered from not owning more of those kind of stocks; explosive upward moves of
as much as 150% by distressed tech shares helped the Goldman Sachs Technology
Composite Index rise 21.69% in the period.
2 TURNER FUNDS 2003 SEMIANNUAL REPORT
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March 2003
PERFORMANCE OF VALUE AND CORE FUNDS
Only two of our five value and core funds -- the TURNER LARGE CAP VALUE FUND and
the TURNER SMALL CAP VALUE OPPORTUNITIES FUND -- generated positive returns. The
rest were plagued by severe losses in a few key holdings that yanked their
performance into negative territory. It was a period in which what are known
euphemistically in the money-management field as "single-stock events" could,
and did, decimate results.
The TURNER LARGE CAP VALUE FUND advanced 1.78%, versus 5.02% for the S&P 500
Index. Hurting the Fund's relative performance was the sharp drop in the price
of a utility holding, brought on by an announcement that the company might not
be reimbursed for certain costs by regulators, and weak performance in
industrial stocks. Contributing to performance were the Fund's
telecommunications and technology stocks, which rose more than 20%.
The TURNER MIDCAP VALUE FUND (which on April 15, 2003, became the TURNER CORE
VALUE FUND, in recognition of its wider universe of candidates for investment
than those from just the mid-cap world) fell 3.41%. In comparison, the Russell
Midcap Value Index advanced 2.73%. The Fund's energy and consumer-
discretionary/services holdings did well, but problems in its healthcare,
financial-services, and utilities/communication positions were a drag on
performance.
The TURNER SMALL CAP EQUITY FUND, a small-cap fund invested in both growth and
value stocks that was started in March 2002, produced a flat return, a 0.46%
decline. Its benchmark, the Russell 2000 Index, rose 1.39%. Among the Fund's
winners were financial-services and consumer-staples stocks. Subpar results were
recorded by technology holdings that were punished when the companies failed to
meet their earnings estimates. As was true of the market as a whole, the Fund's
growth stocks in aggregate performed better than its value stocks did.
The TURNER SMALL CAP VALUE FUND stumbled in the period, declining 8.79%. Its
benchmark, the Russell 2000 Value Index, fell 0.41%. Losses in utility and
materials/processing stocks largely explain the Fund's performance shortfall. On
the plus side, healthcare and energy stocks performed well.
The TURNER SMALL CAP VALUE OPPORTUNITIES FUND, launched in March 2002, was up
slightly, posting a 0.70% gain, outpacing the 0.41% loss for the Russell 2000
Value Index. Materials/processing, consumer-staples, healthcare, and financial
stocks added the most value to performance by far, while producer-durables and
consumer-discretionary/services stocks produced subpar returns. Losers here
included troubled companies whose restructuring efforts floundered, dropping
their below-average share valuations still lower.
PERFORMANCE OF BOND FUNDS
As noted, the six-month returns of the bond market -- and our four bond funds --
were more modest than they had been in previous periods since 2000. The cause:
bond prices fell in response to yields that rose at all but the shortest
maturities, cutting into total returns. During the period, it paid to keep
durations conservative to protect the value of holdings from rising rates, and
our bond funds had in fact set their average durations close to their
benchmarks, as usual.
The TURNER CORE FIXED INCOME FUND was up 1.45%, versus a 2.98% gain for the
Lehman Aggregate Bond Index. To its disadvantage, the Fund avoided lower-rated
corporate bonds in troubled industries like telecommunications, which rallied
strongly. For instance, bonds rated BBB (the lowest investment-grade rating)
gained 8.14%, versus just 2.81% for the highest-rated AAA issues. On the plus
side, the Fund's overweighting in corporates enhanced results. As of March 31,
Core Fixed Income's SEC 30-day yield was 3.58%.
The TURNER HIGH YIELD FUND by far reaped the best return of any of our bond
funds during the period: the Fund rose 10.56%, versus 14.03% for the Merrill
Lynch High-Yield, Cash Pay Index. The Fund trailed the index because of its
emphasis on higher-rated BB and B securities, which returned less than
lower-rated securities did. The Fund's 30-day yield as of March 31 was 7.64%.
The TURNER SHORT DURATION FIXED INCOME FUND (CLASS I SHARES) rose 0.96%,
compared with the Lehman 1-3 Year U.S. Government Bond Index's 1.62%
performance. Eroding the Fund's performance was a sizable weighting in
mortgage-backed securities, which underperformed due to the rising prepayment
risk stemming from home owners' record refinancing of mortgage loans. Short
Duration's 30-day yield as of March 31 was 2.83%.
The TURNER TOTAL RETURN FIXED INCOME FUND returned 0.71%, versus the Lehman
Aggregate Bond Index's 2.98%. The Fund's performance shortfall was due to a high
average credit quality (a Treasury rating), a disadvantage at a time when
lower-rated bonds did best; too large a weighting in underperforming Treasuries;
and too small a weighting in outperforming corporates. At March 31, Total
Return's 30-day yield stood at 3.08%.
The TURNER ULTRA SHORT DURATION FIXED INCOME FUND (CLASS I SHARES) produced a
0.51% return, while its index, the Merrill Lynch 3-Month U.S. Treasury Bill
Index, returned 0.73%. The Fund profited from timely purchases of Treasury
securities and a decline in short rates, a decline that enabled the shortest
maturities to reap higher returns than long-term maturities did during the
period. Hurting results was a weighting of more than 40% in mortgage-backed
securities, whose returns were lackluster. On March 31 the Fund's 30-day yield
was 2.26%.
THANKS FOR YOUR LOYALTY
We appreciate your continued loyalty to our Funds and your discipline in
sticking to a long-term investment time horizon. Despite all the headlines about
badly burned investors fleeing from scorched stock funds, the reality is that
most investors have stayed invested not only in our Funds but in mutual funds
generally.
TURNER FUNDS 2003 SEMIANNUAL REPORT 3
LETTER TO SHAREHOLDERS (continued)
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March 2003
There haven't been the massive redemptions in stock funds, for instance, that
some pessimists had predicted; the fear was that a new investor class, which
began putting money into stock funds in the 1990s, would turn tail and run once
they encountered their first bear market. According to the Investment Company
Institute (ICI), net withdrawals from all stock funds in 2002 totaled $27.1
billion, which is certainly no small potatoes in absolute terms; still, it
amounted to only 0.9% of the $2.7 trillion in total stock-fund assets.
What's more, in any 12-month period more than 80% of investors don't redeem any
shares in their stock funds and a scant 1% make more than six redemptions, ICI
reports. We've found that most of our own shareholders have shown a similar
inclination to stay put. Even in the bear market of the past three years, the
redemptions from our stock funds have been relatively modest. In fact, we have
been heartened that our stock funds have received positive net inflows of new
investment over most rolling six-month periods in recent years. Our bond funds
are also gradually attracting more assets, gaining $30 million in net new
investment during the first three months of this year.
WE VIEW YOU AS OWNERS AND PARTNERS
To us, your acceptance of our Funds serves as a continual reminder that we are
in business solely because of you and to serve you. Turner has been advising
mutual funds since 1992. And whether you have been a shareholder for 12 years or
12 days, we appreciate your interest in the Turner Funds and remain committed to
doing our best for you. You and the other shareholders are the owners of all the
Turner Funds. So we view you as owner-partners who have chosen to pool your
money with ours. Our investing teams invest your money as if it were their own
- -- because their own money and a major portion of their net worth are placed in
our Funds. To use a now-common metaphor, our investing teams eat their own
cooking. We can't promise you results, but we can promise you that your
financial fortunes will parallel ours for as long a time as you choose to be
owner-partners. When the markets drag down the value of the Turner Funds'
holdings, we want you to be able to take some solace from the fact that our
financial distress is equal to yours.
We remain committed to working hard, to trying to out-think and outperform the
capital markets, to increasing your wealth and our wealth over time. We make
those commitments for two reasons: because we want to do a good job and because
it's in our mutual interest to do so. I look forward to continuing to report to
you as owner-partners how well we are in fact doing our jobs for both you and
us.
/S/BOB TURNER
Bob Turner
CHAIRMAN AND EQUITIES CHIEF INVESTMENT OFFICER
TURNER INVESTMENT PARTNERS, INVESTMENT ADVISER TO THE
TURNER FUNDS
[PHOTO OMITTED]
BOB TURNER
4 TURNER FUNDS 2003 SEMIANNUAL REPORT
PERFORMANCE
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TOTAL RETURNS OF TURNER FUNDS
Through March 31, 2003
Year (Annualized) Total
Six to One Three Five Ten Since Assets
Fund Name/Index Month Date Year Years Years Years inception ($mil)
GROWTH
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TURNER DISCIPLINED LARGE CAP
GROWTH FUND 7.15 0.81 (26.32) N/A N/A N/A (29.60) $62.04
Russell Top 200 Growth Index 5.24 (1.33) (26.91) n/a n/a n/a (26.29)
S&P 500 Index 5.02 (3.15) (24.76) n/a n/a n/a (16.67)
INCEPTION DATE: 6/14/00
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TURNER LARGE CAP GROWTH
OPPORTUNITIES FUND 7.13 2.02 (27.52) (30.77) (5.58) N/A 1.58 $1.78
Russell Top 200 Growth Index 5.24 (1.33) (26.91) (25.75) (7.14) n/a (0.11)
S&P 500 Index 5.02 (3.15) (24.76) (16.09) (3.76) n/a 2.73
INCEPTION DATE: 1/31/97
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TURNER MIDCAP GROWTH FUND --
CLASS I SHARES 7.91 1.09 (29.43) (27.96) 2.35 N/A 9.96 $508.39
Russell Midcap Growth Index 9.14 (0.01) (26.11) (24.98) (4.01) n/a 2.17
INCEPTION DATE: 10/1/96
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TURNER SMALL CAP GROWTH FUND(1) 3.25 (3.05) (32.66) (27.07) (4.66) N/A 10.41 $138.41
Russell 2000 Growth Index 3.34 (3.88) (31.63) (24.41) (9.38) n/a 0.74
INCEPTION DATE: 2/7/94
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TURNER MICRO CAP GROWTH FUND(1) (5.12) (4.91) (27.69) (4.89) 27.58 N/A 29.00 $163.60
Russell 2000 Growth Index 3.34 (3.88) (31.63) (24.41) (9.38) n/a (8.48)
INCEPTION DATE: 2/27/98
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VALUE
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TURNER LARGE CAP VALUE FUND 1.78 (4.67) (23.80) (10.54) (2.69) N/A (0.43) $3.94
Russell 1000 Value Index 3.90 (4.86) (22.79) (6.86) (2.03) n/a 1.48
INCEPTION DATE: 10/31/97
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TURNER CORE VALUE FUND (3.41) (8.47) (24.87) (2.99) (0.93) 9.25 9.15 $38.81
Russell Midcap Value Index 2.73 (4.06) (19.66) 1.53 0.18 9.71 12.13
Russell 3000 Index 4.74 (3.04) (24.66) (15.84) (3.72) 8.16 9.35
Russell 3000 Value Index 5.26 (3.35) (21.55) (5.60) (1.63) 9.35 11.06
INCEPTION DATE: 12/6/91
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TURNER SMALL CAP VALUE FUND(1) (8.79) (10.32) (33.58) (5.54) 3.11 N/A 9.28 $325.36
Russell 2000 Value Index (0.41) (5.08) (23.27) 4.29 0.03 n/a 7.75
INCEPTION DATE: 2/28/96
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TURNER SMALL CAP VALUE
OPPORTUNITIES FUND(1) 0.70 (4.60) (12.02) N/A N/A N/A (6.21) $1.11
Russell 2000 Value Index (0.41) (5.08) (23.27) n/a n/a n/a (18.76)
INCEPTION DATE: 3/4/02
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TURNER FUNDS 2003 SEMIANNUAL REPORT 5
PERFORMANCE (continued)
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Year (Annualized) Total
Six to One Three Five Ten Since Assets
Fund Name/Index Month Date Year Years Years Years inception ($mil)
CORE FUNDS
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TURNER SMALL CAP EQUITY FUND(1) (0.46) (5.03) (12.50) N/A N/A N/A (6.94) $8.56
Russell 2000 Index 1.39 (4.49) (26.96) n/a n/a n/a (22.60)
INCEPTION DATE: 3/4/02
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SPECIALTY
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TURNER TECHNOLOGY FUND(1)(2) 8.58 (1.79) (48.19) (49.13) N/A N/A (19.36) $11.91
Pacific Stock Exchange Technology
100 Index 18.51 (0.34) (33.17) (26.60) n/a n/a (6.83)
Goldman Sachs Technology
Composite Index 21.69 (0.50) (35.89) (38.92) n/a n/a (21.95)
INCEPTION DATE: 6/30/99
- ---------------------------------------------------------------------------------------------------------------------------
TURNER CONCENTRATED
GROWTH FUND 3.23 0.97 (41.49) (40.34) N/A N/A (12.97) $28.30
S&P 500 Index 5.02 (3.15) (24.76) (16.09) n/a n/a (10.80)
NASDAQ 100 Index 22.49 3.56 (29.78) (38.54) n/a n/a (19.41)
INCEPTION DATE: 6/30/99
- ---------------------------------------------------------------------------------------------------------------------------
TURNER NEW ENTERPRISE FUND 17.62 2.69 (38.48) N/A N/A N/A (38.13) $3.85
NASDAQ Composite Index 14.68 0.54 (27.02) n/a n/a n/a (32.32)
INCEPTION DATE: 6/30/00
- ---------------------------------------------------------------------------------------------------------------------------
TURNER FINANCIAL
SERVICES FUND(2) 0.96 (5.08) (23.42) (6.40) (2.84) N/A 8.40 $11.33
S&P 500 Financials Index 1.95 (5.11) (21.70) (3.25) (0.87) n/a 10.13
INCEPTION DATE: 5/22/96
- ---------------------------------------------------------------------------------------------------------------------------
TURNER HEALTHCARE &
BIOTECHNOLOGY FUND(1)(2) 4.78 6.30 (14.17) N/A N/A N/A 1.53 $10.34
S&P 500 Healthcare Index 6.29 1.19 (17.57) n/a n/a n/a (10.94)
INCEPTION DATE: 2/28/01
- ---------------------------------------------------------------------------------------------------------------------------
TURNER TAX MANAGED U.S.
EQUITY FUND 4.93 (0.60) (26.42) N/A N/A N/A (18.08) $4.67
After Taxes (Pre-Liquidation)(3) n/a n/a (26.42) n/a n/a n/a (18.08)
After Taxes (Post-Liquidation)(3) n/a n/a (16.22) n/a n/a n/a (14.13)
S&P 500 Index 5.02 (3.15) (24.76) n/a n/a n/a (15.33)
Russell 1000 Growth Index 6.01 (1.07) (26.76) n/a n/a n/a (19.27)
INCEPTION DATE: 2/28/01
- ---------------------------------------------------------------------------------------------------------------------------
TURNER STRATEGIC VALUE AND
HIGH INCOME FUND N/A (0.02) N/A N/A N/A N/A 4.15 $0.06
S&P 500 Index n/a (3.15) n/a n/a n/a n/a (3.47)
INCEPTION DATE: 10/31/02
- ---------------------------------------------------------------------------------------------------------------------------
6 TURNER FUNDS 2003 SEMIANNUAL REPORT
- ---------------------------------------------------------------------------------------------------------------------------
Year (Annualized) Total
Six to One Three Five Ten Since Assets
Fund Name/Index Month Date Year Years Years Years inception ($mil)
FIXED INCOME
- ---------------------------------------------------------------------------------------------------------------------------
TURNER CORE FIXED INCOME FUND 1.45 0.11 10.50 8.86 6.85 6.97 7.46 $40.74
Lehman Aggregate Bond Index 2.98 1.39 11.69 9.81 7.51 7.23 7.51
INCEPTION DATE: 12/6/91
- ---------------------------------------------------------------------------------------------------------------------------
TURNER TOTAL RETURN FIXED
INCOME FUND 0.71 0.26 7.66 7.92 N/A N/A 7.14 $6.97
Lehman Aggregate Bond Index 2.98 1.39 11.69 9.81 n/a n/a 8.56
INCEPTION DATE: 6/30/99
- ---------------------------------------------------------------------------------------------------------------------------
TURNER HIGH YIELD FUND 10.56 4.54 0.66 (11.60) (5.41) N/A (4.61) $10.04
Merrill Lynch High Yield,
Cash Pay Index 14.03 6.90 3.65 3.22 2.12 n/a 2.17
INCEPTION DATE: 2/27/98
- ---------------------------------------------------------------------------------------------------------------------------
TURNER ULTRA SHORT DURATION
FIXED INCOME FUND --
CLASS I SHARES 0.51 0.13 2.15 4.66 5.05 N/A 5.59 $599.81
Merrill Lynch 3-Month
U.S. Treasury Bill Index 0.73 0.30 1.65 3.74 4.27 n/a 4.75
INCEPTION DATE: 3/1/94
- ---------------------------------------------------------------------------------------------------------------------------
TURNER SHORT DURATION FIXED
INCOME FUND-- CLASS I SHARES 0.96 0.25 4.82 6.31 5.72 N/A 6.00 $296.87
Lehman 1-3 Year U.S. Government
Bond Index 1.62 0.68 6.72 7.36 6.35 n/a 6.17
INCEPTION DATE: 3/1/94
- ---------------------------------------------------------------------------------------------------------------------------
Returns less than one year are cumulative. The Turner Funds are distributed by
Turner Investment Distributor, Inc., Berwyn, PA 19312.
A FREE PROSPECTUS, WHICH CONTAINS DETAILED INFORMATION, INCLUDING FEES AND
EXPENSES, AND THE RISKS ASSOCIATED WITH INVESTING IN THESE FUNDS, CAN BE
OBTAINED BY CALLING (800) 224-6312. The performance data quoted represents past
performance and the principal value and investment return will fluctuate so that
an investor's shares, when redeemed, may be worth more or less than their
original cost. Returns shown, unless otherwise indicated, are total returns,
with dividends and income reinvested. Returns spanning more than one year are
annualized. Fee waivers are in effect; if they had not been in effect,
performance would have been lower. The indices mentioned are unmanaged
statistical composites of stock market performance. Investing in an index is not
possible.
(1) Investing in technology and science companies and small capitalization
companies may subject the funds to specific inherent risks, including
above-average price fluctuations.
(2) Funds that take a focus or sector specific
approach are subject to greater risk from downturns affecting a specific
issuer or industry.
(3) After-tax returns are shown using the highest individual federal income tax
rates in effect at the time of each distribution. They do not reflect the
impact of state and local taxes. Your after-tax return depends on your
individual tax situation, and may differ from the figures presented here. If
you own fund shares in a tax-deferred account such as an IRA or 401(K) plan,
this information does not apply to your investment because these accounts
are not subject to current taxes. After-returns for most funds are
calculated using the tax liability implied by each fund's declared
distributions. However, the exact tax characteristics of many distributions
are not known until after the close of the year. For certain funds,
conservative estimates are used based on fund history until final amounts
become available.
TURNER FUNDS 2003 SEMIANNUAL REPORT 7
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER DISCIPLINED LARGE CAP GROWTH FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Disciplined Large Cap Growth Fund seeks long-term capital
appreciation. It invests primarily in common stocks and equity securities of
U.S. companies with very large market capitalizations that Turner believes have
strong earnings growth potential.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
1.3% Autos/transportation
1.7% Materials & Processing
1.9% Producer durables
12.1% Financial services
12.6% Consumer staples
20.4% Consumer discretionary/services
21.4% Technology
27.9% Healthcare
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
[GRAPHIC SHOWING MARKET CAPITALIZATION IS LARGE AND INVESTMENT STYLE IS GROWTH]
o Ticker symbol TSGEX
o CUSIP #87252R839
o Top 10 holdings
(1) Pfizer
(2) Johnson & Johnson
(3) Intel
(4) Wal-Mart Stores
(5) General Electric
(6) Procter & Gamble
(7) Coca-Cola
(8) Amgen
(9) Dell Computer
(10) PepsiCo
o % in 10 largest holdings 44.3%
o Number of holdings 49
o Price/earnings ratio 20.9
o Weighted average market capitalization $85.17 billion
o % of holdings with positive earnings surprises 86.4%
o % of holdings with negative earnings surprises 12.9%
o Net assets $62 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER DISCIPLINED LARGE CAP GROWTH FUND:
JUNE 30, 2000-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER DISCIPLINED LARGE RUSSELL TOP 200 S&P 500
CAP GROWTH FUND GROWTH INDEX COMPOSITE INDEX
6/30/00 10000 10000 10000
SEP 00 9655 9304 9903
SEP 01 4626 5183 7267
SEP 02 3445 3950 5778
MAR 03 $ 3691 $ 4157 $ 6068
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Disciplined Large
Cap Growth Fund is June 14, 2000.
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST ONE YEAR SINCE INCEPTION
- -26.32% -29.60%
- --------------------------------------------------------------------------------
8 TURNER FUNDS 2003 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER LARGE CAP GROWTH OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Large Cap Growth Opportunities Fund seeks capital appreciation. It
invests primarily in common stocks and other equity securities of U.S. companies
with very large market capitalizations that Turner believes have strong earnings
growth potential.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
2.5% Producer durables
6.2% Consumer staples
11.7% Financial services
24.3% Consumer discretionary/services
26.7% Healthcare
30.4% Technology
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
[GRAPHIC SHOWING MARKET CAPITALIZATION IS LARGE AND INVESTMENT STYLE IS GROWTH]
o Ticker symbol TLCGX
o CUSIP #900297870
o Top 10 holdings
(1) Pfizer
(2) Intel
(3) Johnson & Johnson
(4) Wal-Mart Stores
(5) Amgen
(6) Dell Computer
(7) Procter & Gamble
(8) Wyeth
(9) Forest Laboratories
(10) PepsiCo
o % in 10 largest holdings 33.4%
o Number of holdings 60
o Price/earnings ratio 23.9
o Weighted average market capitalization $54.21 billion
o % of holdings with positive earnings surprises 81.8%
o % of holdings with negative earnings surprises 16.9%
o Net assets $2 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER LARGE CAP GROWTH OPPORTUNITIES
FUND:
JANUARY 31, 1997-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER LARGE CAP GROWTH RUSSELL TOP 200
OPPORTUNITIES FUND GROWTH INDEX S&P 500 INDEX
1/31/97 10000 10000 10000
SEP 97 12280 12013 12200
SEP 98 14399 14166 13306
SEP 99 20587 19019 17005
SEP 00 30363 22233 19263
SEP 01 14055 12386 14135
SEP 02 10280 9439 11239
MAR 03 $ 11013 $ 9934 $ 11803
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares.
The inception date of the Turner Large Cap Growth Opportunities Fund is January
31, 1997.
(1) Returns prior to August 17, 2002, represent performance of the Mercury
Select Growth Fund, Class I.
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS(1)
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST ONE PAST THREE PAST FIVE SINCE
YEAR YEARS YEARS INCEPTION
- -27.52% -30.77% -5.58% 1.58%
- --------------------------------------------------------------------------------
TURNER FUNDS 2003 SEMIANNUAL REPORT 9
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER MIDCAP GROWTH FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Midcap Growth Fund seeks capital appreciation. It invests primarily
in a diversified portfolio of common stocks with medium market capitalizations
at the time of purchase that Turner believes offer strong earnings growth
potential. The Fund's economic-sector weightings approximate the sector
weightings of the Russell Midcap Growth Index.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
1.4% UTILITIES/COMMUNICATION
1.7% AUTOS/TRANSPORTATION
3.0% CONSUMER STAPLES
3.9% MATERIALS/PROCESSING
4.6% ENERGY
6.3% PRODUCER DURABLES
10.3% FINANCIAL SERVICES
15.9% TECHNOLOGY
24.8% HEALTHCARE
25.5% CONSUMER DISCRETIONARY/SERVICES
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
[GRAPHIC SHOWING MARKET CAPITALIZATION IS BETWEEN SMALL AND LARGE AND INVESTMENT
STYLE IS GROWTH]
o Ticker symbol TMGFX,
Class I Shares
o CUSIP #900297409,
Class I Shares
o Top 10 holdings
(1) Medimmune
(2) Gilead Sciences
(3) Anthem
(4) Laboratory Corp. of America Holdings
(5) St. Jude Medical
(6) Electronic Arts
(7) Lexmark International
(8) Starbucks
(9) WellPoint Health Networks
(10) Allergan
o % in 10 largest holdings 16.2%
o Number of holdings 117
o Price/earnings ratio 21.4
o Weighted average market capitalization $5.04 billion
o % of holdings with positive earnings surprises 84.3%
o % of holdings with negative earnings surprises 12.6%
o Net assets $508 million, Class I Shares
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER MIDCAP GROWTH FUND, CLASS I SHARES:
OCTOBER 31, 1996-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER MIDCAP GROWTH FUND, CLASS I RUSSELL MID-CAP GROWTH INDEX
10/31/96 10000 10000
SEP 97 14248 13119
SEP 98 14425 11890
SEP 99 26552 16312
SEP 00 52401 26159
SEP 01 21484 12616
SEP 02 17016 10661
MAR 03 $ 18362 $ 11635
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares.
The inception date of the Turner Midcap Growth Fund (Class I Shares) is October
1, 1996.
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST PAST PAST SINCE
ONE YEAR THREE YEARS FIVE YEARSINCEPTION
Class I Shares -29.43% -27.96% 2.35% 9.96%
Class II Shares -29.73% N/A N/A -9.90%
- --------------------------------------------------------------------------------
10 TURNER FUNDS 2003 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Small Cap Growth Fund seeks capital appreciation. It invests
primarily in a diversified portfolio of common stocks with small market
capitalizations at the time of purchase that Turner believes offer strong
earnings growth potential. The Fund's economic-sector weightings approximate the
sector weightings of the Russell 2000 Growth Index.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
2.2% UTILITIES/COMMUNICATION
2.4% AUTOS/TRANSPORTATION
2.4% CONSUMER STAPLES
4.5% ENERGY
5.7% PRODUCER DURABLES
6.6% MATERIALS & PROCESSING
17.3% TECHNOLOGY
17.4% FINANCIAL SERVICES
18.2% HEALTHCARE
19.9% CONSUMER DISCRETIONARY/SERVICES
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
[GRAPHIC SHOWING MARKET CAPITALIZATION IS SMALL AND INVESTMENT STYLE IS GROWTH]
o Ticker symbol TSCEX
o CUSIP #900297300
o Top 10 holdings
(1) Medicines
(2) Cooper
(3) Trimeris
(4) Medicis Pharmaceutical
(5) Respironics
(6) Affiliated Managers Group
(7) East-West Bancorp
(8) Jefferies Group
(9) South Financial Group
(10) American Italian Pasta
o % in 10 largest holdings 14.4%
o Number of holdings 132
o Price/earnings ratio 15.7
o Weighted average market capitalization $0.87 billion
o % of holdings with positive earnings surprises 70.7%
o % of holdings with negative earnings surprises 20.6%
o Net assets $138 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER SMALL CAP GROWTH FUND:
FEBRUARY 28, 1994-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER SMALL CAP GROWTH FUND FRANK RUSSELL 2000 GROWTH INDEX
2/28/94 10000 10000
SEP 94 10303 9618
SEP 95 15812 12328
SEP 96 24103 13883
SEP 97 28114 17125
SEP 98 23362 12873
SEP 99 37179 17073
SEP 00 58025 22137
SEP 01 29123 12709
SEP 02 23485 10401
MAR 03 $ 24248 $ 10748
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Small Cap Growth
Fund is February 7, 1994.
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST ONE PAST THREE PAST FIVE SINCE
YEAR YEARS YEARS INCEPTION
- -32.66% -27.07% -4.66% 10.41%
- --------------------------------------------------------------------------------
TURNER FUNDS 2003 SEMIANNUAL REPORT 11
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER MICRO CAP GROWTH FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Micro Cap Growth Fund seeks capital appreciation. It invests
primarily in common stocks and other equity securities of U.S. companies with
very small market capitalizations that Turner believes have strong earnings
growth potential. Micro cap companies are defined for this purpose as companies
with market capitalizations of companies included in the lower end of the
Russell 2000 Growth Index particularly those under $500 million. The Fund's
economic-sector weightings approximate the sector weightings of the Russell 2000
Growth Index.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
0.54% CONSUMER STAPLES
1.6% MATERIALS/PROCESSING
1.7% UTILITIES/COMMUNICATION
3.7% AUTOS/TRANSPORTATION
5.8% PRODUCER DURABLES
10.6% ENERGY
10.7% FINANCIAL SERVICES
16.6% CONSUMER DISCRETIONARY/SERVICES
19.6% TECHNOLOGY
21.0% HEALTHCARE
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
[GRAPHIC SHOWING MARKET CAPITALIZATION IS SMALLAND INVESTMENT STYLE IS GROWTH]
o Ticker symbol TMCGX
o CUSIP #872524301
o Top 10 holdings
(1) FTI Consulting
(2) Tractor Supply
(3) Patina Oil & Gas
(4) Evergreen Resources
(5) Oshkosh Truck
(6) EDO
(7) R&G Financial
(8) Penn National Gaming
(9) ESCO Technologies
(10) Anteon International
o % in 10 largest holdings 22.7%
o Number of holdings 100
o Price/earnings ratio 14.7
o Weighted average market capitalization $0.5 billion
o % of holdings with positive earnings surprises 72.4%
o % of holdings with negative earnings surprises 18.7%
o Net assets $164 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER MICRO CAP GROWTH FUND:
FEBRUARY 28, 1998-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER MICRO CAP GROWTH FUND RUSSELL 2000 GROWTH INDEX
2/28/98 10000 10000
SEP 98 9882 7625
SEP 99 21093 10113
SEP 00 48308 13113
SEP 01 38535 7528
SEP 02 38489 6161
MAR 03 $ 36519 $ 6367
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Micro Cap Growth
Fund is February 27, 1998.
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST ONE PAST THREE PAST FIVE SINCE
YEAR YEARS YEARS INCEPTION
- -27.69% -4.89% 27.58% 29.00%
- --------------------------------------------------------------------------------
12 TURNER FUNDS 2003 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER LARGE CAP VALUE FUND
- --------------------------------------------------------------------------------
UND OBJECTIVE
The Turner Large Cap Value Fund seeks long-term total return. The Fund invests
primarily in common stocks and other equity securities of U.S. companies with
large market capitalizations that the Sub-Adviser, Clover Capital Management,
believes have low valuations and attractive dividend yields relative to the
market or to their own trading history. Large cap companies are defined for this
purpose as companies with market capitalizations at the time of purchase in the
range of those market capitalizations of companies included in the S&P 500
Index. In selecting specific securities for the Fund, Clover seeks to identify
companies whose stock is out-of-favor with investors.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
4.0% MATERIALS/PROCESSING
5.2% HEALTHCARE
5.9% INDUSTRIALS
9.6% UTILITIES/COMMUNICATION
10.6% TECHNOLOGY
10.9% ENERGY
13.8% CONSUMER DISCRETIONARY/SERVICES
30.9% FINANCIAL SERVICES
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
[GRAPHIC SHOWING MARKET CAPITALIZATION IS LARGE AND INVESTMENT STYLE IS VALUE]
o Ticker symbol TLCVX
o CUSIP #87252R706
o Top 10 holdings
(1) ConocoPhillips
(2) Exxon Mobil
(3) Morgan Stanley
(4) Greenpoint Financial
(5) RadioShack
(6) Verizon Communications
(7) Citigroup
(8) Dell Computer
(9) Procter & Gamble
(10) United Parcel Service
o % in 10 largest holdings 27.7%
o Number of holdings 73
o Price/earnings ratio 12.2
o Weighted average market capitalization $41.32 billion
o Net assets $4 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER LARGE CAP VALUE FUND:
OCTOBER 31, 1997-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER LARGE CAP VALUE FUND S&P 500 INDEX RUSSELL 1000 VALUE INDEX
10/31/97 10000 10000 10000
SEP 98 9347 11284 10657
SEP 99 11793 14421 12652
SEP 00 14133 16336 13779
SEP 01 11947 11988 12551
SEP 02 9598 9531 10424
MAR 03 $ 9769 $ 10010 $ 10830
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Large Cap Value
Fund is October 31, 1997.
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST ONE YEAR PAST THREE YEARS PAST FIVE YEARS SINCE INCEPTION
- -23.80% -10.54% -2.69% -0.43%
- --------------------------------------------------------------------------------
TURNER FUNDS 2003 SEMIANNUAL REPORT 13
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER CORE VALUE FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Core Value Fund (formerly the Midcap Value Fund) seeks long-term
total return. The Fund invests primarily in common stocks and other equity
securities of U.S. companies with medium and small market capitalizations that
the Sub-Adviser, Clover Capital Management, believes are undervalued relative to
the market or their historic valuation. Midcap companies are defined for this
purpose as companies with market capitalizations at the time of purchase in the
range of those market capitalizations of companies included in the Russell
Midcap Index. The Fund will invest in securities of companies operating in a
broad range of industries based primarily on value characteristics such as
price-cash flow, price-earnings and price-book value ratios. In selecting
specific securities for the Fund, Clover seeks to identify companies whose stock
is out-of-favor with investors.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
3.0% Consumer Staples
5.1% Materials/processing
6.4% Technology
7.1% Energy
13.2% Industrials
15.0% Utilities/communication
15.7% Consumer discretionary/services
32.2% Financial services
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
[GRAPHIC SHOWING MARKET CAPITALIZATION IS BETWEEN SMALL AND LARGE AND INVESTMENT
STYLE IS VALUE]
o Ticker symbol CCEVX
o CUSIP #87252R102
o Top 10 holdings
(1) Greenpoint Financial
(2) Hibernia
(3) Pioneer Natural Resources
(4) Dun & Bradstreet
(5) Safeco
(6) Banknorth Group
(7) Valero Energy
(8) Mercury General
(9) SCANA
(10) Reebok International
o % in 10 largest holdings 28.5%
o Number of holdings 53
o Price/earnings ratio 10.6
o Weighted average market capitalization $4.09 billion
o Net assets $39 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER CORE VALUE FUND:
SEPTEMBER 30, 1992-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER CORE RUSSELL MIDCAP RUSSELL 3000 RUSSELL 3000
VALUE FUND VALUE FUND INDEX VALUE INDEX
9/30/92 10000 10000 10000 10000
Sep 93 11129 12723 11654 12627
Sep 94 13452 12853 11951 12599
Sep 95 16868 16034 15454 15966
Sep 96 18732 18558 18393 18757
Sep 97 23683 26027 25506 26696
Sep 98 22262 25061 26687 27224
Sep 99 23627 27397 33711 32026
Sep 00 26857 30959 39843 35021
Sep 01 28065 30946 28723 32226
Sep 02 26278 29257 23317 27105
Mar 03 $ 25381 $ 30055 $ 24423 $ 28531
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST ONE PAST THREE PAST FIVE PAST TEN SINCE
YEAR YEARS YEARS YEARS INCEPTION
- -24.87% -2.99% -0.93% 9.25% 9.15%
- --------------------------------------------------------------------------------
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Core Value Fund is
December 6, 1991.
14 TURNER FUNDS 2003 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER SMALL CAP VALUE FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Small Cap Value Fund seeks long-term total return. The Fund invests
primarily in common stocks and other equity securities of U.S. companies with
small market capitalizations that the Sub-Adviser, Clover Capital Management,
believes are undervalued relative to the market or to their historical
valuation. Small cap companies are defined for this purpose as companies with
market capitalizations at the time of purchase in the range of those market
capitalizations of companies included in the Russell 2000 Value Index. The Fund
will invest in securities of companies operating in a broad range of industries
based primarily on value characteristics such as price-cash flow, price-earnings
and price-book value ratios. In selecting specific securities for the Fund,
Clover seeks to identify companies whose stock is out-of-favor with investors.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
3.1% CONSUMER STABLES
4.2% ENERGY
4.7% HEALTHCARE
7.4% UTILITIES/COMMUNICATION
8.5% MATERIALS/PROCESSING
11.2% INDUSTRIALS
16.0% TECHNOLOGY
16.6% CONSUMER DISCRETIONARY/SERVICES
20.6% FINANCIAL SERVICES
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
GRAPHIC SHOWING MARKET CAPITALIZATION IS SMALL AND INVESTMENT STYLE IS VALUE
o Ticker symbol TCSVX
o CUSIP #87252R300
o Top 10 holdings
(1) Men's Wearhouse
(2) Service Corp. International
(3) Ohio Casualty Group
(4) Acxiom
(5) New York Community Bancorp
(6) HCC Insurance Holdings
(7) Harleysville Group
(8) Ciber
(9) Wausau-Mosinee Paper
(10) Hudson United Bancorp
o % in 10 largest holdings 17.6%
o Number of holdings 127
o Price/earnings ratio 11.7
o Weighted average market capitalization $0.82 billion
o Net assets $325 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER SMALL CAP VALUE FUND:
FEBRUARY 29, 1996-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER SMALL CAP RUSSELL RUSSELL 2000
VALUE FUND 2000 INDEX Value Index
2/29/96 10000 10000 10000
Sep 96 10838 10752 10785
Sep 97 16169 14320 15385
Sep 98 12733 11596 13417
Sep 99 15511 13808 14199
Sep 00 20101 17037 16381
Sep 01 22543 13424 17299
Sep 02 20584 12175 17047
Mar 03 $ 18775 $ 12345 $ 16977
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares.
The inception date of the Turner Small Cap Value Fund is February 28, 1996.
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST ONE PAST THREE PAST FIVE SINCE
YEAR YEARS YEARS INCEPTION
-33.58% -5.54% 3.11% 9.28%
- --------------------------------------------------------------------------------
TURNER FUNDS 2003 SEMIANNUAL REPORT 15
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER SMALL CAP VALUE OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Small Cap Value Opportunities Fund seeks long-term capital growth. It
invests primarily in equity securities of small capitalization companies that
the Adviser believes have the potential for growth and that appear to be trading
below their perceived value. Small capitalization companies are defined for this
purpose as companies with market capitalization at the time of purchase that is
within the range of capitalization represented in the Russell 2000 Value Index.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
1.3% Autos/transportation
1.6% Consumer staples
2.1% Energy
2.8% Utilities/communication
9.3% Healthcare
9.7% Tecnology
11.3% Producer durables
12.6% Materials/processing
17.6% Consumer discretionary/services
25.2% Financial services
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
[GRAPHIC SHOWING MARKET CAPITALIZATION IS SMALL AND INVESTMENT STYLE IS VALUE]
o Ticker symbol TSVOX
o CUSIP #87252R607
o Top 10 holdings
(1) Intergraph
(2) Walter Industries
(3) Lyondell Chemical
(4) R.H. Donnelley
(5) IKON Office Solutions
(6) Moore
(7) Pittston Brink's Group
(8) Hudson City Bancorp
(9) Immucor
(10) Jarden
o % in 10 largest holdings 28.8%
o Number of holdings 71
o Price/earnings ratio 13.5
o Weighted average market capitalization $1.00 billion
o Net assets $1 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER SMALL CAP VALUE OPPORTUNITIES FUND:
MARCH 31, 2002-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER SMALL CAP FRANK RUSSELL 2000
VALUE OPPORTUNITIES FUND 2000 VALUE INDEX
3/31/02 10000 10000
SEP 02 8737 7705
MAR 03 $ 8798 $ 7673
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Small Cap Value
Opportunities Fund is March 4, 2002.
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST ONE YEAR SINCE INCEPTION
-12.02% -6.21%
- --------------------------------------------------------------------------------
16 TURNER FUNDS 2003 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER SMALL CAP EQUITY FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Small Cap Equity Fund seeks long-term capital growth. It invests
primarily in equity securities of small capitalization companies that the
Adviser believes have the potential for long-term growth and that are
attractively priced. Small capitalization companies are defined for this purpose
as companies that have a market capitalization at the time of purchase that is
within the range of market capitalization represented in the Russell 2000 Index.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
1.8% Autos/transportation
2.7% Consumer staples
3.0% Utilities/communication
3.7% Energy
9.2% Producer durables
9.6% Materials/processing
13.4% Healthcare
14.3% Technology
17.3% Consumer discretionary/services
19.9% Financial services
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
[GRAPHIC SHOWING MARKET CAPITALIZATION IS SMALL AND INVESTMENT STYLE IS BETWEEN
VALUE AND GROWTH]
o Ticker symbol TSEIX
o CUSIP #87252R714
o Top 10 holdings
(1) Intergraph
(2) Walter Industries
(3) FTI Consulting
(4) R.H. Donnelley
(5) Lyondell Chemical
(6) Moore
(7) Jarden
(8) Peoples Bank Bridgeport
(9) Brookline Bancorp
(10) Lousiana-Pacific
o % in 10 largest holdings 28.7%
o Number of holdings 74
o Price/earnings ratio 14.0
o Weighted average market capitalization $0.94 billion
o Net assets $9 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER SMALL CAP EQUITY FUND:
MARCH 31, 2002-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER SMALL CAP RUSSELL 2000
EQUITY FUND INDEX
3/31/02 10000 10000
Sep 02 8789 7203
Mar 03 $ 8749 $ 7303
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Small Cap Equity
Fund is March 4, 2002.
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST ONE YEAR SINCE INCEPTION
-12.50% -6.94%
- --------------------------------------------------------------------------------
TURNER FUNDS 2003 SEMIANNUAL REPORT 17
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER TECHNOLOGY FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Technology Fund seeks long-term capital appreciation. It invests in
common stock of companies that develop new technologies and that may experience
exceptional growth in sales and earnings driven technology related products and
services. Stock selection will not be based on company size, but rather on an
assessment of a company's fundamental prospects. The Fund's holdings will be
concentrated in the technology sector, and will range from small companies
developing new technologies to large, established firms with a history of
developing and marketing such technologies.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
99.4% TECHNOLOGY
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
[GRAPHIC SHOWING MARKET CAPITALIZATION IS LARGE AND INVESTMENT STYLE IS GROWTH]
o Ticker symbol TTECX
o CUSIP #87252R870
o Top 10 holdings
(1) Dell Computer
(2) Intel
(3) Corning
(4) Gilead Sciences
(5) Trimeris
(6) Micron Technology
(7) VeriSign
(8) Network Appliance
(9) Maxim Integrated Products
(10) National Semiconductor
o % in 10 largest holdings 36.2%
o Number of holdings 39
o Price/earnings ratio 26.3
o Weighted average market capitalization $11.84 billion
o % of holdings with positive earnings surprises 73.0%
o % of holdings with negative earnings surprises 27.0%
o Net assets $12 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER TECHNOLOGY FUND:
JUNE 30, 1999-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER PACIFIC STOCK EXCHANGE GOLDMAN SACHS TECHNOLOGY
TECHNOLOGY FUND TECHNOLOGY 100 INDEX COMPOSITE INDEX
6/30/99 10000 10000 10000
Sep 99 14060 10467 10523
Sep 00 35059 17345 14251
Sep 01 6619 8652 4972
Sep 02 4110 6470 3240
Mar 03 $ 4462 $ 7667 $ 3943
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Technology Fund is
June 30, 1999.
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST ONE YEAR PAST THREE YEARS SINCE INCEPTION
- -48.19% -49.13% -19.36%
- --------------------------------------------------------------------------------
18 TURNER FUNDS 2003 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER CONCENTRATED GROWTH FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Concentrated Growth Fund seeks long-term capital appreciation. It
invests in common stock and other equity securities of companies, regardless of
their market capitalization, that Turner believes have strong earnings
potential. The Fund will contain a total of 15-30 stocks representing Turner's
favorite investment ideas. While it will not concentrate its investments in any
one industry, the Fund may, from time to time, have a significant exposure to
one or more sectors of the economy such as the technology sector. In addition,
the Fund's adviser may invest up to 25% of the Fund's assets in cash or cash
equivalent securities in instances where it believes that appropriate buying
opportunities are not available.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
4.3% Producer durables
5.4% Financial services
7.2% Energy
17.9% Consumer discretionary/services
19.3% Healthcare
44.6% Technology
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
[GRAPHIC SHOWING MARKET CAPITALIZATION IS LARGE AND INVESTMENT STYLE IS GROWTH]
o Ticker symbol TTOPX
o CUSIP #87252R862
o Top 10 holdings
(1) Dell Computer
(2) Intel
(3) Johnson & Johnson
(4) Citigroup
(5) Amgen
(6) Northrop Grumman
(7) Univision Communications
(8) BJ Services
(9) Clear Channel Communications
(10) National Semiconductor
o % in 10 largest holdings 47.5%
o Number of holdings 28
o Price/earnings ratio 24.5
o Weighted average market capitalization $38.4 billion
o % of holdings with positive earnings surprises 72.7%
o % of holdings with negative earnings surprises 27.3%
o Net assets $28 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER CONCENTRATED GROWTH FUND:
JUNE 30, 1999-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER CONCENTRATED S&P 500 NASDAQ 100
GROWTH FUND COMPOSITE INDEX INDEX
6/30/99 10000 10000 10000
Sep 99 13990 9375 10485
Sep 00 27782 10620 15553
Sep 01 8223 7793 5092
Sep 02 5754 6196 3631
Mar 03 $ 5940 $ 6508 $ 4448
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Technology Fund is
June 30, 1999.
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST ONE YEAR PAST THREE YEARS SINCE INCEPTION
- -41.49% -40.34% -12.97%
- --------------------------------------------------------------------------------
TURNER FUNDS 2003 SEMIANNUAL REPORT 19
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER NEW ENTERPRISE FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner New Enterprise Fund seeks long-term capital appreciation. The Fund
invests primarily in companies with projected strong earnings growth across a
variety of industries and sectors where new products and services are being
developed and marketed. Turner strives to find leading companies in rapidly
growing industries such as business services, computer and digital products,
financial services, Internet-related companies, medical technology, retail, and
telecommunications. Companies that have the potential for rapid earnings growth
because of management changes, new products, or changes in the economy also may
be attractive investments for the Fund.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
3.0% Autos/transportation
5.3% Producer durables
6.4% Financial services
16.6% Consumer discretionary/services
17.2% Healthcare
50.8% Technology
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
[GRAPHIC SHOWING MARKET CAPITALIZATION IS BETWEEN SMALL AND LARGE AND INVESTMENT
STYLE IS BETWEEN VALUE AND GROWTH]
o Ticker symbol TBTBX
o CUSIP #87252R797
o Top 10 holdings
(1) Avid Technology
(2) Corning
(3) Fairchild Semiconductor International
(4) Nortel Networks
(5) Medicines
(6) National Semiconductor
(7) Cypress Semiconductor
(8) Medimmune
(9) Network Appliance
(10) St. Jude Medical
o % in 10 largest holdings 38.3%
o Number of holdings 34
o Price/earnings ratio 26.0
o Weighted average market capitalization $7.95 billion
o % of holdings with positive earnings surprises 72.5%
o % of holdings with negative earnings surprises 24.7%
o Net assets $4 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER NEW ENTERPRISE FUND:
JUNE 30, 2000-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER NEW NASDAQ
ENTERPRISE FUND COMPOSITE INDEX
6/30/00 10000 10000
Sep 00 12520 9264
Sep 01 3290 3792
Sep 02 2270 2976
Mar 03 $ 2670 $ 3413
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner New Enterprise Fund
is June 30, 2000.
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST ONE YEAR SINCE INCEPTION
-38.48% -38.13%
- --------------------------------------------------------------------------------
20 TURNER FUNDS 2003 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Financial Services Fund seeks long-term capital appreciation. It
invests in common stocks and other equity securities of U.S. financial services
companies, including banks, brokerage houses, insurance companies and investment
advisory companies, that the Adviser believes have above average growth
potential or that are undervalued. The Adviser also invests in financial
services companies that it believes to be potential merger or acquisition
targets. The Fund's holdings will be concentrated in the Financial Services
industry.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
96.5% Financial services
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
[GRAPHIC SHOWING MARKET CAPITALIZATION IS LARGEL AND INVESTMENT STYLE IS BETWEEN
VALUE AND GROWTH]
o Ticker symbol TFFIX
o CUSIP #87252R698
o Top 10 holdings
(1) Legg Mason
(2) Citigroup
(3) Bank of America
(4) Goldman Sachs Group
(5) First Data
(6) Lehman Brothers Holdings
(7) American Express
(8) Wells Fargo
(9) Franklin Resources
(10) Affiliated Managers Group
o % in 10 largest holdings 47.9%
o Number of holdings 28
o Price/earnings ratio 12.9
o Weighted average market capitalization $32.39 billion
o % of holdings with positive earnings surprises 75.6%
o % of holdings with negative earnings surprises 24.4%
o Net assets $11 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER FINANCIAL SERVICES FUND:
MAY 31, 1996-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER FINANCIAL S&P 500
SERVICES FUND FINANCIAL INDEX
5/31/96 10000 10000
Sep 96 10752 10939
Sep 97 16893 17212
Sep 98 14579 16772
Sep 99 17684 19625
Sep 00 24439 26264
Sep 01 19326 22736
Sep 02 17204 19412
Mar 03 $ 17370 $ 19791
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Financial Services
Fund is May 22, 1996.
(1) Returns prior to November 12, 2001, represent performance of the Titan
Financial Services Fund.
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS(1)
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST ONE PAST THREE PAST FIVE SINCE
YEAR YEARS YEARS INCEPTION
-23.42% -6.40% -2.84% 8.40%
- --------------------------------------------------------------------------------
TURNER FUNDS 2003 SEMIANNUAL REPORT 21
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER HEALTHCARE & BIOTECHNOLOGY FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Healthcare & Biotechnology Fund seeks long-term capital appreciation.
It invests in equity securities issued by healthcare and biotechnology companies
that are traded in the United States. Healthcare companies include
pharmaceutical companies, companies involved in research and development of
pharmaceutical products and services, companies involved in the operation of
health care facilities, and other companies involved in the design, manufacture,
or sale of health care-related products or services. Biotechnology companies are
engaged in the research, development, and manufacture of various
biotechnological products, services, and processes; manufacture and/or
distribute biotechnological and biomedical products, including devices and
instruments; provide or benefit significantly from scientific and technological
advances in biotechnology; or provide processes or services instead of, or in
addition to, products. The Fund's holdings will be concentrated in the
healthcare industry.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
95.6% Healthcare & Biotechnology
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2000
[GRAPHIC SHOWING MARKET CAPITALIZATION IS BETWEEN SMALL AND LARGE AND INVESTMENT
STYLE IS BETWEEN VALUE AND GROWTH]
o Ticker symbol THBCX
o CUSIP #87252R755
o Top 10 holdings
(1) Wyeth
(2) Gilead Sciences
(3) Amgen
(4) Johnson & Johnson
(5) Pharmacia
(6) Medimmune
(7) Forest Laboratories
(8) HCA
(9) Pharmaceutial Resources
(10) UnitedHealth Group
o % in 10 largest holdings 44.3%
o Number of holdings 39
o Price/earnings ratio 19.9
o Weighted average market capitalization $24.16 billion
o % of holdings with positive earnings surprises 84.5%
o % of holdings with negative earnings surprises 13.7%
o Net assets $10 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER HEALTHCARE & BIOTECHNOLOGY FUND:
FEBRUARY 28, 2001-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER HEALTHCARE & S&P 500
BIOTECHNOLOGY FUND HEALTHCARE INDEX
2/28/01 10000 10000
Sep 01 11151 9467
Sep 02 9851 7393
Mar 03 $ 10321 $ 7858
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Healthcare &
Biotechnology Fund is February 28, 2001.
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST ONE YEAR SINCE INCEPTION
-14.17% 1.53%
- --------------------------------------------------------------------------------
22 TURNER FUNDS 2003 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER TAX MANAGED U.S. EQUITY FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Tax Managed U.S. Equity Fund seeks long-term capital appreciation while
attempting to minimize the impact of taxes on the returns earned by
shareholders. The Fund's tax-sensitive investment strategy is intended to lead
to lower distributions of income and realized capital gains than funds managed
without regard to federal income tax consequences. It expects to employ a number
of strategies to minimize taxable distribution to shareholders. In selecting
companies, Turner typically invests for the long term and chooses securities
that it believes offer strong opportunities for long-term growth of capital.
When deciding to sell a security, Turner considers the negative tax impact of
realized capital gains and, if applicable, the positive tax impact of realized
capital losses. However, Turner may sell a security at a realized gain if it
determines that the potential tax cost is outweighed by the risk of owning the
security, or if more attractive investment opportunities are available.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
2.7% Autos/transportation
3.4% Producer durables
3.9% Materials/processing
6.6% Energy
7.1% Utilities/communications
8.7% Consumer staples
14.0% Technology
15.7% Healthcare
15.7% Consumer discretionary/services
20.5% Financial services
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
[GRAPHIC SHOWING MARKET CAPITILIZATION IS LARGE AND INVESTMENT STYLE GROWTH]
o Ticker symbol TTMEX
o CUSIP #87252R748
o Top 10 holdings
(1) Citigroup
(2) Pharmacia
(3) Microsoft
(4) PepsiCo
(5) Wal-Mart Stores
(6) Intel
(7) Johnson & Johnson
(8) Procter & Gamble
(9) Bank of America
(10) Verizon Communications
o % in 10 largest holdings 27.6%
o Number of holdings 88
o Price/earnings ratio 18.8
o Weighted average market capitalization $63.27 billion
o % of holdings with positive earnings surprises 85.0%
o % of holdings with negative earnings surprises 13.9%
o Net assets $5 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER TAX MANAGED U.S. EQUITY FUND:
FEBRUARY 28, 2001-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER TAX MANAGED S&P 500
U.S. EQUITY FUND INDEX
2/28/01 10000 10000
Sep 01 8181 8459
Sep 02 6291 6726
Mar 03 $ 6601 $ 7064
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Tax Managed U.S.
Equity Fund is February 28, 2001.
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST ONE YEAR SINCE INCEPTION
-26.42% -18.08%
- --------------------------------------------------------------------------------
TURNER FUNDS 2003 SEMIANNUAL REPORT 23
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER STRATEGIC VALUE AND HIGH INCOME FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Strategic Value & High Income Fund seeks total return through a
combination of long-term capital growth and high current income. The Fund is a
"fund of funds", which means that it invests substantially all of its assets in
shares of other Turner Funds rather than in individual securities. As a fund of
funds, the Fund pursues its goal by investing substantially all of its assets in
shares of the Turner Small Cap Equity Fund, the Turner Small Cap Value
Opportunities Fund, the Turner High Yield Fund and the Turner Ultra Short
Duration Fixed Income Fund. As a result, the investment performance of the Fund
is directly related to the performance of the underlying funds. As of March 31,
2003 the Turner Strategic Value & High Income Fund was investing 50% of its
assets in each of the Small Cap Value Opportunities Fund and High Yield Bond
Fund.
- --------------------------------------------------------------------------------
CURRENT INVESTMENT WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
51.2% Turner High Yield Fund
48.8% Turner Small Cap Value Opportunities Fund
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
[GRAPHIC SHOWING MARKET CAPITALIZATION IS BETWEEN SMALL AND LARGE AND INVESTMENT
STYLE IS BLEND]
o Ticker symbol TSVIX
o CUSIP #900297862
o 2 holdings
(1) Turner High Yield Fund
(2) Turner Small Cap Value Opportunities Fund
o % in 2 holdings 100.0%
o Number of holdings 2
o Net assets $58 thousand
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER STRATEGIC VALUE AND HIGH INCOME
FUND:
OCTOBER 31, 2002-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER STRATEGIC VALUE S&P 500
& HIGH INCOME FUND COMPOSITE INDEX
10/31/02 10000 10000
Mar 03 $ 10416 $ 9652
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Strategic Value and
High Income Fund is October 31, 2002.
- --------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURN
Period ending March 31, 2003
- --------------------------------------------------------------------------------
SINCE INCEPTION
4.15%
- --------------------------------------------------------------------------------
24 TURNER FUNDS 2003 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER CORE FIXED INCOME FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Core Fixed Income Fund seeks high current income consistent with
reasonable risk to capital. The Fund invests primarily in U.S. government
obligations and other investment grade fixed income securities, including
corporate debt obligations and mortgage- and asset-backed securities. In
selecting investments for the Fund, the Sub-Adviser, Clover Capital Management,
chooses fixed income securities of issuers that it believes will offer
attractive income potential with an acceptable level of risk. Clover will invest
in fixed income obligations of different types and maturities depending on its
current assessment of the relative market values of the sectors in which the
Fund invests. Clover does not attempt to forecast interest rate changes.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
5.7% Agency debt
15.4% Treasury securities
33.2% Mortgage-backed securities
43.6% Corporate bonds
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
[GRAPHIC SHOWING CREDIT QUALITY IS HIGH AND INVESTMENT STYLE IS BETWEEN SHORT
AND LONG]
o Ticker symbol TCFIX
o CUSIP #87252R201
o Top 10 holdings
(1) FHLMC CMO/REMIC Ser 2522, Cl PB, 4.750%, 11/15/14
(2) U.S. Treasury Bonds, 7.250%, 05/15/16
(3) U.S. Treasury Bonds, 7.500%, 11/15/16
(4) SLMA, 6.470%, 10/03/22
(5) Wal-Mart Stores, 6.875%, 08/10/09
(6) Natural Fuel Gas, Ser D, MTN, 6.303%, 05/27/08
(7) Emerson Electric, 7.125%, 08/15/10
(8) Dial, 7.000%, 08/15/06
(9) Pioneer Natural Resources, 8.875%, 04/15/05
(10) GNMA Pool #781096, 6.500%, 12/15/28
o % in 10 largest holdings 42.0%
o Number of holdings 51 n Average effective duration 4.5 years
o Average maturity 6.09 years
o Average yield to maturity 3.8%
o Average credit quality AA3
o Net assets $41 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER CORE FIXED INCOME FUND:
SEPTEMBER 30, 1992-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER CORE FIXED LEHMAN AGGREGATE
INCOME FUND BOND INDEX
9/30/92 10000 10000
Sep 93 11106 10998
Sep 94 10806 10644
Sep 95 12300 12141
Sep 96 12938 12734
Sep 97 14184 13974
Sep 98 15789 15581
Sep 99 15508 15524
Sep 00 16627 16609
Sep 01 18620 18760
Sep 02 20268 20373
Mar 03 $ 20562 $ 20980
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Core Fixed Income
Fund is December 6, 1991.
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST ONE PAST THREE PAST FIVE PAST TEN SINCE
YEAR YEARS YEARS YEARS INCEPTION
10.50% 8.86% 6.85% 6.97% 7.46%
- --------------------------------------------------------------------------------
TURNER FUNDS 2003 SEMIANNUAL REPORT 25
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER TOTAL RETURN FIXED INCOME FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Total Return Fixed Income Fund seeks current income and capital
appreciation, an objective that emphasizes total return rather than just yield
alone. It invests in investment-grade fixed-income securities, including U.S.
government, corporate, mortgage-backed and asset-backed securities.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
0.2% Technology
0.3% Material & Processing
0.5% Utility/communications
0.7% Consumer discretion
0.9% Financial services
2.5% Mortgaged-backed securities
92.6% Treasury securities
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
[GRAPHIC SHOWING CREDIT QUALITY IS HIGH AND INVESTMENT STYLE IS BETWEEN SHORT
AND LONG]
o Ticker symbol THQFX
o CUSIP #87252R847
o Top 10 holdings
(1) U.S. Treasury Bills, 1.085%, 05/15/03
(2) U.S. Treasury Notes, 3.875%, 02/15/13
(3) U.S. Treasury Notes, 4.000%, 11/15/12
(4) U.S. Treasury Notes, 3.000%, 02/15/08
(5) GNMA Pool #780327, 8.000%, 11/15/17
(6) FNMA CMO/REMIC Ser G93-31, Cl PK, 6.650%, 06/25/21
(7) Goldman Sachs Mortgage Securities II, Ser 1998-C1, Cl A1, 6.060%,
10/18/30
(8) CIT Group, 7.750%, 04/02/12
(9) Goldman Sachs, 5.700%, 09/01/12
(10) General Electric, 5.000%, 02/01/13
o % in 10 largest holdings 95.6%
o Number of holdings 21 n Average effective duration 4.15 years
o Average maturity 5.00 years
o Average yield to maturity 2.61%
o Average credit quality Treasury
o Convexity 0.19 n Net assets $7 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER TOTAL RETURN FIXED INCOME FUND:
JUNE 30, 1999-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER TOTAL RETURN LEHMAN AGGREGATE
FIXED INCOME FUND BOND INDEX
6/30/99 10000 10000
Sep 99 10047 10068
Sep 00 10748 10772
Sep 01 12024 12167
Sep 02 12859 13214
Mar 03 $12950 $13607
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Total Return Fixed
Income Fund is June 30, 1999.
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST ONE PAST THREE SINCE
YEAR YEARS INCEPTION
7.66% 7.92% 7.14%
- --------------------------------------------------------------------------------
26 TURNER FUNDS 2003 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER HIGH YIELD FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner High Yield Fund seeks high current income and capital appreciation.
It invests primarily in fixed income securities rated below investment grade.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
1.0% Financial Services
1.5% Real Estate
5.5% Techology
6.2% Consumer Staples
6.8% Healthcare
6.9% Energy
7.3% Auto's and Transportation
14.1% Consumer Discretion
14.3% Utilities and Communications
26.7% Materials and Processing
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
[GRAPHIC SHOWING CREDIT QUALITY IS LOW AND INVESTMENT STYLE IS BETWEEN SHORT
AND LONG]
o Ticker symbol PCSHX
o CUSIP #872524707
o Top 10 holdings
(1) Ferrellgas Partners, 8.750%, 06/15/12
(2) Ameripath, 10.500%, 04/01/13
(3) JC Penney, 8.000%, 03/01/10
(4) Radnor Holdings, 11.000%, 03/15/10
(5) Georgia-Pacific, 9.500%, 12/01/11
(6) Briggs & Stratton, 8.875%, 03/15/11
(7) Jefferson Smurfit Container, 8.250%, 10/01/12
(8) Echostar DBS, 9.375%, 02/01/09
(9) Freeport-McMoran, 10.125%, 02/01/10
(10) Stena, 9.625%, 12/01/12
o % in 10 largest holdings 23.4%
o Number of holdings 61
o Average effective duration 4.38 years
o Average maturity 5.76 years
o Average yield to maturity 9.28%
o Average credit quality Agency B1
o Net assets $10 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER HIGH YIELD FUND:
FEBRUARY 28, 1998-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER HIGH YIELD MERRILL LYNCH HIGH
BOND FUND YIELD, CASH PAY INDEX
2/28/98 10000 10000
Sep 98 9278 9895
Sep 99 10080 10265
Sep 00 10137 10391
Sep 01 7739 10045
Sep 02 7116 9825
Mar 03 $ 7867 $11204
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares.
The inception date of the Turner High Yield Fund is February 27, 1998.
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST ONE PAST THREE PAST FIVE SINCE
YEAR YEARS YEARS INCEPTION
0.66% -11.60% -5.41% -4.61%
- --------------------------------------------------------------------------------
TURNER FUNDS 2003 SEMIANNUAL REPORT 27
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER ULTRA SHORT DURATION FIXED INCOME FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Ultra Short Duration Fixed Income Fund seeks to produce maximum total
return consistent with the preservation of capital and investment prudence. It
invests primarily in high-grade securities issued or guaranteed by the U.S.
government or its agencies. The Fund seeks to limit fluctuations in principal
and reduce interest-rate risk by maintaining an average effective duration no
greater than that of a one-year Treasury note.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
2.2% Asset-backed securities
4.5% Agency debt
4.5% Treasury securities
85.7% Mortgage-backed securities
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
[GRAPHIC SHOWING CREDIT QUALITY IS HIGH AND INVESTMENT STYLE IS SHORT]
o Ticker symbol TSDOX, Class I Shares
o CUSIP #872524103, Class I Shares
o Top 10 holdings
(1) U.S. Treasury Notes, 5.625%, 02/15/06
(2) FHLMC CMO/REMIC Ser 2391, Cl PJ, 5.250%, 09/15/23
(3) FHLMC CMO/REMIC Ser 2298, Cl PC, 6.500%, 10/15/26
(4) GNMA CMO/REMIC Ser 2002-48, Cl FG, 1.580%, 12/16/30
(5) FNMA CMO/REMIC Ser 2001-20, Cl TC, 6.000%, 05/25/27
(6) FHLMC CMO/REMIC Ser 2398, Cl DB, 5.500%, 06/15/20
(7) FNMA CMO/REMIC Ser 2001-35, Cl AK, 6.000%, 07/25/26
(8) FNMA CMO/REMIC Ser 2001-72, Cl NB, 5.000%, 06/25/21
(9) FNMA CMO/REMIC Ser 2002-36, Cl PL, 5.500%, 12/25/21
(10) FNMA CMO/REMIC Ser 2001-53, Cl PE, 6.500%, 10/25/24
o % in 10 largest holdings 30.9%
o Number of holdings 139
o Average effective duration 0.46 years
o Average maturity 0.80 years
o Average yield to maturity 2.46%
o Average credit quality Agency
o Convexity 0.1
o Net assets $600 million, Class I Share
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER ULTRA SHORT DURATION FIXED INCOME
FUND, CLASS I SHARES:
MARCH 31, 1994-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER ULTRA SHORT DURATION MERRILL LYNCH 3-MONTH
FIXED INCOME FUND, CLASS I U.S. TREASURY BILL INDEX
3/1/94 10000 10000
Sep 94 10231 10235
Sep 95 10935 10837
Sep 96 11704 11431
Sep 97 12428 12047
Sep 98 13201 12693
Sep 99 13906 13289
Sep 00 14788 14058
Sep 01 15836 14824
Sep 02 16304 15123
Mar 03 $16387 $15234
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Ultra Short
Duration Fixed Income Fund (Class I Shares) is March 1, 1994.
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST ONE PAST THREE PAST FIVE SINCE
YEAR YEARS YEARS INCEPTION
Class I Shares 2.15% 4.66% 5.05% 5.59%
Class II Shares 1.80% 4.33% 4.76% 4.74%
- --------------------------------------------------------------------------------
28 TURNER FUNDS 2003 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER SHORT DURATION FIXED INCOME FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Short Duration Fixed Income Fund seeks to produce maximum total
return consistent with the preservation of capital and investment prudence. It
invests primarily in high-grade securities issued or guaranteed by the U.S.
government or its agencies. The Fund seeks to limit fluctuations in principal
and reduce interest rate risk by maintaining an average effective duration no
greater than that of a three-year Treasury Bill.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
0.1% Consumer discretion
0.1% Agency debt
0.5% Utility/communications
4.2% Asset-backed securities
4.5% Treasury securities
6.6% Financial services
74.9% Mortgage-backed securities
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2003
[GRAPHIC SHOWING CREDIT QUALITY IS HIGH AND MATURITY AVERAGE IS SHORT]
o Ticker symbol TSDGX, Class I Shares
o CUSIP #872524202, Class I Shares
o Top 10 holdings
(1) U.S. Treasury Notes, 3.000%, 02/15/08
(2) FHLMC CMO/REMIC Ser 2459, Cl GB, 5.500%, 07/15/21
(3) FNMA TBA, 4.500%, 06/15/18
(4) FHLMC CMO/REMIC Ser 2590, Cl UL, 3.750%, 03/15/32
(5) SLMA, 1.439%, 09/15/05
(6) FHLMC CMO/REMIC Ser 2484, Cl PA, 6.000%, 04/15/22
(7) FHLMC CMO/REMIC Ser 2454, Cl GM, 6.000%, 05/15/32
(8) FNMA CMO/REMIC Ser 2001-53, Cl PE, 6.500%, 10/25/24
(9) FNMA CMO/REMIC Ser 2002-37, Cl AC, 6.000%, 04/25/29
(10) FHLMC CMO/REMIC Ser 2425, Cl JB, 6.000%, 08/15/06
o % in 10 largest holdings 26.5%
o Number of holdings 126
o Average effective duration 1.14 years
o Average maturity 1.53 years
o Average yield to maturity 2.83%
o Average credit quality Agency
o Convexity (0.1)
o Net assets $297 million, Class I Shares
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER SHORT DURATION FIXED INCOME FUND,
CLASS I SHARES:
MARCH 31, 1994-MARCH 31, 2003*
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
TURNER SHORT DURATION
FIXED INCOME FUND, LEHMAN 1-3 YEAR US
CLASS I SHARES GOVERNMENT BOND INDEX
3/1/94 10000 10000
Sep 94 10089 10049
Sep 95 10976 10871
Sep 96 11637 11488
Sep 97 12463 12279
Sep 98 13469 13253
Sep 99 13858 13676
Sep 00 14690 14475
Sep 01 16063 16019
Sep 02 16817 16956
Mar 03 $16978 $17231
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Short Duration
Fixed Income Fund (Class I Shares) is March 1, 1994.
- --------------------------------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2003
- --------------------------------------------------------------------------------
PAST ONE PAST THREE PAST FIVE SINCE
YEAR YEARS YEARS INCEPTION
Class I Shares 4.82% 6.31% 5.72% 6.00%
Class II Shares 4.56% 6.06% N/A 6.61%
- --------------------------------------------------------------------------------
TURNER FUNDS 2003 SEMIANNUAL REPORT 29
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER DISCIPLINED LARGE CAP GROWTH FUND
March 31, 2003
Value
Shares (000)
- -----------------------------------------------------------
COMMON STOCK--97.3%
- -----------------------------------------------------------
ADVERTISING & RELATED SERVICES--0.9%
- -----------------------------------------------------------
Omnicom Group 10,520 $ 570
----------
Total Advertising & related services 570
----------
- -----------------------------------------------------------
BEVERAGE MANUFACTURING--6.8%
- -----------------------------------------------------------
Coca-Cola 53,290 2,157
PepsiCo 50,870 2,035
----------
Total Beverage manufacturing 4,192
----------
- -----------------------------------------------------------
CABLE NETWORKS & PROGRAM DISTRIBUTION--1.5%
- -----------------------------------------------------------
USA Interactive* 35,300 946
----------
Total Cable networks & program
distribution 946
----------
- -----------------------------------------------------------
COLLEGES, UNIVERSITIES &
PROFESSIONAL SCHOOLS--0.9%
- -----------------------------------------------------------
Apollo Group, Cl A* 11,280 563
----------
Total Colleges, universities &
professional schools 563
----------
- -----------------------------------------------------------
COMMERCIAL & SERVICE INDUSTRY MACHINERY
MANUFACTURING--0.8%
- -----------------------------------------------------------
3M 3,740 486
----------
Total Commercial & service industry
machinery manufacturing 486
----------
- -----------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--4.1%
- -----------------------------------------------------------
Cisco Systems* 126,460 1,641
Qualcomm 24,450 882
----------
Total Communications equipment
manufacturing 2,523
----------
- -----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--4.8%
- -----------------------------------------------------------
Dell Computer* 75,820 2,070
EMC* 125,820 910
----------
Total Computer & peripheral equipment
manufacturing 2,980
----------
Value
Shares (000)
- -----------------------------------------------------------
DATA PROCESSING SERVICES--3.2%
- -----------------------------------------------------------
Affiliated Computer Services, Cl A* 16,060 $ 711
First Data 33,990 1,258
----------
Total Data processing services 1,969
----------
- -----------------------------------------------------------
DEPARTMENT STORES--6.0%
- -----------------------------------------------------------
Kohl's* 18,190 1,029
Wal-Mart Stores 51,860 2,698
----------
Total Department stores 3,727
----------
- -----------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--2.9%
- -----------------------------------------------------------
Citigroup 52,270 1,801
----------
Total Depository credit intermediation 1,801
----------
- -----------------------------------------------------------
ELECTRICAL EQUIPMENT MANUFACTURING--3.6%
- -----------------------------------------------------------
General Electric 88,620 2,260
----------
Total Electrical equipment manufacturing 2,260
----------
- -----------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--0.9%
- -----------------------------------------------------------
eBay* 6,530 557
----------
Total Electronic shopping &
mail-order houses 557
----------
- -----------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--1.2%
- -----------------------------------------------------------
Best Buy* 27,500 742
----------
Total Electronics & appliance stores 742
----------
- -----------------------------------------------------------
FOOTWEAR MANUFACTURING--1.3%
- -----------------------------------------------------------
Nike, Cl B 15,400 792
----------
Total Footwear manufacturing 792
----------
- -----------------------------------------------------------
GENERAL MEDICAL & SURGICAL HOSPITALS--1.2%
- -----------------------------------------------------------
HCA 17,980 744
----------
Total General medical & surgical hospitals 744
----------
- -----------------------------------------------------------
GROCERY & RELATED PRODUCT WHOLESALERS--0.7%
- -----------------------------------------------------------
Sysco 16,430 418
----------
Total Grocery & related
product wholesalers 418
----------
30 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER DISCIPLINED LARGE CAP GROWTH FUND
Value
Shares (000)
- -----------------------------------------------------------
HEALTH & PERSONAL CARE STORES--1.2%
- -----------------------------------------------------------
Walgreen 25,620 $ 755
----------
Total Health & personal care stores 755
----------
- -----------------------------------------------------------
INFORMATION SERVICES--0.9%
- -----------------------------------------------------------
Yahoo* 22,490 540
----------
Total Information services 540
----------
- -----------------------------------------------------------
INSURANCE CARRIERS--1.5%
- -----------------------------------------------------------
UnitedHealth Group 9,870 905
----------
Total Insurance carriers 905
----------
- -----------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--1.8%
- -----------------------------------------------------------
Boston Scientific* 9,860 402
St. Jude Medical* 14,600 712
----------
Total Medical equipment &
supplies manufacturing 1,114
----------
- -----------------------------------------------------------
MOTION PICTURE & VIDEO INDUSTRIES--1.3%
- -----------------------------------------------------------
Clear Channel Communications* 23,660 802
----------
Total Motion picture & video industries 802
----------
- -----------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--2.0%
- -----------------------------------------------------------
American Express 38,010 1,263
----------
Total Nondepository credit
intermediation 1,263
----------
- -----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--22.9%
- -----------------------------------------------------------
Amgen* 36,520 2,102
Forest Laboratories* 23,220 1,253
Johnson & Johnson 56,900 3,293
Medimmune* 16,570 544
Pfizer 170,237 5,305
Wyeth 44,800 1,694
----------
Total Pharmaceutical & medicine
manufacturing 14,191
----------
Value
Shares (000)
- -----------------------------------------------------------
SCHEDULED AIR TRANSPORTATION--1.3%
- -----------------------------------------------------------
Southwest Airlines 56,860 $ 816
----------
Total Scheduled air transportation 816
- -----------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--3.7%
- -----------------------------------------------------------
Charles Schwab 59,730 431
Goldman Sachs Group 14,060 957
Lehman Brothers Holdings 15,560 899
----------
Total Security & commodity contracts
intermediation & brokerage 2,287
----------
- -----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--12.7%
- -----------------------------------------------------------
Analog Devices* 26,500 729
Applied Materials* 93,580 1,177
Intel 183,670 2,990
Maxim Integrated Products 23,600 852
Micron Technology* 93,300 760
Tyco International 40,400 520
Xilinx* 37,050 867
----------
Total Semiconductor & other electronic
component manufacturing 7,895
----------
- -----------------------------------------------------------
SOAP, CLEANERS & TOILET PREPARATION
MANUFACTURING--3.6%
- -----------------------------------------------------------
Procter & Gamble 25,370 2,259
----------
Total Soap, cleaners & toilet preparation
manufacturing 2,259
----------
- -----------------------------------------------------------
SOFTWARE PUBLISHERS--2.4%
- -----------------------------------------------------------
Electronic Arts* 15,540 911
SAP ADR 30,290 575
----------
Total Software publishers 1,486
----------
- -----------------------------------------------------------
TELECOMMUNICATIONS--1.2%
- -----------------------------------------------------------
Nortel Networks 361,150 751
----------
Total Telecommunications 751
----------
- -----------------------------------------------------------
TOTAL COMMON STOCK
(COST $59,255) 60,334
- -----------------------------------------------------------
TURNER FUNDS 2003 SEMIANNUAL REPORT 31
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER DISCIPLINED LARGE CAP GROWTH FUND
Face Amount Value
(000) (000)
- -----------------------------------------------------------
REPURCHASE AGREEMENT--1.7%
- -----------------------------------------------------------
Morgan Stanley (A)
1.000%, dated 03/31/03, matures
04/01/03, repurchase price
$1,073,256 (collateralized by
U.S. Government obligations,
total market value $1,094,691) $1,073 $ 1,073
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $1,073) 1,073
- -----------------------------------------------------------
- -----------------------------------------------------------
TOTAL INVESTMENTS--99.0%
(COST $60,328) 61,407
- -----------------------------------------------------------
- -----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--1.0%
- -----------------------------------------------------------
Payable due to investment adviser (21)
Payable due to administrator (8)
Other assets and liabilities, net 657
- -----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET 628
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 16,549,594 outstanding shares
of beneficial interest 102,735
Undistributed net investment income 3
Accumulated net realized loss
on investments (41,782)
Net unrealized appreciation
on investments 1,079
- ------------------------------------------------------------
TOTAL NET ASSETS--100% $62,035
- ------------------------------------------------------------
- ------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $3.75
- ------------------------------------------------------------
* Non-income producing security
(A) Tri-party repurchase agreement
ADR - American depository receipt
Cl - Class
The accompanying notes are an integral part of the financial statements.
32 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER LARGE CAP GROWTH OPPORTUNITIES FUND
March 31, 2003
Value
Shares (000)
- -----------------------------------------------------------
COMMON STOCK--100.8%
- -----------------------------------------------------------
BEVERAGE MANUFACTURING--4.1%
- -----------------------------------------------------------
Coca-Cola 900 $ 36
PepsiCo 920 37
----------
Total Beverage manufacturing 73
----------
- -----------------------------------------------------------
CABLE NETWORKS & PROGRAM DISTRIBUTION--1.6%
- -----------------------------------------------------------
USA Interactive* 1,060 28
----------
Total Cable networks & program distribution 28
----------
- -----------------------------------------------------------
COLLEGES, UNIVERSITIES &
PROFESSIONAL SCHOOLS--1.0%
- -----------------------------------------------------------
Apollo Group, Cl A* 330 17
----------
Total Colleges, universities &
professional schools 17
----------
- -----------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--1.3%
- -----------------------------------------------------------
Qualcomm 670 24
----------
Total Communications equipment
manufacturing 24
----------
- -----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--5.8%
- -----------------------------------------------------------
Dell Computer* 2,140 58
EMC* 3,550 26
Network Appliance* 1,690 19
----------
Total Computer & peripheral equipment
manufacturing 103
----------
- -----------------------------------------------------------
DATA PROCESSING SERVICES--4.1%
- -----------------------------------------------------------
Affiliated Computer Services, Cl A* 450 20
First Data 790 29
Fiserv* 760 24
----------
Total Data processing services 73
----------
- -----------------------------------------------------------
DEPARTMENT STORES--5.7%
- -----------------------------------------------------------
Kohl's* 570 32
Wal-Mart Stores 1,332 70
----------
Total Department stores 102
----------
- -----------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--3.3%
- -----------------------------------------------------------
Citigroup 980 $ 34
Commerce Bancorp 600 24
----------
Total Depository credit intermediation 58
----------
- -----------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--2.1%
- -----------------------------------------------------------
Amazon.com* 850 22
eBay* 190 16
----------
Total Electronic shopping &
mail-order houses 38
----------
- -----------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--1.4%
- -----------------------------------------------------------
CDW Computer Centers* 600 25
----------
Total Electronics & appliance stores 25
----------
- -----------------------------------------------------------
FOOTWEAR MANUFACTURING--1.6%
- -----------------------------------------------------------
Nike, Cl B 550 28
----------
Total Footwear manufacturing 28
----------
- -----------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--0.9%
- -----------------------------------------------------------
Lam Research* 1,400 16
----------
Total Industrial machinery manufacturing 16
----------
- -----------------------------------------------------------
INFORMATION SERVICES--2.1%
- -----------------------------------------------------------
Juniper Networks* 2,700 22
Yahoo* 680 16
----------
Total Information services 38
----------
- -----------------------------------------------------------
INSURANCE CARRIERS--1.3%
- -----------------------------------------------------------
Anthem* 350 23
----------
Total Insurance carriers 23
----------
- -----------------------------------------------------------
LIMITED-SERVICE EATING PLACES--1.5%
- -----------------------------------------------------------
Starbucks* 1,000 26
----------
Total Limited-service eating places 26
----------
- -----------------------------------------------------------
MEDICAL & DIAGNOSTIC LABORATORIES--1.1%
- -----------------------------------------------------------
Laboratory Corp. of America Holdings* 660 20
----------
Total Medical & diagnostic laboratories 20
----------
TURNER FUNDS 2003 SEMIANNUAL REPORT 33
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER LARGE CAP GROWTH OPPORTUNITIES FUND
Value
Shares (000)
- -----------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--1.6%
- -----------------------------------------------------------
St. Jude Medical* 580 $ 28
----------
Total Medical equipment &
supplies manufacturing 28
----------
- -----------------------------------------------------------
MOTION PICTURE & VIDEO INDUSTRIES--3.3%
- -----------------------------------------------------------
Clear Channel Communications* 900 30
Pixar* 510 28
----------
Total Motion picture & video industries 58
----------
- -----------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--1.6%
- -----------------------------------------------------------
American Express 880 29
----------
Total Nondepository credit intermediation 29
----------
- -----------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT & COMPONENT
MANUFACTURING--1.5%
- -----------------------------------------------------------
Corning*# 4,550 27
----------
Total Other electrical equipment &
component manufacturing 27
----------
- -----------------------------------------------------------
OTHER LEATHER & ALLIED PRODUCT
MANUFACTURING--1.0%
- -----------------------------------------------------------
Coach*# 440 17
----------
Total Other leather & allied product
manufacturing 17
----------
- -----------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--1.5%
- -----------------------------------------------------------
International Game Technology* 320 26
----------
Total Other miscellaneous manufacturing 26
----------
- -----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--21.0%
- -----------------------------------------------------------
Amgen* 1,110 64
Cephalon* 610 24
Forest Laboratories* 700 38
Gilead Sciences* 400 17
Johnson & Johnson 1,390 80
Medimmune* 690 23
Pfizer 2,867 89
Wyeth 1,000 38
----------
Total Pharmaceutical & medicine
manufacturing 373
----------
Value
Shares (000)
- -----------------------------------------------------------
RADIO & TELEVISION BROADCASTING--1.6%
- -----------------------------------------------------------
Univision Communications, Cl A* 1,170 $ 29
----------
Total Radio & television broadcasting 29
----------
- -----------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--2.8%
- -----------------------------------------------------------
Charles Schwab 2,860 21
Goldman Sachs Group 430 29
----------
Total Security & commodity contracts
intermediation & brokerage 50
----------
- -----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC COMPONENT
MANUFACTURING--19.3%
- -----------------------------------------------------------
Analog Devices* 990 27
Applied Materials* 2,360 30
Broadcom, Cl A* 1,200 15
Flextronics International* 1,900 17
Intel 5,210 85
JDS Uniphase* 9,800 28
Micron Technology* 3,500 29
National Semiconductor* 1,050 18
Nvidia* 1,400 18
Sanmina-SCI* 5,500 22
Silicon Laboratories* 970 25
Xilinx* 1,300 30
----------
Total Semiconductor & other electronic
component manufacturing 344
----------
- -----------------------------------------------------------
SOAP, CLEANERS & TOILET PREPARATION
MANUFACTURING--2.1%
- -----------------------------------------------------------
Procter & Gamble 430 38
----------
Total Soap, cleaners & toilet preparation
manufacturing 38
----------
- -----------------------------------------------------------
SOFTWARE PUBLISHERS--3.7%
- -----------------------------------------------------------
Electronic Arts* 455 26
Mercury Interactive* 600 18
SAP ADR 1,150 22
----------
Total Software publishers 66
----------
34 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER LARGE CAP GROWTH OPPORTUNITIES FUND
Value
Shares (000)
- -----------------------------------------------------------
TELECOMMUNICATIONS--0.9%
- -----------------------------------------------------------
Nortel Networks 8,700 $ 17
----------
Total Telecommunications 17
----------
- -----------------------------------------------------------
TOTAL COMMON STOCK
(COST $1,726) 1,794
- -----------------------------------------------------------
- -----------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES (SEE NOTE 10)--1.8%
- -----------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 31
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $31) 31
- -----------------------------------------------------------
- -----------------------------------------------------------
TOTAL INVESTMENTS--102.6%
(COST $1,757) 1,825
- -----------------------------------------------------------
- -----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(2.6)%
- -----------------------------------------------------------
Obligation to return securities
lending collateral (31)
Other assets and liabilities, net (15)
- -----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (46)
- -----------------------------------------------------------
Value
(000)
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 252,020 outstanding shares
of beneficial interest $ 15,771
Accumulated net investment loss (14)
Accumulated net realized loss
on investments (14,046)
Net unrealized appreciation
on investments 68
- -----------------------------------------------------------
TOTAL NET ASSETS--100% $1,779
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $7.06
- -----------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2003. ADR - American
depository receipt Cl - Class The accompanying notes are an integral part of the
financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 35
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER MIDCAP GROWTH FUND
March 31, 2003
Value
Shares (000)
- -----------------------------------------------------------
COMMON STOCK--97.6%
- -----------------------------------------------------------
ADVERTISING & RELATED SERVICES--1.2%
- -----------------------------------------------------------
Getty Images* 104,010 $ 2,856
Interpublic Group 340,900 3,170
----------
Total Advertising & related services 6,026
----------
- -----------------------------------------------------------
AGRICULTURE, CONSTRUCTION &
MINING MACHINERY
MANUFACTURING--0.9%
- -----------------------------------------------------------
Cooper Cameron* 91,120 4,511
----------
Total Agriculture, construction &
mining machinery manufacturing 4,511
----------
- -----------------------------------------------------------
BEVERAGE MANUFACTURING--1.0%
- -----------------------------------------------------------
Coca-Cola Enterprises 267,890 5,007
----------
Total Beverage manufacturing 5,007
----------
- -----------------------------------------------------------
BOILER, TANK & SHIPPING CONTAINER
MANUFACTURING--0.6%
- -----------------------------------------------------------
Ball 50,720 2,825
----------
Total Boiler, tank & shipping
container manufacturing 2,825
----------
- -----------------------------------------------------------
CLOTHING STORES--1.7%
- -----------------------------------------------------------
Abercrombie & Fitch, Cl A* 131,760 3,957
Chico's FAS*# 238,360 4,767
----------
Total Clothing stores 8,724
----------
- -----------------------------------------------------------
COLLEGES, UNIVERSITIES &
PROFESSIONAL SCHOOLS--0.8%
- -----------------------------------------------------------
Apollo Group, Cl A* 80,225 4,003
----------
Total Colleges, universities &
professional schools 4,003
----------
- -----------------------------------------------------------
COMMERCIAL/INDUSTRIAL EQUIPMENT
RENTAL & LEASING--0.8%
- -----------------------------------------------------------
Comverse Technology* 358,490 4,054
----------
Total Commercial/industrial equipment
rental & leasing 4,054
----------
Value
Shares (000)
- -----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--3.8%
- -----------------------------------------------------------
Electronics for Imaging* 45,316 $ 801
Lexmark International* 107,210 7,178
Network Appliance* 501,240 5,609
Veritas Software* 338,790 5,956
----------
Total Computer & peripheral
equipment manufacturing 19,544
----------
- -----------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--2.6%
- -----------------------------------------------------------
BISYS Group* 135,500 2,211
GTECH Holdings* 95,070 3,105
NetScreen Technologies* 162,100 2,720
Sungard Data Systems* 236,970 5,048
----------
Total Computer systems design &
related services 13,084
----------
- -----------------------------------------------------------
DATA PROCESSING SERVICES--2.0%
- -----------------------------------------------------------
Affiliated Computer Services, Cl A* 94,700 4,191
Fiserv* 196,620 6,190
----------
Total Data processing services 10,381
- -----------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--1.0%
- -----------------------------------------------------------
Commerce Bancorp 73,840 2,934
Sovereign Bancorp 169,850 2,353
----------
Total Depository credit intermediation 5,287
----------
- -----------------------------------------------------------
DRUGS & DRUGGISTS' SUNDRIES WHOLESALE--2.0%
- -----------------------------------------------------------
Henry Schein* 95,175 4,292
Medicis Pharmaceutical, Cl A* 102,410 5,693
----------
Total Drugs & druggists' sundries wholesale 9,985
----------
- -----------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--1.0%
- -----------------------------------------------------------
Amazon.com* 196,853 5,124
----------
Total Electronic shopping &
mail-order houses 5,124
----------
- -----------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--1.2%
- -----------------------------------------------------------
CDW Computer Centers* 153,200 6,251
----------
Total Electronics & appliance stores 6,251
----------
36 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER MIDCAP GROWTH FUND
Value
Shares (000)
- -----------------------------------------------------------
EMPLOYMENT SERVICES--0.5%
- -----------------------------------------------------------
Manpower 81,970 $ 2,449
----------
Total Employment services 2,449
----------
- -----------------------------------------------------------
FREIGHT TRANSPORTATION ARRANGEMENT--0.4%
- -----------------------------------------------------------
Expeditors International Washington 58,260 2,094
----------
Total Freight transportation arrangement 2,094
----------
- -----------------------------------------------------------
FULL-SERVICE RESTAURANTS--0.8%
- -----------------------------------------------------------
Cheesecake Factory*# 130,110 4,199
----------
Total Full-service restaurants 4,199
----------
- -----------------------------------------------------------
GENERAL MEDICAL & SURGICAL HOSPITALS--0.8%
- -----------------------------------------------------------
LifePoint Hospitals* 154,100 3,869
----------
Total General medical & surgical hospitals 3,869
----------
- -----------------------------------------------------------
GROCERY & RELATED PRODUCT WHOLESALERS--0.3%
- -----------------------------------------------------------
Performance Food Group* 53,598 1,643
----------
Total Grocery & related product wholesalers 1,643
----------
- -----------------------------------------------------------
GROCERY STORES--1.0%
- -----------------------------------------------------------
Whole Foods Market* 91,290 5,079
----------
Total Grocery stores 5,079
----------
- -----------------------------------------------------------
HOME FURNISHINGS STORES--1.6%
- -----------------------------------------------------------
Bed Bath & Beyond* 160,790 5,554
Williams-Sonoma* 107,580 2,345
----------
Total Home furnishings stores 7,899
----------
- -----------------------------------------------------------
HVAC & COMMERCIAL REFRIGERATION EQUIPMENT
MANUFACTURING--0.7%
- -----------------------------------------------------------
American Standard* 49,800 3,425
----------
Total HVAC & commercial refrigeration
equipment manufacturing 3,425
----------
- -----------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--3.3%
- -----------------------------------------------------------
Kla-Tencor*# 143,440 5,155
Lam Research* 240,060 2,734
Novellus Systems*# 228,770 6,239
Teradyne*# 219,190 2,551
----------
Total Industrial machinery manufacturing 16,679
----------
Value
Shares (000)
- -----------------------------------------------------------
INFORMATION SERVICES--2.0%
- -----------------------------------------------------------
Juniper Networks* 493,190 $ 4,029
Yahoo* 255,280 6,132
----------
Total Information services 10,161
----------
- -----------------------------------------------------------
INSURANCE CARRIERS--4.6%
- -----------------------------------------------------------
Anthem* 139,220 9,223
Endurance Specialty Holdings* 104,860 2,537
Mid Atlantic Medical Services* 111,650 4,527
WellPoint Health Networks* 92,530 7,102
----------
Total Insurance carriers 23,389
----------
- -----------------------------------------------------------
JEWELRY, LUGGAGE & LEATHER GOODS STORES--1.0%
- -----------------------------------------------------------
Tiffany 197,070 4,927
----------
Total Jewelry, luggage &
leather goods stores 4,927
----------
- -----------------------------------------------------------
LIMITED-SERVICE EATING PLACES--2.0%
- -----------------------------------------------------------
Panera Bread, Cl A*# 104,500 3,186
Starbucks* 276,490 7,123
----------
Total Limited-service eating places 10,309
----------
- -----------------------------------------------------------
MANAGEMENT, SCIENTIFIC & TECHNICAL
CONSULTING SERVICES--0.6%
- -----------------------------------------------------------
FTI Consulting* 67,720 3,130
----------
Total Management, scientific &
technical consulting services 3,130
----------
- -----------------------------------------------------------
MEDICAL & DIAGNOSTIC LABORATORIES--2.1%
- -----------------------------------------------------------
Laboratory Corp. of
America Holdings* 264,350 7,838
Quest Diagnostics* 45,430 2,712
----------
Total Medical & diagnostic laboratories 10,550
----------
- -----------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--4.0%
- -----------------------------------------------------------
Biomet 118,308 3,626
St. Jude Medical* 157,300 7,668
Varian Medical Systems* 95,630 5,157
Zimmer Holdings* 85,310 4,149
----------
Total Medical equipment &
supplies manufacturing 20,600
----------
TURNER FUNDS 2003 SEMIANNUAL REPORT 37
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER MIDCAP GROWTH FUND
Value
Shares (000)
- -----------------------------------------------------------
METAL ORE MINING--0.3%
- -----------------------------------------------------------
Phelps Dodge* 47,060 $ 1,528
----------
Total Metal ore mining 1,528
----------
- -----------------------------------------------------------
MINING SUPPORT ACTIVITIES--2.6%
- -----------------------------------------------------------
BJ Services* 156,140 5,370
ENSCO International 81,820 2,087
Halliburton 144,880 3,003
Patterson-UTI Energy* 80,360 2,601
----------
Total Mining support activities 13,061
----------
- -----------------------------------------------------------
MOTION PICTURE & VIDEO INDUSTRIES--0.9%
- -----------------------------------------------------------
Pixar*# 81,799 4,424
----------
Total Motion picture & video industries 4,424
----------
- -----------------------------------------------------------
MOTOR VEHICLE MANUFACTURING--1.2%
- -----------------------------------------------------------
Navistar International*# 257,130 6,328
----------
Total Motor vehicle manufacturing 6,328
----------
- -----------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/
CONTROL INSTRUMENTS MANUFACTURING--1.6%
- -----------------------------------------------------------
Danaher 58,600 3,854
Dentsply International 116,215 4,043
----------
Total Navigational/measuring/medical/
control instruments manufacturing 7,897
----------
- -----------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--1.2%
- -----------------------------------------------------------
Countrywide Financial 33,550 1,929
Providian Financial* 602,500 3,952
----------
Total Nondepository credit intermediation 5,881
----------
- -----------------------------------------------------------
OFFICE SUPPLIES, STATIONERY & GIFT STORES--1.4%
- -----------------------------------------------------------
Staples* 384,420 7,046
----------
Total Office supplies, stationery & gift stores 7,046
----------
- -----------------------------------------------------------
OFFICES OF PHYSICIANS--1.1%
- -----------------------------------------------------------
Caremark Rx* 304,200 5,521
----------
Total Offices of physicians 5,521
----------
Value
Shares (000)
- -----------------------------------------------------------
OIL & GAS EXTRACTION--1.1%
- -----------------------------------------------------------
Murphy Oil 67,280 $ 2,972
Pogo Producing 68,720 2,733
----------
Total Oil & gas extraction 5,705
----------
- -----------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--1.1%
- -----------------------------------------------------------
Corning*# 1,001,840 5,851
----------
Total Other electrical equipment &
component manufacturing 5,851
----------
- -----------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--2.0%
- -----------------------------------------------------------
Affiliated Managers Group*# 100,820 4,191
Investors Financial Services 155,460 3,786
Neuberger Berman 80,980 2,286
----------
Total Other financial investment activities 10,263
----------
- -----------------------------------------------------------
OTHER LEATHER & ALLIED PRODUCT
MANUFACTURING--1.0%
- -----------------------------------------------------------
Coach* 128,530 4,927
----------
Total Other leather & allied
product manufacturing 4,927
----------
- -----------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--2.2%
- -----------------------------------------------------------
International Game Technology* 60,830 4,982
Leapfrog Enterprises* 80,460 1,918
Mattel 201,000 4,523
----------
Total Other miscellaneous
manufacturing 11,423
----------
- -----------------------------------------------------------
OTHER NONMETALLIC MINERAL PRODUCT
MANUFACTURING--0.6%
- -----------------------------------------------------------
Cabot Microelectronics*# 68,350 2,862
----------
Total Other nonmetallic mineral
product manufacturing 2,862
----------
- -----------------------------------------------------------
PAPER & PAPER PRODUCT WHOLESALE--1.1%
- -----------------------------------------------------------
Avery Dennison 93,590 5,491
----------
Total Paper & paper product wholesale 5,491
----------
38 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER MIDCAP GROWTH FUND
Value
Shares (000)
- -----------------------------------------------------------
PERSONAL CARE SERVICES--0.5%
- -----------------------------------------------------------
Weight Watchers International* 56,630 $ 2,608
----------
Total Personal care services 2,608
----------
- -----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--8.6%
- -----------------------------------------------------------
Allergan 103,590 7,066
Cephalon* 133,320 5,325
Gilead Sciences* 258,130 10,839
Medimmune* 348,280 11,434
Neurocrine Biosciences* 66,160 2,764
Teva Pharmaceutical
Industries ADR 42,340 1,763
Trimeris*# 112,500 4,633
----------
Total Pharmaceutical & medicine
manufacturing 43,824
----------
- -----------------------------------------------------------
PIPELINE TRANSPORTATION OF NATURAL GAS--0.8%
- -----------------------------------------------------------
Kinder Morgan 92,580 4,166
----------
Total Pipeline transportation of natural gas 4,166
----------
- -----------------------------------------------------------
PROFESSIONAL & COMMERCIAL EQUIPMENT &
SUPPLY WHOLESALE--0.7%
- -----------------------------------------------------------
Cytyc* 288,472 3,765
----------
Total Professional & commercial
equipment & supply wholesale 3,765
----------
- -----------------------------------------------------------
RADIO & TELEVISION BROADCASTING--1.8%
- -----------------------------------------------------------
Univision Communications, Cl A*# 228,110 5,591
Westwood One* 117,770 3,679
----------
Total Radio & television broadcasting 9,270
----------
- -----------------------------------------------------------
SCIENTIFIC R&D SERVICES--0.7%
- -----------------------------------------------------------
Idec Pharmaceuticals* 102,790 3,538
----------
Total Scientific R&D services 3,538
----------
- -----------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--2.1%
- -----------------------------------------------------------
Bear Stearns 86,300 5,661
Legg Mason 106,070 5,170
----------
Total Security & commodity contracts
intermediation & brokerage 10,831
----------
Value
Shares (000)
- -----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--7.0%
- -----------------------------------------------------------
Broadcom, Cl A* 372,300 $ 4,598
Cree*# 141,260 2,616
Cymer* 126,650 2,995
Cypress Semiconductor* 564,840 3,897
Fairchild Semiconductor
International, Cl A* 242,720 2,539
JDS Uniphase* 1,219,600 3,476
Micron Technology* 394,950 3,215
National Semiconductor* 202,360 3,448
QLogic*# 91,840 3,411
Sanmina-SCI* 736,000 2,974
Silicon Laboratories*# 88,940 2,326
----------
Total Semiconductor & other electronic
component manufacturing 35,495
----------
- -----------------------------------------------------------
SERVICES TO BUILDINGS & DWELLINGS--1.1%
- -----------------------------------------------------------
Ecolab 110,720 5,462
----------
Total Services to buildings & dwellings 5,462
----------
- -----------------------------------------------------------
SOFTWARE PUBLISHERS--5.7%
- -----------------------------------------------------------
Adobe Systems 204,530 6,306
BEA Systems* 405,640 4,133
Electronic Arts*# 130,280 7,640
Mercury Interactive* 193,210 5,734
VeriSign* 598,170 5,228
----------
Total Software publishers 29,041
----------
- -----------------------------------------------------------
SUGAR & CONFECTIONERY PRODUCT
MANUFACTURING--0.7%
- -----------------------------------------------------------
Hershey Foods 58,570 3,670
----------
Total Sugar & confectionery product
manufacturing 3,670
----------
- -----------------------------------------------------------
TELECOMMUNICATIONS--1.3%
- -----------------------------------------------------------
Citizens Communications* 302,300 3,017
Nortel Networks# 1,640,860 3,413
----------
Total Telecommunications 6,430
----------
TURNER FUNDS 2003 SEMIANNUAL REPORT 39
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER MIDCAP GROWTH FUND
Shares/Face Value
Amount (000) (000)
- -----------------------------------------------------------
TRAVEL ARRANGEMENT & RESERVATION SERVICES--0.4%
- -----------------------------------------------------------
Hotels.com, Cl A*# 39,420 $ 2,274
----------
Total Travel arrangement &
reservation services 2,274
----------
- -----------------------------------------------------------
TRAVELER ACCOMMODATION--0.5%
- -----------------------------------------------------------
Starwood Hotels &
Resorts Worldwide 117,510 2,796
----------
Total Traveler accommodation 2,796
----------
- -----------------------------------------------------------
TOTAL COMMON STOCK
(COST $462,172) 496,586
- -----------------------------------------------------------
- -----------------------------------------------------------
WARRANTS--0.0%
- -----------------------------------------------------------
MicroStrategy, Expires 06/24/07* 1,550 --
- -----------------------------------------------------------
TOTAL WARRANTS
(COST $0) --
- -----------------------------------------------------------
- -----------------------------------------------------------
REPURCHASE AGREEMENT--2.6%
- -----------------------------------------------------------
ABN Amro (A)
1.300%, dated 03/31/03, matures
04/01/03, repurchase price
$13,172,520 (collateralized by
U.S. Government obligations,
total market value $13,435,968) $13,172 13,172
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $13,172) 13,172
- -----------------------------------------------------------
- -----------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES (SEE NOTE 10)--9.6%
- -----------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 48,827
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $48,827) 48,827
- -----------------------------------------------------------
- -----------------------------------------------------------
TOTAL INVESTMENTS--109.8%
(COST $524,171) 558,585
- -----------------------------------------------------------
Value
(000)
- -----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(9.8)%
- -----------------------------------------------------------
Payable due to investment adviser $ (315)
Payable due to administrator (61)
Obligation to return securities lending
collateral (48,827)
Other assets and liabilities, net (826)
- -----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (50,029)
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 34,179,334 outstanding shares
of beneficial interest 1,250,760
Portfolio capital of Class II Shares
(unlimited authorization -- no par value)
based on 11,191 outstanding shares
of beneficial interest 195
Accumulated net investment loss (2,421)
Accumulated net realized loss
on investments (774,392)
Net unrealized appreciation
on investments 34,414
- -----------------------------------------------------------
TOTAL NET ASSETS--100% $508,556
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $14.87
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS II SHARES $14.77
- -----------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2003
(A) Tri-party repurchase agreement
ADR - American depository receipt
Cl - Class Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
40 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
March 31, 2003
Value
Shares (000)
- -----------------------------------------------------------
COMMON STOCK--97.8%
- -----------------------------------------------------------
ACCOUNTING/TAX PREPARATION/BOOKKEEPING/
PAYROLL SERVICES--0.7%
- -----------------------------------------------------------
NCO Group* 66,950 $ 971
----------
Total Accounting/tax preparation/
bookkeeping/payroll services 971
----------
- -----------------------------------------------------------
ARCHITECTURAL, ENGINEERING &
RELATED SERVICES--1.3%
- -----------------------------------------------------------
Plexus* 81,070 742
Tetra Tech* 77,350 1,094
----------
Total Architectural, engineering &
related services 1,836
----------
- -----------------------------------------------------------
BAKERIES & TORTILLA MANUFACTURING--1.3%
- -----------------------------------------------------------
American Italian Pasta, Cl A*# 40,260 1,741
----------
Total Bakeries & tortilla manufacturing 1,741
----------
- -----------------------------------------------------------
BASIC CHEMICAL MANUFACTURING--1.1%
- -----------------------------------------------------------
Airgas* 79,820 1,478
----------
Total Basic chemical manufacturing 1,478
----------
- -----------------------------------------------------------
BEVERAGE MANUFACTURING--0.5%
- -----------------------------------------------------------
Cott* 38,230 671
----------
Total Beverage manufacturing 671
----------
- -----------------------------------------------------------
CLOTHING STORES--0.9%
- -----------------------------------------------------------
Urban Outfitters* 56,360 1,268
----------
Total Clothing stores 1,268
----------
- -----------------------------------------------------------
COLLEGES, UNIVERSITIES &
PROFESSIONAL SCHOOLS--1.3%
- -----------------------------------------------------------
Corinthian Colleges* 19,410 767
Strayer Education 18,660 1,024
----------
Total Colleges, universities &
professional schools 1,791
----------
- -----------------------------------------------------------
COMMERCIAL & SERVICE INDUSTRY
MACHINERY MANUFACTURING--0.2%
- -----------------------------------------------------------
Imax* 43,425 212
----------
Total Commercial & service industry
machinery manufacturing 212
----------
Value
Shares (000)
- -----------------------------------------------------------
COMMERCIAL/INDUSTRIAL EQUIPMENT
RENTAL & LEASING--0.5%
- -----------------------------------------------------------
Tollgrade Communications* 49,030 $ 704
----------
Total Commercial/industrial
equipment rental & leasing 704
----------
- -----------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--0.5%
- -----------------------------------------------------------
Polycom* 92,020 744
----------
Total Communications equipment
manufacturing 744
----------
- -----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--1.6%
- -----------------------------------------------------------
Hutchinson Technology*# 47,960 1,185
Sandisk*# 61,750 1,039
----------
Total Computer & peripheral
equipment manufacturing 2,224
----------
- -----------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--2.0%
- -----------------------------------------------------------
Avid Technology* 45,410 1,005
McData, Cl A* 87,200 749
NetScreen Technologies* 60,040 1,008
----------
Total Computer systems design &
related services 2,762
----------
- -----------------------------------------------------------
CUT & SEW APPAREL MANUFACTURING--0.6%
- -----------------------------------------------------------
Quiksilver* 27,280 835
----------
Total Cut & sew apparel manufacturing 835
----------
- -----------------------------------------------------------
DATA PROCESSING SERVICES--1.8%
- -----------------------------------------------------------
Documentum* 76,820 1,008
Global Payments 47,590 1,452
----------
Total Data processing services 2,460
----------
- -----------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--9.7%
- -----------------------------------------------------------
Boston Private Financial Holdings 53,940 807
Community First Bankshares 40,810 1,043
East-West Bancorp 61,850 1,908
Flagstar Bancorp 44,170 1,165
IndyMac Bancorp 37,690 733
----------
TURNER FUNDS 2003 SEMIANNUAL REPORT 41
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- -----------------------------------------------------------
Provident Bankshares 29,740 $ 686
R&G Financial, Cl B 54,380 1,196
Republic Bancorp 89,298 1,052
South Financial Group# 84,890 1,838
UCBH Holdings# 16,300 717
United Bankshares 46,940 1,300
Wintrust Financial 35,980 1,029
----------
Total Depository credit intermediation 13,474
----------
- -----------------------------------------------------------
DRUGS & DRUGGISTS' SUNDRIES WHOLESALE--2.3%
- -----------------------------------------------------------
Medicis Pharmaceutical, Cl A* 37,120 2,063
Priority Healthcare, Cl B* 43,060 1,148
----------
Total Drugs & druggists' sundries wholesale 3,211
----------
- -----------------------------------------------------------
ELECTRICAL EQUIPMENT MANUFACTURING--0.7%
- -----------------------------------------------------------
Ametek 27,060 893
----------
Total Electrical equipment
manufacturing 893
----------
- -----------------------------------------------------------
ELECTRICAL GOODS WHOLESALE--0.4%
- -----------------------------------------------------------
Arris Group* 165,020 611
----------
Total Electrical goods wholesale 611
----------
- -----------------------------------------------------------
FULL-SERVICE RESTAURANTS--0.7%
- -----------------------------------------------------------
Rare Hospitality International* 32,720 911
----------
Total Full-service restaurants 911
----------
- -----------------------------------------------------------
GENERAL FREIGHT TRUCKING--1.0%
- -----------------------------------------------------------
JB Hunt Transport Services* 49,900 1,343
----------
Total General freight trucking 1,343
----------
- -----------------------------------------------------------
HEALTH & PERSONAL CARE STORES--0.7%
- -----------------------------------------------------------
NBTY* 52,150 989
----------
Total Health & personal care stores 989
----------
- -----------------------------------------------------------
HOME FURNISHINGS STORES--1.0%
- -----------------------------------------------------------
Cost Plus* 50,780 1,337
----------
Total Home furnishings stores 1,337
----------
Value
Shares (000)
- -----------------------------------------------------------
INDUSTRIAL MACHINERY
MANUFACTURING--1.6%
- -----------------------------------------------------------
Axcelis Technologies* 109,410 $ 518
Imation* 27,790 1,034
Varian Semiconductor
Equipment Associates* 35,280 718
----------
Total Industrial machinery
manufacturing 2,270
----------
- -----------------------------------------------------------
INFORMATION SERVICES--2.8%
- -----------------------------------------------------------
CNET Networks* 397,650 998
eSpeed, Cl A* 73,410 854
Looksmart* 400,800 1,106
United Online*# 50,940 878
----------
Total Information services 3,836
----------
- -----------------------------------------------------------
INSURANCE CARRIERS--1.6%
- -----------------------------------------------------------
Platinum Underwriters Holdings 48,570 1,231
Scottish Annuity & Life Holdings# 58,710 1,023
----------
Total Insurance carriers 2,254
----------
- -----------------------------------------------------------
LAWN & GARDEN EQUIPMENT &
SUPPLIES STORES--0.7%
- -----------------------------------------------------------
Tractor Supply* 31,220 1,031
----------
Total Lawn & garden equipment &
supplies stores 1,031
----------
- -----------------------------------------------------------
LIMITED-SERVICE EATING PLACES--1.1%
- -----------------------------------------------------------
Panera Bread, Cl A* 48,240 1,471
----------
Total Limited-service eating places 1,471
----------
- -----------------------------------------------------------
MANAGEMENT, SCIENTIFIC & TECHNICAL
CONSULTING SERVICES--3.8%
- -----------------------------------------------------------
Corporate Executive Board*# 37,280 1,328
Exult* 117,520 861
FTI Consulting* 35,130 1,624
Kroll* 67,680 1,449
----------
Total Management, scientific & technical
consulting services 5,262
----------
42 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- -----------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--3.0%
- -----------------------------------------------------------
Cooper 71,180 $ 2,128
Respironics* 58,090 1,997
----------
Total Medical equipment &
supplies manufacturing 4,125
----------
- -----------------------------------------------------------
MINING SUPPORT ACTIVITIES--1.3%
- -----------------------------------------------------------
Grey Wolf* 263,320 1,038
Key Energy Services* 80,300 809
----------
Total Mining support activities 1,847
----------
- -----------------------------------------------------------
MOTOR VEHICLE BODY & TRAILER
MANUFACTURING--0.5%
- -----------------------------------------------------------
Winnebago Industries 27,470 747
----------
Total Motor vehicle body &
trailer manufacturing 747
----------
- -----------------------------------------------------------
NATURAL GAS DISTRIBUTION--0.8%
- -----------------------------------------------------------
Energen 33,370 1,070
----------
Total Natural gas distribution 1,070
----------
- -----------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/
CONTROL INSTRUMENTS MANUFACTURING--2.4%
- -----------------------------------------------------------
Bio-Rad Laboratories, Cl A* 24,210 866
Cognex* 32,210 682
Igen International* 22,560 798
LTX* 61,228 306
Newport* 57,560 680
----------
Total Navigational/measuring/medical/
control instruments manufacturing 3,332
----------
- -----------------------------------------------------------
NONFERROUS PRODUCTION & PROCESSING--0.7%
- -----------------------------------------------------------
Olin 51,990 945
----------
Total Nonferrous production & processing 945
----------
- -----------------------------------------------------------
OFFICE SUPPLIES, STATIONERY & GIFT STORES--0.6%
- -----------------------------------------------------------
OfficeMax* 171,040 881
----------
Total Office supplies, stationery & gift stores 881
----------
Value
Shares (000)
- -----------------------------------------------------------
OIL & GAS EXTRACTION--2.3%
- -----------------------------------------------------------
Chesapeake Energy# 143,220 $ 1,126
Denbury Resources* 118,230 1,280
Ultra Petroleum* 93,670 827
----------
Total Oil & gas extraction 3,233
----------
- -----------------------------------------------------------
OTHER CHEMICAL PRODUCT & PREPARATION
MANUFACTURING--0.5%
- -----------------------------------------------------------
A. Schulman 49,100 713
----------
Total Other chemical product &
preparation manufacturing 713
----------
- -----------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--1.4%
- -----------------------------------------------------------
Affiliated Managers Group* 47,010 1,954
----------
Total Other financial
investment activities 1,954
----------
- -----------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--0.9%
- -----------------------------------------------------------
Cuno* 36,550 1,229
----------
Total Other general purpose
machinery manufacturing 1,229
----------
- -----------------------------------------------------------
OTHER INVESTMENT POOLS & FUNDS--1.1%
- -----------------------------------------------------------
Alexandria Real Estate Equities 17,580 739
Ventas 64,190 745
----------
Total Other investment pools & funds 1,484
----------
- -----------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--1.7%
- -----------------------------------------------------------
Alliance Gaming* 74,040 1,110
Marvel Enterprises* 86,890 1,201
----------
Total Other miscellaneous manufacturing 2,311
----------
- -----------------------------------------------------------
OTHER NONMETALLIC MINERAL PRODUCT
MANUFACTURING--0.6%
- -----------------------------------------------------------
Cabot Microelectronics*# 20,950 877
----------
Total Other nonmetallic mineral
product manufacturing 877
----------
- -----------------------------------------------------------
OTHER WOOD PRODUCT MANUFACTURING--0.9%
- -----------------------------------------------------------
Louisiana-Pacific* 153,370 1,216
----------
Total Other wood product manufacturing 1,216
----------
TURNER FUNDS 2003 SEMIANNUAL REPORT 43
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- -----------------------------------------------------------
OUTPATIENT CARE CENTERS--1.9%
- -----------------------------------------------------------
Amsurg*# 60,520 $ 1,525
Sierra Health Services* 89,870 1,159
----------
Total Outpatient care centers 2,684
----------
- -----------------------------------------------------------
PAINT, COATING & ADHESIVE
MANUFACTURING--0.5%
- -----------------------------------------------------------
Ferro 35,050 749
----------
Total Paint, coating & adhesive
manufacturing 749
----------
- -----------------------------------------------------------
PETROLEUM & COAL PRODUCTS
MANUFACTURING--0.8%
- -----------------------------------------------------------
Premcor* 45,500 1,169
----------
Total Petroleum & coal products
manufacturing 1,169
----------
- -----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--4.5%
- -----------------------------------------------------------
Neurocrine Biosciences* 41,540 1,736
Pharmaceutical Resources* 40,400 1,716
Taro Pharmaceuticals Industries* 18,770 718
Trimeris*# 51,180 2,108
----------
Total Pharmaceutical & medicine
manufacturing 6,278
----------
- -----------------------------------------------------------
PIPELINE TRANSPORTATION OF NATURAL GAS--0.5%
- -----------------------------------------------------------
Western Gas Resources 22,010 716
----------
Total Pipeline transportation of natural gas 716
----------
- -----------------------------------------------------------
PROFESSIONAL & COMMERCIAL EQUIPMENT &
SUPPLY WHOLESALE--1.0%
- -----------------------------------------------------------
ICU Medical* 29,810 820
Lexar Media* 155,150 509
----------
Total Professional & commercial
equipment & supply wholesale 1,329
----------
- -----------------------------------------------------------
PROFESSIONAL, SCIENTIFIC &
TECHNICAL SERVICES--0.6%
- -----------------------------------------------------------
Alliance Data Systems* 47,480 807
----------
Total Professional, scientific &
technical services 807
----------
Value
Shares (000)
- -----------------------------------------------------------
RADIO & TELEVISION BROADCASTING--0.8%
- -----------------------------------------------------------
Cumulus Media, Cl A* 76,640 $ 1,116
----------
Total Radio & television broadcasting 1,116
----------
- -----------------------------------------------------------
RESIDENTIAL BUILDING CONSTRUCTION--0.6%
- -----------------------------------------------------------
Ryland Group 19,400 838
----------
Total Residential building construction 838
----------
- -----------------------------------------------------------
SCHEDULED AIR TRANSPORTATION--1.0%
- -----------------------------------------------------------
Airtran Holdings* 140,290 944
Atlantic Coast Airlines Holdings* 61,590 383
----------
Total Scheduled air transportation 1,327
----------
- -----------------------------------------------------------
SCIENTIFIC R&D SERVICES--3.1%
- -----------------------------------------------------------
Gen-Probe*# 46,890 1,061
Integra LifeSciences Holdings*# 31,630 727
Medicines*# 127,720 2,381
Telik* 12,250 165
----------
Total Scientific R&D services 4,334
----------
- -----------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--2.0%
- -----------------------------------------------------------
Ameritrade Holding* 187,550 930
Jefferies Group 52,780 1,898
----------
Total Security & commodity contracts
intermediation & brokerage 2,828
----------
- -----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--8.0%
- -----------------------------------------------------------
ATMI* 62,710 1,208
Benchmark Electronics* 28,110 796
Cree*# 64,340 1,192
Cymer* 31,730 751
Cypress Semiconductor* 100,270 692
Integrated Circuit Systems*# 42,690 926
Micrel* 118,330 1,091
Omnivision Technologies*# 37,810 784
Power Integrations* 45,740 948
Semtech* 54,540 826
Silicon Laboratories* 43,910 1,148
Vitesse Semiconductor* 307,650 658
----------
Total Semiconductor & other electronic
component manufacturing 11,020
----------
44 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- -----------------------------------------------------------
SOFTWARE PUBLISHERS--5.2%
- -----------------------------------------------------------
F5 Networks* 56,340 $ 712
Hyperion Solutions* 29,720 721
Legato Systems* 129,700 665
Macromedia* 64,260 776
Micromuse* 233,520 1,214
SkillSoft ADR* 330,753 882
Take-Two Interactive Software*# 59,900 1,339
Verity*# 63,990 886
----------
Total Software publishers 7,195
----------
- -----------------------------------------------------------
SPECTATOR SPORTS--0.8%
- -----------------------------------------------------------
Penn National Gaming* 58,720 1,042
----------
Total Spectator sports 1,042
----------
- -----------------------------------------------------------
STEEL PRODUCT MANUFACTURING
FROM PURCHASED STEEL--1.5%
- -----------------------------------------------------------
Maverick Tube* 75,970 1,413
Steel Dynamics* 54,990 641
----------
Total Steel product manufacturing
from purchased steel 2,054
----------
- -----------------------------------------------------------
TELECOMMUNICATIONS--2.2%
- -----------------------------------------------------------
Adtran*# 32,790 1,178
Commonwealth Telephone
Enterprises* 18,930 735
Nextel Partners, Cl A* 100,260 505
Tekelec* 70,090 608
----------
Total Telecommunications 3,026
----------
- -----------------------------------------------------------
TRAVELER ACCOMMODATION--0.5%
- -----------------------------------------------------------
Station Casinos* 34,230 723
----------
Total Traveler accommodation 723
----------
- -----------------------------------------------------------
WASTE TREATMENT & DISPOSAL--1.2%
- -----------------------------------------------------------
Stericycle*# 44,250 1,663
----------
Total Waste treatment & disposal 1,663
----------
- -----------------------------------------------------------
TOTAL COMMON STOCK
(COST $136,659) 135,452
- -----------------------------------------------------------
- -----------------------------------------------------------
WARRANTS--0.0%
- -----------------------------------------------------------
MicroStrategy, Expires 06/24/07* 4,419 --
- -----------------------------------------------------------
TOTAL WARRANTS
(COST $0) --
- -----------------------------------------------------------
Face Amount Value
(000) (000)
- -----------------------------------------------------------
REPURCHASE AGREEMENT--2.7%
- -----------------------------------------------------------
ABN-Amro (A)
1.300%, dated 03/31/03, matures
04/01/03, repurchase price
$3,683,709 (collateralized by
U.S. Government obligations,
total market value $3,757,872) $3,684 $ 3,684
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $3,684) 3,684
- -----------------------------------------------------------
- -----------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES (SEE NOTE 10)--11.8%
- -----------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 16,263
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $16,263) 16,263
- -----------------------------------------------------------
- -----------------------------------------------------------
TOTAL INVESTMENTS--112.3%
(COST $156,606) 155,399
- -----------------------------------------------------------
- -----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(12.3)%
- -----------------------------------------------------------
Payable due to investment adviser (98)
Payable due to administrator (17)
Obligation to return securities lending
collateral (16,263)
Other assets and liabilities, net (616)
- -----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (16,994)
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 10,625,118 outstanding shares
of beneficial interest 351,291
Accumulated net investment loss (532)
Accumulated net realized loss
on investments (211,147)
Net unrealized depreciation
on investments (1,207)
- -----------------------------------------------------------
TOTAL NET ASSETS--100% $138,405
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $13.03
- -----------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2003
(A) Tri-party repurchase agreement
ADR - American depository receipt
Cl - Class
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 45
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
March 31, 2003
Value
Shares (000)
- -----------------------------------------------------------
COMMON STOCK--92.4%
- -----------------------------------------------------------
AGENCIES & OTHER INSURANCE
RELATED ACTIVITIES--1.0%
- -----------------------------------------------------------
LabOne* 83,840 $ 1,614
----------
Total Agencies & other insurance
related activities 1,614
----------
- -----------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--1.6%
- -----------------------------------------------------------
Joy Global* 81,850 887
Lone Star Technologies* 41,020 866
Oil States International*# 69,020 828
----------
Total Agriculture, construction &
mining machinery manufacturing 2,581
----------
- -----------------------------------------------------------
ALUMINA & ALUMINUM PRODUCTION &
PROCESSING--0.8%
- -----------------------------------------------------------
Quanex 41,750 1,324
----------
Total Alumina & aluminum
production & processing 1,324
----------
- -----------------------------------------------------------
ARCHITECTURAL, ENGINEERING &
RELATED SERVICES--0.6%
- -----------------------------------------------------------
MTC Technologies* 48,650 939
----------
Total Architectural, engineering &
related services 939
----------
- -----------------------------------------------------------
BASIC CHEMICAL MANUFACTURING--0.8%
- -----------------------------------------------------------
Aceto 8,765 114
Tetra Technologies* 48,650 1,119
----------
Total Basic chemical manufacturing 1,233
----------
- -----------------------------------------------------------
BEER/WINE/DISTILLED ALCOHOLIC
BEVERAGE WHOLESALE--0.5%
- -----------------------------------------------------------
Central European Distribution*# 39,310 889
----------
Total Beer/wine/distilled alcoholic
beverage wholesale 889
----------
- -----------------------------------------------------------
BUSINESS SUPPORT SERVICES--1.5%
- -----------------------------------------------------------
Icon ADR*# 103,570 2,465
----------
Total Business support services 2,465
----------
Value
Shares (000)
- -----------------------------------------------------------
CLOTHING STORES--0.9%
- -----------------------------------------------------------
Jos. A. Bank Clothiers*# 62,480 $ 1,526
----------
Total Clothing stores 1,526
----------
- -----------------------------------------------------------
COAL MINING--0.6%
- -----------------------------------------------------------
Massey Energy 109,710 1,031
----------
Total Coal mining 1,031
----------
- -----------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--1.0%
- -----------------------------------------------------------
Trimble Navigation*# 87,660 1,660
----------
Total Communications equipment
manufacturing 1,660
----------
- -----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--2.0%
- -----------------------------------------------------------
Fargo Electronics* 97,460 994
Hutchinson Technology* 44,400 1,098
Overland Storage*# 87,300 1,254
----------
Total Computer & peripheral equipment
manufacturing 3,346
----------
- -----------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--6.8%
- -----------------------------------------------------------
Anteon International* 119,970 2,693
Avid Technology*# 62,340 1,380
CACI International*# 64,120 2,139
Computer Programs & Systems*# 37,330 915
Digital River*# 65,100 891
IMPAC Medical Systems* 48,338 1,077
SafeNet*# 75,830 1,551
Syntel* 27,250 523
----------
Total Computer systems design &
related services 11,169
----------
- -----------------------------------------------------------
CUT & SEW APPAREL MANUFACTURING--0.6%
- -----------------------------------------------------------
Mossimo* 217,270 1,047
----------
Total Cut & sew apparel manufacturing 1,047
----------
46 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
Value
Shares (000)
- -----------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--10.6%
- -----------------------------------------------------------
BankAtlantic Bancorp, Cl A 182,960 $ 1,791
Bankunited Financial*# 125,160 2,209
Boston Private Financial Holdings# 97,240 1,455
FirstFed Financial*# 37,920 1,145
IberiaBank 21,490 875
Independent Bank 58,615 1,178
PFF Bancorp 48,120 1,544
R&G Financial, Cl B 141,330 3,109
Seacoast Financial Services 86,140 1,572
Sterling Bancshares 115,215 1,370
Sterling Financial* 50,670 1,075
----------
Total Depository credit intermediation 17,323
----------
- -----------------------------------------------------------
DRUGS & DRUGGISTS' SUNDRIES WHOLESALE--1.3%
- -----------------------------------------------------------
D&K Healthcare Resources 209,300 2,156
----------
Total Drugs & druggists' sundries wholesale 2,156
----------
- -----------------------------------------------------------
FULL-SERVICE RESTAURANTS--1.1%
- -----------------------------------------------------------
Rare Hospitality International* 66,620 1,855
----------
Total Full-service restaurants 1,855
----------
- -----------------------------------------------------------
GENERAL FREIGHT TRUCKING--0.7%
- -----------------------------------------------------------
Roadway# 36,160 1,212
----------
Total General freight trucking 1,212
----------
- -----------------------------------------------------------
HVAC & COMMERCIAL REFRIGERATION
EQUIPMENT MANUFACTURING--0.9%
- -----------------------------------------------------------
Engineered Support Systems# 37,500 1,468
----------
Total HVAC & commercial refrigeration
equipment manufacturing 1,468
----------
- -----------------------------------------------------------
INFORMATION SERVICES--1.7%
- -----------------------------------------------------------
United Online*# 75,990 1,310
WatchGuard Technologies* 105,100 631
Websense*# 53,840 790
----------
Total Information services 2,731
----------
- -----------------------------------------------------------
LAWN & GARDEN EQUIPMENT &
SUPPLIES STORES--3.0%
- -----------------------------------------------------------
Tractor Supply*# 149,390 4,933
----------
Total Lawn & garden equipment &
supplies stores 4,933
----------
Value
Shares (000)
- -----------------------------------------------------------
MANAGEMENT, SCIENTIFIC & TECHNICAL
CONSULTING SERVICES--4.9%
- -----------------------------------------------------------
FTI Consulting*# 130,440 $ 6,029
Kroll*# 91,790 1,965
Right Management Consultants* 1 --
----------
Total Management, scientific & technical
consulting services 7,994
----------
- -----------------------------------------------------------
MEDICAL & DIAGNOSTIC LABORATORIES--0.4%
- -----------------------------------------------------------
Impath*# 42,240 570
----------
Total Medical & diagnostic laboratories 570
----------
- -----------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--4.3%
- -----------------------------------------------------------
Advanced Neuromodulation
Systems*# 59,230 2,541
Align Technology*# 169,734 1,027
Exactech* 37,540 424
Hanger Orthopedic Group* 145,230 1,660
Merit Medical Systems* 71,630 1,364
----------
Total Medical equipment & supplies
manufacturing 7,016
----------
- -----------------------------------------------------------
MINING SUPPORT ACTIVITIES--2.3%
- -----------------------------------------------------------
Key Energy Services*# 185,730 1,872
Oceaneering International* 87,450 1,911
----------
Total Mining support activities 3,783
----------
- -----------------------------------------------------------
MOTOR VEHICLE MANUFACTURING--2.3%
- -----------------------------------------------------------
Oshkosh Truck# 60,105 3,745
----------
Total Motor vehicle manufacturing 3,745
----------
- -----------------------------------------------------------
MOTOR VEHICLE PARTS MANUFACTURING--1.7%
- -----------------------------------------------------------
ESCO Technologies*# 82,740 2,714
----------
Total Motor vehicle parts manufacturing 2,714
----------
- -----------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/CONTROL
INSTRUMENTS MANUFACTURING--4.2%
- -----------------------------------------------------------
Analogic# 28,020 1,277
EDO# 184,050 3,331
Herley Industries*# 71,970 1,237
Itron* 63,070 1,054
----------
Total Navigational/measuring/medical/
control instruments manufacturing 6,899
----------
TURNER FUNDS 2003 SEMIANNUAL REPORT 47
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
Value
Shares (000)
- -----------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--0.3%
- -----------------------------------------------------------
United PanAm Financial* 56,640 $ 451
----------
Total Nondepository credit intermediation 451
----------
- -----------------------------------------------------------
OIL & GAS EXTRACTION--5.7%
- -----------------------------------------------------------
Evergreen Resources*# 83,660 3,790
Patina Oil & Gas 140,362 4,618
Southwestern Energy* 69,230 907
----------
Total Oil & gas extraction 9,315
----------
- -----------------------------------------------------------
OUTPATIENT CARE CENTERS--1.8%
- -----------------------------------------------------------
Amsurg*# 72,190 1,819
Sierra Health Services* 91,940 1,186
----------
Total Outpatient care centers 3,005
----------
- -----------------------------------------------------------
PETROLEUM & COAL PRODUCTS
MANUFACTURING--1.5%
- -----------------------------------------------------------
Headwaters*# 173,020 2,431
----------
Total Petroleum & coal products
manufacturing 2,431
----------
- -----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--6.7%
- -----------------------------------------------------------
Able Laboratories* 125,960 1,782
Acambis ADR*# 36,790 1,398
Atherogenics* 130,960 1,226
Axcan Pharma*# 116,610 1,208
Immucor* 105,780 2,317
Inspire Pharmaceuticals*# 75,880 1,189
Kos Pharmaceuticals*# 101,530 1,774
----------
Total Pharmaceutical & medicine
manufacturing 10,894
----------
- -----------------------------------------------------------
PIPELINE TRANSPORTATION OF NATURAL GAS--0.8%
- -----------------------------------------------------------
TC Pipelines 47,270 1,243
----------
Total Pipeline transportation
of natural gas 1,243
----------
- -----------------------------------------------------------
PLASTICS PRODUCT MANUFACTURING--2.0%
- -----------------------------------------------------------
Applied Films*# 76,630 1,238
Jarden* 78,970 2,053
----------
Total Plastics product manufacturing 3,291
----------
Value
Shares (000)
- -----------------------------------------------------------
PROFESSIONAL & COMMERCIAL EQUIPMENT &
SUPPLY WHOLESALE--2.2%
- -----------------------------------------------------------
ICU Medical* 90,625 $ 2,493
Neoware Systems*# 88,440 1,107
----------
Total Professional & commercial
equipment & supply wholesale 3,600
----------
- -----------------------------------------------------------
RAIL TRANSPORTATION--0.7%
- -----------------------------------------------------------
Genesee & Wyoming, Cl A*# 74,525 1,155
----------
Total Rail transportation 1,155
----------
- -----------------------------------------------------------
SCIENTIFIC R&D SERVICES--1.0%
- -----------------------------------------------------------
Integra LifeSciences Holdings* 35,530 817
Regeneration Technologies* 89,640 807
----------
Total Scientific R&D services 1,624
----------
- -----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC COMPONENT
MANUFACTURING--2.9%
- -----------------------------------------------------------
Aeroflex*# 232,670 1,317
Artisan Components*# 73,990 1,196
NAM TAI Electronics 88,010 2,214
----------
Total Semiconductor & other electronic
component manufacturing 4,727
----------
- -----------------------------------------------------------
SOFTWARE PUBLISHERS--4.0%
- -----------------------------------------------------------
Ansys*# 69,420 1,663
Legato Systems* 327,920 1,682
Packeteer* 61,780 605
ScanSoft*# 280,090 1,260
Verity*# 96,360 1,335
----------
Total Software publishers 6,545
----------
- -----------------------------------------------------------
SPECTATOR SPORTS--1.8%
- -----------------------------------------------------------
Penn National Gaming*# 162,190 2,879
----------
Total Spectator sports 2,879
----------
- -----------------------------------------------------------
SPORTING GOODS/HOBBY/MUSICAL
INSTRUMENT STORES--1.5%
- -----------------------------------------------------------
Hancock Fabrics# 55,930 777
Jo-Ann Stores, Cl A*# 84,930 1,699
----------
Total Sporting goods/hobby/musical
instrument stores 2,476
----------
48 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
Shares/Face Value
Amount (000) (000)
- -----------------------------------------------------------
STEEL PRODUCT MANUFACTURING
FROM PURCHASED STEEL--0.2%
- -----------------------------------------------------------
Maverick Tube* 20,610 $ 383
----------
Total Steel product manufacturing
from purchased steel 383
----------
- -----------------------------------------------------------
WASTE TREATMENT & DISPOSAL--0.9%
- -----------------------------------------------------------
Casella Waste Systems, Cl A* 171,929 1,418
----------
Total Waste treatment & disposal 1,418
----------
- -----------------------------------------------------------
WATER, SEWAGE & OTHER SYSTEMS--0.3%
- -----------------------------------------------------------
Artesian Resources, Cl A 18,798 566
----------
Total Water, sewage & other systems 566
----------
- -----------------------------------------------------------
TOTAL COMMON STOCK
(COST $135,912) 151,226
- -----------------------------------------------------------
- -----------------------------------------------------------
WARRANTS--0.0%
- -----------------------------------------------------------
American Bank Note Holographics,
Expires 06/18/03* 564 --
American Banknote, Ser 1,
Expires 10/01/07* 64 --
American Banknote, Ser 2,
Expires 10/01/07* 64 --
- -----------------------------------------------------------
TOTAL WARRANTS
(COST $0) --
- -----------------------------------------------------------
- -----------------------------------------------------------
REPURCHASE AGREEMENT--9.7%
- -----------------------------------------------------------
ABN-Amro (A)
1.300%, dated 03/31/03, matures
04/01/03, repurchase price
$15,885,673 (collateralized by
U.S. Government obligations,
total market value $16,203,138) $15,885 15,885
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $15,885) 15,885
- -----------------------------------------------------------
Value
(000)
- -----------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES (SEE NOTE 10)--23.5%
- -----------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio $ 38,352
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $38,352) 38,352
- -----------------------------------------------------------
- -----------------------------------------------------------
TOTAL INVESTMENTS--125.6%
(COST $190,149) 205,463
- -----------------------------------------------------------
- -----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(25.6)%
- -----------------------------------------------------------
Payable due to investment adviser (139)
Payable due to administrator (20)
Obligation to return securities lending
collateral (38,352)
Other assets and liabilities, net (3,350)
- -----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (41,861)
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 5,382,303 outstanding shares
of beneficial interest 172,308
Accumulated net investment loss (625)
Accumulated net realized loss
on investments (23,395)
Net unrealized appreciation
on investments 15,314
- -----------------------------------------------------------
TOTAL NET ASSETS--100% $163,602
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $30.40
- -----------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2003.
(A) Tri-party repurchase agreement
ADR - American depository receipt
Cl - Class
Ser - Series
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 49
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER LARGE CAP VALUE FUND
March 31, 2003
Value
Shares (000)
- -----------------------------------------------------------
COMMON STOCK--96.1%
- -----------------------------------------------------------
AEROSPACE PRODUCT & PARTS
MANUFACTURING--2.0%
- -----------------------------------------------------------
Honeywell International 1,950 $ 42
Textron 1,400 38
----------
Total Aerospace product & parts
manufacturing 80
----------
- -----------------------------------------------------------
AGENCIES & OTHER INSURANCE
RELATED ACTIVITIES--1.1%
- -----------------------------------------------------------
AON 2,100 43
----------
Total Agencies & other insurance
related activities 43
----------
- -----------------------------------------------------------
BASIC CHEMICAL MANUFACTURING--0.6%
- -----------------------------------------------------------
E.I. du Pont de Nemours 650 25
----------
Total Basic chemical manufacturing 25
----------
- -----------------------------------------------------------
BEVERAGE MANUFACTURING--0.8%
- -----------------------------------------------------------
Coca-Cola Enterprises 1,700 32
----------
Total Beverage manufacturing 32
----------
- -----------------------------------------------------------
CABLE NETWORKS & PROGRAM DISTRIBUTION--1.0%
- -----------------------------------------------------------
Comcast, Cl A* 1,500 41
----------
Total Cable networks & program
distribution 41
----------
- -----------------------------------------------------------
CLOTHING STORES--1.3%
- -----------------------------------------------------------
Abercrombie & Fitch, Cl A* 1,700 51
----------
Total Clothing stores 51
----------
- -----------------------------------------------------------
COMMERCIAL & SERVICE INDUSTRY
MACHINERY MANUFACTURING--1.5%
- -----------------------------------------------------------
Bausch & Lomb 1,800 59
----------
Total Commercial & service industry
machinery manufacturing 59
----------
- -----------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--1.6%
- -----------------------------------------------------------
Motorola 3,800 31
Nokia Oyj ADR 2,400 34
----------
Total Communications equipment
manufacturing 65
----------
Value
Shares (000)
- -----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--4.3%
- -----------------------------------------------------------
Dell Computer* 3,000 $ 82
International Business Machines 200 16
Lexmark International* 1,100 73
----------
Total Computer & peripheral equipment
manufacturing 171
----------
- -----------------------------------------------------------
CONVERTED PAPER PRODUCT
MANUFACTURING--1.0%
- -----------------------------------------------------------
Smurfit-Stone Container* 3,000 40
----------
Total Converted paper product
manufacturing 40
----------
- -----------------------------------------------------------
COURIERS--2.0%
- -----------------------------------------------------------
United Parcel Service, Cl B 1,400 80
----------
Total Couriers 80
----------
- -----------------------------------------------------------
CUT & SEW APPAREL MANUFACTURING--0.5%
- -----------------------------------------------------------
Jones Apparel Group* 700 19
----------
Total Cut & sew apparel
manufacturing 19
----------
- -----------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--17.2%
- -----------------------------------------------------------
Bancorpsouth 3,450 64
Bank of America 650 43
Bank of New York 1,450 30
Bank One 2,150 74
Citigroup 2,600 90
Greenpoint Financial 2,600 117
Hibernia, Cl A 2,250 38
PNC Financial Services Group 1,875 79
Wachovia 1,850 63
Wells Fargo 1,750 79
----------
Total Depository credit
intermediation 677
----------
- -----------------------------------------------------------
ELECTRIC POWER GENERATION,
TRANSMISSION & DISTRIBUTION--3.1%
- -----------------------------------------------------------
CMS Energy 5,700 25
Energy East 1,750 31
Sierra Pacific Resources*# 6,400 20
Xcel Energy 3,650 47
----------
Total Electric power generation,
transmission & distribution 123
----------
50 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER LARGE CAP VALUE FUND
Value
Shares (000)
- -----------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--4.1%
- -----------------------------------------------------------
Best Buy* 1,950 $ 53
RadioShack 4,800 107
----------
Total Electronics & appliance stores 160
----------
- -----------------------------------------------------------
FOOTWEAR MANUFACTURING--1.4%
- -----------------------------------------------------------
Reebok International* 1,650 54
----------
Total Footwear manufacturing 54
----------
- -----------------------------------------------------------
FRUIT & VEGETABLE PRESERVING &
SPECIALTY FOOD MANUFACTURING--0.8%
- -----------------------------------------------------------
HJ Heinz 1,050 31
----------
Total Fruit & vegetable preserving &
specialty food manufacturing 31
----------
- -----------------------------------------------------------
GROCERY STORES--1.1%
- -----------------------------------------------------------
Safeway* 2,200 42
----------
Total Grocery stores 42
----------
- -----------------------------------------------------------
HEALTH & PERSONAL CARE STORES--1.0%
- -----------------------------------------------------------
Omnicare 1,450 39
----------
Total Health & personal care stores 39
----------
- -----------------------------------------------------------
HOUSEHOLD APPLIANCE MANUFACTURING--1.2%
- -----------------------------------------------------------
Maytag 2,400 46
----------
Total Household appliance manufacturing 46
----------
- -----------------------------------------------------------
INSURANCE CARRIERS--4.5%
- -----------------------------------------------------------
Ace 2,000 58
Allstate 1,450 48
American International Group 700 35
Prudential Financial 1,300 38
----------
Total Insurance carriers 179
----------
- -----------------------------------------------------------
LIMITED-SERVICE EATING PLACES--1.2%
- -----------------------------------------------------------
McDonald's 3,400 49
----------
Total Limited-service eating places 49
----------
- -----------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--0.5%
- -----------------------------------------------------------
Baxter International 1,100 20
----------
Total Medical equipment & supplies
manufacturing 20
----------
Value
Shares (000)
- -----------------------------------------------------------
MOTION PICTURE & VIDEO INDUSTRIES--1.0%
- -----------------------------------------------------------
Clear Channel Communications* 1,200 $ 41
----------
Total Motion picture & video industries 41
----------
- -----------------------------------------------------------
MOTOR VEHICLE MANUFACTURING--1.0%
- -----------------------------------------------------------
General Motors 1,150 39
----------
Total Motor vehicle manufacturing 39
----------
- -----------------------------------------------------------
NATURAL GAS DISTRIBUTION--1.8%
- -----------------------------------------------------------
KeySpan 2,200 71
----------
Total Natural gas distribution 71
----------
- -----------------------------------------------------------
NEWSPAPER/PERIODICAL/BOOK/
DATABASE PUBLISHERS--1.0%
- -----------------------------------------------------------
Knight-Ridder 650 38
----------
Total Newspaper/periodical/book/
database publishers 38
----------
- -----------------------------------------------------------
OUTPATIENT CARE CENTERS--0.9%
- -----------------------------------------------------------
Humana* 3,650 35
----------
Total Outpatient care centers 35
----------
- -----------------------------------------------------------
PETROLEUM & COAL PRODUCTS
MANUFACTURING--10.7%
- -----------------------------------------------------------
ChevronTexaco 1,175 76
ConocoPhillips 2,800 150
Exxon Mobil 4,100 143
Marathon Oil 2,250 54
----------
Total Petroleum & coal products
manufacturing 423
----------
- -----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--1.2%
- -----------------------------------------------------------
Merck 850 47
----------
Total Pharmaceutical & medicine
manufacturing 47
----------
- -----------------------------------------------------------
PIPELINE TRANSPORTATION OF NATURAL GAS--0.5%
- -----------------------------------------------------------
El Paso# 2,900 18
----------
Total Pipeline transportation
of natural gas 18
----------
TURNER FUNDS 2003 SEMIANNUAL REPORT 51
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER LARGE CAP VALUE FUND
Value
Shares (000)
- -----------------------------------------------------------
PULP, PAPER & PAPERBOARD MILLS--1.1%
- -----------------------------------------------------------
International Paper 1,300 $ 44
----------
Total Pulp, paper & paperboard mills 44
----------
- -----------------------------------------------------------
RAIL TRANSPORTATION--1.7%
- -----------------------------------------------------------
CSX 2,400 68
----------
Total Rail transportation 68
----------
- -----------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--7.7%
- -----------------------------------------------------------
Bear Stearns 1,200 79
Goldman Sachs Group 575 39
Merrill Lynch 1,850 65
Morgan Stanley 3,100 119
----------
Total Security & commodity contracts
intermediation & brokerage 302
----------
- -----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--4.5%
- -----------------------------------------------------------
Analog Devices* 425 12
Flextronics International* 4,100 36
LSI Logic* 3,100 14
National Semiconductor* 2,550 43
Taiwan Semiconductor
Manufacturing ADR* 4,550 31
Vishay Intertechnology* 3,900 40
----------
Total Semiconductor & other
electronic component
manufacturing 176
----------
- -----------------------------------------------------------
SOAP, CLEANERS & TOILET PREPARATION
MANUFACTURING--3.2%
- -----------------------------------------------------------
Gillette 1,550 48
Procter & Gamble 900 80
----------
Total Soap, cleaners & toilet preparation
manufacturing 128
----------
- -----------------------------------------------------------
STEEL PRODUCT MANUFACTURING FROM
PURCHASED STEEL--1.2%
- -----------------------------------------------------------
Nucor 1,200 46
----------
Total Steel product manufacturing
from purchased steel 46
----------
Shares/Face Value
Amount (000) (000)
- -----------------------------------------------------------
TELECOMMUNICATIONS--4.0%
- -----------------------------------------------------------
SBC Communications 2,800 $ 56
Verizon Communications 2,900 103
----------
Total Telecommunications 159
----------
- -----------------------------------------------------------
TOBACCO MANUFACTURING--0.8%
- -----------------------------------------------------------
Altria Group 1,000 30
----------
Total Tobacco manufacturing 30
----------
- -----------------------------------------------------------
TOTAL COMMON STOCK
(COST $4,611) 3,791
- -----------------------------------------------------------
- -----------------------------------------------------------
RIGHTS--0.0%
- -----------------------------------------------------------
Seagate Escrow* 425 --
- -----------------------------------------------------------
TOTAL RIGHTS
(COST $0) --
- -----------------------------------------------------------
- -----------------------------------------------------------
REPURCHASE AGREEMENT--2.5%
- -----------------------------------------------------------
Morgan Stanley (A)
1.000%, dated 03/31/03, matures
04/01/03, repurchase price
$98,308 (collateralized by
U.S. Government obligations,
total market value $100,271) $98 98
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $98) 98
- -----------------------------------------------------------
- -----------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES (SEE NOTE 10)--0.8%
- -----------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 32
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $32) 32
- -----------------------------------------------------------
- -----------------------------------------------------------
TOTAL INVESTMENTS--99.4%
(COST $4,741) 3,921
- -----------------------------------------------------------
52 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER LARGE CAP VALUE FUND
Value
(000)
- -----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--0.6%
- -----------------------------------------------------------
Payable due to administrator $ (1)
Obligation to return securities lending
collateral (32)
Other assets and liabilities, net 55
- -----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET 22
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 496,187 outstanding shares
of beneficial interest 5,597
Accumulated net realized loss
on investments (834)
Net unrealized depreciation
on investments (820)
- -----------------------------------------------------------
TOTAL NET ASSETS--100% $3,943
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $7.95
- -----------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2003
(A) Tri-party repurchase agreement
ADR - American depository receipt
Cl - Class
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 53
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER CORE VALUE FUND (A)
March 31, 2003
Value
Shares (000)
- -----------------------------------------------------------
COMMON STOCK--97.7%
- -----------------------------------------------------------
AGENCIES & OTHER INSURANCE
RELATED ACTIVITIES--1.3%
- -----------------------------------------------------------
AON 25,000 $ 517
----------
Total Agencies & other insurance
related activities 517
----------
- -----------------------------------------------------------
CHEMICAL MANUFACTURING--2.0%
- -----------------------------------------------------------
Akzo Nobel ADR 38,000 762
----------
Total Chemical manufacturing 762
----------
- -----------------------------------------------------------
COAL MINING--1.4%
- -----------------------------------------------------------
Massey Energy 59,000 555
----------
Total Coal mining 555
----------
- -----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--0.9%
- -----------------------------------------------------------
Maxtor* 65,000 366
----------
Total Computer & peripheral
equipment manufacturing 366
----------
- -----------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--0.8%
- -----------------------------------------------------------
Computer Sciences* 10,000 325
----------
Total Computer systems design &
related services 325
----------
- -----------------------------------------------------------
CUT & SEW APPAREL MANUFACTURING--1.8%
- -----------------------------------------------------------
Jones Apparel Group* 25,000 686
----------
Total Cut & sew apparel manufacturing 686
----------
- -----------------------------------------------------------
DATA PROCESSING SERVICES--1.7%
- -----------------------------------------------------------
eFunds* 96,000 660
----------
Total Data processing services 660
----------
- -----------------------------------------------------------
DEPARTMENT STORES--2.9%
- -----------------------------------------------------------
Federated Department Stores* 30,000 840
Saks* 36,000 277
----------
Total Department stores 1,117
----------
Value
Shares (000)
- -----------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--15.7%
- -----------------------------------------------------------
Banknorth Group# 48,600 $ 1,060
Bay View Capital* 84,500 460
Commerce Bancshares 13,781 504
Greenpoint Financial 32,000 1,434
Hibernia, Cl A 68,500 1,162
PNC Financial Services Group 18,500 784
Sovereign Bancorp# 50,000 692
----------
Total Depository credit intermediation 6,096
----------
- -----------------------------------------------------------
ELECTRIC POWER GENERATION, TRANSMISSION &
DISTRIBUTION--10.6%
- -----------------------------------------------------------
Allegheny Energy# 52,000 323
CMS Energy 162,500 717
NiSource 25,000 455
Puget Energy 38,500 820
SCANA 33,000 987
Xcel Energy 65,000 833
----------
Total Electric power generation,
transmission & distribution 4,135
----------
- -----------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--2.1%
- -----------------------------------------------------------
RadioShack 36,500 814
----------
Total Electronics & appliance stores 814
----------
- -----------------------------------------------------------
FOOTWEAR MANUFACTURING--2.5%
- -----------------------------------------------------------
Reebok International*# 30,000 985
----------
Total Footwear manufacturing 985
----------
- -----------------------------------------------------------
FURNITURE & HOME FURNISHING WHOLESALE--1.8%
- -----------------------------------------------------------
United Stationers* 32,000 683
----------
Total Furniture & home
furnishing wholesale 683
----------
- -----------------------------------------------------------
GENERAL FREIGHT TRUCKING--3.3%
- -----------------------------------------------------------
Arkansas Best# 21,500 546
Yellow* 30,000 724
----------
Total General freight trucking 1,270
----------
- -----------------------------------------------------------
GROCERY STORES--2.4%
- -----------------------------------------------------------
Kroger* 70,000 920
----------
Total Grocery stores 920
----------
54 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER CORE VALUE FUND
Value
Shares (000)
- -----------------------------------------------------------
INFORMATION SERVICES--3.0%
- -----------------------------------------------------------
Dun & Bradstreet* 30,000 $ 1,147
----------
Total Information services 1,147
----------
- -----------------------------------------------------------
INSURANCE CARRIERS--11.5%
- -----------------------------------------------------------
AMBAC Financial Group 12,000 606
Mercury General# 27,000 1,025
Ohio Casualty*# 41,200 532
Prudential Financial 22,000 644
Safeco# 31,000 1,084
Travelers Property Casualty, Cl B 40,000 564
----------
Total Insurance carriers 4,455
----------
- -----------------------------------------------------------
MOTOR VEHICLE PARTS MANUFACTURING--1.0%
- -----------------------------------------------------------
Delphi 55,000 376
----------
Total Motor vehicle parts
manufacturing 376
----------
- -----------------------------------------------------------
NATURAL GAS DISTRIBUTION--4.4%
- -----------------------------------------------------------
KeySpan 30,000 967
National Fuel Gas 33,500 733
----------
Total Natural gas distribution 1,700
----------
- -----------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/
CONTROL INSTRUMENTS MANUFACTURING--1.7%
- -----------------------------------------------------------
Thermo Electron* 37,000 670
----------
Total Navigational/measuring/medical/
control instruments manufacturing 670
----------
- -----------------------------------------------------------
OIL & GAS EXTRACTION--4.4%
- -----------------------------------------------------------
Pioneer Natural Resources* 46,000 1,155
XTO Energy 30,000 570
----------
Total Oil & gas extraction 1,725
----------
- -----------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT & COMPONENT
MANUFACTURING--1.1%
- -----------------------------------------------------------
Energizer Holdings* 17,000 433
----------
Total Other electrical equipment &
component manufacturing 433
----------
- -----------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--2.2%
- -----------------------------------------------------------
Federated Investors, Cl B 33,000 840
----------
Total Other financial investment activities 840
----------
Value
Shares (000)
- -----------------------------------------------------------
OTHER INVESTMENT POOLS & FUNDS--1.1%
- -----------------------------------------------------------
La Quinta* 135,000 $ 412
----------
Total Other investment pools & funds 412
----------
- -----------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--2.1%
- -----------------------------------------------------------
Callaway Golf 70,000 832
----------
Total Other miscellaneous manufacturing 832
----------
- -----------------------------------------------------------
PESTICIDE, FERTILIZER & OTHER AGRICULTURE
CHEMICAL MANUFACTURING--1.7%
- -----------------------------------------------------------
Agrium 61,000 656
----------
Total Pesticide, fertilizer & other agriculture
chemical manufacturing 656
----------
- -----------------------------------------------------------
PETROLEUM & COAL PRODUCTS
MANUFACTURING--2.7%
- -----------------------------------------------------------
Valero Energy 25,000 1,034
----------
Total Petroleum & coal products
manufacturing 1,034
----------
- -----------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--1.5%
- -----------------------------------------------------------
Goldman Sachs Group 8,500 579
----------
Total Security & commodity contracts
intermediation & brokerage 579
----------
- -----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--1.5%
- -----------------------------------------------------------
LSI Logic*# 128,100 579
----------
Total Semiconductor & other electronic
component manufacturing 579
----------
- -----------------------------------------------------------
SHIP & BOAT BUILDING--2.2%
- -----------------------------------------------------------
Brunswick 45,000 855
----------
Total Ship & boat building 855
----------
- -----------------------------------------------------------
SOAP, CLEANERS & TOILET PREPARATION
MANUFACTURING--0.6%
- -----------------------------------------------------------
Dial 13,000 252
----------
Total Soap, cleaners & toilet preparation
manufacturing 252
----------
TURNER FUNDS 2003 SEMIANNUAL REPORT 55
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER CORE VALUE FUND
Shares/Face Value
Amount (000) (000)
- -----------------------------------------------------------
SOFTWARE PUBLISHERS--1.4%
- -----------------------------------------------------------
Compuware* 159,500 $ 541
----------
Total Software publishers 541
----------
- -----------------------------------------------------------
WASTE TREATMENT & DISPOSAL--2.4%
- -----------------------------------------------------------
Republic Services* 46,500 923
----------
Total Waste treatment & disposal 923
----------
- -----------------------------------------------------------
TOTAL COMMON STOCK
(COST $39,214) 37,900
- -----------------------------------------------------------
- -----------------------------------------------------------
REPURCHASE AGREEMENT--2.4%
- -----------------------------------------------------------
JP Morgan Chase (B)
1.000%, dated 03/31/03, matures
04/01/03, repurchase price
$930,540 (collateralized by
U.S. Government obligations,
total market value $949,124) $931 931
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $931) 931
- -----------------------------------------------------------
- -----------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES (SEE NOTE 10)--12.0%
- -----------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 4,684
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $4,684) 4,684
- -----------------------------------------------------------
- -----------------------------------------------------------
TOTAL INVESTMENTS--112.1%
(COST $44,829) 43,515
- -----------------------------------------------------------
- -----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(12.1)%
- -----------------------------------------------------------
Payable due to investment adviser (28)
Payable due to administrator (5)
Obligation to return securities lending
collateral (4,684)
Other assets and liabilities, net 12
- -----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (4,705)
- -----------------------------------------------------------
Value
(000)
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 3,439,802 outstanding shares
of beneficial interest $ 41,721
Undistributed net investment income 1
Accumulated net realized loss
on investments (1,598)
Net unrealized depreciation
on investments (1,314)
- -----------------------------------------------------------
TOTAL NET ASSETS--100% $38,810
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $11.28
- -----------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2003
(A) Formerly the Turner Midcap Value Fund
(B) Tri-party repurchase agreement
ADR - American depository receipt
Cl - Class
The accompanying notes are an integral part of the financial statements.
56 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER SMALL CAP VALUE FUND
March 31, 2003
Value
Shares (000)
- -----------------------------------------------------------
COMMON STOCK--98.1%
- -----------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--0.3%
- -----------------------------------------------------------
AGCO* 56,175 $ 904
----------
Total Agriculture, construction &
mining machinery manufacturing 904
----------
- -----------------------------------------------------------
APPAREL, PIECE GOODS & NOTIONS WHOLESALE--2.3%
- -----------------------------------------------------------
Men's Wearhouse* 509,150 7,617
----------
Total Apparel, piece goods &
notions wholesale 7,617
----------
- -----------------------------------------------------------
AUTOMOTIVE EQUIPMENT RENTAL & LEASING--0.8%
- -----------------------------------------------------------
Ryder System 127,750 2,620
----------
Total Automotive equipment
rental & leasing 2,620
----------
- -----------------------------------------------------------
BASIC CHEMICAL MANUFACTURING--2.3%
- -----------------------------------------------------------
Arch Chemicals 149,600 2,798
Millennium Chemicals 386,650 4,516
----------
Total Basic chemical manufacturing 7,314
----------
- -----------------------------------------------------------
BOOK, PERIODICAL & MUSIC STORES--1.3%
- -----------------------------------------------------------
Barnes & Noble* 228,200 4,334
----------
Total Book, periodical & music stores 4,334
----------
- -----------------------------------------------------------
BUSINESS SUPPORT SERVICES--0.8%
- -----------------------------------------------------------
ICT Group* 81,750 790
TeleTech Holdings* 307,300 1,668
----------
Total Business support services 2,458
----------
- -----------------------------------------------------------
CHEMICAL MANUFACTURING--0.4%
- -----------------------------------------------------------
Georgia Gulf 63,925 1,287
----------
Total Chemical manufacturing 1,287
----------
- -----------------------------------------------------------
CLOTHING STORES--1.2%
- -----------------------------------------------------------
Burlington Coat Factory
Warehouse 47,625 777
Wet Seal, Cl A* 422,350 3,083
----------
Total Clothing stores 3,860
----------
Value
Shares (000)
- -----------------------------------------------------------
COMMERCIAL/INDUSTRIAL EQUIPMENT
RENTAL & LEASING--0.7%
- -----------------------------------------------------------
United Rentals* 248,100 $ 2,387
----------
Total Commercial/industrial
equipment rental & leasing 2,387
----------
- -----------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--3.0%
- -----------------------------------------------------------
Anadigics* 246,550 523
Checkpoint Systems* 381,600 3,755
Nice Systems ADR* 217,400 2,419
Trimble Navigation* 163,300 3,093
----------
Total Communications equipment
manufacturing 9,790
----------
- -----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--2.2%
- -----------------------------------------------------------
Maxtor* 517,686 2,914
Western Digital* 471,700 4,274
----------
Total Computer & peripheral
equipment manufacturing 7,188
----------
- -----------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--4.8%
- -----------------------------------------------------------
Carreker*# 780,000 1,599
Checkfree* 163,100 3,666
Ciber* 1,092,800 5,202
Computer Horizons* 279,700 861
Titan*# 580,200 4,323
----------
Total Computer systems design &
related services 15,651
----------
- -----------------------------------------------------------
CONVERTED PAPER PRODUCT MANUFACTURING--1.9%
- -----------------------------------------------------------
Playtex Products* 540,900 4,359
Smurfit-Stone Container*# 130,000 1,737
----------
Total Converted paper product
manufacturing 6,096
----------
- -----------------------------------------------------------
CUT & SEW APPAREL MANUFACTURING--2.9%
- -----------------------------------------------------------
Ashworth* 579,100 3,677
Russell 100,450 1,758
Tommy Hilfiger* 556,600 4,024
----------
Total Cut & sew apparel manufacturing 9,459
----------
TURNER FUNDS 2003 SEMIANNUAL REPORT 57
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER SMALL CAP VALUE FUND
Value
Shares (000)
- -----------------------------------------------------------
DATA PROCESSING SERVICES--2.0%
- -----------------------------------------------------------
Acxiom* 338,900 $ 5,704
eFunds* 136,400 937
----------
Total Data processing services 6,641
----------
- -----------------------------------------------------------
DEATH CARE SERVICES--1.9%
- -----------------------------------------------------------
Service Corp. International* 2,217,600 6,165
----------
Total Death care services 6,165
----------
- -----------------------------------------------------------
DEPARTMENT STORES--0.4%
- -----------------------------------------------------------
ShopKo Stores*# 112,100 1,306
----------
Total Department stores 1,306
----------
- -----------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--11.3%
- -----------------------------------------------------------
Bancorpsouth 90,150 1,659
Bay View Capital* 797,750 4,348
Colonial BancGroup 234,800 2,641
Community First Bankshares 81,850 2,091
FirstMerit 209,700 3,867
Hibernia, Cl A 95,050 1,612
Hudson United Bancorp 161,900 4,986
New York Community Bancorp 184,400 5,495
Sterling Bancshares 216,300 2,572
Sterling Financial* 69,315 1,471
Texas Regional Bancshares 55,688 1,681
Trustmark 120,500 2,863
United Bankshares 58,975 1,634
----------
Total Depository credit intermediation 36,920
----------
- -----------------------------------------------------------
ELECTRIC POWER GENERATION,
TRANSMISSION & DISTRIBUTION--4.7%
- -----------------------------------------------------------
Calpine*# 804,400 2,654
CMS Energy 1,031,500 4,549
DQE 195,000 2,377
Hawaiian Electric Industries# 69,300 2,825
Northeast Utilities 141,400 1,968
Sierra Pacific Resources*# 321,550 1,023
----------
Total Electric power generation,
transmission & distribution 15,396
----------
- -----------------------------------------------------------
ELECTRICAL CONTRACTORS--0.6%
- -----------------------------------------------------------
Integrated Electrical Services* 474,000 2,024
----------
Total Electrical contractors 2,024
----------
Value
Shares (000)
- -----------------------------------------------------------
EMPLOYMENT SERVICES--0.2%
- -----------------------------------------------------------
MPS Group* 148,800 $ 777
----------
Total Employment services 777
----------
- -----------------------------------------------------------
ENGINE, TURBINE & POWER
TRANSMISSION EQUIPMENT
MANUFACTURING--0.9%
- -----------------------------------------------------------
Briggs & Stratton 65,175 2,532
Dura Automotive Systems, Cl A* 56,650 317
----------
Total Engine, turbine & power
transmission equipment
manufacturing 2,849
----------
- -----------------------------------------------------------
FOOTWEAR MANUFACTURING--0.4%
- -----------------------------------------------------------
Vans* 308,500 1,308
----------
Total Footwear manufacturing 1,308
----------
- -----------------------------------------------------------
FOUNDRIES--0.8%
- -----------------------------------------------------------
Intermet 671,800 2,445
----------
Total Foundries 2,445
----------
- -----------------------------------------------------------
FRUIT & TREE NUT FARMING--0.5%
- -----------------------------------------------------------
Chiquita Brands International* 144,600 1,586
----------
Total Fruit & tree nut farming 1,586
----------
- -----------------------------------------------------------
FRUIT & VEGETABLE PRESERVING & SPECIALTY
FOOD MANUFACTURING--1.3%
- -----------------------------------------------------------
Smithfield Foods* 235,000 4,164
----------
Total Fruit & vegetable preserving &
specialty food manufacturing 4,164
----------
- -----------------------------------------------------------
FURNITURE & HOME FURNISHING WHOLESALE--0.7%
- -----------------------------------------------------------
United Stationers* 102,550 2,189
----------
Total Furniture & home
furnishing wholesale 2,189
----------
- -----------------------------------------------------------
GENERAL FREIGHT TRUCKING--1.3%
- -----------------------------------------------------------
Celadon Group* 186,625 1,482
Usfreightways 113,550 2,874
----------
Total General freight trucking 4,356
----------
58 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER SMALL CAP VALUE FUND
Value
Shares (000)
- -----------------------------------------------------------
HOUSEHOLD APPLIANCE MANUFACTURING--1.5%
- -----------------------------------------------------------
Helen of Troy* 380,250 $ 4,981
----------
Total Household appliance
manufacturing 4,981
----------
- -----------------------------------------------------------
HVAC & COMMERCIAL REFRIGERATION
EQUIPMENT MANUFACTURING--0.5%
- -----------------------------------------------------------
Lennox International 111,000 1,598
----------
Total HVAC & commercial refrigeration
equipment manufacturing 1,598
----------
- -----------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--0.9%
- -----------------------------------------------------------
Asyst Technologies* 196,000 1,062
Brooks Automation* 195,000 1,886
----------
Total Industrial machinery manufacturing 2,948
----------
- -----------------------------------------------------------
INFORMATION SERVICES--2.3%
- -----------------------------------------------------------
Alloy*# 564,900 2,830
Earthlink* 419,200 2,410
Keynote Systems* 82,600 768
S1* 308,700 1,581
----------
Total Information services 7,589
----------
- -----------------------------------------------------------
INSURANCE CARRIERS--7.7%
- -----------------------------------------------------------
American Financial Group 194,800 3,867
American Physicians Capital* 85,100 1,804
FPIC Insurance Group*# 247,700 1,840
Harleysville Group 210,700 5,257
HCC Insurance Holdings 209,450 5,354
Ohio Casualty*# 446,300 5,766
Phoenix 146,700 1,062
----------
Total Insurance carriers 24,950
----------
- -----------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--1.0%
- -----------------------------------------------------------
Inamed* 42,025 1,503
Oakley* 215,000 1,774
----------
Total Medical equipment & supplies
manufacturing 3,277
----------
Value
Shares (000)
- -----------------------------------------------------------
MINING SUPPORT ACTIVITIES--2.5%
- -----------------------------------------------------------
Grey Wolf* 518,900 $ 2,044
Hanover Compressor* 204,700 1,331
Key Energy Services* 476,100 4,799
----------
Total Mining support activities 8,174
- -----------------------------------------------------------
NATURAL GAS DISTRIBUTION--2.1%
- -----------------------------------------------------------
National Fuel Gas 124,500 2,723
SEMCO Energy# 225,650 794
South Jersey Industries 46,400 1,464
Southwest Gas 86,650 1,763
----------
Total Natural gas distribution 6,744
----------
- -----------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/
CONTROL INSTRUMENTS MANUFACTURING--0.9%
- -----------------------------------------------------------
FEI* 134,500 2,147
Molecular Devices* 56,850 688
----------
Total Navigational/measuring/medical/
control instruments manufacturing 2,835
----------
- -----------------------------------------------------------
NONFERROUS PRODUCTION & PROCESSING--0.3%
- -----------------------------------------------------------
Wolverine Tube* 208,850 938
----------
Total Nonferrous production & processing 938
----------
- -----------------------------------------------------------
NONSCHEDULED AIR TRANSPORTATION--1.0%
- -----------------------------------------------------------
CNF 103,300 3,146
----------
Total Nonscheduled air transportation 3,146
----------
- -----------------------------------------------------------
OFFICE ADMINISTRATIVE SERVICES--0.4%
- -----------------------------------------------------------
US Oncology* 164,700 1,169
----------
Total Office administrative services 1,169
----------
- -----------------------------------------------------------
OIL & GAS EXTRACTION--1.1%
- -----------------------------------------------------------
Cabot Oil & Gas 151,050 3,625
----------
Total Oil & gas extraction 3,625
----------
- -----------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--1.3%
- -----------------------------------------------------------
GrafTech International* 357,550 1,019
Rayovac* 297,700 3,230
----------
Total Other electrical equipment &
component manufacturing 4,249
----------
TURNER FUNDS 2003 SEMIANNUAL REPORT 59
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER SMALL CAP VALUE FUND
Value
Shares (000)
- -----------------------------------------------------------
OTHER FABRICATED METAL PRODUCT
MANUFACTURING--0.6%
- -----------------------------------------------------------
Timken 119,100 $ 1,860
----------
Total Other fabricated metal
product manufacturing 1,860
----------
- -----------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--1.1%
- -----------------------------------------------------------
BKF Capital Group* 51,900 843
Westwood Holdings Group 87,050 1,176
WP Stewart 92,800 1,581
----------
Total Other financial
investment activities 3,600
----------
- -----------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--0.5%
- -----------------------------------------------------------
Stewart & Stevenson Services 159,100 1,734
----------
Total Other general purpose machinery
manufacturing 1,734
----------
- -----------------------------------------------------------
OTHER INVESTMENT POOLS & FUNDS--2.9%
- -----------------------------------------------------------
HRPT Properties Trust 422,850 3,598
LTC Properties 229,050 1,441
US Restaurant Properties 318,350 4,489
----------
Total Other investment pools & funds 9,528
----------
- -----------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--0.5%
- -----------------------------------------------------------
Callaway Golf 130,050 1,545
----------
Total Other miscellaneous manufacturing 1,545
----------
- -----------------------------------------------------------
OTHER PROFESSIONAL/SCIENTIFIC/
TECHNICAL SERVICE--2.5%
- -----------------------------------------------------------
Dendrite International* 370,500 3,149
IDX Systems* 307,850 4,828
----------
Total Other professional/scientific/
technical service 7,977
----------
- -----------------------------------------------------------
PETROLEUM & COAL PRODUCTS
MANUFACTURING--0.6%
- -----------------------------------------------------------
Frontier Oil 107,200 1,833
----------
Total Petroleum & coal products
manufacturing 1,833
----------
Value
Shares (000)
- -----------------------------------------------------------
PRIMARY METAL MANUFACTURING--0.4%
- -----------------------------------------------------------
Allegheny Technologies 465,100 $ 1,349
----------
Total Primary metal manufacturing 1,349
----------
- -----------------------------------------------------------
PRINTING & RELATED SUPPORT ACTIVITIES--0.3%
- -----------------------------------------------------------
Cadmus Communications 115,850 927
----------
Total Printing & related
support activities 927
----------
- -----------------------------------------------------------
PROFESSIONAL & COMMERCIAL EQUIPMENT &
SUPPLY WHOLESALE--0.5%
- -----------------------------------------------------------
Stamps.com* 397,500 1,666
----------
Total Professional & commercial
equipment & supply wholesale 1,666
----------
- -----------------------------------------------------------
PULP, PAPER & PAPERBOARD MILLS--3.6%
- -----------------------------------------------------------
Buckeye Technologies* 319,650 1,519
Caraustar Industries* 300,750 2,036
Chesapeake 183,200 3,094
Wausau-Mosinee Paper 508,650 5,188
----------
Total Pulp, paper & paperboard mills 11,837
----------
- -----------------------------------------------------------
RADIO & TELEVISION BROADCASTING--0.5%
- -----------------------------------------------------------
Hearst-Argyle Television* 78,500 1,624
----------
Total Radio & television broadcasting 1,624
----------
- -----------------------------------------------------------
RESIN, SYNTHETIC RUBBER, ARTIFICIAL &
SYNTHETIC FIBERS MANUFACTURING--0.7%
- -----------------------------------------------------------
Unifi* 500,300 2,407
----------
Total Resin, synthetic rubber, artificial &
synthetic fibers manufacturing 2,407
----------
- -----------------------------------------------------------
RUBBER PRODUCT MANUFACTURING--0.9%
- -----------------------------------------------------------
Cooper Tire & Rubber 229,750 2,803
----------
Total Rubber product manufacturing 2,803
----------
- -----------------------------------------------------------
SCHEDULED AIR TRANSPORTATION--0.3%
- -----------------------------------------------------------
Alaska Air Group*# 68,175 1,068
----------
Total Scheduled air transportation 1,068
----------
60 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER SMALL CAP VALUE FUND
Shares/Face Value
Amount (000) (000)
- -----------------------------------------------------------
SCIENTIFIC R&D SERVICES--0.3%
- -----------------------------------------------------------
Discovery Partners International* 342,650 $ 942
----------
Total Scientific R&D services 942
----------
- -----------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--3.3%
- -----------------------------------------------------------
Raymond James Financial# 148,750 3,848
SoundView Technology Group* 2,417,900 3,095
SWS Group 273,000 3,844
----------
Total Security & commodity contracts
intermediation & brokerage 10,787
----------
- -----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--1.5%
- -----------------------------------------------------------
LSI Logic* 415,400 1,878
Marvell Technology Group* 48,700 1,032
Methode Electronics, Cl A 230,500 1,867
----------
Total Semiconductor & other electronic
component manufacturing 4,777
----------
- -----------------------------------------------------------
STEEL PRODUCT MANUFACTURING
FROM PURCHASED STEEL--0.9%
- -----------------------------------------------------------
AK Steel Holding* 928,400 3,017
----------
Total Steel product manufacturing
from purchased steel 3,017
----------
- -----------------------------------------------------------
TELECOMMUNICATIONS--0.8%
- -----------------------------------------------------------
Mastec* 391,500 881
PTEK Holdings* 466,350 1,739
----------
Total Telecommunications 2,620
----------
- -----------------------------------------------------------
TOTAL COMMON STOCK
(COST $406,875) 319,215
- -----------------------------------------------------------
- -----------------------------------------------------------
REPURCHASE AGREEMENT--1.7%
- -----------------------------------------------------------
ABN-Amro (A)
1.300%, dated 03/31/03, matures
04/01/03, repurchase price
$5,489,829 (collateralized by
U.S. Government obligations,
total market value $5,599,808) $5,490 5,490
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $5,490) 5,490
- -----------------------------------------------------------
Value
(000)
- -----------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES (SEE NOTE 10)--3.5%
- -----------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio $ 11,516
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $11,516) 11,516
- -----------------------------------------------------------
- -----------------------------------------------------------
TOTAL INVESTMENTS--103.3%
(COST $423,881) 336,221
- -----------------------------------------------------------
- -----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(3.3)%
- -----------------------------------------------------------
Payable due to investment adviser (240)
Payable due to administrator (41)
Obligation to return securities lending
collateral (11,516)
Other assets and liabilities, net 939
- -----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (10,858)
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 23,496,212 outstanding shares
of beneficial interest 485,061
Distributions in excess of
net investment income (10)
Accumulated net realized loss
on investments (72,028)
Net unrealized depreciation
on investments (87,660)
- -----------------------------------------------------------
TOTAL NET ASSETS--100% $325,363
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $13.85
- -----------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2003.
(A) Tri-party repurchase agreement
ADR - American depository receipt
Cl - Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 61
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER SMALL CAP VALUE OPPORTUNITIES FUND
March 31, 2003
Value
Shares (000)
- -----------------------------------------------------------
COMMON STOCK--93.8%
- -----------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--1.0%
- -----------------------------------------------------------
Lone Star Technologies* 520 $ 11
----------
Total Agriculture, construction &
mining machinery manufacturing 11
----------
- -----------------------------------------------------------
ARCHITECTURAL & STRUCTURAL METALS
MANUFACTURING--1.4%
- -----------------------------------------------------------
Griffon* 1,200 15
----------
Total Architectural & structural metals
manufacturing 15
----------
- -----------------------------------------------------------
COAL MINING--0.5%
- -----------------------------------------------------------
Peabody Energy 200 6
----------
Total Coal mining 6
----------
- -----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--1.4%
- -----------------------------------------------------------
Paxar* 1,050 12
Symbol Technologies 500 4
----------
Total Computer & peripheral equipment
manufacturing 16
----------
- -----------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--5.6%
- -----------------------------------------------------------
Intergraph* 2,425 42
Tier Technologies, Cl B* 2,000 20
----------
Total Computer systems design &
related services 62
----------
- -----------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--17.0%
- -----------------------------------------------------------
BankAtlantic Bancorp, Cl A 2,490 25
Brookline Bancorp 1,080 14
Commercial Capital Bancorp* 890 10
First Niagara Financial Group 1,980 23
Greene County Bancshares 290 7
Hudson City Bancorp 1,450 29
Mercantile Bank 240 6
Peoples Bancorp 360 8
Peoples Bank Bridgeport 1,030 26
Provident Financial Services* 360 6
Value
Shares (000)
- -----------------------------------------------------------
Sky Financial Group 625 $ 12
Southern Financial Bancorp 197 6
Webster Financial 320 11
West Bancorporation 370 6
----------
Total Depository credit intermediation 189
----------
- -----------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--2.0%
- -----------------------------------------------------------
FTD, Cl A* 1,070 22
----------
Total Electronic shopping & mail-order houses 22
----------
- -----------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--2.7%
- -----------------------------------------------------------
IKON Office Solutions 4,290 30
----------
Total Electronics & appliance stores 30
----------
- -----------------------------------------------------------
FABRIC MILLS--2.0%
- -----------------------------------------------------------
Albany International, Cl A 940 22
----------
Total Fabric mills 22
----------
- -----------------------------------------------------------
FOOTWEAR MANUFACTURING--0.7%
- -----------------------------------------------------------
Maxwell Shoe, Cl A* 710 8
----------
Total Footwear manufacturing 8
----------
- -----------------------------------------------------------
GENERAL MEDICAL & SURGICAL HOSPITALS--0.8%
- -----------------------------------------------------------
Triad Hospitals* 350 9
----------
Total General medical & surgical hospitals 9
----------
- -----------------------------------------------------------
HEALTH & PERSONAL CARE STORES--0.9%
- -----------------------------------------------------------
NBTY* 510 10
----------
Total Health & personal care stores 10
----------
- -----------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--1.4%
- -----------------------------------------------------------
Imation* 430 16
----------
Total Industrial machinery
manufacturing 16
----------
- -----------------------------------------------------------
INFORMATION SERVICES--1.6%
- -----------------------------------------------------------
Interactive Data* 800 11
Plumtree Software* 1,700 7
----------
Total Information services 18
----------
62 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER SMALL CAP VALUE OPPORTUNITIES FUND
Value
Shares (000)
- -----------------------------------------------------------
INSURANCE CARRIERS--4.7%
- -----------------------------------------------------------
Alfa 660 $ 8
Allmerica Financial* 1,130 16
Everest Re Group 150 9
IPC Holdings* 480 14
Pacificare Health Systems* 220 5
----------
Total Insurance carriers 52
----------
- -----------------------------------------------------------
INVESTIGATION & SECURITY SERVICES--2.7%
- -----------------------------------------------------------
Pittston Brink's Group 2,135 30
----------
Total Investigation & security services 30
----------
- -----------------------------------------------------------
LIMITED-SERVICE EATING PLACES---1.5%
- -----------------------------------------------------------
Lone Star Steakhouse & Saloon 380 8
Triarc* 310 9
----------
Total Limited-service eating places 17
----------
- -----------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--3.1%
- -----------------------------------------------------------
Hanger Orthopedic Group* 400 5
Inamed* 400 14
Synovis Life Technologies* 550 6
Viasys Healthcare* 660 9
----------
Total Medical equipment & supplies
manufacturing 34
----------
- -----------------------------------------------------------
METAL ORE MINING--1.5%
- -----------------------------------------------------------
Apex Silver Mines*# 1,300 17
----------
Total Metal ore mining 17
----------
- -----------------------------------------------------------
NAVIGATIONAL/MEASURING/
MEDICAL/CONTROL INSTRUMENTS
MANUFACTURING--3.9%
- -----------------------------------------------------------
Analogic 200 9
EDO 1,080 20
United Industrial 1,140 14
----------
Total Navigational/measuring/
medical/control instruments
manufacturing 43
----------
Value
Shares (000)
- -----------------------------------------------------------
NEWSPAPER/PERIODICAL/BOOK/
DATABASE PUBLISHERS--3.8%
- -----------------------------------------------------------
Belo 520 $ 10
R.H. Donnelley* 1,065 32
----------
Total Newspaper/periodical/book/
database publishers 42
----------
- -----------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--2.2%
- -----------------------------------------------------------
Doral Financial 665 24
----------
Total Nondepository credit
intermediation 24
----------
- -----------------------------------------------------------
OTHER FABRICATED METAL PRODUCT
MANUFACTURING--0.8%
- -----------------------------------------------------------
Watts Industries, Cl A 550 9
----------
Total Other fabricated metal
product manufacturing 9
----------
- -----------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--1.3%
- -----------------------------------------------------------
Clarcor 390 14
----------
Total Other general purpose
machinery manufacturing 14
----------
- -----------------------------------------------------------
OTHER INVESTMENT POOLS & FUNDS--1.0%
- -----------------------------------------------------------
Rouse 320 11
----------
Total Other investment pools & funds 11
----------
- -----------------------------------------------------------
OTHER SPECIAL TRADE CONTRACTORS--1.2%
- -----------------------------------------------------------
Chicago Bridge & Iron, NY Shares 830 13
----------
Total Other special trade contractors 13
----------
- -----------------------------------------------------------
OTHER WOOD PRODUCT MANUFACTURING--2.3%
- -----------------------------------------------------------
Louisiana-Pacific* 3,310 26
----------
Total Other wood product
manufacturing 26
----------
TURNER FUNDS 2003 SEMIANNUAL REPORT 63
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER SMALL CAP VALUE OPPORTUNITIES FUND
Value
Shares (000)
- -----------------------------------------------------------
MANUFACTURING--0.8%
- -----------------------------------------------------------
Premcor* 360 $ 9
----------
Total Petroleum & coal products
manufacturing 9
----------
- -----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--5.0%
- -----------------------------------------------------------
Dade Behring Holdings* 590 11
Immucor* 1,230 27
Noven Pharmaceuticals* 680 10
Sangstat Medical* 750 7
----------
Total Pharmaceutical & medicine
manufacturing 55
----------
- -----------------------------------------------------------
PIPELINE TRANSPORTATION OF CRUDE OIL--0.7%
- -----------------------------------------------------------
Enbridge Energy Management 200 8
----------
Total Pipeline transportation of crude oil 8
----------
- -----------------------------------------------------------
PIPELINE TRANSPORTATION OF NATURAL GAS--2.3%
- -----------------------------------------------------------
Equitable Resources 380 14
Western Gas Resources 370 12
----------
Total Pipeline transportation of natural gas 26
----------
- -----------------------------------------------------------
PLASTICS PRODUCT MANUFACTURING--3.5%
- -----------------------------------------------------------
Applied Films* 800 13
Jarden* 1,010 26
----------
Total Plastics product manufacturing 39
----------
- -----------------------------------------------------------
PRINTING & RELATED SUPPORT ACTIVITIES--2.7%
- -----------------------------------------------------------
Moore* 2,830 30
----------
Total Printing & related
support activities 30
----------
- -----------------------------------------------------------
PULP, PAPER & PAPERBOARD MILLS--1.3%
- -----------------------------------------------------------
Temple-Inland 380 14
----------
Total Pulp, paper & paperboard mills 14
----------
Shares/Face Value
Amount (000) (000)
- -----------------------------------------------------------
RADIO & TELEVISION BROADCASTING--0.5%
- -----------------------------------------------------------
Gray Television 550 $ 5
----------
Total Radio & television broadcasting 5
----------
- -----------------------------------------------------------
RESIDENTIAL BUILDING CONSTRUCTION--3.3%
- -----------------------------------------------------------
Walter Industries 4,210 37
----------
Total Residential building construction 37
----------
- -----------------------------------------------------------
RESIN, SYNTHETIC RUBBER, ARTIFICIAL &
SYNTHETIC FIBERS MANUFACTURING--3.1%
- -----------------------------------------------------------
Lyondell Chemical 2,425 34
----------
Total Resin, synthetic rubber, artificial &
synthetic fibers manufacturing 34
----------
- -----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--1.6%
- -----------------------------------------------------------
Fairchild Semiconductor
International, Cl A* 920 10
Mykrolis* 1,020 8
----------
Total Semiconductor & other electronic
component manufacturing 18
----------
- -----------------------------------------------------------
TOTAL COMMON STOCK
(COST $1,006) 1,041
- -----------------------------------------------------------
- -----------------------------------------------------------
REPURCHASE AGREEMENT--6.0%
- -----------------------------------------------------------
Morgan Stanley (A)
1.000%, dated 03/31/03, matures
04/01/03, repurchase price
$66,730 (collateralized by
U.S. Government obligations,
total market value $68,063) $67 67
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $67) 67
- -----------------------------------------------------------
64 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER SMALL CAP VALUE OPPORTUNITIES FUND
Value
(000)
- -----------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES (SEE NOTE 10)--1.6%
- -----------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio $ 18
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $18) 18
- -----------------------------------------------------------
- -----------------------------------------------------------
TOTAL INVESTMENTS--101.4%
(COST $1,091) 1,126
- -----------------------------------------------------------
- -----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(1.4)%
- -----------------------------------------------------------
Receivable due from investment adviser 1
Obligation to return securities lending
lending collateral (18)
Other assets and liabilities, net 1
- -----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (16)
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class II Shares
(unlimited authorization -- no par value)
based on 119,050 outstanding shares
of beneficial interest 1,250
Undistributed net investment income 1
Accumulated net realized loss
on investments (176)
Net unrealized appreciation
on investments 35
- -----------------------------------------------------------
TOTAL NET ASSETS--100% $1,110
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS II SHARES $9.33
- -----------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2003.
(A) Tri-party repurchase agreement
Cl - Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 65
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER SMALL CAP EQUITY FUND
March 31, 2003
Value
Shares (000)
- -----------------------------------------------------------
COMMON STOCK--95.1%
- -----------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--1.1%
- -----------------------------------------------------------
Lone Star Technologies*# 4,580 $ 97
----------
Total Agriculture, construction & mining
machinery manufacturing 97
----------
- -----------------------------------------------------------
ARCHITECTURAL & STRUCTURAL METALS
MANUFACTURING--1.1%
- -----------------------------------------------------------
Griffon* 7,250 94
----------
Total Architectural & structural
metals manufacturing 94
----------
- -----------------------------------------------------------
AUDIO & VIDEO EQUIPMENT MANUFACTURING--0.8%
- -----------------------------------------------------------
Harman International Industries# 1,110 65
----------
Total Audio & video equipment
manufacturing 65
----------
- -----------------------------------------------------------
BASIC CHEMICAL MANUFACTURING--1.0%
- -----------------------------------------------------------
Aceto 3,525 46
Methanex 4,630 43
----------
Total Basic chemical manufacturing 89
----------
- -----------------------------------------------------------
COAL MINING--0.5%
- -----------------------------------------------------------
Peabody Energy 1,510 42
----------
Total Coal mining 42
----------
- -----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--0.4%
- -----------------------------------------------------------
Symbol Technologies 3,860 33
----------
Total Computer & peripheral equipment
manufacturing 33
----------
- -----------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--6.7%
- -----------------------------------------------------------
Factset Research Systems 1,610 52
Intergraph* 21,175 367
Tier Technologies, Cl B* 15,410 156
----------
Total Computer systems design &
related services 575
----------
Value
Shares (000)
- -----------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--12.0%
- -----------------------------------------------------------
Anchor Bancorp Wisconsin 3,220 $ 71
BankAtlantic Bancorp, Cl A 15,375 150
Brookline Bancorp 15,960 200
Commercial Capital Bancorp* 6,840 73
First Niagara Financial Group 12,090 142
Peoples Bank Bridgeport# 7,990 202
Provident Financial Services* 5,620 89
Webster Financial# 2,950 104
----------
Total Depository credit intermediation 1,031
----------
- -----------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--2.0%
- -----------------------------------------------------------
IKON Office Solutions 24,440 174
----------
Total Electronics & appliance stores 174
----------
- -----------------------------------------------------------
FULL-SERVICE RESTAURANTS--0.6%
- -----------------------------------------------------------
Rare Hospitality International* 1,790 50
----------
Total Full-service restaurants 50
----------
- -----------------------------------------------------------
GENERAL FREIGHT TRUCKING--0.5%
- -----------------------------------------------------------
Landstar System* 720 41
----------
Total General freight trucking 41
----------
- -----------------------------------------------------------
GENERAL MEDICAL & SURGICAL HOSPITALS--1.0%
- -----------------------------------------------------------
Triad Hospitals*# 3,030 82
----------
Total General medical & surgical hospitals 82
----------
- -----------------------------------------------------------
HEALTH & PERSONAL CARE STORES--1.0%
- -----------------------------------------------------------
NBTY*# 4,595 87
----------
Total Health & personal care stores 87
----------
- -----------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--1.4%
- -----------------------------------------------------------
Imation* 3,290 122
----------
Total Industrial machinery
manufacturing 122
----------
- -----------------------------------------------------------
INFORMATION SERVICES--1.0%
- -----------------------------------------------------------
Interactive Data* 6,140 86
----------
Total Information services 86
----------
66 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER SMALL CAP EQUITY FUND
Value
Shares (000)
- -----------------------------------------------------------
INSURANCE CARRIERS--2.3%
- -----------------------------------------------------------
Everest Re Group 1,510 $ 86
IPC Holdings* 3,710 112
----------
Total Insurance carriers 198
----------
- -----------------------------------------------------------
INVESTIGATION & SECURITY SERVICES--1.9%
- -----------------------------------------------------------
Pittston Brink's Group 11,515 160
----------
Total Investigation & security services 160
----------
- -----------------------------------------------------------
LIMITED-SERVICE EATING PLACES--2.1%
- -----------------------------------------------------------
Lone Star Steakhouse & Saloon# 3,400 72
Triarc* 3,990 111
----------
Total Limited-service eating places 183
----------
- -----------------------------------------------------------
MANAGEMENT, SCIENTIFIC & TECHNICAL
CONSULTING SERVICES--3.4%
- -----------------------------------------------------------
FTI Consulting* 6,360 294
----------
Total Management, scientific &
technical consulting services 294
----------
- -----------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--4.7%
- -----------------------------------------------------------
Hanger Orthopedic Group* 3,450 39
Inamed* 4,330 155
Kensey Nash* 2,160 44
Thoratec* 7,390 94
Viasys Healthcare* 5,080 71
----------
Total Medical equipment &
supplies manufacturing 403
----------
- -----------------------------------------------------------
METAL ORE MINING--1.6%
- -----------------------------------------------------------
Apex Silver Mines*# 10,040 135
----------
Total Metal ore mining 135
----------
- -----------------------------------------------------------
NATURAL GAS DISTRIBUTION--2.0%
- -----------------------------------------------------------
AGL Resources 3,650 86
Energen 2,570 83
----------
Total Natural gas distribution 169
----------
Value
Shares (000)
- -----------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/
CONTROL INSTRUMENTS MANUFACTURING--5.7%
- -----------------------------------------------------------
Analogic 3,970 $ 181
EDO 8,260 149
Igen International* 2,560 91
United Industrial 5,160 64
----------
Total Navigational/measuring/medical/
control instruments manufacturing 485
----------
- -----------------------------------------------------------
NEWSPAPER/PERIODICAL/BOOK/
DATABASE PUBLISHERS--3.8%
- -----------------------------------------------------------
Belo 4,030 82
R.H. Donnelley*# 8,205 243
----------
Total Newspaper/periodical/book/
database publishers 325
----------
- -----------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--2.1%
- -----------------------------------------------------------
Doral Financial# 5,105 180
----------
Total Nondepository credit intermediation 180
----------
- -----------------------------------------------------------
OIL & GAS EXTRACTION--1.7%
- -----------------------------------------------------------
Range Resources* 8,920 51
Ultra Petroleum* 10,930 96
----------
Total Oil & gas extraction 147
----------
- -----------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--1.3%
- -----------------------------------------------------------
Clarcor 3,000 109
----------
Total Other general purpose machinery
manufacturing 109
----------
- -----------------------------------------------------------
OTHER INVESTMENT POOLS & FUNDS--1.8%
- -----------------------------------------------------------
Alexandria Real Estate Equities 1,740 73
Rouse# 2,440 84
----------
Total Other investment pools & funds 157
----------
- -----------------------------------------------------------
OTHER SPECIAL TRADE CONTRACTORS--1.2%
- -----------------------------------------------------------
Chicago Bridge & Iron, NY Shares 6,400 104
----------
Total Other special trade contractors 104
----------
TURNER FUNDS 2003 SEMIANNUAL REPORT 67
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER SMALL CAP EQUITY FUND
Value
Shares (000)
- -----------------------------------------------------------
OTHER WOOD PRODUCT MANUFACTURING--2.2%
- -----------------------------------------------------------
Louisiana-Pacific* 23,390 $ 185
----------
Total Other wood product
manufacturing 185
----------
- -----------------------------------------------------------
PETROLEUM & COAL PRODUCTS
MANUFACTURING--0.9%
- -----------------------------------------------------------
Premcor* 3,160 81
----------
Total Petroleum & coal products
manufacturing 81
----------
- -----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--5.9%
- -----------------------------------------------------------
Connetics* 2,810 47
Dade Behring Holdings* 3,620 68
Immucor* 7,210 158
Noven Pharmaceuticals*# 5,240 74
Penwest Pharmaceuticals*# 3,320 53
Sepracor* 1,770 24
Trimeris*# 2,030 84
----------
Total Pharmaceutical & medicine
manufacturing 508
----------
- -----------------------------------------------------------
PIPELINE TRANSPORTATION OF CRUDE OIL--0.7%
- -----------------------------------------------------------
Enbridge Energy Management 1,510 60
----------
Total Pipeline transportation of crude oil 60
----------
- -----------------------------------------------------------
PLASTICS PRODUCT MANUFACTURING--3.5%
- -----------------------------------------------------------
Applied Films* 6,090 98
Jarden* 7,760 202
----------
Total Plastics product manufacturing 300
----------
- -----------------------------------------------------------
PRINTING & RELATED SUPPORT ACTIVITIES--2.4%
- -----------------------------------------------------------
Moore* 19,770 207
----------
Total Printing & related
support activities 207
----------
- -----------------------------------------------------------
RADIO & TELEVISION BROADCASTING--1.1%
- -----------------------------------------------------------
Gray Television 10,050 90
----------
Total Radio & television broadcasting 90
----------
Shares/Face Value
Amount (000) (000)
- -----------------------------------------------------------
REMEDIATION & OTHER WASTE
MANAGEMENT SERVICES--0.4%
- -----------------------------------------------------------
Stake Technology* 8,540 $ 34
----------
Total Remediation & other waste
management services 34
----------
- -----------------------------------------------------------
RESIDENTIAL BUILDING CONSTRUCTION--3.6%
- -----------------------------------------------------------
Walter Industries 35,080 306
----------
Total Residential building construction 306
----------
- -----------------------------------------------------------
RESIN, SYNTHETIC RUBBER, ARTIFICIAL & SYNTHETIC
FIBERS MANUFACTURING--2.6%
- -----------------------------------------------------------
Lyondell Chemical# 15,960 223
----------
Total Resin, synthetic rubber, artificial
& synthetic fibers manufacturing 223
----------
- -----------------------------------------------------------
SCIENTIFIC R&D SERVICES--0.8%
- -----------------------------------------------------------
Medicines*# 3,520 66
----------
Total Scientific R&D services 66
----------
- -----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--4.3%
- -----------------------------------------------------------
Fairchild Semiconductor
International, Cl A* 7,110 74
Intersil, Cl A*# 6,840 106
Mykrolis* 7,850 66
NAM TAI Electronics 4,715 119
----------
Total Semiconductor & other electronic
component manufacturing 365
----------
- -----------------------------------------------------------
TOTAL COMMON STOCK
(COST $7,941) 8,142
- -----------------------------------------------------------
- -----------------------------------------------------------
REPURCHASE AGREEMENT--4.3%
- -----------------------------------------------------------
Morgan Stanley (A)
1.000%, dated 03/31/03, matures
04/01/03, repurchase price
$363,616 (collateralized by
U.S. Government obligations,
total market value $370,878) $364 364
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $364) 364
- -----------------------------------------------------------
68 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER SMALL CAP EQUITY FUND
Value
(000)
- ---------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES (SEE NOTE 10)--23.0%
- ---------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio $ 1,966
- ---------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $1,966) 1,966
- ---------------------------------------------------------------
- ---------------------------------------------------------------
TOTAL INVESTMENTS--122.4%
(COST $10,271) 10,472
- ---------------------------------------------------------------
- ---------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(22.4)%
- ---------------------------------------------------------------
Payable due to investment adviser (4)
Payable due to administrator (1)
Obligation to return securities lending
collateral (1,966)
Other assets and liabilities, net 58
- ---------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (1,913)
- ---------------------------------------------------------------
- ---------------------------------------------------------------
NET ASSETS:
- ---------------------------------------------------------------
Portfolio capital of Class II Shares
(unlimited authorization -- no par value)
based on 925,624 outstanding shares
of beneficial interest 9,092
Distributions in excess of
net investment income (3)
Accumulated net realized loss
on investments (731)
Net unrealized appreciation
on investments 201
- ---------------------------------------------------------------
TOTAL NET ASSETS--100% $8,559
- ---------------------------------------------------------------
- ---------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS II SHARES $9.25
- ---------------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2003
(A) Tri-party repurchase agreement
Cl - Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER TECHNOLOGY FUND
March 31, 2003
Value
Shares (000)
- -----------------------------------------------------------
COMMON STOCK--99.7%
- -----------------------------------------------------------
ARCHITECTURAL, ENGINEERING &
RELATED SERVICES--3.0%
- -----------------------------------------------------------
Plexus*# 38,510 $ 352
----------
Total Architectural, engineering &
related services 352
----------
- -----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--19.0%
- -----------------------------------------------------------
Dell Computer* 22,310 609
EMC* 44,930 325
Hutchinson Technology*# 11,230 278
Network Appliance*# 33,460 374
Sandisk*# 13,980 235
Seagate Technology*# 17,070 176
Veritas Software* 14,930 263
----------
Total Computer & peripheral
equipment manufacturing 2,260
----------
- -----------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--2.1%
- -----------------------------------------------------------
McData, Cl A*# 29,420 253
----------
Total Computer systems design &
related services 253
----------
- -----------------------------------------------------------
ELECTRICAL GOODS WHOLESALE--1.3%
- -----------------------------------------------------------
Arris Group* 43,670 162
----------
Total Electrical goods wholesale 162
----------
- -----------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--2.5%
- -----------------------------------------------------------
Teradyne* 25,500 297
----------
Total Industrial machinery manufacturing 297
----------
- -----------------------------------------------------------
INFORMATION SERVICES--2.1%
- -----------------------------------------------------------
Juniper Networks* 31,280 255
----------
Total Information services 255
----------
- -----------------------------------------------------------
MOTION PICTURE & VIDEO INDUSTRIES--2.9%
- -----------------------------------------------------------
Pixar*# 6,320 342
----------
Total Motion picture & video industries 342
----------
Value
Shares (000)
- -----------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/
CONTROL INSTRUMENTS MANUFACTURING--1.5%
- -----------------------------------------------------------
Cognex*# 8,210 $ 174
----------
Total Navigational/measuring/medical/
control instruments manufacturing 174
----------
- -----------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT & COMPONENT
MANUFACTURING--5.5%
- -----------------------------------------------------------
American Power Conversion* 12,220 174
Corning* 82,400 481
----------
Total Other electrical equipment &
component manufacturing 655
----------
- -----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--8.1%
- -----------------------------------------------------------
Gilead Sciences*# 9,880 415
Medimmune* 4,770 157
Trimeris*# 9,550 393
----------
Total Pharmaceutical & medicine
manufacturing 965
----------
- -----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--41.7%
- -----------------------------------------------------------
Broadcom, Cl A* 24,990 309
Cree*# 14,500 268
Cypress Semiconductor* 43,360 299
Fairchild Semiconductor
International, Cl A*# 26,200 274
Flextronics International*# 34,460 300
GlobespanVirata* 67,180 302
Intel 31,640 515
JDS Uniphase* 92,920 265
Maxim Integrated Products 10,270 371
Micron Technology* 48,010 391
National Semiconductor* 21,720 370
Sanmina-SCI* 84,950 343
Semtech*# 18,000 273
Silicon Laboratories* 13,310 348
Xilinx* 14,590 342
----------
Total Semiconductor & other
electronic component
manufacturing 4,970
----------
70 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER TECHNOLOGY FUND
Value
Shares (000)
- -----------------------------------------------------------
SOFTWARE PUBLISHERS--5.3%
- -----------------------------------------------------------
F5 Networks* 19,780 $ 250
VeriSign* 43,120 377
----------
Total Software publishers 627
----------
- -----------------------------------------------------------
TELECOMMUNICATIONS--4.7%
- -----------------------------------------------------------
Adtran*# 5,890 211
Nortel Networks 166,750 347
----------
Total Telecommunications 558
----------
- -----------------------------------------------------------
TOTAL COMMON STOCK
(COST $11,365) 11,870
- -----------------------------------------------------------
- -----------------------------------------------------------
WARRANTS--0.0%
- -----------------------------------------------------------
MicroStrategy, Expires 06/24/07* 3,426 --
- -----------------------------------------------------------
TOTAL WARRANTS
(COST $0) --
- -----------------------------------------------------------
- -----------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES (SEE NOTE 10)--36.9%
- -----------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 4,400
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $4,400) 4,400
- -----------------------------------------------------------
- -----------------------------------------------------------
TOTAL INVESTMENTS--136.6%
(COST $15,765) 16,270
- -----------------------------------------------------------
- -----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(36.6)%
- -----------------------------------------------------------
Payable due to investment adviser (10)
Payable due to administrator (2)
Obligation to return securities lending
collateral (4,400)
Other assets and liabilities, net 50
- -----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (4,362)
- -----------------------------------------------------------
Value
(000)
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 3,623,223 outstanding shares
of beneficial interest $ 150,717
Accumulated net investment loss (71)
Accumulated net realized loss
on investments (139,243)
Net unrealized appreciation
on investments 505
- -----------------------------------------------------------
TOTAL NET ASSETS--100% $11,908
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $3.29
- -----------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2003.
Cl - Class
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 71
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER CONCENTRATED GROWTH FUND
March 31, 2003
Value
Shares (000)
- ------------------------------------------------------------
COMMON STOCK--98.6%
- ------------------------------------------------------------
AEROSPACE PRODUCT & PARTS
MANUFACTURING--4.3%
- ------------------------------------------------------------
Northrop Grumman 14,100 $ 1,210
----------
Total Aerospace product & parts
manufacturing 1,210
----------
- ------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--11.2%
- ------------------------------------------------------------
Dell Computer* 62,590 1,709
Network Appliance*# 79,480 890
Seagate Technology*# 55,310 571
----------
Total Computer & peripheral
equipment manufacturing 3,170
----------
- ------------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--5.4%
- ------------------------------------------------------------
Citigroup 44,190 1,522
----------
Total Depository credit intermediation 1,522
----------
- ------------------------------------------------------------
INFORMATION SERVICES--3.1%
- ------------------------------------------------------------
Juniper Networks*# 106,900 873
----------
Total Information services 873
----------
- ------------------------------------------------------------
INSURANCE CARRIERS--3.1%
- ------------------------------------------------------------
UnitedHealth Group 9,650 885
----------
Total Insurance carriers 885
----------
- ------------------------------------------------------------
MINING SUPPORT ACTIVITIES--7.2%
- ------------------------------------------------------------
BJ Services*# 33,590 1,155
Patterson-UTI Energy*# 27,040 875
----------
Total Mining support activities 2,030
----------
- ------------------------------------------------------------
MOTION PICTURE & VIDEO INDUSTRIES--7.3%
- ------------------------------------------------------------
Clear Channel Communications* 30,620 1,038
Pixar*# 18,950 1,025
----------
Total Motion picture &
video industries 2,063
----------
- ------------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT & COMPONENT
MANUFACTURING--3.5%
- ------------------------------------------------------------
Corning*# 169,420 989
----------
Total Other electrical equipment &
component manufacturing 989
----------
Value
Shares (000)
- ------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--16.2%
- ------------------------------------------------------------
Amgen* 22,830 $ 1,314
Gilead Sciences*# 18,250 767
Johnson & Johnson 26,510 1,534
Medimmune* 29,430 966
----------
Total Pharmaceutical & medicine
manufacturing 4,581
----------
- ------------------------------------------------------------
RADIO & TELEVISION BROADCASTING--4.2%
- ------------------------------------------------------------
Univision Communications, Cl A*# 48,810 1,196
----------
Total Radio & television broadcasting 1,196
----------
- ------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--26.8%
- ------------------------------------------------------------
Broadcom, Cl A* 72,160 891
Flextronics International* 112,070 977
Intel 97,620 1,589
JDS Uniphase* 248,580 708
Micron Technology* 67,570 550
National Semiconductor* 60,430 1,030
Sanmina-SCI* 224,720 908
Silicon Laboratories*# 35,620 932
----------
Total Semiconductor & other electronic
component manufacturing 7,585
----------
- ------------------------------------------------------------
SOFTWARE PUBLISHERS--6.3%
- ------------------------------------------------------------
Electronic Arts*# 16,180 949
VeriSign* 97,820 855
----------
Total Software publishers 1,804
----------
- ------------------------------------------------------------
TOTAL COMMON STOCK
(COST $27,467) 27,908
- ------------------------------------------------------------
- ------------------------------------------------------------
WARRANTS--0.0%
- ------------------------------------------------------------
MicroStrategy, Expires 06/24/07* 166 --
- ------------------------------------------------------------
TOTAL WARRANTS
(COST $0) --
- ------------------------------------------------------------
72 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER CONCENTRATED GROWTH FUND
Face Amount Value
(000) (000)
- -----------------------------------------------------------
REPURCHASE AGREEMENT--0.7%
- -----------------------------------------------------------
Morgan Stanley (A)
1.000%, dated 03/31/03, matures
04/01/03, repurchase price
$186,661 (collateralized by
U.S. Government obligations,
total market value $190,389) $187 $ 187
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $187) 187
- -----------------------------------------------------------
- -----------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES (SEE NOTE 10)--36.3%
- -----------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 10,264
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $10,264) 10,264
- -----------------------------------------------------------
- -----------------------------------------------------------
TOTAL INVESTMENTS--135.6%
(COST $37,918) 38,359
- -----------------------------------------------------------
- -----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(35.6)%
- -----------------------------------------------------------
Payable due to investment adviser (16)
Payable due to administrator (4)
Obligation to return securities lending
collateral (10,264)
Other assets and liabilities, net 220
- -----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (10,064)
- -----------------------------------------------------------
Value
(000)
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 6,803,846 outstanding shares
of beneficial interest $ 201,045
Accumulated net investment loss (95)
Accumulated net realized loss
on investments (173,096)
Net unrealized appreciation
on investments 441
- -----------------------------------------------------------
TOTAL NET ASSETS--100% $28,295
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $4.16
- -----------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2003.
(A) Tri-party repurchase agreement
Cl - Class
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 73
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER NEW ENTERPRISE FUND
March 31, 2003
Value
Shares (000)
- -----------------------------------------------------------
COMMON STOCK--99.4%
- -----------------------------------------------------------
COMMERCIAL/INDUSTRIAL EQUIPMENT
RENTAL & LEASING--3.2%
- -----------------------------------------------------------
Comverse Technology* 10,870 $ 123
----------
Total Commercial/industrial equipment
rental & leasing 123
----------
- -----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--3.4%
- -----------------------------------------------------------
Network Appliance*# 11,690 131
----------
Total Computer & peripheral equipment
manufacturing 131
----------
- -----------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--4.7%
- -----------------------------------------------------------
Avid Technology*# 8,170 181
----------
Total Computer systems design &
related services 181
----------
- -----------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--5.3%
- -----------------------------------------------------------
Lam Research*# 8,450 96
Novellus Systems*# 3,900 107
----------
Total Industrial machinery manufacturing 203
----------
- -----------------------------------------------------------
INFORMATION SERVICES--8.1%
- -----------------------------------------------------------
CNET Networks* 38,900 97
Juniper Networks* 13,180 108
Looksmart* 38,640 107
----------
Total Information services 312
----------
- -----------------------------------------------------------
MANAGEMENT, SCIENTIFIC & TECHNICAL
CONSULTING SERVICES--2.7%
- -----------------------------------------------------------
FTI Consulting* 2,280 105
----------
Total Management, scientific &
technical consulting services 105
----------
- -----------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--3.3%
- -----------------------------------------------------------
St. Jude Medical* 2,620 128
----------
Total Medical equipment & supplies
manufacturing 128
----------
Value
Shares (000)
- -----------------------------------------------------------
MOTOR VEHICLE MANUFACTURING--3.0%
- -----------------------------------------------------------
Navistar International* 4,770 $ 117
----------
Total Motor vehicle manufacturing 117
----------
- -----------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--5.0%
- -----------------------------------------------------------
American Express 3,450 114
Providian Financial* 12,170 80
----------
Total Nondepository credit intermediation 194
----------
- -----------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--6.4%
- -----------------------------------------------------------
Advanced Fibre Communication* 5,840 88
Corning* 26,860 157
----------
Total Other electrical equipment &
component manufacturing 245
----------
- -----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--10.2%
- -----------------------------------------------------------
Amgen* 1,210 69
Cephalon* 1,620 65
Medimmune* 4,270 140
Trimeris*# 2,860 118
----------
Total Pharmaceutical & medicine
manufacturing 392
----------
- -----------------------------------------------------------
SCIENTIFIC R&D SERVICES--3.7%
- -----------------------------------------------------------
Medicines*# 7,730 144
----------
Total Scientific R&D services 144
----------
- -----------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--1.3%
- -----------------------------------------------------------
Legg Mason 1,050 51
----------
Total Security & commodity contracts
intermediation & brokerage 51
----------
- -----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--21.7%
- -----------------------------------------------------------
Cree*# 5,380 100
Cypress Semiconductor* 20,490 141
Fairchild Semiconductor
International, Cl A* 14,670 154
74 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER NEW ENTERPRISE FUND
Value
Shares (000)
- -----------------------------------------------------------
Intel 5,420 $ 88
Micron Technology* 14,900 121
National Semiconductor* 8,320 142
Sanmina-SCI* 21,970 89
----------
Total Semiconductor & other electronic
component manufacturing 835
----------
- -----------------------------------------------------------
SOFTWARE PUBLISHERS--8.3%
- -----------------------------------------------------------
Electronic Arts*# 1,670 98
Micromuse* 19,940 104
VeriSign* 13,260 116
----------
Total Software publishers 318
----------
- -----------------------------------------------------------
TELECOMMUNICATIONS--6.1%
- -----------------------------------------------------------
Adtran*# 2,390 86
Nortel Networks 72,120 150
----------
Total Telecommunications 236
----------
- -----------------------------------------------------------
TRAVEL ARRANGEMENT &
RESERVATION SERVICES--3.0%
- -----------------------------------------------------------
Hotels.com, Cl A*# 2,030 117
----------
Total Travel arrangement &
reservation services 117
----------
- -----------------------------------------------------------
TOTAL COMMON STOCK
(COST $3,667) 3,832
- -----------------------------------------------------------
- -----------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES (SEE NOTE 10)--29.2%
- -----------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 1,126
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $1,126) 1,126
- -----------------------------------------------------------
- -----------------------------------------------------------
TOTAL INVESTMENTS--128.6%
(COST $4,793) 4,958
- -----------------------------------------------------------
Value
(000)
- -----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(28.6)%
- -----------------------------------------------------------
Receivable due from investment adviser $ 1
Obligation to return securities lending
collateral (1,126)
Other assets and liabilities, net 21
- -----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (1,104)
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 1,442,319 outstanding shares
of beneficial interest 14,910
Accumulated net investment loss (15)
Accumulated net realized loss
on investments (11,206)
Net unrealized appreciation
on investments 165
- -----------------------------------------------------------
TOTAL NET ASSETS--100% $3,854
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $2.67
- -----------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2003.
Cl - Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 75
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER FINANCIAL SERVICES FUND
March 31, 2003
Value
Shares (000)
- ------------------------------------------------------------
COMMON STOCK--97.2%
- ------------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--2.6%
- ------------------------------------------------------------
BISYS Group* 18,120 $ 296
----------
Total Computer systems design &
related services 296
----------
- ------------------------------------------------------------
DATA PROCESSING SERVICES--10.3%
- ------------------------------------------------------------
Affiliated Computer Services, Cl A* 7,090 314
First Data 15,360 569
Global Payments 9,220 281
----------
Total Data processing services 1,164
----------
- ------------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--34.2%
- ------------------------------------------------------------
Bank of America 8,970 600
Citigroup 17,940 618
Greenpoint Financial 5,700 255
New York Community Bancorp 12,130 361
Northern Trust 7,130 217
R&G Financial, Cl B 13,760 303
Sovereign Bancorp 29,410 407
TCF Financial 7,530 302
Wells Fargo 10,825 487
Zions Bancorporation 7,610 326
----------
Total Depository credit
intermediation 3,876
----------
- ------------------------------------------------------------
INSURANCE CARRIERS--7.6%
- ------------------------------------------------------------
American International Group 5,974 295
Principal Financial Group 14,540 395
Progressive 2,970 176
----------
Total Insurance carriers 866
----------
- ------------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--4.6%
- ------------------------------------------------------------
American Express 15,810 525
----------
Total Nondepository credit
intermediation 525
----------
Shares/Face Value
Amount (000) (000)
- ------------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--14.6%
- ------------------------------------------------------------
Affiliated Managers Group* 9,950 $ 414
Franklin Resources 13,910 458
Investors Financial Services 15,650 381
Neuberger Berman 14,040 396
----------
Total Other financial investment activities 1,649
----------
- ------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--23.3%
- ------------------------------------------------------------
Ameritrade Holding* 34,120 169
Bear Stearns 4,380 287
Goldman Sachs Group 8,560 583
Legg Mason 13,566 661
Lehman Brothers Holdings 9,720 561
Morgan Stanley 9,850 378
----------
Total Security & commodity contracts
intermediation & brokerage 2,639
----------
- ------------------------------------------------------------
TOTAL COMMON STOCK
(COST $11,503) 11,015
- ------------------------------------------------------------
- ------------------------------------------------------------
REPURCHASE AGREEMENT--3.8%
- ------------------------------------------------------------
Morgan Stanley (A)
1.000%, dated 03/31/03, matures
04/01/03, repurchase price
$425,075 (collateralized by
U.S. Government obligations,
total market value $433,564) $425 425
- ------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $425) 425
- ------------------------------------------------------------
- ------------------------------------------------------------
TOTAL INVESTMENTS--101.0%
(COST $11,928) 11,440
- ------------------------------------------------------------
- ------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(1.0)%
- ------------------------------------------------------------
Payable due to investment adviser (8)
Payable due to administrator (1)
Other assets and liabilities, net (105)
- ------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (114)
- ------------------------------------------------------------
76 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER FINANCIAL SERVICES FUND
Value
(000)
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 1,121,466 outstanding shares
of beneficial interest $ 12,602
Undistributed net investment income 1
Accumulated net realized loss
on investments (789)
Net unrealized depreciation
on investments (488)
- -----------------------------------------------------------
TOTAL NET ASSETS--100% $11,326
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $10.10
- -----------------------------------------------------------
* Non-income producing security
(A) Tri-party repurchase agreement
Cl - Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 77
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER HEALTHCARE & BIOTECHNOLOGY FUND
March 31, 2003
Value
Shares (000)
- -----------------------------------------------------------
COMMON STOCK--95.6%
- -----------------------------------------------------------
ADMINISTRATION OF HUMAN RESOURCE
PROGRAMS--2.1%
- -----------------------------------------------------------
Express Scripts* 3,830 $ 213
----------
Total Administration of human
resource programs 213
----------
- -----------------------------------------------------------
BUSINESS SUPPORT SERVICES--1.5%
- -----------------------------------------------------------
Icon ADR* 6,570 156
----------
Total Business support services 156
----------
- -----------------------------------------------------------
DRUGS & DRUGGISTS' SUNDRIES WHOLESALE--7.7%
- -----------------------------------------------------------
D&K Healthcare Resources 9,980 103
Henry Schein* 5,580 251
Medicis Pharmaceutical, Cl A*# 3,160 176
Priority Healthcare, Cl B*# 10,160 271
----------
Total Drugs & druggists' sundries wholesale 801
----------
- -----------------------------------------------------------
GENERAL MEDICAL & SURGICAL HOSPITALS--9.2%
- -----------------------------------------------------------
HCA 8,700 360
LifePoint Hospitals* 11,570 290
Triad Hospitals*# 7,930 213
Universal Health Services* 2,030 83
----------
Total General medical &
surgical hospitals 946
----------
- -----------------------------------------------------------
INSURANCE CARRIERS--9.2%
- -----------------------------------------------------------
Anthem* 4,810 319
Mid Atlantic Medical Services*# 7,060 286
UnitedHealth Group 3,730 342
----------
Total Insurance carriers 947
----------
- -----------------------------------------------------------
MEDICAL & DIAGNOSTIC LABORATORIES--2.5%
- -----------------------------------------------------------
Laboratory Corp. of
America Holdings*# 8,750 259
----------
Total Medical & diagnostic laboratories 259
----------
Value
Shares (000)
- -----------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--10.8%
- -----------------------------------------------------------
Biomet 3,170 $ 97
Boston Scientific* 3,640 148
Cooper 2,650 79
Respironics* 5,220 180
St. Jude Medical* 3,340 163
Steris*# 6,690 175
Varian Medical Systems* 4,160 224
Zimmer Holdings* 1,050 51
----------
Total Medical equipment &
supplies manufacturing 1,117
----------
- -----------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/
CONTROL INSTRUMENTS MANUFACTURING--1.3%
- -----------------------------------------------------------
Dentsply International 3,760 131
----------
Total Navigational/measuring/medical/
control instruments manufacturing 131
----------
- -----------------------------------------------------------
OFFICES OF PHYSICIANS--1.0%
- -----------------------------------------------------------
Caremark Rx* 5,730 104
----------
Total Offices of physicians 104
----------
- -----------------------------------------------------------
OTHER INVESTMENT POOLS & FUNDS--1.0%
- -----------------------------------------------------------
Ventas 8,940 104
----------
Total Other investment pools & funds 104
----------
- -----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--47.2%
- -----------------------------------------------------------
Allergan 3,670 250
Amgen* 8,910 513
Cephalon*# 4,070 163
Forest Laboratories* 6,680 360
Gilead Sciences*# 14,570 612
Johnson & Johnson 8,840 512
Medimmune* 11,495 377
Pharmaceutical Resources*# 8,280 352
Pharmacia 11,690 506
Taro Pharmaceuticals Industries*# 4,210 161
78 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER HEALTHCARE & BIOTECHNOLOGY FUND
Shares/Face Value
Amount (000) (000)
- -----------------------------------------------------------
Teva Pharmaceutical
Industries ADR# 2,610 $ 109
Trimeris*# 8,160 336
Wyeth 16,600 628
----------
Total Pharmaceutical & medicine
manufacturing 4,879
----------
- -----------------------------------------------------------
SCIENTIFIC R&D SERVICES--2.1%
- -----------------------------------------------------------
Medicines*# 11,850 221
----------
Total Scientific R&D services 221
----------
- -----------------------------------------------------------
TOTAL COMMON STOCK
(COST $9,086) 9,878
- -----------------------------------------------------------
- -----------------------------------------------------------
REPURCHASE AGREEMENT--4.4%
- -----------------------------------------------------------
Morgan Stanley (A)
1.000%, dated 03/31/03, matures
04/01/03, repurchase price
$457,946 (collateralized by
U.S. Government obligations,
total market value $467,092) $458 458
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $458) 458
- -----------------------------------------------------------
- -----------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES (SEE NOTE 10)--29.4%
- -----------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 3,036
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $3,036) 3,036
- -----------------------------------------------------------
- -----------------------------------------------------------
TOTAL INVESTMENTS--129.4%
(COST $12,580) 13,372
- -----------------------------------------------------------
Value
(000)
- -----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(29.4)%
- -----------------------------------------------------------
Payable due to investment adviser $ (9)
Payable due to administrator (1)
Payable due to shareholder servicing agent (2)
Obligation to return securities
lending collateral (3,036)
Other assets and liabilities, net 11
- -----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (3,037)
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class II Shares
(unlimited authorization -- no par value)
based on 1,003,226 outstanding shares
of beneficial interest 11,118
Accumulated net investment loss (83)
Accumulated net realized loss
on investments (1,492)
Net unrealized appreciation
on investments 792
- -----------------------------------------------------------
TOTAL NET ASSETS--100% $10,335
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS II SHARES $10.30
- -----------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2003.
(A) Tri-party repurchase agreement
ADR - American depository receipt
Cl - Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 79
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER TAX MANAGED U.S. EQUITY FUND
March 31, 2003
Value
Shares (000)
- -----------------------------------------------------------
COMMON STOCK--98.5%
- -----------------------------------------------------------
ADVERTISING & RELATED SERVICES--1.0%
- -----------------------------------------------------------
Omnicom Group 860 $ 47
----------
Total Advertising & related services 47
----------
- -----------------------------------------------------------
AEROSPACE PRODUCT & PARTS
MANUFACTURING--0.8%
- -----------------------------------------------------------
Northrop Grumman 450 39
----------
Total Aerospace product & parts
manufacturing 39
----------
- -----------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--1.0%
- -----------------------------------------------------------
Cooper Cameron* 900 45
----------
Total Agriculture, construction & mining
machinery manufacturing 45
----------
- -----------------------------------------------------------
BASIC CHEMICAL MANUFACTURING--1.9%
- -----------------------------------------------------------
E.I. du Pont de Nemours 2,300 89
----------
Total Basic chemical manufacturing 89
----------
- -----------------------------------------------------------
BEVERAGE MANUFACTURING--4.7%
- -----------------------------------------------------------
Coca-Cola 2,200 89
PepsiCo 3,290 132
----------
Total Beverage manufacturing 221
----------
- -----------------------------------------------------------
CABLE NETWORKS & PROGRAM DISTRIBUTION--1.6%
- -----------------------------------------------------------
Comcast, Cl A* 2,605 74
----------
Total Cable networks & program
distribution 74
----------
- -----------------------------------------------------------
COLLEGES, UNIVERSITIES &
PROFESSIONAL SCHOOLS--1.1%
- -----------------------------------------------------------
Apollo Group, Cl A* 1,000 50
----------
Total Colleges, universities &
professional schools 50
----------
- -----------------------------------------------------------
COMMERCIAL & SERVICE INDUSTRY
MACHINERY MANUFACTURING--1.1%
- -----------------------------------------------------------
3M 410 53
----------
Total Commercial & service industry
machinery manufacturing 53
----------
Value
Shares (000)
- -----------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--1.4%
- -----------------------------------------------------------
Cisco Systems* 5,070 $ 66
----------
Total Communications equipment
manufacturing 66
----------
- -----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--2.1%
- -----------------------------------------------------------
Dell Computer* 1,700 46
EMC* 5,100 37
Veritas Software* 950 17
----------
Total Computer & peripheral
equipment manufacturing 100
----------
- -----------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--0.5%
- -----------------------------------------------------------
BISYS Group* 1,500 24
----------
Total Computer systems design &
related services 24
----------
- -----------------------------------------------------------
COURIERS--1.4%
- -----------------------------------------------------------
United Parcel Service, Cl B 1,100 63
----------
Total Couriers 63
----------
- -----------------------------------------------------------
DATA PROCESSING SERVICES--4.0%
- -----------------------------------------------------------
Affiliated Computer Services, Cl A* 1,300 58
First Data 2,200 81
Fiserv* 1,550 49
----------
Total Data processing services 188
----------
- -----------------------------------------------------------
DEPARTMENT STORES--4.3%
- -----------------------------------------------------------
Kohl's* 1,250 71
Wal-Mart Stores 2,490 129
----------
Total Department stores 200
----------
- -----------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--8.4%
- -----------------------------------------------------------
Bank of America 1,440 96
Citigroup 5,140 177
Commerce Bancorp 950 38
Wells Fargo 1,780 80
----------
Total Depository credit intermediation 391
----------
80 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER TAX MANAGED U.S. EQUITY FUND
Value
Shares (000)
- -----------------------------------------------------------
ELECTRICAL EQUIPMENT MANUFACTURING--2.0%
- -----------------------------------------------------------
General Electric 3,700 $ 94
----------
Total Electrical equipment
manufacturing 94
----------
- -----------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--0.7%
- -----------------------------------------------------------
eBay* 390 33
----------
Total Electronic shopping & mail-order houses 33
----------
- -----------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--0.7%
- -----------------------------------------------------------
CDW Computer Centers* 830 34
----------
Total Electronics & appliance stores 34
----------
- -----------------------------------------------------------
FOOTWEAR MANUFACTURING--0.5%
- -----------------------------------------------------------
Nike, Cl B 470 24
----------
Total Footwear manufacturing 24
----------
- -----------------------------------------------------------
GENERAL MEDICAL & SURGICAL
HOSPITALS--0.5%
- -----------------------------------------------------------
HCA 600 25
----------
Total General medical &
surgical hospitals 25
----------
- -----------------------------------------------------------
GROCERY STORES--0.5%
- -----------------------------------------------------------
Whole Foods Market* 400 22
----------
Total Grocery stores 22
----------
- -----------------------------------------------------------
HEALTH & PERSONAL CARE STORES--1.3%
- -----------------------------------------------------------
Walgreen 2,090 62
----------
Total Health & personal care stores 62
----------
- -----------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--1.3%
- -----------------------------------------------------------
Kla-Tencor* 1,100 40
Lam Research* 1,800 20
----------
Total Industrial machinery manufacturing 60
----------
- -----------------------------------------------------------
INSURANCE CARRIERS--1.3%
- -----------------------------------------------------------
Anthem* 500 33
UnitedHealth Group 300 28
----------
Total Insurance carriers 61
----------
Value
Shares (000)
- -----------------------------------------------------------
LIMITED-SERVICE EATING PLACES--0.6%
- -----------------------------------------------------------
Starbucks* 1,100 $ 28
----------
Total Limited-service eating places 28
----------
- -----------------------------------------------------------
MEDICAL & DIAGNOSTIC LABORATORIES--0.6%
- -----------------------------------------------------------
Laboratory Corp. of America Holdings* 900 27
----------
Total Medical & diagnostic laboratories 27
----------
- -----------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--1.9%
- -----------------------------------------------------------
Biomet 900 28
Boston Scientific* 660 27
St. Jude Medical* 700 34
----------
Total Medical equipment &
supplies manufacturing 89
----------
- -----------------------------------------------------------
MINING SUPPORT ACTIVITIES--2.6%
- -----------------------------------------------------------
BJ Services* 1,630 56
ENSCO International 900 23
Halliburton 2,000 41
----------
Total Mining support activities 120
----------
- -----------------------------------------------------------
MOTION PICTURE & VIDEO INDUSTRIES--1.7%
- -----------------------------------------------------------
Clear Channel Communications* 1,660 56
Pixar* 400 22
----------
Total Motion picture & video industries 78
----------
- -----------------------------------------------------------
MOTOR VEHICLE MANUFACTURING--0.5%
- -----------------------------------------------------------
Navistar International* 900 22
----------
Total Motor vehicle manufacturing 22
----------
- -----------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/
CONTROL INSTRUMENTS MANUFACTURING--0.6%
- -----------------------------------------------------------
Danaher 400 26
----------
Total Navigational/measuring/medical/
control instruments manufacturing 26
----------
- -----------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--2.3%
- -----------------------------------------------------------
American Express 2,500 83
SLM 200 22
----------
Total Nondepository credit
intermediation 105
----------
TURNER FUNDS 2003 SEMIANNUAL REPORT 81
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER TAX MANAGED U.S. EQUITY FUND
Value
Shares (000)
- -----------------------------------------------------------
OIL & GAS EXTRACTION--2.4%
- -----------------------------------------------------------
Apache 473 $ 29
Murphy Oil 940 42
Occidental Petroleum 1,400 42
----------
Total Oil & gas extraction 113
----------
- -----------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--1.5%
- -----------------------------------------------------------
Investors Financial Services 2,780 68
----------
Total Other financial
investment activities 68
----------
- -----------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--0.5%
- -----------------------------------------------------------
SPX* 650 22
----------
Total Other general purpose
machinery manufacturing 22
----------
- -----------------------------------------------------------
OTHER LEATHER & ALLIED PRODUCT
MANUFACTURING--0.6%
- -----------------------------------------------------------
Coach* 700 27
----------
Total Other leather & allied product
manufacturing 27
----------
- -----------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--0.5%
- -----------------------------------------------------------
International Game Technology* 300 25
----------
Total Other miscellaneous manufacturing 25
----------
- -----------------------------------------------------------
PETROLEUM & COAL PRODUCTS
MANUFACTURING--0.6%
- -----------------------------------------------------------
Valero Energy 700 29
----------
Total Petroleum & coal products
manufacturing 29
----------
- -----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--11.4%
- -----------------------------------------------------------
Amgen* 1,300 75
Cephalon* 550 22
Forest Laboratories* 960 52
Gilead Sciences* 550 23
Value
Shares (000)
- -----------------------------------------------------------
Johnson & Johnson 1,850 $ 107
Medimmune* 1,300 43
Pharmacia 3,900 169
Wyeth 1,150 43
----------
Total Pharmaceutical & medicine
manufacturing 534
----------
- -----------------------------------------------------------
PIPELINE TRANSPORTATION OF NATURAL GAS--1.5%
- -----------------------------------------------------------
Kinder Morgan 1,570 71
----------
Total Pipeline transportation
of natural gas 71
----------
- -----------------------------------------------------------
RADIO & TELEVISION BROADCASTING--0.7%
- -----------------------------------------------------------
Univision Communications, Cl A* 1,300 32
----------
Total Radio & television broadcasting 32
----------
- -----------------------------------------------------------
SCHEDULED AIR TRANSPORTATION--0.4%
- -----------------------------------------------------------
Southwest Airlines 1,400 20
----------
Total Scheduled air transportation 20
----------
- -----------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--3.9%
- -----------------------------------------------------------
Bear Stearns 660 43
Goldman Sachs Group 1,300 89
Lehman Brothers Holdings 880 51
----------
Total Security & commodity contracts
intermediation & brokerage 183
----------
- -----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--7.7%
- -----------------------------------------------------------
Analog Devices* 1,180 32
Applied Materials* 2,700 34
Broadcom, Cl A* 2,780 34
Intel 7,770 127
JDS Uniphase* 10,600 30
National Semiconductor* 1,450 25
Tyco International 3,100 40
Xilinx* 1,500 35
----------
Total Semiconductor & other electronic
component manufacturing 357
----------
82 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER TAX MANAGED U.S. EQUITY FUND
Shares/Face Value
Amount (000) (000)
- -----------------------------------------------------------
SOAP, CLEANERS & TOILET PREPARATION
MANUFACTURING--2.2%
- -----------------------------------------------------------
Procter & Gamble 1,150 $ 102
----------
Total Soap, cleaners & toilet
preparation manufacturing 102
----------
- -----------------------------------------------------------
SOFTWARE PUBLISHERS--5.2%
- -----------------------------------------------------------
Electronic Arts* 1,050 61
Mercury Interactive* 800 24
Microsoft 6,560 159
----------
Total Software publishers 244
----------
- -----------------------------------------------------------
TELECOMMUNICATIONS--3.9%
- -----------------------------------------------------------
CenturyTel 1,450 40
Nortel Networks 11,000 23
Verizon Communications 2,720 96
Vodafone Group ADR 1,300 24
----------
Total Telecommunications 183
----------
- -----------------------------------------------------------
WATER, SEWAGE & OTHER SYSTEMS--0.6%
- -----------------------------------------------------------
Philadelphia Suburban 1,160 25
----------
Total Water, sewage & other systems 25
----------
- -----------------------------------------------------------
TOTAL COMMON STOCK
(COST $4,422) 4,595
- -----------------------------------------------------------
- -----------------------------------------------------------
REPURCHASE AGREEMENT--2.7%
- -----------------------------------------------------------
Morgan Stanley (A)
1.000%, dated 03/31/03, matures
04/01/03, repurchase price
$125,065 (collateralized by
U.S. Government obligations,
total market value $127,562) $125 125
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $125) 125
- -----------------------------------------------------------
- -----------------------------------------------------------
TOTAL INVESTMENTS--101.2%
(COST $4,547) 4,720
- -----------------------------------------------------------
Value
(000)
- -----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(1.2)%
- -----------------------------------------------------------
Receivable due from investment adviser $ 1
Payable due to administrator (1)
Payable due to shareholder servicing agent (1)
Other assets and liabilities, net (53)
- -----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (54)
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class II Shares
(unlimited authorization -- no par value)
based on 706,731 outstanding shares
of beneficial interest 7,532
Accumulated net investment loss (8)
Accumulated net realized loss
on investments (3,031)
Net unrealized appreciation
on investments 173
- -----------------------------------------------------------
TOTAL NET ASSETS--100% $4,666
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS II SHARES $6.60
- -----------------------------------------------------------
* Non-income producing security
(A) Tri-party repurchase agreement
ADR - American depository receipt
Cl - Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 83
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER STRATEGIC VALUE AND HIGH INCOME FUND
March 31, 2003
Value
Shares (000)
- -----------------------------------------------------------
EQUITY FUNDS--51.7%
- -----------------------------------------------------------
Turner Small Cap Value
Opportunities Fund, Cl II (A) 3,223 $ 30
- -----------------------------------------------------------
TOTAL EQUITY FUNDS
(COST $30) 30
- -----------------------------------------------------------
- -----------------------------------------------------------
FIXED INCOME FUNDS--55.2%
- -----------------------------------------------------------
Turner High Yield Fund, Cl I (A) 6,699 32
- -----------------------------------------------------------
TOTAL FIXED INCOME FUNDS
(COST $31) 32
- -----------------------------------------------------------
- -----------------------------------------------------------
TOTAL INVESTMENTS--106.9%
(COST $61) 62
- -----------------------------------------------------------
- -----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(6.9)%
- -----------------------------------------------------------
Receivable due from investment adviser 2
Other assets and liabilities, net (6)
- -----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (4)
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 5,673 outstanding shares
of beneficial interest 58
Distributions in excess of
net investment income (1)
Net unrealized appreciation
on investments 1
- -----------------------------------------------------------
TOTAL NET ASSETS--100% $58
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $10.31
- -----------------------------------------------------------
(A) Affiliated investment
Cl - Class
The accompanying notes are an integral part of the financial statements.
84 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER CORE FIXED INCOME FUND
March 31, 2003
Face Amount Value
(000) (000)
- -----------------------------------------------------------
U.S. TREASURY OBLIGATIONS--15.3%
- -----------------------------------------------------------
U.S. Treasury Bonds
8.125%, 05/15/21 $ 250 $ 352
7.500%, 11/15/16 1,500 1,970
7.250%, 05/15/16 1,700 2,186
7.250%, 08/15/22 900 1,172
6.375%, 08/15/27 450 540
- -----------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $5,551) 6,220
- -----------------------------------------------------------
- -----------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--2.3%
- -----------------------------------------------------------
FNMA, MTN
6.920%, 03/19/07 555 642
Private Export Funding
6.620%, 10/01/05 250 278
- -----------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS (COST $837) 920
- -----------------------------------------------------------
- -----------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS--36.9%
- -----------------------------------------------------------
FHLMC
Pool #277449
8.500%, 09/01/09 1 2
FHLMC CMO/REMIC
Ser 1546, Cl H
7.000%, 12/15/22 390 404
Ser 1561, Cl H
6.500%, 05/15/08 750 793
Ser 2522, Cl PB
4.750%, 11/15/14 2,500 2,586
FNMA
Pool #369214
5.000%, 04/01/09 192 199
Pool #535301
6.500%, 04/01/15 392 415
Pool #694431
5.000%, 03/01/18 1,000 1,029
FNMA CMO/REMIC,
Ser 1994-17, Cl H
6.000%, 02/25/09 602 643
Face Amount Value
(000) (000)
- -----------------------------------------------------------
GNMA
Pool #13125
8.000%, 10/15/06 $ 7 $ 8
Pool #187899
8.000%, 05/15/17 38 42
Pool #196477
10.000%, 04/15/10 30 33
Pool #202886
8.000%, 03/15/17 69 76
Pool #221235
8.500%, 07/15/17 23 25
Pool #331786
8.000%, 08/15/22 54 59
Pool #376400
6.500%, 02/15/24 379 401
Pool #439478
7.000%, 01/15/27 405 431
Pool #457921
5.500%, 12/15/28 594 613
Pool #462622
6.500%, 03/15/28 877 924
Pool #533974
6.500%, 05/15/32 499 525
Pool #570400
6.500%, 09/15/31 1,177 1,238
Pool #781029
6.500%, 05/15/29 264 278
Pool #781096
6.500%, 12/15/28 1,180 1,243
Pool #781231
7.000%, 12/15/30 622 660
Pool #781328
7.000%, 09/15/31 737 782
SLMA (A)
6.470%, 10/03/22 5,065 1,638
- -----------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED OBLIGATIONS (COST $14,523) 15,047
- -----------------------------------------------------------
- -----------------------------------------------------------
CORPORATE OBLIGATIONS--42.5%
- -----------------------------------------------------------
BUILDING & CONSTRUCTION PRODUCTS--0.5%
- -----------------------------------------------------------
Masco
6.125%, 09/15/03 200 204
----------
Total Building & construction products 204
----------
TURNER FUNDS 2003 SEMIANNUAL REPORT 85
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER CORE FIXED INCOME FUND
Face Amount Value
(000) (000)
- -----------------------------------------------------------
COSMETICS & TOILETRIES--3.4%
- -----------------------------------------------------------
Dial
7.000%, 08/15/06 $1,250 $ 1,381
----------
Total Cosmetics & toiletries 1,381
----------
- -----------------------------------------------------------
DATA PROCESSING SERVICES--4.6%
- -----------------------------------------------------------
First Data
4.700%, 11/01/06 1,000 1,056
First Data,
Ser D, MTN
5.800%, 12/15/08 750 839
----------
Total Data processing services 1,895
----------
- -----------------------------------------------------------
ELECTRICAL PRODUCTS & SERVICES--6.3%
- -----------------------------------------------------------
Emerson Electric
7.125%, 08/15/10 1,250 1,483
Scana, Ser B, MTN
5.810%, 10/23/08 1,000 1,103
----------
Total Electrical products & services 2,586
----------
- -----------------------------------------------------------
FINANCIAL SERVICES--2.5%
- -----------------------------------------------------------
Ford Motor Credit
6.700%, 07/16/04 1,000 1,019
----------
Total Financial services 1,019
----------
- -----------------------------------------------------------
FOOD, BEVERAGE & TOBACCO--7.2%
- -----------------------------------------------------------
Kraft Foods
5.250%, 06/01/07 1,000 1,040
Sysco
7.250%, 04/15/07 405 462
7.160%, 04/15/27 500 592
6.500%, 06/15/05 750 823
----------
Total Food, beverage & tobacco 2,917
----------
- -----------------------------------------------------------
GAS/NATURAL GAS--4.1%
- -----------------------------------------------------------
ChevronTexaco
8.110%, 12/01/04 160 172
Natural Fuel Gas,
Ser D, MTN
6.303%, 05/27/08 1,350 1,486
----------
Total Gas/natural gas 1,658
----------
Face Amount Value
(000) (000)
- -----------------------------------------------------------
MEDICAL PRODUCTS & SERVICES--2.9%
- -----------------------------------------------------------
Abbott Laboratories
5.600%, 10/01/03 $ 700 $ 715
HealthSouth (B)
8.500%, 02/01/08 1,000 460
----------
Total Medical products & services 1,175
----------
- -----------------------------------------------------------
PETROLEUM & FUEL PRODUCTS--3.3%
- -----------------------------------------------------------
Pioneer Natural Resources
8.875%, 04/15/05 1,250 1,330
----------
Total Petroleum & fuel products 1,330
----------
- -----------------------------------------------------------
RETAIL--3.9%
- -----------------------------------------------------------
Wal-Mart Stores
6.875%, 08/10/09 1,350 1,596
----------
Total Retail 1,596
----------
- -----------------------------------------------------------
TRUCKING--3.8%
- -----------------------------------------------------------
JB Hunt Transportation Services
6.250%, 09/01/03 750 764
Roadway
8.250%, 12/01/08 700 805
----------
Total Trucking 1,569
----------
- -----------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS
(COST $16,683) 17,330
- -----------------------------------------------------------
- -----------------------------------------------------------
REPURCHASE AGREEMENT--2.1%
- -----------------------------------------------------------
Morgan Stanley (C)
1.300%, dated 03/31/03, matures
04/01/03, repurchase price
$858,369 (collateralized by
U.S. Government obligations,
total market value $875,505) 858 858
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $858) 858
- -----------------------------------------------------------
- -----------------------------------------------------------
TOTAL INVESTMENTS--99.1%
(COST $38,452) 40,375
- -----------------------------------------------------------
86 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER CORE FIXED INCOME FUND
Value
(000)
- -----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--0.9%
- -----------------------------------------------------------
Payable due to investment adviser $ (14)
Payable due to administrator (6)
Other assets and liabilities, net 389
- -----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET 369
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 3,906,995 outstanding shares
of beneficial interest 38,649
Accumulated net realized gain
on investments 172
Net unrealized appreciation
on investments 1,923
- -----------------------------------------------------------
TOTAL NET ASSETS--100% $40,744
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $10.43
- -----------------------------------------------------------
(A) The rate reported is the effective yield at time of purchase.
(B) In default on interest payments
(C) Tri-party repurchase agreement
Cl - Class
CMO - Collateralized mortgage obligation
FHLMC - Federal home loan mortgage corporation
FNMA - Federal national mortgage association
GNMA - Government national mortgage association
MTN - Medium term note
REMIC - Real estate mortgage investment conduit
Ser - Series
SLMA - Student loan marketing association
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 87
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER TOTAL RETURN FIXED INCOME FUND
March 31, 2003
Face Amount Value
(000) (000)
- -----------------------------------------------------------
U.S. TREASURY OBLIGATIONS--92.3%
- -----------------------------------------------------------
U.S. Treasury Bills (A)
1.085%, 05/15/03 $2,600 $ 2,596
U.S. Treasury Notes
4.000%, 11/15/12 1,000 1,014
3.875%, 02/15/13 1,800 1,808
3.000%, 02/15/08 1,000 1,012
- -----------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $6,438) 6,430
- -----------------------------------------------------------
- -----------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS--2.1%
- -----------------------------------------------------------
FNMA CMO/REMIC
Ser G93-31, Cl PK
6.650%, 06/25/21 50 52
GNMA
Pool #780327
8.000%, 11/15/17 87 96
- -----------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS (COST $145) 148
- -----------------------------------------------------------
- -----------------------------------------------------------
ASSET-BACKED SECURITIES--0.3%
- -----------------------------------------------------------
MORTGAGE RELATED--0.3%
- -----------------------------------------------------------
Goldman Sachs Mortgage Securities II,
Ser 1998-C1, Cl A1
6.060%, 10/18/30 22 23
----------
Total Mortgage related 23
----------
- -----------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(COST $22) 23
- -----------------------------------------------------------
- -----------------------------------------------------------
CORPORATE OBLIGATIONS--2.5%
- -----------------------------------------------------------
AEROSPACE & DEFENSE--0.1%
- -----------------------------------------------------------
Sequa
9.000%, 08/01/09 10 10
----------
Total Aerospace & defense 10
----------
- -----------------------------------------------------------
AUTOMOTIVE & TRUCK PARTS--0.2%
- -----------------------------------------------------------
General Motors Acceptance
6.875%, 08/28/12 15 15
----------
Total Automotive & truck parts 15
----------
Face Amount Value
(000) (000)
- -----------------------------------------------------------
BROADCASTING, NEWSPAPERS & ADVERTISING--0.3%
- -----------------------------------------------------------
Houghton Mifflin (B)
9.875%, 02/01/13 $10 $ 11
Lamar Media
8.625%, 09/15/07 10 10
----------
Total Broadcasting, newspapers &
advertising 21
----------
- -----------------------------------------------------------
CONSUMER PRODUCTS--0.2%
- -----------------------------------------------------------
Central Garden and Pet (B)
9.125%, 02/01/13 10 10
----------
Total Consumer products 10
----------
- -----------------------------------------------------------
ELECTRICAL PRODUCTS & SERVICES--0.2%
- -----------------------------------------------------------
Sanmina-SCI (B)
10.375%, 01/15/10 10 11
----------
Total Electrical products & services 11
----------
- -----------------------------------------------------------
FINANCIAL SERVICES--0.5%
- -----------------------------------------------------------
CIT Group
7.750%, 04/02/12 15 17
Goldman Sachs
5.700%, 09/01/12 15 16
----------
Total Financial services 33
----------
- -----------------------------------------------------------
HOTELS & LODGING--0.1%
- -----------------------------------------------------------
Hilton Hotels
7.625%, 12/01/12 10 10
----------
Total Hotels & lodging 10
----------
- -----------------------------------------------------------
MACHINERY--0.2%
- -----------------------------------------------------------
John Deere Capital
5.100%, 01/15/13 15 15
----------
Total Machinery 15
----------
- -----------------------------------------------------------
MISCELLANEOUS MANUFACTURING--0.2%
- -----------------------------------------------------------
General Electric
5.000%, 02/01/13 15 15
----------
Total Miscellaneous manufacturing 15
----------
88 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER TOTAL RETURN FIXED INCOME FUND
Face Amount Value
(000) (000)
- -----------------------------------------------------------
PAPER & RELATED PRODUCTS--0.1%
- -----------------------------------------------------------
Georgia-Pacific
9.500%, 12/01/11 $ 10 $ 10
----------
Total Paper & related products 10
----------
- -----------------------------------------------------------
RETAIL--0.2%
- -----------------------------------------------------------
JC Penney
8.000%, 03/01/10 10 10
----------
Total Retail 10
----------
- -----------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS--0.2%
- -----------------------------------------------------------
Nextel Communications
9.500%, 02/01/11 10 11
----------
Total Telephones & telecommunications 11
----------
- -----------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS
(COST $166) 171
- -----------------------------------------------------------
- -----------------------------------------------------------
REPURCHASE AGREEMENT--2.4%
- -----------------------------------------------------------
Morgan Stanley (C)
1.000%, dated 03/31/03, matures
04/01/03, repurchase price
$170,058 (collateralized by
U.S. Government obligations,
total market value $173,454) 170 170
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $170) 170
- -----------------------------------------------------------
- -----------------------------------------------------------
TOTAL INVESTMENTS--99.6%
(COST $6,941) 6,942
- -----------------------------------------------------------
- -----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--0.4%
- -----------------------------------------------------------
Receivable due from investment adviser 1
Payable due to administrator (1)
Other assets and liabilities, net 26
- -----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET 26
- -----------------------------------------------------------
Value
(000)
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 708,099 outstanding shares
of beneficial interest $ 6,933
Undistributed net investment income 19
Accumulated net realized gain
on investments and option contracts 15
Net unrealized appreciation
on investments 1
- -----------------------------------------------------------
TOTAL NET ASSETS--100% $6,968
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $9.84
- -----------------------------------------------------------
(A) The rate reported is the effective yield at time of purchase.
(B) Security sold within the terms of a private placement memorandum, exempt
from registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in the program or other "accredited
investors".
(C) Tri-party repurchase agreement.
Cl - Class
CMO - Collateralized mortgage obligation
FNMA - Federal national mortgage association
GNMA - Government national mortgage association
REMIC - Real estate mortgage investment conduit
Ser - Series
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 89
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER HIGH YIELD FUND
March 31, 2003
Face Amount Value
(000) (000)
- -----------------------------------------------------------
CORPORATE OBLIGATIONS--87.3%
- -----------------------------------------------------------
AEROSPACE & DEFENSE--1.9%
- -----------------------------------------------------------
Sequa
9.000%, 08/01/09 $190 $ 188
----------
Total Aerospace & defense 188
----------
- -----------------------------------------------------------
APPAREL & TEXTILES--1.4%
- -----------------------------------------------------------
Levi Strauss (A)
12.250%, 12/15/12 150 142
----------
Total Apparel & textiles 142
----------
- -----------------------------------------------------------
BROADCASTING, NEWSPAPERS & ADVERTISING--4.6%
- -----------------------------------------------------------
Houghton Mifflin (A)
9.875%, 02/01/13 190 205
Lamar Media
8.625%, 09/15/07 140 146
Mediacom Broadband
11.000%, 07/15/13 100 112
----------
Total Broadcasting, newspapers &
advertising 463
----------
- -----------------------------------------------------------
BUILDING & CONSTRUCTION--1.5%
- -----------------------------------------------------------
K. Hovnanian Enterprises
8.875%, 04/01/12 150 151
----------
Total Building & construction 151
----------
- -----------------------------------------------------------
CHEMICAL MANUFACTURING--1.5%
- -----------------------------------------------------------
Lyondell Chemical
10.875%, 05/01/09 50 46
Lyondell Chemical, Ser A
9.625%, 05/01/07 100 100
----------
Total Chemical manufacturing 146
----------
- -----------------------------------------------------------
CONSUMER PRODUCTS--2.0%
- -----------------------------------------------------------
Central Garden and Pet (A)
9.125%, 02/01/13 190 199
----------
Total Consumer products 199
----------
- -----------------------------------------------------------
CONTAINERS & PACKAGING--5.4%
- -----------------------------------------------------------
Crown Euro Holdings (A)
9.500%, 03/01/11 200 200
Owens-Brockway Glass Container (A)
8.750%, 11/15/12 100 103
Face Amount Value
(000) (000)
- -----------------------------------------------------------
Radnor Holdings (A)
11.000%, 03/15/10 $250 $ 242
----------
Total Containers & packaging 545
----------
- -----------------------------------------------------------
COSMETICS & TOILETRIES--1.5%
- -----------------------------------------------------------
Chattem, Ser B#
8.875%, 04/01/08 150 153
----------
Total Cosmetics & toiletries 153
----------
- -----------------------------------------------------------
ELECTRICAL PRODUCTS & SERVICES--5.2%
- -----------------------------------------------------------
Flextronics International, Ser B#
8.750%, 10/15/07 150 157
Perkinelmer (A)
8.875%, 01/15/13 150 157
Sanmina-SCI (A)
10.375%, 01/15/10 190 205
----------
Total Electrical products & services 519
----------
- -----------------------------------------------------------
ENTERTAINMENT--4.9%
- -----------------------------------------------------------
Aztar
9.000%, 08/15/11 150 156
Park Place Entertainment
8.125%, 05/15/11 150 155
Six Flags
8.875%, 02/01/10 200 184
----------
Total Entertainment 495
----------
- -----------------------------------------------------------
FINANCIAL SERVICES--1.0%
- -----------------------------------------------------------
Williams Scotsman
9.875%, 06/01/07 100 97
----------
Total Financial services 97
----------
- -----------------------------------------------------------
FOOD, BEVERAGE & TOBACCO--1.6%
- -----------------------------------------------------------
Del Monte (A)
8.625%, 12/15/12 150 159
----------
Total Food, beverage & tobacco 159
----------
- -----------------------------------------------------------
HOTELS & LODGING--1.4%
- -----------------------------------------------------------
Hilton Hotels
7.625%, 12/01/12 140 140
----------
Total Hotels & lodging 140
----------
90 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER HIGH YIELD FUND
Face Amount Value
(000) (000)
- -----------------------------------------------------------
MACHINERY--2.2%
- -----------------------------------------------------------
Briggs & Stratton
8.875%, 03/15/11 $200 $ 216
----------
Total Machinery 216
----------
- -----------------------------------------------------------
MEDICAL PRODUCTS & SERVICES--5.2%
- -----------------------------------------------------------
Advanced Medical Optics
9.250%, 07/15/10 150 156
Ameripath (A)
10.500%, 04/01/13 250 258
Universal Hospital Services
10.250%, 03/01/08 110 107
----------
Total Medical products & services 521
----------
- -----------------------------------------------------------
METALS--6.8%
- -----------------------------------------------------------
AK Steel
7.750%, 06/15/12 150 137
Century Aluminum
11.750%, 04/15/08 150 150
Freeport-McMoran (A)#
10.125%, 02/01/10 200 207
Oregon Steel Mills
10.000%, 07/15/09 200 191
----------
Total Metals 685
----------
- -----------------------------------------------------------
PAPER & RELATED PRODUCTS--4.5%
- -----------------------------------------------------------
Georgia-Pacific
9.500%, 12/01/11 240 238
Jefferson Smurfit Container
8.250%, 10/01/12 200 214
----------
Total Paper & related products 452
----------
- -----------------------------------------------------------
PETROLEUM & FUEL PRODUCTS--6.5%
- -----------------------------------------------------------
Chesepeake Energy
7.750%, 01/15/15 200 206
Comstock Resources
11.250%, 05/01/07 70 75
Grant Prideco, Ser B
9.625%, 12/01/07 40 43
Great Lakes Carbon,
Ser B PIK
10.250%, 05/15/08 1 1
Face Amount Value
(000) (000)
- -----------------------------------------------------------
Tesoro Petroleum
9.625%, 04/01/12 $200 $ 171
Vintage Petroleum
8.625%, 02/01/09 150 154
----------
Total Petroleum & fuel products 650
----------
- -----------------------------------------------------------
REIT--0.5%
- -----------------------------------------------------------
Host Marriott, Ser E
8.375%, 02/15/06 55 54
----------
Total REIT 54
----------
- -----------------------------------------------------------
RENTAL EQUIPMENT--0.8%
- -----------------------------------------------------------
Universal Compression
9.875%, 02/15/08 75 79
----------
Total Rental equipment 79
----------
- -----------------------------------------------------------
RETAIL--6.6%
- -----------------------------------------------------------
Ferrellgas Partners
8.750%, 06/15/12 250 261
JC Penney
8.000%, 03/01/10 240 248
Winn-Dixie Stores
8.875%, 04/01/08 150 158
----------
Total Retail 667
----------
- -----------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS--9.5%
- -----------------------------------------------------------
Echostar DBS
9.375%, 02/01/09 200 213
Nextel Communications
9.500%, 02/01/11 190 201
Nextel Partners
11.000%, 03/15/10 100 98
Nortel Networks
6.125%, 02/15/06 200 183
Rogers Cantel
9.375%, 06/01/08 100 103
Time Warner
9.750%, 07/15/08 200 158
----------
Total Telephones & telecommunications 956
----------
TURNER FUNDS 2003 SEMIANNUAL REPORT 91
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER HIGH YIELD FUND
Shares/Face Value
Amount (000) (000)
- -----------------------------------------------------------
TRANSPORTATION--7.2%
- -----------------------------------------------------------
Stena
9.625%, 12/01/12 $ 200 $ 207
TFM
10.250%, 06/15/07 130 117
TRW Automotive (A)
11.000%, 02/15/13 200 199
United Auto Group
9.625%, 03/15/12 200 195
----------
Total Transportation 718
----------
- -----------------------------------------------------------
WASTE TREATMENT & DISPOSAL--3.6%
- -----------------------------------------------------------
Allied Waste North America, Ser B
10.000%, 08/01/09 195 202
Casella Waste Systems (A)
9.750%, 02/01/13 150 160
----------
Total Waste treatment & disposal 362
----------
- -----------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS
(COST $8,454) 8,757
- -----------------------------------------------------------
- -----------------------------------------------------------
COMMON STOCK--0.0%
- -----------------------------------------------------------
Chiquita Brands Escrow* 110,000 --
Pegasus Communications* 22 --
- -----------------------------------------------------------
TOTAL COMMON STOCK
(COST $2) --
- -----------------------------------------------------------
- -----------------------------------------------------------
PREFERRED STOCK--1.8%
- -----------------------------------------------------------
Crown Castle International PIK* 58 5
Granite Broadcasting* 1,600 105
Pegasus Satellite* 3 --
Sinclair Broadcast Group* 2,005 73
- -----------------------------------------------------------
TOTAL PREFERRED STOCKS
(COST $164) 183
- -----------------------------------------------------------
- -----------------------------------------------------------
REPURCHASE AGREEMENT--9.6%
- -----------------------------------------------------------
Morgan Stanley (B)
1.000%, dated 03/31/03, matures
04/01/03, repurchase price
$962,382 (collateralized by
U.S. Government obligations,
total market value $981,602) 962 962
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $962) 962
- -----------------------------------------------------------
Value
(000)
- -----------------------------------------------------------
HORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES (SEE NOTE 10)--2.6%
- -----------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio $ 261
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $261) 261
- -----------------------------------------------------------
- -----------------------------------------------------------
TOTAL INVESTMENTS--101.3%
(COST $9,843) 10,163
- -----------------------------------------------------------
- -----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(1.3)%
- -----------------------------------------------------------
Payable due to investment adviser (1)
Payable due to administrator (1)
Obligation to return securities lending
collateral (261)
Other assets and liabilities, net 137
- -----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (126)
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 2,122,612 outstanding shares
of beneficial interest 25,864
Distributions in excess of
net investment income (16)
Accumulated net realized loss
on investments (16,131)
Net unrealized appreciation
on investments 320
- -----------------------------------------------------------
TOTAL NET ASSETS--100% $10,037
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $4.73
- -----------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2003.
(A) Security sold within the terms of a private placement memorandum, exempt
from registration under section 144A of the Securities Act of 1933, as
amended, and may be sold only to dealers in the program or other "accredited
investors".
(B) Tri-party repurchase agreement
PIK - Payment-in-kind
REIT - Real estate investment trust
Ser - Series
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
92 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER ULTRA SHORT DURATION FIXED INCOME FUND
March 31, 2003
Face Amount Value
(000) (000)
- -----------------------------------------------------------
U.S. TREASURY OBLIGATIONS--4.5%
- -----------------------------------------------------------
U.S. Treasury Notes
5.625%, 02/15/06 $25,000 $ 27,594
- -----------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $27,361) 27,594
- -----------------------------------------------------------
- -----------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--4.5%
- -----------------------------------------------------------
FFCB
4.375%, 05/01/03 8,059 8,081
FHLB (A)
1.211%, 07/15/03 7,500 7,500
1.089%, 06/17/03 7,000 7,000
FHLB, Ser ZE06 (B)
2.000%, 02/06/06 5,000 5,001
- -----------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $27,571) 27,582
- -----------------------------------------------------------
- -----------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS--84.7%
- -----------------------------------------------------------
FHLMC
Pool #184967
7.750%, 08/01/08 110 117
FHLMC CMO/REMIC
Ser 1106, Cl E
7.500%, 07/15/06 14 14
Ser 1344, Cl F (A)
1.813%, 08/15/07 1,230 1,234
Ser 1377, Cl F (A)
1.813%, 09/15/07 830 834
Ser 1413, Cl F (A)
1.813%, 11/15/07 2,305 2,313
Ser 1515, Cl G
6.500%, 02/15/08 550 564
Ser 1526, Cl J
6.500%, 05/15/21 4,335 4,376
Ser 1544, Cl L (A)
2.040%, 07/15/08 479 481
Ser 1555, Cl PE
6.150%, 03/15/08 370 371
Ser 16, Cl PH
6.750%, 04/25/21 4,146 4,186
Ser 1608, Cl GA
9.000%, 06/15/21 1,377 1,443
Face Amount Value
(000) (000)
- -----------------------------------------------------------
Ser 161, Cl F
9.500%, 06/15/06 $ 15 $ 15
Ser 1832, Cl E
6.500%, 07/15/10 10,804 11,187
Ser 2059, Cl HA
5.750%, 12/15/25 3,088 3,099
Ser 2061, Cl PQ
5.250%, 06/15/23 2,380 2,384
Ser 2111, Cl UC
6.000%, 07/15/08 37 37
Ser 2123, Cl PC
6.000%, 07/15/21 10,000 10,158
Ser 2126, Cl MA
5.750%, 01/15/22 1,262 1,261
Ser 2126, Cl TB
6.000%, 08/15/11 1,835 1,857
Ser 2127, Cl PA
6.000%, 04/15/23 5,805 5,831
Ser 2127, Cl TB
6.000%, 10/15/09 6,663 6,708
Ser 2134, Cl PE
6.000%, 08/15/08 248 248
Ser 2135, Cl UB
6.000%, 07/15/09 680 681
Ser 2142, Cl F (A)
1.530%, 03/15/26 1,290 1,290
Ser 2162, Cl FC (A)
1.680%, 06/15/29 5,102 5,102
Ser 2216, Cl A
6.000%, 01/15/23 953 953
Ser 2280, Cl PC
6.000%, 06/15/27 10,992 11,167
Ser 2286, Cl A
6.000%, 06/15/25 4,676 4,708
Ser 2290, Cl A
6.000%, 05/15/26 2,508 2,533
Ser 2298, Cl PC
6.500%, 10/15/26 20,534 20,778
Ser 2299, Cl K
6.000%, 05/15/25 1,217 1,229
Ser 2303, Cl CB
5.850%, 11/15/24 4,438 4,449
Ser 2304, Cl PW
5.750%, 01/15/26 1,487 1,492
Ser 2307, Cl PB
6.000%, 12/15/26 6,584 6,642
TURNER FUNDS 2003 SEMIANNUAL REPORT 93
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER ULTRA SHORT DURATION FIXED INCOME FUND
Face Amount Value
(000) (000)
- -----------------------------------------------------------
Ser 2313, Cl JE
6.000%, 08/15/12 $ 4,251 $ 4,337
Ser 2316, Cl PE
6.500%, 09/15/24 2,340 2,345
Ser 2317, Cl DC
6.050%, 12/15/11 3,663 3,714
Ser 2317, Cl DN
6.050%, 12/15/11 3,019 3,061
Ser 2321, Cl PB
6.000%, 02/15/26 7,895 7,919
Ser 2325, Cl PB
6.000%, 02/15/25 10,124 10,201
Ser 2326, Cl PY
6.000%, 10/15/24 4,225 4,249
Ser 2341, Cl PG
5.750%, 10/15/26 6,631 6,715
Ser 2348, Cl AB
6.000%, 03/15/27 1,978 2,001
Ser 2356, Cl GA
6.000%, 06/15/11 2,513 2,541
Ser 2356, Cl SE
5.250%, 06/15/11 3,850 3,888
Ser 2359, Cl PA
6.000%, 08/15/10 2,262 2,276
Ser 2363, Cl PA
5.500%, 07/15/10 7,664 7,729
Ser 2391, Cl PJ
5.250%, 09/15/23 26,303 26,623
Ser 2394, Cl MA
5.000%, 08/15/11 7,757 7,845
Ser 2398, Cl DB
5.500%, 06/15/20 18,741 18,811
Ser 2406, Cl PB
5.500%, 01/15/19 6,636 6,643
Ser 2407, Cl BF
6.500%, 11/15/25 1,000 1,012
Ser 2420, Cl LA
6.000%, 03/15/11 951 964
Ser 2422, Cl CA
5.500%, 10/15/16 4,555 4,562
Ser 2425, Cl JB
6.000%, 08/15/06 10,819 10,827
Ser 2425, Cl JT
6.000%, 03/15/12 5,000 5,179
Ser 2427, Cl DA
5.500%, 04/15/07 3,024 3,034
Face Amount Value
(000) (000)
- -----------------------------------------------------------
Ser 2439, Cl KA
5.500%, 03/15/11 $ 1,781 $ 1,781
Ser 2439, Cl KB
5.500%, 11/15/16 10,000 10,063
Ser 2443, Cl TM
5.500%, 07/15/22 2,668 2,696
Ser 2454, Cl GM
6.000%, 05/15/32 4,000 4,016
Ser 2455, Cl DM
5.250%, 10/15/22 4,248 4,291
Ser 2456, Cl FH (A)
1.680%, 12/15/26 3,318 3,319
Ser 2469, Cl FM (A)
2.080%, 10/15/31 410 410
Ser 2488, Cl GC
6.000%, 09/15/28 1,523 1,552
Ser 2500, Cl FI (A)
2.338%, 09/15/17 932 931
Ser 2502, Cl FP (A)
1.930%, 05/15/31 3,233 3,236
Ser 2590, Cl UL
3.750%, 03/15/32 10,000 10,031
Ser 28, Cl PB
6.400%, 03/25/20 169 169
FNMA
Pool #190107
6.000%, 11/01/03 88 89
Pool #50984
6.000%, 02/01/04 114 115
FNMA CMO/REMIC
Ser 1992-182, Cl PZ
7.000%, 02/25/20 5,615 5,708
Ser 1993-121, Cl PK
6.500%, 10/25/21 2,919 2,940
Ser 1993-173, Cl F (A)
1.813%, 09/25/08 606 606
Ser 1993-225, Cl A
5.850%, 12/25/23 1,161 1,167
Ser 1993-46, Cl FA (A)
1.763%, 05/25/22 970 972
Ser 1993-80, Cl FA (A)
3.190%, 05/25/23 1,668 1,695
Ser 1998-36, Cl PM
6.250%, 11/18/22 388 388
Ser 1998-44, Cl QF
5.750%, 09/18/22 1,749 1,748
94 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER ULTRA SHORT DURATION FIXED INCOME FUND
Face Amount Value
(000) (000)
- -----------------------------------------------------------
Ser 1999-15, Cl C
6.250%, 01/25/27 $ 3,253 $ 3,298
Ser 1999-19, Cl TB
6.500%, 10/25/09 3,458 3,464
Ser 1999-35, Cl PD
6.000%, 06/25/20 5,000 5,077
Ser 1999-45, Cl VB
6.500%, 08/20/25 3,969 4,010
Ser 1999-57, Cl BC
6.500%, 08/20/25 1,116 1,117
Ser 2000-11, Cl TE
7.000%, 04/25/27 889 888
Ser 2001-20, Cl TC
6.000%, 05/25/27 18,932 19,216
Ser 2001-23, Cl DB
6.000%, 07/25/26 5,695 5,773
Ser 2001-23, Cl PC
6.500%, 04/25/26 1,874 1,877
Ser 2001-3, Cl PM
5.500%, 01/25/22 801 800
Ser 2001-35, Cl AK
6.000%, 07/25/26 14,465 14,647
Ser 2001-42, Cl OB
6.000%, 09/25/21 9,142 9,159
Ser 2001-53, Cl PE
6.500%, 10/25/24 12,065 12,125
Ser 2001-54, Cl PA
6.000%, 10/25/11 3,908 3,941
Ser 2001-62, Cl PD
5.500%, 05/25/21 5,000 5,038
Ser 2001-70, Cl PG
5.500%, 09/25/15 9,070 9,120
Ser 2001-72, Cl AB
6.000%, 04/25/24 9,912 10,003
Ser 2001-72, Cl NB
5.000%, 06/25/21 13,677 13,863
Ser 2001-81, Cl QB
6.000%, 09/25/21 6,000 6,031
Ser 2002-16, Cl PA
5.250%, 03/25/07 2,419 2,432
Ser 2002-36, Cl PL
5.500%, 12/25/21 13,150 13,382
Ser 2002-7, Cl TA
5.250%, 08/25/07 3,949 3,953
Face Amount Value
(000) (000)
- -----------------------------------------------------------
Ser 2002-74, Cl KA
5.500%, 08/25/06 $ 1,002 $ 1,001
Ser G93-14, Cl H
6.250%, 03/25/22 1,649 1,667
GNMA
Pool #8103 (A)
5.375%, 02/20/16 122 126
Pool #8111 (A)
5.375%, 03/20/16 548 565
Pool #8287 (A)
5.625%, 11/20/17 145 149
Pool #8297 (A)
5.625%, 12/20/17 233 240
Pool #8321 (A)
5.375%, 02/20/18 557 575
Pool #8333 (A)
5.375%, 03/20/18 361 373
Pool #8345 (A)
5.375%, 04/20/18 185 192
Pool #8366 (A)
5.375%, 06/20/18 212 218
Pool #8392 (A)
5.750%, 08/20/18 360 369
Pool #8404 (A)
5.750%, 09/20/18 13 14
Pool #8405 (A)
5.750%, 09/20/18 131 136
GNMA ARM
Pool #8108 (A)
5.375%, 03/20/16 150 154
Pool #8254 (A)
5.750%, 08/20/17 415 427
Pool #8266 (A)
5.750%, 09/20/17 312 322
Pool #8462 (A)
5.375%, 02/20/19 20 20
Pool #8489 (A)
5.375%, 04/20/19 237 245
GNMA CMO/REMIC
Ser 2001-61, Cl FY (A)
1.780%, 07/16/31 1,921 1,924
Ser 2002-19, Cl PA
5.500%, 03/20/25 4,646 4,669
Ser 2002-29, Cl GB
6.000%, 01/20/29 5,000 5,044
TURNER FUNDS 2003 SEMIANNUAL REPORT 95
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER ULTRA SHORT DURATION FIXED INCOME FUND
Face Amount Value
(000) (000)
- -----------------------------------------------------------
Ser 2002-48, Cl FG (A)
1.580%, 12/16/30 $ 20,666 $ 20,669
Ser 2002-58, Cl FA (A)
1.580%, 02/17/30 5,121 5,126
- -----------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS (COST $517,132) 517,580
- -----------------------------------------------------------
- -----------------------------------------------------------
ASSET-BACKED SECURITIES--2.7%
- -----------------------------------------------------------
AUTOMOTIVE--1.0%
- -----------------------------------------------------------
Americredit Automobile Receivables Trust,
Ser 2000-D, Cl A4 (A)
1.548%, 09/12/07 515 516
Ser 2001-A, Cl A4 (A)
1.572%, 12/12/07 5,800 5,795
----------
Total Automotive 6,311
----------
- -----------------------------------------------------------
CREDIT CARDS--0.4%
- -----------------------------------------------------------
Saks Credit Card Master Trust,
Ser 2001-2, Cl A (A)
1.520%, 12/15/09 2,000 2,011
Sears Credit Card,
Ser 1997-1, Cl A
6.200%, 07/16/07 167 168
----------
Total Credit cards 2,179
----------
- -----------------------------------------------------------
MORTGAGE RELATED--1.3%
- -----------------------------------------------------------
Chase Mortgage Finance,
Ser 1999-S8, Cl A1
6.350%, 07/25/29 1,183 1,188
CIT Equipment Collateral,
Ser 2002-VT1, Cl A2
2.900%, 06/21/04 1,790 1,797
Goldman Sachs Mortgage Securities II,
Ser 1998-C1, Cl A1
6.060%, 10/18/30 667 708
Face Amount Value
(000) (000)
- -----------------------------------------------------------
Prudential Home Mortgage Securities,
Ser 1993-29, Cl A11
6.750%, 08/25/08 $1,311 $ 1,309
Residential Funding Mortgage Securities,
Ser 1992-S39, Cl A8
7.500%, 11/25/07 188 188
Salomon Brothers Mortgage Securities VII,
Ser 2003-NBC1, Cl AV4 (A)
5.334%, 03/25/33 3,000 3,049
----------
Total Mortgage related 8,239
----------
- -----------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(COST $16,708) 16,729
- -----------------------------------------------------------
- -----------------------------------------------------------
REPURCHASE AGREEMENT--3.1%
- -----------------------------------------------------------
ABN-Amro (C)
1.300%, dated 03/31/03, matures
04/01/03, repurchase price
$18,793,153 (collateralized by
U.S. Government obligations,
total market value $19,168,325) 18,792 18,792
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $18,792) 18,792
- -----------------------------------------------------------
- -----------------------------------------------------------
TOTAL INVESTMENTS--99.5%
(COST $607,564) 608,277
- -----------------------------------------------------------
- -----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--0.5%
- -----------------------------------------------------------
Payable due to investment adviser (31)
Payable due to administrator (75)
Payable due to shareholder servicing agent (3)
Other assets and liabilities, net 3,180
- -----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET 3,071
- -----------------------------------------------------------
96 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER ULTRA SHORT DURATION FIXED INCOME FUND
Value
(000)
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 58,986,455 outstanding shares
of beneficial interest $ 601,994
Portfolio capital of Class II Shares
(unlimited authorization -- no par value)
based on 1,130,337 outstanding shares
of beneficial interest 11,477
Distributions in excess of
net investment income (124)
Accumulated net realized loss
on investments (2,712)
Net unrealized appreciation
on investments 713
- -----------------------------------------------------------
TOTAL NET ASSETS--100% $611,348
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $10.17
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS II SHARES $10.21
- -----------------------------------------------------------
(A) The rate reflected is the rate in effect on March 31, 2003. The date shown
is the final maturity date.
(B) Delayed interest (step-bonds) -- represents securities that remain
zero-coupon securities until a predeterminded date at which time the stated
coupon rate becomes effective and interest becomes payable at regular
intervals. The interest rate disclosed represents the current rate in
effect.
(C) Tri-party repurchase agreement
ARM - Adjustable rate mortgage
Cl - Class
CMO - Collateralized mortgage obligation
FFCB - Federal farm credit bank
FHLB - Federal home loan bank
FHLMC - Federal home loan mortgage corporation
FNMA - Federal national mortgage association
GNMA - Government national mortgage association
REMIC - Real estate mortgage investment conduit
Ser - Series
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 97
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER SHORT DURATION FIXED INCOME FUND
March 31, 2003
Face Amount Value
(000) (000)
- -----------------------------------------------------------
U.S. TREASURY OBLIGATIONS--4.5%
- -----------------------------------------------------------
U.S. Treasury Notes
3.000%, 02/15/08 $10,000 $ 10,117
U.S. Treasury Notes TIPS
3.000%, 07/15/12 3,233 3,518
- -----------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $13,576) 13,635
- -----------------------------------------------------------
- -----------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--3.1%
- -----------------------------------------------------------
FHLB Ser MS07
4.850%, 07/02/07 325 328
SLMA (A)
1.439%, 09/15/05 9,000 9,001
- -----------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY
OBLIGATIONS (COST $9,326) 9,329
- -----------------------------------------------------------
- -----------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS--71.7%
- -----------------------------------------------------------
FHLMC
Pool #C66916
7.000%, 05/01/32 2,394 2,522
Pool #C71851
7.500%, 12/01/25 732 787
Pool #D94598
6.500%, 04/01/21 1,344 1,411
Pool #E85642
5.500%, 10/01/16 1,272 1,321
Pool #G10288
6.000%, 09/01/09 157 164
Pool #G10446
6.500%, 02/01/11 277 294
Pool #G30085
7.500%, 10/01/17 1,127 1,208
FHLMC CMO/REMIC
Ser 1093, Cl F
7.500%, 06/15/06 90 89
Ser 1515, Cl G
6.500%, 02/15/08 1,210 1,241
Ser 1523, Cl PK
5.000%, 04/15/21 2,370 2,390
Ser 1538, Cl J
6.500%, 06/15/08 160 177
Ser 1555, Cl PE
6.150%, 03/15/08 97 97
Ser 161, Cl F
9.500%, 06/15/06 432 433
Face Amount Value
(000) (000)
- -----------------------------------------------------------
Ser 2091, Cl PN
6.000%, 01/15/18 $ 1,021 $ 1,023
Ser 2095, Cl CA
6.250%, 02/15/26 1,513 1,519
Ser 2125, Cl TB
6.000%, 10/15/08 746 746
Ser 2126, Cl MA
5.750%, 01/15/22 808 808
Ser 2162, Cl FC (A)
1.680%, 06/15/29 2,534 2,534
Ser 2216, Cl A
6.000%, 01/15/23 540 540
Ser 2280, Cl PC
6.000%, 06/15/27 3,062 3,111
Ser 2286, Cl A
6.000%, 06/15/25 2,217 2,233
Ser 2307, Cl PB
6.000%, 12/15/26 3,641 3,673
Ser 2317, Cl DC
6.050%, 12/15/11 2,013 2,041
Ser 2321, Cl PB
6.000%, 02/15/26 1,974 1,980
Ser 2341, Cl PG
5.750%, 10/15/26 4,421 4,477
Ser 2359, Cl PA
6.000%, 08/15/10 2,262 2,276
Ser 2369, Cl A
6.500%, 07/15/28 1,899 1,927
Ser 2395, Cl GX
6.000%, 04/15/29 2,801 2,858
Ser 2412, Cl BK
5.500%, 08/15/27 3,085 3,139
Ser 2424, Cl OB
5.250%, 04/15/08 500 505
Ser 2425, Cl JB
6.000%, 08/15/06 5,233 5,236
Ser 2427, Cl DA
5.500%, 04/15/07 1,240 1,244
Ser 2451, Cl PW
5.500%, 07/15/22 5,000 5,081
Ser 2454, Cl GM
6.000%, 05/15/32 7,000 7,027
Ser 2455, Cl DM
5.250%, 10/15/22 2,889 2,918
Ser 2459, Cl GB
5.500%, 07/15/21 10,000 10,057
Ser 2463, Cl PL
5.500%, 10/15/19 3,900 3,958
98 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER SHORT DURATION FIXED INCOME FUND
Face Amount Value
(000) (000)
- -----------------------------------------------------------
Ser 2469, Cl FM (A)
2.080%, 10/15/31 $ 275 $ 275
Ser 2484, Cl PA
6.000%, 04/15/22 8,449 8,671
Ser 2490, Cl VA
6.000%, 02/15/14 125 132
Ser 2500, Cl FI (A)
2.338%, 09/15/17 699 698
Ser 2502, Cl CA
4.250%, 12/15/12 3,397 3,446
Ser 2502, Cl FP (A)
1.930%, 05/15/31 2,425 2,427
Ser 2509, Cl EA
4.000%, 12/15/12 4,394 4,444
Ser 2581, Cl PW
3.000%, 04/15/16 3,000 3,023
Ser 2590, Cl QY
3.750%, 03/15/33 4,726 4,735
Ser 2590, Cl UL
3.750%, 03/15/32 9,500 9,530
FNMA
Pool #250477
6.000%, 01/01/11 150 158
Pool #303096
7.500%, 12/01/09 417 447
Pool #334593
7.000%, 05/01/24 71 75
Pool #6222
9.000%, 04/01/16 115 126
Pool #647567
6.000%, 06/01/17 2,064 2,160
Pool #8245
8.000%, 12/01/08 207 223
FNMA CMO/REMIC
Ser 1991-133, Cl Z
8.000%, 09/25/06 641 682
Ser 1991-72, Cl G
8.000%, 07/25/06 73 78
Ser 1993-18, Cl PK
6.500%, 02/25/08 711 785
Ser 1993-202, Cl PH
6.500%, 02/25/22 1,816 1,856
Ser 1993-225, Cl A
5.850%, 12/25/23 860 865
Ser 1993-80, Cl FA (A)
3.190%, 05/25/23 2,564 2,606
Ser 1994-27, Cl PJ
6.500%, 06/25/23 689 728
Ser 1997-81, Cl PC
5.000%, 04/18/27 2,994 3,050
Face Amount Value
(000) (000)
- -----------------------------------------------------------
Ser 1998-44, Cl QF
5.750%, 09/18/22 $ 1,050 $ 1,049
Ser 1999-15, Cl C
6.250%, 01/25/27 2,091 2,120
Ser 1999-15, Cl PC
6.000%, 09/25/18 135 144
Ser 2001-19, Cl LB
6.000%, 04/25/26 2,287 2,311
Ser 2001-41, Cl BA
6.000%, 06/25/28 2,180 2,223
Ser 2001-53, Cl PE
6.500%, 10/25/24 6,784 6,818
Ser 2001-56, Cl LN
5.750%, 07/25/26 5,000 5,028
Ser 2001-6, Cl AD
5.750%, 11/25/28 3,356 3,423
Ser 2001-81, Cl QB
6.000%, 09/25/21 3,500 3,518
Ser 2002-36, Cl HP
6.500%, 12/25/29 2,174 2,231
Ser 2002-37, Cl AC
6.000%, 04/25/29 5,430 5,570
Ser 2002-7, Cl TA
5.250%, 08/25/07 3,167 3,171
Ser 2002-72, Cl A
5.000%, 10/25/15 4,350 4,492
Ser 2002-74, Cl KA
5.500%, 08/25/06 601 601
Ser 2003-30, Cl MB
4.000%, 03/25/33 3,000 3,000
Ser 2003-7, Cl PA
4.500%, 03/25/20 2,000 2,078
Ser G93-31, Cl PK
6.650%, 06/25/21 900 922
Ser 2002-60, Cl F1 (A)
1.705%, 06/25/32 4,735 4,748
FNMA TBA
4.500%, 06/15/18 10,000 10,044
GNMA
Pool #2707
5.500%, 01/20/14 42 44
Pool #2802
5.500%, 07/20/14 32 34
Pool #2843
5.500%, 11/20/14 619 650
Pool #344233
8.000%, 02/15/23 485 532
Pool #345123
8.000%, 12/15/23 542 595
TURNER FUNDS 2003 SEMIANNUAL REPORT 99
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER SHORT DURATION FIXED INCOME FUND
Face Amount Value
(000) (000)
- -----------------------------------------------------------
Pool #351122
6.500%, 07/15/08 $ 189 $ 202
Pool #357343
6.500%, 10/15/08 72 77
Pool #462486
6.500%, 01/15/13 326 348
Pool #569337
6.500%, 04/15/22 347 367
Pool #578189
6.000%, 02/15/32 148 155
Pool #68224
8.000%, 06/15/12 377 413
Pool #780322
8.000%, 11/15/22 551 606
Pool #780327
8.000%, 11/15/17 144 158
Pool #814
8.000%, 08/20/17 498 543
Pool #8320 (A)
5.375%, 02/20/18 347 354
Pool #8426 (A)
5.625%, 11/20/18 86 89
GNMA ARM
Pool #8108 (A)
5.375%, 03/20/16 665 681
Pool #8254 (A)
5.750%, 08/20/17 431 444
Pool #8266 (A)
5.750%, 09/20/17 398 410
GNMA CMO/REMIC
Ser 2001-61, Cl FY (A)
1.780%, 07/16/31 1,614 1,616
Ser 2002-13, Cl A
6.000%, 10/16/30 4,919 5,077
Ser 2002-17, Cl A
6.000%, 08/20/25 2,760 2,834
Ser 2002-58, Cl FA (A)
1.580%, 02/17/30 2,561 2,563
- -----------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-BACKED
OBLIGATIONS (COST $215,348) 216,548
- -----------------------------------------------------------
- -----------------------------------------------------------
ASSET-BACKED SECURITIES--7.1%
- -----------------------------------------------------------
AUTOMOTIVE--0.7%
- -----------------------------------------------------------
Americredit Automobile Receivables Trust,
Ser 2001-A, Cl A4 (A)
1.572%, 12/12/07 2,000 1,998
----------
Total Automotive 1,998
----------
Face Amount Value
(000) (000)
- -----------------------------------------------------------
CREDIT CARDS--1.4%
- -----------------------------------------------------------
Citibank Credit Card Issuance Trust,
Ser 2001-A6, Cl A6
5.650%, 06/16/08 $1,875 $ 2,046
Discover Card Master Trust I,
Ser 2000-9, Cl A
6.350%, 07/15/08 150 165
Saks Credit Card Master Trust,
Ser 2001-2, Cl A (A)
1.520%, 12/15/09 2,000 2,012
----------
Total Credit cards 4,223
----------
- -----------------------------------------------------------
MORTGAGE RELATED--4.3%
- -----------------------------------------------------------
CIT Equipment Collateral,
Ser 2002-VT1, Cl A2
2.900%, 06/21/04 978 982
Countrywide Home Loans,
Ser 1999-3, Cl A2
6.050%, 04/25/29 4,715 4,764
Goldman Sachs Mortgage
Securities II,
Ser 1998-C1, Cl A1
6.060%, 10/18/30 693 735
Morgan Stanley Capital I,
Ser 1998-XL1, Cl A2
6.450%, 06/03/30 2,865 3,111
Residential Funding
Mortgage Securities,
Ser 1992-S39, Cl A8
7.500%, 11/25/07 188 188
Salomon Brothers Mortgage
Securities VII,
Ser 2003-NBC1, Cl AV4 (A)
5.334%, 03/25/33 3,000 3,049
----------
Total Mortgage related 12,829
----------
- -----------------------------------------------------------
OTHER--0.7%
- -----------------------------------------------------------
Peco Energy Transition Trust,
Ser 1999-A, Cl A6
6.050%, 03/01/09 125 138
Ser 1999-A, Cl A7
6.130%, 03/01/09 1,875 2,109
----------
Total Other 2,247
----------
- -----------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(COST $20,824) 21,297
- -----------------------------------------------------------
100 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
STATEMENT OF NET ASSETS
TURNER SHORT DURATION FIXED INCOME FUND
Face Amount Value
(000) (000)
- -----------------------------------------------------------
CORPORATE OBLIGATIONS--4.5%
- -----------------------------------------------------------
ELECTRICAL PRODUCTS & SERVICES--0.5%
- -----------------------------------------------------------
National Rural Utilities
6.000%, 01/15/04 $ 1,450 $ 1,503
----------
Total Electrical products & services 1,503
----------
- -----------------------------------------------------------
FINANCIAL SERVICES--3.9%
- -----------------------------------------------------------
American General Finance,
Ser F, MTN
5.875%, 07/14/06 1,975 2,152
CIT Group
6.500%, 02/07/06 2,475 2,638
Household Finance#
8.000%, 05/09/05 2,450 2,710
Lehman Brothers Holdings
6.625%, 02/05/06 2,475 2,747
Morgan Stanley
6.500%, 11/01/05 1,475 1,613
----------
Total Financial services 11,860
----------
- -----------------------------------------------------------
PAINT, COATING & ADHESIVE MANUFACTURING--0.1%
- -----------------------------------------------------------
Sherwin-Williams
6.850%, 02/01/07 240 265
----------
Total Paint, coating & adhesive
manufacturing 265
----------
- -----------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS
(COST $13,042) 13,628
- -----------------------------------------------------------
- -----------------------------------------------------------
REPURCHASE AGREEMENT--11.9%
- -----------------------------------------------------------
ABN-Amro (B)
1.300%, dated 03/31/03, matures
04/01/03, repurchase price $35,948,460
(collateralized by U.S. Government
obligations, total market
value $36,666,719) 35,947 35,947
- -----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $35,947) 35,947
- -----------------------------------------------------------
- -----------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES (SEE NOTE 10)--0.9%
- -----------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 2,699
- -----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $2,699) 2,699
- -----------------------------------------------------------
Value
(000)
- -----------------------------------------------------------
TOTAL INVESTMENTS--103.7%
(COST $310,762) $313,083
- -----------------------------------------------------------
- -----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(3.7)%
- -----------------------------------------------------------
Payable due to investment adviser (9)
Payable due to administrator (38)
Payable due to shareholder servicing agent (2)
Obligation to return securities
lending collateral (2,699)
Other assets and liabilities, net (8,413)
- -----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (11,161)
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSETS:
- -----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 29,281,699 outstanding shares
of beneficial interest 296,401
Portfolio capital of Class II Shares
(unlimited authorization -- no par value)
based on 499,907 outstanding shares
of beneficial interest 4,750
Distributions in excess of
net investment income (163)
Accumulated net realized loss
on investments (1,387)
Net unrealized appreciation
on investments 2,321
- -----------------------------------------------------------
TOTAL NET ASSETS--100% $301,922
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $10.14
- -----------------------------------------------------------
- -----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS II SHARES $10.10
- -----------------------------------------------------------
# Security fully or partially on loan at March 31, 2003. The date shown is the
final maturity date.
(A) The rate reflected is the rate in effect on March 31, 2003.
(B) Tri-party repurchase agreement
ARM - Adjustable rate mortgage
Cl - Class
CMO - Collateralized mortgage obligation
FHLB - Federal home loan bank
FHLMC - Federal home loan mortgage corporation
FNMA - Federal national mortgage association
GNMA - Government national mortgage association
MTN - Medium term note
REMIC - Real estate mortgage investment conduit
Ser - Series
SLMA - Student loan marketing association
TBA - To be announced
TIPS - Treasury inflation protected securities
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 101
FINANCIAL STATEMENTS
STATEMENTS OF OPERATIONS (000)
Turner
Turner Large Cap
Disciplined Growth Turner Turner Turner
Large Cap Opportunities Midcap Small Cap Micro Cap
Growth Fund Fund Growth Fund Growth Fund Growth Fund
- ----------------------------------------------------------------------------------------------------------------------------------
10/1/02 thru 10/1/02 thru 10/1/02 thru 10/1/02 thru 10/1/02 thru
3/31/03 3/31/03 3/31/03 3/31/03 3/31/03
- ----------------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 235 $ 7 $ 609 $ 303 $ 362
Interest 4 1 18 13 150
Securities lending -- -- 106 70 65
Foreign taxes withheld (1) -- (3) (1) (3)
- ----------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 238 8 730 385 574
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 188 12 2,050 726 857
Administrator fees 46 2 396 105 124
Transfer agent fees 25 8 586 109 165
Registration fees 11 -- 82 25 25
Professional fees 14 -- 77 20 24
Printing fees 21 1 110 29 34
Custodian fees 13 7 52 22 16
Trustee fees 6 -- 11 3 3
Distribution fees(1) -- -- -- -- --
Insurance and other fees 1 -- 16 5 8
- ----------------------------------------------------------------------------------------------------------------------------------
Total expenses 325 30 3,380 1,044 1,256
Less:
Investment advisory fee waiver (90) (5) -- (29) --
Reimbursements from adviser -- -- -- -- --
Directed brokerage -- (5) (229) (107) (57)
- ----------------------------------------------------------------------------------------------------------------------------------
Net expenses 235 20 3,151 908 1,199
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 3 (12) (2,421) (523) (625)
- ----------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from
securities sold (2,340) (84) (11,616) (6,063) (7,838)
Net unrealized appreciation
(depreciation) of
investment securities 6,630 416 58,427 11,110 (421)
- ----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments 4,290 332 46,811 5,047 (8,259)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $4,293 $320 $44,390 $4,524 $(8,884)
- ----------------------------------------------------------------------------------------------------------------------------------
102 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
Turner Turner Turner Turner
Large Cap Core Value Small Cap Small Cap Value
Value Fund Fund Value Fund Opportunities Fund
- --------------------------------------------------------------------------------------------------------------------------
10/1/02 thru 10/1/02 thru 10/1/02 thru 10/1/02 thru
3/31/03 3/31/03 3/31/03 3/31/03
- --------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 48 $ 359 $ 2,847 $ 7
Interest 1 7 65 --
Securities lending -- -- 71 --
Foreign taxes withheld -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------
Total Investment Income 49 366 2,983 7
- --------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 16 158 1,711 5
Administrator fees 3 31 292 1
Transfer agent fees 13 32 317 12
Registration fees 1 6 59 --
Professional fees 1 6 62 --
Printing fees 1 8 89 --
Custodian fees 2 5 29 5
Trustee fees -- 1 9 --
Distribution fees(1) -- -- -- 1
Insurance and other fees -- 1 12 --
- --------------------------------------------------------------------------------------------------------------------------
Total expenses 37 248 2,580 24
Less:
Investment advisory fee waiver (15) (4) -- (5)
Reimbursements from adviser -- -- -- (12)
Directed brokerage -- -- -- (1)
- --------------------------------------------------------------------------------------------------------------------------
Net expenses 22 244 2,580 6
- --------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 27 122 403 1
- --------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from
securities sold (189) 112 (49,579) (105)
Net unrealized appreciation
(depreciation) of
investment securities 254 (1,494) 14,312 101
- --------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments 65 (1,382) (35,267) (4)
- --------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $ 92 $(1,260) $(34,864) $ (3)
- --------------------------------------------------------------------------------------------------------------------------
Turner
Turner Turner Concentrated
Small Cap Technology Growth
Equity Fund Fund Fund
- -------------------------------------------------------------------------------------------
10/1/02 thru 10/1/02 thru 10/1/02 thru
3/31/03 3/31/03 3/31/03
- -------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 54 $ -- $ 43
Interest 3 -- 4
Securities lending -- 7 --
Foreign taxes withheld -- -- --
- -------------------------------------------------------------------------------------------
Total Investment Income 57 7 47
- -------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 35 45 107
Administrator fees 6 9 22
Transfer agent fees 15 46 42
Registration fees 1 3 6
Professional fees 1 2 5
Printing fees 1 3 7
Custodian fees 10 6 9
Trustee fees -- -- 1
Distribution fees(1) 10 -- --
Insurance and other fees -- -- 1
- -------------------------------------------------------------------------------------------
Total expenses 79 114 200
Less:
Investment advisory fee waiver (22) (2) (15)
Reimbursements from adviser -- -- --
Directed brokerage (4) (34) (43)
- -------------------------------------------------------------------------------------------
Net expenses 53 78 142
- -------------------------------------------------------------------------------------------
Net investment income (loss) 4 (71) (95)
- -------------------------------------------------------------------------------------------
Net realized gain (loss) from
securities sold (572) (839) (848)
Net unrealized appreciation
(depreciation) of
investment securities 417 1,656 1,725
- -------------------------------------------------------------------------------------------
Net realized and unrealized gain
(loss) on investments (155) 817 877
- -------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations $(151) $ 746 $ 782
- -------------------------------------------------------------------------------------------
(1) Attributable to Class II Shares only.
Amounts designated as "--" are either $0 or have been rounded to $0
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 103
FINANCIAL STATEMENTS
STATEMENTS OF OPERATIONS (000)
Turner Turner
Turner Turner Healthcare & Tax Managed
New Enterprise Financial Services Biotechnology U.S. Equity
Fund Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------------------------------
10/1/02 thru 10/1/02 thru 10/1/02 thru 10/1/02 thru
3/31/03 3/31/03 3/31/03 3/31/03
- ---------------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ -- $ 85 $ 10 $ 23
Interest -- 2 3 1
Securities lending 3 -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 3 87 13 24
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 13 64 57 20
Administrator fees 3 9 7 4
Transfer agent fees 21 27 20 18
Registration fees -- 1 1 1
Professional fees 1 3 1 1
Printing fees 1 2 2 1
Custodian fees 5 2 4 7
Trustee fees -- -- -- --
Shareholder service fees(1) -- -- 13 6
Insurance and other fees -- 1 -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total expenses 44 109 105 58
Less:
Investment advisory fee waiver (13) (19) (8) (20)
Reimbursements from adviser (2) -- -- (6)
Directed brokerage (11) (1) (1) --
- ---------------------------------------------------------------------------------------------------------------------------------
Net expenses 18 89 96 32
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (15) (2) (83) (8)
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from
securities sold 52 (709) (330) (219)
Net realized loss from
option contracts -- -- -- --
Net unrealized appreciation
(depreciation) of
investment securities 492 872 838 508
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 544 163 508 289
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
resulting from operations $529 $ 161 $ 425 $ 281
- ---------------------------------------------------------------------------------------------------------------------------------
104 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
Turner Turner Turner
Strategic Value and Core Fixed Total Return
High Income Income Fixed Income
Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------
10/31/02(2) thru 10/1/02 thru 10/1/02 thru
3/31/03 3/31/03 3/31/03
- ------------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 1 $ -- $ --
Interest -- 1,137 73
Securities lending -- 6 --
- ------------------------------------------------------------------------------------------------------------
Total Investment Income 1 1,143 73
- ------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees -- 98 17
Administrator fees -- 32 5
Transfer agent fees 11 30 12
Registration fees -- 5 1
Professional fees -- 5 1
Printing fees -- 7 1
Custodian fees 1 4 4
Trustee fees -- 1 --
Shareholder service fees(1) -- -- --
Insurance and other fees -- 3 2
- ------------------------------------------------------------------------------------------------------------
Total expenses 12 185 43
Less:
Investment advisory fee waiver -- (19) (17)
Reimbursements from adviser (11) -- (10)
Directed brokerage -- -- --
- ------------------------------------------------------------------------------------------------------------
Net expenses 1 166 16
- ------------------------------------------------------------------------------------------------------------
Net investment income (loss) -- 977 57
- ------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from
securities sold -- 245 18
Net realized loss from
option contracts -- -- (1)
Net unrealized appreciation
(depreciation) of
investment securities 1 (616) (29)
- ------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 1 (371) (12)
- ------------------------------------------------------------------------------------------------------------
Net increase in net assets
resulting from operations $ 1 $ 606 $ 45
- ------------------------------------------------------------------------------------------------------------
Turner Ultra Turner
Turner Short Duration Short Duration
High Yield Fixed Income Fixed Income
Fund Fund Fund
- ---------------------------------------------------------------------------------------------------------
10/1/02 thru 10/1/02 thru 10/1/02 thru
3/31/03 3/31/03 3/31/03
- ---------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 7 $ -- $ --
Interest 386 4,624 3,443
Securities lending -- -- --
- ---------------------------------------------------------------------------------------------------------
Total Investment Income 393 4,624 3,443
- ---------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 25 708 372
Administrator fees 7 411 216
Transfer agent fees 13 282 167
Registration fees 2 40 21
Professional fees 1 55 30
Printing fees 2 78 43
Custodian fees 4 31 18
Trustee fees -- 9 5
Shareholder service fees(1) -- 14 10
Insurance and other fees 2 10 6
- ---------------------------------------------------------------------------------------------------------
Total expenses 56 1,638 888
Less:
Investment advisory fee waiver (23) (463) (269)
Reimbursements from adviser -- -- --
Directed brokerage -- -- --
- ---------------------------------------------------------------------------------------------------------
Net expenses 33 1,175 619
- ---------------------------------------------------------------------------------------------------------
Net investment income (loss) 360 3,449 2,824
- ---------------------------------------------------------------------------------------------------------
Net realized gain (loss) from
securities sold (92) (289) 254
Net realized loss from
option contracts -- -- --
Net unrealized appreciation
(depreciation) of
investment securities 642 (477) (325)
- ---------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 550 (766) (71)
- ---------------------------------------------------------------------------------------------------------
Net increase in net assets
resulting from operations $910 $2,683 $2,753
- ---------------------------------------------------------------------------------------------------------
(1) Attributable to Class II Shares only.
(2) Commencement of operations.
Amounts designated as "--" are either $0 or have been rounded to $0
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 105
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS (000)
Turner Turner Turner
Disciplined Large Large Cap Growth Midcap
Cap Growth Fund Opportunities Fund Growth Fund
- -----------------------------------------------------------------------------------------------------------------------------
10/1/02 year 10/1/02 year 10/1/02 year
thru ended thru ended thru ended
3/31/03 9/30/02 3/31/03 9/30/02 3/31/03 9/30/02
- -----------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ 3 $ 3 $ (12) $ (57) $ (2,421) $ (5,767)
Net realized gain (loss) on
securities sold (2,340) (19,562) (84) (2,674) (11,616) (182,105)
Net unrealized appreciation
(depreciation) of investments 6,630 1,526 416 1,182 58,427 19,092
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from operations 4,293 (18,033) 320 (1,549) 44,390 (168,780)
- -----------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
Net investment income
Class I Shares (3) -- -- -- -- --
Class II Shares -- -- -- -- -- --
Realized capital gains
Class I Shares -- -- -- -- -- --
Class II Shares -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Total distributions (3) -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 21,859 70,230 759 3,377(1) 182,463 904,489
Proceeds from shares issued in lieu
of cash distributions 3 -- -- -- -- --
Cost of shares redeemed (24,088) (45,274) (4,147) (6,757)(1) (279,698) (770,265)
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions (2,226) 24,956 (3,388) (3,380) (97,235) 134,224
- -----------------------------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued -- -- -- -- 57 148
Proceeds from shares issued in
lieu of cash distributions -- -- -- -- -- --
Cost of shares redeemed -- -- -- -- (2) (14)
- -----------------------------------------------------------------------------------------------------------------------------
Increase in net assets from
Class II Shares transactions -- -- -- -- 55 134
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions (2,226) 24,956 (3,388) (3,380) (97,180) 134,358
- -----------------------------------------------------------------------------------------------------------------------------
Total increase (decrease)
in net assets 2,064 6,923 (3,068) (4,929) (52,790) (34,422)
- -----------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 59,971 53,048 4,847 9,776 561,346 595,768
- -----------------------------------------------------------------------------------------------------------------------------
End of year/period $ 62,035 $ 59,971 $ 1,779 $ 4,847 $508,556 $ 561,346
- -----------------------------------------------------------------------------------------------------------------------------
Shares issued and redeemed:
Class I Shares
Issued 5,786 15,959 107 399(2) 12,182 47,107
Issued in lieu of cash distributions 1 -- -- -- -- --
Redeemed (6,388) (10,085) (590) (804)(2) (18,720) (40,620)
- -----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares (601) 5,874 (483) (405) (6,538) 6,487
- -----------------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- -- -- -- 4 8
Issued in lieu of cash distributions -- -- -- -- -- --
Redeemed -- -- -- -- -- (1)
- -----------------------------------------------------------------------------------------------------------------------------
Increase in Class II Shares -- -- -- -- 4 7
- -----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in shares (601) 5,874 (483) (405) (6,534) 6,494
- -----------------------------------------------------------------------------------------------------------------------------
106 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
Turner Turner
Small Cap Micro Cap
Growth Fund Growth Fund
- -----------------------------------------------------------------------------------------------------------
10/1/02 year 10/1/02 year
thru ended thru ended
3/31/03 9/30/02 3/31/03 9/30/02
- -----------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (523) $ (2,258) $ (625) $ (1,827)
Net realized gain (loss) on
securities sold (6,063) (51,922) (7,838) (11,169)
Net unrealized appreciation
(depreciation) of investments 11,110 27,180 (421) 8,142
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from operations 4,524 (27,000) (8,884) (4,854)
- -----------------------------------------------------------------------------------------------------------
Distributions to shareholders:
Net investment income
Class I Shares -- -- -- --
Class II Shares -- -- -- --
Realized capital gains
Class I Shares -- -- -- --
Class II Shares -- -- -- --
- -----------------------------------------------------------------------------------------------------------
Total distributions -- -- -- --
- -----------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 29,554 115,569 36,551 101,795
Proceeds from shares issued in lieu
of cash distributions -- -- -- --
Cost of shares redeemed (39,854) (186,264) (42,195) (78,821)
- -----------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions (10,300) (70,695) (5,644) 22,974
- -----------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued -- -- -- --
Proceeds from shares issued in
lieu of cash distributions -- -- -- --
Cost of shares redeemed -- -- -- --
- -----------------------------------------------------------------------------------------------------------
Increase in net assets from
Class II Shares transactions -- -- -- --
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions (10,300) (70,695) (5,644) 22,974
- -----------------------------------------------------------------------------------------------------------
Total increase (decrease)
in net assets (5,776) (97,695) (14,528) 18,120
- -----------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 144,181 241,876 178,130 160,010
- -----------------------------------------------------------------------------------------------------------
End of year/period $138,405 $144,181 $163,602 $178,130
- -----------------------------------------------------------------------------------------------------------
Shares issued and redeemed:
Class I Shares
Issued 2,170 6,604 1,174 2,683
Issued in lieu of cash distributions -- -- -- --
Redeemed (2,967) (10,641) (1,351) (2,111)
- -----------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares (797) (4,037) (177) 572
- -----------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- -- -- --
Issued in lieu of cash distributions -- -- -- --
Redeemed -- -- -- --
- -----------------------------------------------------------------------------------------------------------
Increase in Class II Shares -- -- -- --
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease)
in shares (797) (4,037) (177) 572
- -----------------------------------------------------------------------------------------------------------
Turner Turner
Large Cap Core Value
Value Fund Fund
- --------------------------------------------------------------------------------------------------------
10/1/02 year 10/1/02 year
thru ended thru ended
3/31/03 9/30/02 3/31/03 9/30/02
- --------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ 27 $ 56 $ 122 $ 272
Net realized gain (loss) on
securities sold (189) (475) 112 (153)
Net unrealized appreciation
(depreciation) of investments 254 (634) (1,494) (3,873)
- --------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from operations 92 (1,053) (1,260) (3,754)
- --------------------------------------------------------------------------------------------------------
Distributions to shareholders:
Net investment income
Class I Shares (27) (55) (121) (280)
Class II Shares -- -- -- --
Realized capital gains
Class I Shares -- -- -- (7,197)
Class II Shares -- -- -- --
- --------------------------------------------------------------------------------------------------------
Total distributions (27) (55) (121) (7,477)
- --------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 202 870 7,035 19,609
Proceeds from shares issued in lieu
of cash distributions 25 53 113 6,897
Cost of shares redeemed (604) (712) (10,528) (13,419)
- --------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions (377) 211 (3,380) 13,087
- --------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued -- -- -- --
Proceeds from shares issued in
lieu of cash distributions -- -- -- --
Cost of shares redeemed -- -- -- --
- --------------------------------------------------------------------------------------------------------
Increase in net assets from
Class II Shares transactions -- -- -- --
- --------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions (377) 211 (3,380) 13,087
- --------------------------------------------------------------------------------------------------------
Total increase (decrease)
in net assets (312) (897) (4,761) 1,856
- --------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 4,255 5,152 43,571 41,715
- --------------------------------------------------------------------------------------------------------
End of year/period $3,943 $4,255 $38,810 $43,571
- --------------------------------------------------------------------------------------------------------
Shares issued and redeemed:
Class I Shares
Issued 23 88 583 1,391
Issued in lieu of cash distributions 3 6 9 492
Redeemed (72) (73) (873) (972)
- --------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares (46) 21 (281) 911
- --------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- -- -- --
Issued in lieu of cash distributions -- -- -- --
Redeemed -- -- -- --
- --------------------------------------------------------------------------------------------------------
Increase in Class II Shares -- -- -- --
- --------------------------------------------------------------------------------------------------------
Net increase (decrease)
in shares (46) 21 (281) 911
- --------------------------------------------------------------------------------------------------------
(1) Includes subscriptions of $200,636 of Class B; and redemptions of $28,961 of
Class A, $188,500 of Class B and $3,259 of Class C of the Mercury Select
Growth Fund (see Note 9).
(2) Includes subscriptions of 71,962 shares of Class B; and redemptions of
19,834 shares of Class A, 73,170 shares of Class B and 2,345 shares of Class
C at each respective NAV of the Mercury Select Growth Fund (see Note 9).
Amounts designated as "--" are either $0 or have been rounded to $0
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 107
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS (000)
Turner
Turner Small Cap Value Turner
Small Cap Opportunities Small Cap
Value Fund Fund Equity Fund
- ------------------------------------------------------------------------------------------------------------------------------
10/1/02 year 10/1/02 3/4/02(1) 10/1/02 3/4/02(1)
thru ended thru thru thru thru
3/31/03 9/30/02 3/31/03 9/30/02 3/31/03 9/30/02
- ------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ 403 $ 1,462 $ 1 $ 1 $ 4 $ (1)
Net realized gain (loss) on
securities sold (49,579) (19,253) (105) (71) (572) (159)
Net unrealized appreciation
(depreciation) of investments 14,312 (80,240) 101 (66) 417 (216)
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting
from operations (34,864) (98,031) (3) (136) (151) (376)
- ------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
Net investment income
Class I Shares (376) (1,431) -- -- -- --
Class II Shares -- -- (1) -- (7) --
Realized capital gains
Class I Shares -- -- -- -- -- --
Class II Shares -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions (376) (1,431) (1) -- (7) --
- ------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 76,938 676,750 -- -- -- --
Proceeds from fund merger (note 9) -- -- -- -- -- --
Proceeds from shares issued in lieu
of cash distributions 345 1,241 -- -- -- --
Cost of shares redeemed (181,256) (292,117) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class I Shares transactions (103,973) 385,874 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued -- -- 812 1,791 5,068 7,943
Proceeds from shares issued in
lieu of cash distributions -- -- 1 -- 6 --
Cost of shares redeemed -- -- (612) (742) (3,617) (307)
- ------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from
Class II Shares transactions -- -- 201 1,049 1,457 7,636
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions (103,973) 385,874 201 1,049 1,457 7,636
- ------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease)
in net assets (139,213) 286,412 197 913 1,299 7,260
- ------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 464,576 178,164 913 -- 7,260 --
- ------------------------------------------------------------------------------------------------------------------------------
End of year/period $ 325,363 $464,576 $1,110 $ 913 $8,559 $7,260
- ------------------------------------------------------------------------------------------------------------------------------
Shares issued and redeemed:
Class I Shares
Issued 5,107 35,765 -- -- -- --
Issued in connection with
fund merger (note 9) -- -- -- -- -- --
Issued in lieu of cash distributions 23 64 -- -- -- --
Redeemed (12,196) (15,941) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares (7,066) 19,888 -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- -- 86 169 537 811
Issued in lieu of cash distributions -- -- -- -- 1 --
Redeemed -- -- (65) (71) (392) (31)
- ------------------------------------------------------------------------------------------------------------------------------
Increase in Class II Shares -- -- 21 98 146 780
- ------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in shares (7,066) 19,888 21 98 146 780
- ------------------------------------------------------------------------------------------------------------------------------
108 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
Turner Turner
Technology Concentrated
Fund Growth Fund
- -------------------------------------------------------------------------------------------------------
10/1/02 year 10/1/02 year
thru ended thru ended
3/31/03 9/30/02 3/31/03 9/30/02
- -------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (71) $ (213) $ (95) $ (18)
Net realized gain (loss) on
securities sold (839) (14,159) (848) (26,527)
Net unrealized appreciation
(depreciation) of investments 1,656 7,594 1,725 12,049
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting
from operations 746 (6,778) 782 (14,496)
- -------------------------------------------------------------------------------------------------------
Distributions to shareholders:
Net investment income
Class I Shares -- -- -- --
Class II Shares -- -- -- --
Realized capital gains
Class I Shares -- -- -- --
Class II Shares -- -- -- --
- -------------------------------------------------------------------------------------------------------
Total distributions -- -- -- --
- -------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 4,686 16,193 5,661 34,709
Proceeds from fund merger (note 9) -- -- -- --
Proceeds from shares issued in lieu
of cash distributions -- -- -- --
Cost of shares redeemed (5,186) (22,900) (7,330) (47,834)
- -------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class I Shares transactions (500) (6,707) (1,669) (13,125)
- -------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued -- -- -- --
Proceeds from shares issued in
lieu of cash distributions -- -- -- --
Cost of shares redeemed -- -- -- --
- -------------------------------------------------------------------------------------------------------
Increase in net assets from
Class II Shares transactions -- -- -- --
- -------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions (500) (6,707) (1,669) (13,125)
- -------------------------------------------------------------------------------------------------------
Total increase (decrease)
in net assets 246 (13,485) (887) (27,621)
- -------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 11,662 25,147 29,182 56,803
- -------------------------------------------------------------------------------------------------------
End of year/period $11,908 $ 11,662 $28,295 $29,182
- -------------------------------------------------------------------------------------------------------
Shares issued and redeemed:
Class I Shares
Issued 1,249 2,572 1,259 5,314
Issued in connection with
fund merger (note 9) -- -- -- --
Issued in lieu of cash distributions -- -- -- --
Redeemed (1,472) (3,876) (1,703) (7,930)
- -------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares (223) (1,304) (444) (2,616)
- -------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- -- -- --
Issued in lieu of cash distributions -- -- -- --
Redeemed -- -- -- --
- -------------------------------------------------------------------------------------------------------
Increase in Class II Shares -- -- -- --
- -------------------------------------------------------------------------------------------------------
Net increase (decrease)
in shares (223) (1,304) (444) (2,616)
- -------------------------------------------------------------------------------------------------------
Turner Turner
New Financial
Enterprise Fund Services Fund
- ------------------------------------------------------------------------------------------------------------------
10/1/02 year 10/1/02 11/1/01 5/1/01
thru ended thru thru thru
3/31/03 9/30/02 3/31/03 9/30/02(2) 10/31/01(2)
- ------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (15) $ (60) $ (2) $ (56) $ (119)
Net realized gain (loss) on
securities sold 52 (2,041) (709) 253 (57)
Net unrealized appreciation
(depreciation) of investments 492 617 872 (1,857) (3,048)
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in
net assets resulting
from operations 529 (1,484) 161 (1,660) (3,224)
- ------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
Net investment income
Class I Shares -- -- -- -- --
Class II Shares -- -- -- -- --
Realized capital gains
Class I Shares -- -- (136) (5,061) --
Class II Shares -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Total distributions -- -- (136) (5,061) --
- ------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 791 3,773 134 1,422 787
Proceeds from fund merger (note 9) -- -- -- 451 --
Proceeds from shares issued in lieu
of cash distributions -- -- 129 4,396 --
Cost of shares redeemed (664) (5,235) (1,111) (2,953) (5,350)
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets
from Class I Shares transactions 127 (1,462) (848) 3,316 (4,563)
- ------------------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued -- -- -- -- --
Proceeds from shares issued in
lieu of cash distributions -- -- -- -- --
Cost of shares redeemed -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Increase in net assets from
Class II Shares transactions -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions 127 (1,462) (848) 3,316 (4,563)
- ------------------------------------------------------------------------------------------------------------------
Total increase (decrease)
in net assets 656 (2,946) (823) (3,405) (7,787)
- ------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 3,198 6,144 12,149 15,554 23,341
- ------------------------------------------------------------------------------------------------------------------
End of year/period $3,854 $3,198 $11,326 $12,149 $15,554
- ------------------------------------------------------------------------------------------------------------------
Shares issued and redeemed:
Class I Shares
Issued 287 838 13 116 40
Issued in connection with
fund merger (note 9) -- -- -- 37 --
Issued in lieu of cash distributions -- -- 12 358 --
Redeemed (251) (1,299) (106) (242) (288)
- ------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares 36 (461) (81) 269 (248)
- ------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- -- -- -- --
Issued in lieu of cash distributions -- -- -- -- --
Redeemed -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Increase in Class II Shares -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in shares 36 (461) (81) 269 (248)
- ------------------------------------------------------------------------------------------------------------------
(1) Commencement of operations.
(2) Reflects operating history of a predecessor mutual fund (see Note 9).
Amounts designated as "--" are either $0 or have been rounded to $0 The
accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 109
FINANCIAL STATEMENTS
STATEMENTS OF CHANGES IN NET ASSETS (000)
Turner Turner Turner
Healthcare & Tax Managed Strategic Value and
Biotechnology U.S. Equity High Income
Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------------------------
10/1/02 year 10/1/02 year 10/31/02(1)
thru ended thru ended thru
3/31/03 9/30/02 3/31/03 9/30/02 3/31/03
- -------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (83) $ (96) $ (8) $ (21) $--
Net realized gain (loss) on
securities sold and option contracts (330) (1,146) (219) (2,293) --
Net unrealized appreciation
(depreciation) of investments 838 (112) 508 819 1
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 425 (1,354) 281 (1,495) 1
- -------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
Net investment income
Class I Shares -- -- -- -- (1)
Class II Shares -- -- -- -- --
Realized capital gains
Class I Shares -- -- -- -- --
Class II Shares -- (11) -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Total distributions -- (11) -- -- (1)
- -------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued -- -- -- -- 67
Proceeds from shares issued in
lieu of cash distributions -- -- -- -- 1
Cost of shares redeemed -- -- -- -- (10)
- -------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions -- -- -- -- 58
- -------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued 2,637 13,506 556 3,168 --
Proceeds from shares issued in
lieu of cash distributions -- 11 -- -- --
Cost of shares redeemed (2,015) (4,056) (918) (3,875) --
- -------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class II Shares transactions 622 9,461 (362) (707) --
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions 622 9,461 (362) (707) 58
- -------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease)
in net assets 1,047 8,096 (81) (2,202) 58
- -------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 9,288 1,192 4,747 6,949 --
- -------------------------------------------------------------------------------------------------------------------------------
End of year/period $10,335 $ 9,288 $4,666 $ 4,747 $58
- -------------------------------------------------------------------------------------------------------------------------------
Shares issued and redeemed:
Class I Shares
Issued -- -- -- -- 7
Issued in lieu of cash distributions -- -- -- -- --
Redeemed -- -- -- -- (1)
- -------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares -- -- -- -- 6
- -------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued 264 1,219 88 383 --
Issued in lieu of cash distributions -- 1 -- -- --
Redeemed (206) (382) (135) (479) --
- -------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class II Shares 58 838 (47) (96) --
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in shares 58 838 (47) (96) 6
- -------------------------------------------------------------------------------------------------------------------------------
110 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
Turner
Turner Core Total Return Turner
Fixed Income Fixed Income High Yield
Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------------------------
10/1/02 year 10/1/02 year 10/1/02 year
thru ended thru ended thru ended
3/31/03 9/30/02 3/31/03 9/30/02 3/31/03 9/30/02
- ----------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ 977 $ 1,861 $ 57 $ 312 $ 360 $ 1,548
Net realized gain (loss) on
securities sold and option contracts 245 188 17 325 (92) (5,339)
Net unrealized appreciation
(depreciation) of investments (616) 1,193 (29) (205) 642 2,823
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 606 3,242 45 432 910 (968)
- ----------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
Net investment income
Class I Shares (1,026) (1,895) (60) (316) (361) (1,563)
Class II Shares -- -- -- -- -- --
Realized capital gains
Class I Shares (108) -- (230) (296) -- --
Class II Shares -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Total distributions (1,134) (1,895) (290) (612) (361) (1,563)
- ----------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 17,191 46,590 64 5,035 3,154 716
Proceeds from shares issued in
lieu of cash distributions 1,066 1,787 288 605 50 435
Cost of shares redeemed (19,909) (40,874) (1,532) (2,878) (3,148) (3,165)
- ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions (1,652) 7,503 (1,180) 2,762 56 (2,014)
- ----------------------------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued -- -- -- -- -- --
Proceeds from shares issued in
lieu of cash distributions -- -- -- -- -- --
Cost of shares redeemed -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class II Shares transactions -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions (1,652) 7,503 (1,180) 2,762 56 (2,014)
- ----------------------------------------------------------------------------------------------------------------------------
Total increase (decrease)
in net assets (2,180) 8,850 (1,425) 2,582 605 (4,545)
- ----------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 42,924 34,074 8,393 5,811 9,432 13,977
- ----------------------------------------------------------------------------------------------------------------------------
End of year/period $40,744 $42,924 $ 6,968 $ 8,393 $10,037 $ 9,432
- ----------------------------------------------------------------------------------------------------------------------------
Shares issued and redeemed:
Class I Shares
Issued 1,645 4,589 7 500 680 135
Issued in lieu of cash distributions 102 175 29 61 11 86
Redeemed (1,908) (4,037) (151) (290) (686) (650)
- ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares (161) 727 (115) 271 5 (429)
- ----------------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- -- -- -- -- --
Issued in lieu of cash distributions -- -- -- -- -- --
Redeemed -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class II Shares -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in shares (161) 727 (115) 271 5 (429)
- ----------------------------------------------------------------------------------------------------------------------------
Turner Ultra Turner
Short Duration Short Duration
Fixed Income Fixed Income
Fund Fund
- ----------------------------------------------------------------------------------------------------
10/1/02 year 10/1/02 year
thru ended thru ended
3/31/03 9/30/02 3/31/03 9/30/02
- ----------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ 3,449 $ 5,191 $ 2,824 $ 4,502
Net realized gain (loss) on
securities sold and option contracts (289) 755 254 1,466
Net unrealized appreciation
(depreciation) of investments (477) 581 (325) 1,047
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 2,683 6,527 2,753 7,015
- ----------------------------------------------------------------------------------------------------
Distributions to shareholders:
Net investment income
Class I Shares (5,504) (5,810) (3,730) (4,648)
Class II Shares (95) (126) (90) (297)
Realized capital gains
Class I Shares (629) -- (1,892) --
Class II Shares (12) -- (60) --
- ----------------------------------------------------------------------------------------------------
Total distributions (6,240) (5,936) (5,772) (4,945)
- ----------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 287,081 555,771 98,478 281,024
Proceeds from shares issued in
lieu of cash distributions 5,906 5,632 5,534 4,567
Cost of shares redeemed (159,710) (185,486) (68,206) (91,996)
- ----------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions 133,277 375,917 35,806 193,595
- ----------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued 16,954 85,748 2,060 3,665
Proceeds from shares issued in
lieu of cash distributions 83 84 147 277
Cost of shares redeemed (14,318) (83,068) (5,438) (3,776)
- ----------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class II Shares transactions 2,719 2,764 (3,231) 166
- ----------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions 135,996 378,681 32,575 193,761
- ----------------------------------------------------------------------------------------------------
Total increase (decrease)
in net assets 132,439 379,272 29,556 195,831
- ----------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 478,909 99,637 272,366 76,535
- ----------------------------------------------------------------------------------------------------
End of year/period $611,348 $ 478,909 $301,922 $272,366
- ----------------------------------------------------------------------------------------------------
Shares issued and redeemed:
Class I Shares
Issued 28,092 54,413 9,655 27,690
Issued in lieu of cash distributions 578 551 543 450
Redeemed (15,635) (18,165) (6,692) (9,097)
- ----------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares 13,035 36,799 3,506 19,043
- ----------------------------------------------------------------------------------------------------
Class II Shares
Issued 1,652 8,365 203 362
Issued in lieu of cash distributions 8 8 15 28
Redeemed (1,395) (8,103) (537) (374)
- ----------------------------------------------------------------------------------------------------
Increase (decrease) in Class II Shares 265 270 (319) 16
- ----------------------------------------------------------------------------------------------------
Net increase (decrease)
in shares 13,300 37,069 3,187 19,059
- ----------------------------------------------------------------------------------------------------
(1) Commencement of operations.
Amounts designated as "--" are either $0 or have been rounded to $0
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 111
FINANCIAL STATEMENTS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Realized and
Net asset unrealized Distributions Distributions
value, Net gains from net from
beginning investment (losses) on investment capital Return
of period loss investments income gains of capital
- -----------------------------------------------------------------------------------------------------------------------------
Turner Disciplined Large Cap Growth Fund -- Class I Shares
- ----------------------------------------------------------
2003* $ 3.50 -- 0.25 --** -- --
2002 $ 4.70 -- (1.20) -- -- --
2001 $ 9.81 -- (5.11) -- -- --
2000 (1) $10.00 -- (0.19) -- -- --
- ---------------------------------------------------------------
Turner Large Cap Growth Opportunities Fund -- Class I Shares(2)
- ---------------------------------------------------------------
2003* $ 6.59 (0.05) 0.52 -- -- --
2002 $ 9.01 (0.08) (2.34) -- -- --
2001 $26.20 (0.10)(3) (11.63) -- (5.46) --
2000 $18.90 (0.16) 8.94 -- (1.48) --
1999 $13.22 (0.08) 5.76 -- -- --
1998 $12.28 (0.01) 1.98 (0.01) (1.02) --
- -------------------------------------------
Turner Midcap Growth Fund -- Class I Shares
- -------------------------------------------
2003* $13.78 (0.07) 1.16 -- -- --
2002 $17.40 (0.14) (3.48) -- -- --
2001 $46.52 (0.16) (25.89) -- (3.07) --
2000 $25.53 (0.10) 23.79 -- (2.70) --
1999 $13.87 (0.06) 11.72 -- -- --
1998 $14.22 (0.07) 0.22 -- (0.50) --
- --------------------------------------------
Turner Midcap Growth Fund -- Class II Shares
- --------------------------------------------
2003* $13.72 (0.19) 1.24 -- -- --
2002 $17.41 (0.22) (3) (3.47) -- -- --
2001 (5) $17.30 -- 0.11 -- -- --
- ----------------------------------------------
Turner Small Cap Growth Fund -- Class I Shares
- ----------------------------------------------
2003* $12.62 (0.05) 0.46 -- -- --
2002 $15.65 (0.20) (2.83) -- -- --
2001 $44.79 (0.04) (18.63) -- (10.47) --
2000 $34.20 (0.12) 17.89 -- (7.18) --
1999 $21.49 (0.26) 12.97 -- -- --
1998 $26.35 (0.23) (4.19) -- (0.25) (0.19)
- ----------------------------------------------
Turner Micro Cap Growth Fund -- Class I Shares
- ----------------------------------------------
2003* $32.04 (0.12) (1.52) -- -- --
2002 $32.08 (0.33) 0.29(6) -- -- --
2001 $45.92 (0.12) (9.02) -- (4.70) --
2000 $21.09 (0.18) 26.52 -- (1.51) --
1999 (7) $ 9.88 (0.05) 11.26 -- -- --
1998 (8) $10.00 (0.04) (0.08) -- -- --
112 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
Ratio of net
Net Ratio of Ratio of total investment
Net asset assets end net expenses expenses income (loss) Portfolio
value, end Total of period to average to average to average turnover
of period return (000) net assets++ net assets net assets++ rate+++
- ----------------------------------------------------------------------------------------------------------------------------------
Turner Disciplined Large Cap Growth Fund -- Class I Shares
- ----------------------------------------------------------
2003* $ 3.75 7.15%+ $ 62,035 0.75% 1.04% 0.01% 106.96%
2002 $ 3.50 (25.53)% $ 59,971 0.65% 0.90% -- % 272.99%
2001 $ 4.70 (52.09)% $ 53,048 0.74% 1.03% (0.14)% 376.49%
2000 (1) $ 9.81 (1.90)%+ $ 4,656 0.75% 3.35% (0.14)% 128.14%
- ---------------------------------------------------------------
Turner Large Cap Growth Opportunities Fund -- Class I Shares(2)
- ---------------------------------------------------------------
2003* $ 7.06 7.13%+ $ 1,779 1.25% 1.92% (0.77)% 132.35%
2002 $ 6.59 (26.86)% $ 4,847 1.26%(4) 5.98%(4) (0.71)% 391.98%
2001 $ 9.01 (53.71)% $ 9,776 1.25%(4) 3.49%(4) (0.69)% 400.04%
2000 $26.20 47.49% $ 41,555 0.84%(4) 1.37%(4) (0.71)% 131.19%
1999 $18.90 42.97% $ 8,459 1.00% 2.41% (0.47)% 370.71%
1998 $13.22 17.26% $ 4,328 1.00% 7.70% (0.10)% 234.93%
- -------------------------------------------
Turner Midcap Growth Fund -- Class I Shares
- -------------------------------------------
2003* $14.87 7.91%+ $ 508,391 1.15% 1.24% (0.89)% 104.35%
2002 $13.78 (20.80)% $ 561,244 1.05% 1.16% (0.81)% 259.62%
2001 $17.40 (59.00)% $ 595,761 1.04% 1.12% (0.77)% 335.57%
2000 $46.52 97.35% $ 1,203,756 1.03% 1.07% (0.68)% 306.97%
1999 $25.53 84.07% $ 148,830 1.03% 1.08% (0.53)% 290.79%
1998 $13.87 1.24% $ 24,582 1.23% 1.73% (0.69)% 304.29%
- --------------------------------------------
Turner Midcap Growth Fund -- Class II Shares
- --------------------------------------------
2003* $14.77 7.65%+ $ 165 1.65% 1.74% (1.39)% 104.35%
2002 $13.72 (21.19)% $ 102 1.55% 1.66% (1.25)% 259.62%
2001 (5) $17.41 0.64%+ $ 7 1.54% 1.95% (1.04)% 335.57%
- ----------------------------------------------
Turner Small Cap Growth Fund -- Class I Shares
- ----------------------------------------------
2003* $13.03 3.25%+ $ 138,405 1.25% 1.44% (0.72)% 87.39%
2002 $12.62 (19.36)% $ 144,181 1.25% 1.40% (0.99)% 188.34%
2001 $15.65 (49.81)% $ 241,876 1.25% 1.40% (0.96)% 176.11%
2000 $44.79 56.07% $ 528,928 1.25% 1.27% (0.93)% 203.01%
1999 $34.20 59.14% $ 254,077 1.25% 1.31% (0.98)% 223.61%
1998 $21.49 (16.90)% $ 147,534 1.25% 1.41% (0.96)% 167.73%
- ----------------------------------------------
Turner Micro Cap Growth Fund -- Class I Shares
- ----------------------------------------------
2003* $30.40 (5.12)%+ $ 163,602 1.40% 1.47% (0.73)% 58.23%
2002 $32.04 (0.12)% $ 178,130 1.31% 1.42% (0.88)% 88.89%
2001 $32.08 (20.23)% $ 160,010 1.25% 1.40% (0.50)% 121.96%
2000 $45.92 129.02% $ 187,107 1.25% 1.35% (0.79)% 179.08%
1999 (7) $21.09 113.46% $ 12,963 0.90% 2.86% (0.47)% 239.32%
1998 (8) $ 9.88 (1.20)%+ $ 2,843 1.25% 8.18% (0.64)% 128.53%
* For the six-month period ended March 31, 2003. All ratios for the period
have been annualized.
** Amount represents less than $0.01 per share.
+ Returns are for the period indicated and have not been annualized.
++ Inclusive of directed brokerage arrangements, waivers and reimbursements.
+++ Excludes effect of in-kind transfers and mergers.
(1) Commenced operations on June 14, 2000. All ratios for the period have been
annualized.
(2) The information set forth in this table for the periods prior to August 17,
2002, is the financial data of the Mercury Select Growth Fund, Class I
Shares. From the period June 19, 2000, to August 17, 2002, the Mercury
Select Growth Fund operated as a "feeder" fund that seeks to achieve its
investment objective by investing all of its assets in the "master"
portfolio, a mutual fund that has the same investment objective as the Fund.
All investments are made at the master level. This stucture is sometimes
called a "master/feeder" structure. Prior to June 19, 2000, the Fund
operated as a stand-alone investment company called the Turner Large Cap
Growth Equity Fund.
(3) Based on average shares outstanding.
(4) Expense ratios include the Mercury Select Growth Fund's, Class I Shares
portion of the master's allocated expenses.
(5) Commenced operations on September 24, 2001. All ratios for the period have
been annualized.
(6) The amount shown for a share outstanding throughout the period does not
accord with the aggregate net losses on investments for the period because
of the sales and repurchases of fund shares in relation to fluctuating
market value of the investments of the Fund.
(7) On January 25, 1999 shareholders of the Alpha Select Turner Micro Cap Growth
Fund (the "Fund") approved a tax-free reorganization under which all assets
and liabilities of the Fund were transferred to the TIP Turner Micro Cap
Growth Fund.
(8) Commenced operations on February 27, 1998. All ratios for the period have
been annualized.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 113
FINANCIAL STATEMENTS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Realized and
Net asset Net unrealized Distributions Distributions
value, investment gains from net from Net asset
beginning income (losses) on investment capital value, end
of period (loss) investments income gains of period
- ----------------------------------------------------------------------------------------------------------------------------
Turner Large Cap Value Fund -- Class I Shares
- ---------------------------------------------
2003* $ 7.86 0.05 0.09 (0.05) -- $ 7.95
2002 $ 9.89 0.10 (2.03) (0.10) -- $ 7.86
2001 (1) $12.44 0.11 (1.93) (0.11) (0.62) $ 9.89
2000 $11.43 0.08 2.06 (0.09) (1.04) $12.44
1999 $ 9.21 0.13 2.27 (0.13) (0.05) $11.43
1998 (2) $10.00 0.15 (0.79) (0.15) -- $ 9.21
- ----------------------------------------
Turner Core Value Fund -- Class I Shares
- ----------------------------------------
2003*(3) $11.71 0.03 (0.43) (0.03) -- $11.28
2002 $14.85 0.08 (0.61) (0.08) (2.53) $11.71
2001 (4) $14.23 0.05 0.59 (0.02) -- $14.85
2000 $15.92 0.05 1.79 (0.07) (3.46) $14.23
1999 $15.85 0.21 0.74 (0.21) (0.67) $15.92
1998 $18.99 0.15 (1.12) (0.15) (2.02) $15.85
- ---------------------------------------------
Turner Small Cap Value Fund -- Class I Shares
- ---------------------------------------------
2003* $15.20 0.01 (1.35) (0.01) -- $13.85
2002 $16.69 0.06 (1.50) (0.05) -- $15.20
2001 (5) $16.36 0.10 1.67 (0.05) (1.39) $16.69
2000 $13.71 (0.02) 3.91 -- (1.24) $16.36
1999 $11.49 (0.01) 2.48 -- (0.25) $13.71
1998 $15.94 (0.06) (3.22) -- (1.17) $11.49
- ------------------------------------------------------------
Turner Small Cap Value Opportunities Fund -- Class II Shares
- ------------------------------------------------------------
2003* $ 9.27 0.01 0.06** (0.01) -- $ 9.33
2002 (6) $10.00 -- (0.73) -- -- $ 9.27
- -----------------------------------------------
Turner Small Cap Equity Fund -- Class II Shares
- -----------------------------------------------
2003* $ 9.30 0.01 (0.05) (0.01) -- $ 9.25
2002 (6) $10.00 -- (0.70) -- -- $ 9.30
- ----------------------------------------
Turner Technology Fund -- Class I Shares
- ----------------------------------------
2003* $ 3.03 (0.02) 0.28 -- -- $ 3.29
2002 $ 4.88 (0.06) (1.79) -- -- $ 3.03
2001 $32.69 (0.15) (23.42) -- (4.24) $ 4.88
2000 $14.06 (0.16) 20.33 -- (1.54) $32.69
1999 (7) $10.00 (0.02) 4.08 -- -- $14.06
- -------------------------------------------------
Turner Concentrated Growth Fund -- Class I Shares
- -------------------------------------------------
2003* $ 4.03 (0.02) 0.15 -- -- $ 4.16
2002 $ 5.76 .-- (1.73) -- -- $ 4.03
2001 $24.74 (0.09) (14.96) -- (3.93) $ 5.76
2000 $13.99 (0.11) 13.06 -- (2.20) $24.74
1999 (7) $10.00 (0.02) 4.01 -- -- $13.99
114 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
Ratio of net
Net Ratio of Ratio of total investment
assets end net expenses expenses income (loss) Portfolio
Total of period to average to average to average turnover
return (000) net assets++ net assets net assets++ rate+++
- -----------------------------------------------------------------------------------------------------------------------------------
Turner Large Cap Value Fund -- Class I Shares
- ---------------------------------------------
2003* 1.78%+ $ 3,943 1.04% 1.74% 1.25% 19.29%
2002 (19.66)% $ 4,255 0.95% 1.54% 1.06% 70.30%
2001 (1) (15.47)% $ 5,152 0.95% 3.56% 1.00% 121.20%
2000 19.84% $ 5,163 0.95% 3.98% 0.75% 153.58%
1999 26.17% $ 2,725 0.95% 4.13% 1.20% 92.26%
1998 (2) (6.52)%+ $ 1,776 0.95% 11.40% 1.82% 62.71%
- ----------------------------------------
Turner Core Value Fund -- Class I Shares
- ----------------------------------------
2003*(3) (3.41)%+ $ 38,810 1.14% 1.16% 0.57% 31.18%
2002 (6.37)% $ 43,571 1.10% 1.13% 0.56% 103.36%
2001 (4) 4.50% $ 41,715 1.10% 1.16% 0.30% 128.18%
2000 13.67% $ 45,657 1.10% 1.11% 0.34% 90.15%
1999 6.13% $ 59,602 0.95% 0.95% 1.21% 98.85%
1998 (6.00)% $ 90,806 1.10% 1.12% 0.82% 42.10%
- ---------------------------------------------
Turner Small Cap Value Fund -- Class I Shares
- ---------------------------------------------
2003* (8.79)%+ $ 325,363 1.28% 1.28% 0.20% 16.85%
2002 (8.69)% $ 464,576 1.26% 1.26% 0.31% 37.60%
2001 (5) 12.15% $ 178,164 1.28% 1.28% 0.37% 120.40%
2000 29.59% $ 36,254 1.40% 1.47% (0.11)% 85.80%
1999 21.82% $ 16,494 1.40% 1.72% (0.10)% 79.93%
1998 (21.25)% $ 15,662 1.40% 1.84% (0.50)% 70.02%
- ------------------------------------------------------------
Turner Small Cap Value Opportunities Fund -- Class II Shares
- ------------------------------------------------------------
2003* 0.70%+ $ 1,110 1.29% 4.57% 0.08% 135.52%
2002 (6) (7.30)%+ $ 913 1.45% 6.18% 0.08% 141.81%
- -----------------------------------------------
Turner Small Cap Equity Fund -- Class II Shares
- -----------------------------------------------
2003* (0.46)%+ $ 8,559 1.28% 1.91% 0.08 % 123.33%
2002 (6) (7.00)%+ $ 7,260 1.35% 3.02% (0.07)% 86.94%
- ----------------------------------------
Turner Technology Fund -- Class I Shares
- ----------------------------------------
2003* 8.58%+ $ 11,908 1.20% 1.76% (1.10)% 339.62%
2002 (37.91)% $ 11,662 0.88% 1.43% (0.84)% 734.40%
2001 (81.12)% $ 25,147 1.21% 1.58% (1.10)% 727.24%
2000 149.35% $ 169,353 1.35% 1.67% (1.10)% 1,340.92%
1999 (7) 40.60%+ $ 8,296 1.35% 3.89% (0.87)% 317.32%
- -------------------------------------------------
Turner Concentrated Growth Fund -- Class I Shares
- -------------------------------------------------
2003* 3.23%+ $ 28,295 0.93% 1.30% (0.62)% 430.95%
2002 (30.03)% $ 29,182 0.30% 1.17% (0.03)% 1,182.61%
2001 (70.40)% $ 56,803 1.05% 1.32% (0.76)% 1,117.77%
2000 98.58% $ 246,621 1.26% 1.62% (0.90)% 1,590.94%
1999 (7) 39.90%+ $ 16,112 1.35% 2.55% (0.87)% 369.11%
* For the six-month period ended March 31, 2003. All ratios for the period
have been annualized.
** The amount shown for a share outstanding throughout the period does not
accord with the aggregate net losses on investments for that period because
of the sales and repurchases of fund shares in relation to fluctuating
market value of the investments of the Fund.
+ Returns are for the period indicated and have not been annualized.
++ Inclusive of directed brokerage arrangements, waivers and reimbursements.
+++ Excludes effect of in-kind transfers and mergers.
(1) On April 30, 2001, shareholders of the Clover Max Cap Value Fund approved a
change in the adviser from Clover Capital Management, Inc. to Turner
Investment Partners, Inc., with Clover Capital becoming the Fund's
sub-adviser. In connection with the change in adviser, the Fund changed its
name to the Turner Large Cap Value Fund effective May 1, 2001.
(2) Commenced operations on October 31, 1997. All ratios for the period have
been annualized.
(3) Effective April 15, 2003, the Board of Trustees of Turner Funds approved a
resolution to change the name of the Turner Midcap Value Fund to the Turner
Core Value Fund and to change its principal investment strategy to a "core"
approach.
(4) On April 30, 2001, shareholders of the Clover Equity Value Fund approved a
change in the adviser from Clover Capital Management, Inc. to Turner
Investment Partners, Inc., with Clover Capital becoming the Fund's
sub-adviser. In connection with the change in adviser, the Fund changed its
name to the Turner Midcap Value Fund effective May 1, 2001.
(5) On April 30, 2001, shareholders of the Clover Small Cap Value Fund approved
a change in the adviser from Clover Capital Management, Inc. to Turner
Investment Partners, Inc., with Clover Capital becoming the Fund's
sub-adviser. In connection with the change in adviser, the Fund changed its
name to the Turner Small Cap Value Fund effective May 1, 2001.
(6) Commenced operations on March 4, 2002. All ratios for the period have been
annualized.
(7) Commenced operations on June 30, 1999. All ratios for the period have been
annualized.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 115
FINANCIAL STATEMENTS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Realized and
Net asset Net unrealized Distributions Distributions
value, investment gains from net from Net asset
beginning income (losses) on investment capital value, end
of period (loss) investments income gains of period
- ------------------------------------------------------------------------------------------------------------------------
Turner New Enterprise Fund -- Class I Shares
- --------------------------------------------
2003* $ 2.27 (0.01) 0.41 -- -- $ 2.67
2002 $ 3.29 (0.04) (0.98) -- -- $ 2.27
2001 (1) $12.52 (0.03) (9.20) -- -- $ 3.29
2000 (2) $10.00 (0.01) 2.53 -- -- $12.52
- ----------------------------------------------------
Turner Financial Services Fund -- Class I Shares (3)
- ----------------------------------------------------
2003* $10.11 -- 0.10 -- (0.11) $10.10
2002 $16.67 (0.02) (1.12) -- (5.42) $10.11
2001 (4) $19.76 (0.13) (2.96) -- -- $16.67
2001 $17.19 (0.14) 3.30 -- (0.59) $19.76
2000 $18.01 (0.17) (0.65) -- -- $17.19
1999 $19.61 (0.10) (0.31) -- (1.19) $18.01
1998 $12.60 (0.06) 7.93 -- (0.86) $19.61
- ---------------------------------------------------------
Turner Healthcare & Biotechnology Fund -- Class II Shares
- ---------------------------------------------------------
2003* $ 9.83 (0.08) 0.55 -- -- $10.30
2002 $11.15 (0.10) (1.20) -- (0.02) $ 9.83
2001 (5) $10.00 (0.03) 1.18 -- -- $11.15
- ------------------------------------------------------
Turner Tax Managed U.S. Equity Fund -- Class II Shares
- ------------------------------------------------------
2003* $ 6.29 (0.01) 0.32 -- -- $ 6.60
2002 $ 8.18 (0.03) (1.86) -- -- $ 6.29
2001 (5) $10.00 -- (1.82) -- -- $ 8.18
- -----------------------------------------------------------------
Turner Strategic Value and High Income Fund -- Class I Shares (6)
- -----------------------------------------------------------------
2003* (7) $10.00 0.10 0.31 (0.10) -- $10.31
- -----------------------------------------------
Turner Core Fixed Income Fund -- Class I Shares
- -----------------------------------------------
2003* $10.55 0.25 (0.09) (0.25) (0.03) $10.43
2002 $10.20 0.52 0.35 (0.52) -- $10.55
2001 (8) $ 9.62 0.54 0.58 (0.54) -- $10.20
2000 $ 9.50 0.54 0.12 (0.54) -- $ 9.62
1999 $10.41 0.53 (0.71) (0.53) (0.20) $ 9.50
1998 $ 9.92 0.57 0.51 (0.57) (0.02) $10.41
- -------------------------------------------------------
Turner Total Return Fixed Income Fund -- Class I Shares
- -------------------------------------------------------
2003 (9) $10.19 0.09 (0.01) (0.09) (0.34) $ 9.84
2002 $10.53 0.50 0.18 (0.50) (0.52) $10.19
2001 $ 9.98 0.61 0.55 (0.61) -- $10.53
2000 $ 9.91 0.59 0.07 (0.59) -- $ 9.98
1999 (10) $10.00 0.14 (0.09) (0.14) -- $ 9.91
116 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
Realized and
Ratio of Ratio of total investment
Net assets net expenses expenses income (loss) Portfolio
Total end of to average to average to average turnover
return period (000) net assets++ net assets net assets++ rate+++
- ---------------------------------------------------------------------------------------------------------------------------------
Turner New Enterprise Fund -- Class I Shares
- --------------------------------------------
2003* 17.62%+ $ 3,854 0.95% 2.33% (0.78)% 273.43%
2002 (31.00)% $ 3,198 0.98% 2.04% (0.92)% 754.09%
2001 (1) (73.72)% $ 6,144 1.28% 3.13% (1.04)% 758.98%
2000 (2) 25.20%+ $ 13,750 1.35% 2.87% (0.83)% 83.02%
- ----------------------------------------------------
Turner Financial Services Fund -- Class I Shares (3)
- ----------------------------------------------------
2003* 0.96%+ $ 11,326 1.44% 1.77% (0.03)% 48.90%
2002 (12.48)% $ 12,149 1.40% 2.16% (0.40)% 170.97%
2001 (4) (15.64)%+ $ 15,554 2.29% 2.33% (1.19)% 51.65%
2001 18.20% $ 23,341 2.11% 2.11% (0.59)% 109.74%
2000 (4.55)% $ 25,892 2.14% 2.14% (0.91)% 180.47%
1999 (0.15)% $ 30,797 2.06% 2.06% (0.62)% 205.86%
1998 63.47% $ 33,106 2.27% 2.10% (0.61)% 107.12%
- ---------------------------------------------------------
Turner Healthcare & Biotechnology Fund -- Class II Shares
- ---------------------------------------------------------
2003* 4.78%+ $ 10,335 1.88% 2.06% (1.62)% 123.34%
2002 (11.66)% $ 9,288 1.87% 2.33% (1.44)% 202.30%
2001 (5) 11.50%+ $ 1,192 1.50% 13.70% (0.79)% 95.24%
- ------------------------------------------------------
Turner Tax Managed U.S. Equity Fund -- Class II Shares
- ------------------------------------------------------
2003* 4.93%+ $ 4,666 1.25% 2.24% (0.32)% 112.95%
2002 (23.11)% $ 4,747 1.25% 1.91% (0.33)% 313.38%
2001 (5) (18.20)%+ $ 6,949 1.25% 5.35% (0.20)% 91.38%
- -----------------------------------------------------------------
Turner Strategic Value and High Income Fund -- Class I Shares (6)
- -----------------------------------------------------------------
2003* (7) 4.15%+ $ 58 0.40% 92.31% 3.92% 26.31%
- -----------------------------------------------
Turner Core Fixed Income Fund -- Class I Shares
- -----------------------------------------------
2003* 1.45%+ $ 40,744 0.77% 0.85% 4.47% 19.48%
2002 8.85% $ 42,924 0.75% 0.87% 5.03% 49.30%
2001 (8) 11.99% $ 34,074 0.75% 1.01% 5.50% 34.05%
2000 7.21% $ 31,486 0.75% 1.02% 5.72% 42.40%
1999 (1.78)% $ 32,729 0.75% 0.97% 5.40% 28.47%
1998 11.32% $ 33,375 0.75% 0.99% 5.67% 27.07%
- -------------------------------------------------------
Turner Total Return Fixed Income Fund -- Class I Shares
- -------------------------------------------------------
2003 (9) 0.71%+ $ 6,968 0.45% 1.23% 1.64% 436.59%
2002 6.95% $ 8,393 0.45% 1.28% 4.84% 291.12%
2001 11.87% $ 5,811 0.45% 1.58% 5.95% 203.83%
2000 6.97% $ 13,975 0.45% 1.46% 6.07% 140.02%
1999 (10) 0.48%+ $ 10,009 0.45% 1.99% 5.67% 39.70%
* For the six-month period ended March 31, 2003. All ratios for the period
have been annualized.
+ Returns are for the period indicated and have not been annualized.
++ Inclusive of directed brokerage arrangements, waivers and reimbursements.
+++ Excludes effect of in-kind transfers and mergers.
(1) On May 18, 2001, the Board of Trustees of Turner Funds approved resolutions
to change the name of the B2B E-Commerce Fund to the New Enterprise Fund and
to change a non-fundamental investment policy of the Fund to be consistent
with the New Enterprise Fund's investment objectives.
(2) Commenced operations on June 30, 2000. All ratios for the period have been
annualized.
(3) On November 12, 2001, the Titan Financial Services Fund (the "Titan Fund")
exchanged all of its assets and liabilities for shares of the Turner
Financial Services Fund. The Titan Fund is the accounting survivor in this
transaction, and as a result, the accounting history and operating results
for the periods prior to November 12, 2001 and have been carried forward in
these financial highlights.
(4) For the six month period ended October 31, 2001. All ratios for the period
have been annualized. The Titan Fund changed its fiscal year end from April
30 to October 31.
(5) Commenced operations February 28, 2001. All ratios for the period have been
annualized.
(6) The Turner Strategic Value and High Income Fund and its shareholders
indirectly bear a pro rata share of the expenses of the underlying Turner
Funds.
(7) Commenced operations October 31, 2002. All ratios for the period have been
annualized.
(8) On April 30, 2001, shareholders of the Clover Fixed Income Fund approved a
change in the adviser from Clover Capital Management, Inc. to Turner
Investment Partners, Inc., with Clover Capital becoming the Fund's
sub-adviser. In connection with the change in adviser the Fund changed its
name to the Turner Core Fixed Income Fund effective May 1, 2001.
(9) Effective October 31, 2002 the Total Return Fixed Income Fund changed its
principal investment strategy to a "core" approach.
(10)Commenced operations on June 30, 1999. All ratios for the period have been
annualized.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 117
FINANCIAL STATEMENTS
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Realized and
Net asset unrealized Distributions Distributions
value, Net gains from net from Net asset
beginning investment (losses) on investment capital value, end
of period income investments income gains of period
- ----------------------------------------------------------------------------------------------------------------------
Turner High Yield Fund -- Class I Shares
- ----------------------------------------
2003* $ 4.45 0.18 0.28 (0.18) -- $ 4.73
2002 (1) $ 5.49 0.64 (1.04) (0.64) -- $ 4.45
2001 $ 8.10 0.78 (2.61) (0.78) -- $ 5.49
2000 $ 8.82 0.79 (0.72) (0.79) -- $ 8.10
1999 (2) $ 8.91 0.83 (0.09) (0.83) -- $ 8.82
1998 (3) $10.00 0.37 (1.09) (0.37) -- $ 8.91
- ---------------------------------------------------------------
Turner Ultra Short Duration Fixed Income Fund -- Class I Shares
- ---------------------------------------------------------------
2003* $10.23 0.10 (0.05) (0.10) (0.01) $10.17
2002 $10.22 0.25 0.05 (0.29) -- $10.23
2001 $10.05 0.54 0.15 (0.52) -- $10.22
2000 $10.05 0.61 0.01 (0.62) -- $10.05
1999 (4) $10.09 0.54 (0.02) (0.56) -- $10.05
1998 (5) $10.08 0.35 -- (0.33) (0.01) $10.09
1998 (6) $10.06 0.60 0.02 (0.60) -- $10.08
- ----------------------------------------------------------------
Turner Ultra Short Duration Fixed Income Fund -- Class II Shares
- ----------------------------------------------------------------
2003* $10.27 0.09 (0.05) (0.09) (0.01) $10.21
2002 $10.26 0.25 0.02 (0.26) -- $10.27
2001 $10.09 0.50 0.17 (0.50) -- $10.26
2000 $10.10 0.57 0.02 (0.60) -- $10.09
1999 (4) $10.11 0.47 0.02 (0.50) -- $10.10
1998 (7) $10.08 0.30 0.03 (0.30) -- $10.11
- ---------------------------------------------------------
Turner Short Duration Fixed Income Fund -- Class I Shares
- ---------------------------------------------------------
2003* $10.24 0.13 (0.03) (0.13) (0.07) $10.14
2002 $10.16 0.35 0.12 (0.39) -- $10.24
2001 $ 9.82 0.57 0.32 (0.55) -- $10.16
2000 $ 9.84 0.58 (0.01) (0.59) -- $ 9.82
1999 (8) $10.25 0.55 (0.27) (0.55) (0.14) $ 9.84
1998 (5) $10.10 0.35 0.15 (0.34) (0.01) $10.25
1998 (6) $10.00 0.59 0.10 (0.59) -- $10.10
- ----------------------------------------------------------
Turner Short Duration Fixed Income Fund -- Class II Shares
- ----------------------------------------------------------
2003* $10.21 0.12 (0.04) (0.12) (0.07) $10.10
2002 $10.12 0.32 0.13 (0.36) -- $10.21
2001 $ 9.78 0.54 0.33 (0.53) -- $10.12
2000 $ 9.80 0.58 (0.02) (0.58) -- $ 9.78
1999 (9) $ 9.95 0.68 (0.13) (0.70) -- $ 9.80
118 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
Ratio of net
Ratio of Ratio of total investment
Net assets net expenses expenses income Portfolio
Total end of to average to average to average turnover
return period (000) net assets++ net assets net assets++ rate
- ----------------------------------------------------------------------------------------------------------------------------------
Turner High Yield Fund -- Class I Shares
- ----------------------------------------
2003* 10.56%+ $ 10,037 0.72% 1.22% 7.94% 105.30%
2002 (1) (8.05)% $ 9,432 0.68% 1.47% 12.78% 171.13%
2001 (23.66)% $ 13,977 0.68% 1.38% 11.18% 85.80%
2000 0.56% $ 32,560 0.68% 1.04% 8.94% 76.00%
1999 (2) 8.65% $ 41,922 0.68% 1.14% 9.11% 96.98%
1998 (3) (7.23)%+ $ 17,842 0.68% 2.09% 10.04% 29.19%
- ---------------------------------------------------------------
Turner Ultra Short Duration Fixed Income Fund -- Class I Shares
- ---------------------------------------------------------------
2003* 0.51%+ $ 599,806 0.41% 0.57% 1.22% 61.07%
2002 2.95% $ 470,021 0.36% 0.60% 2.27% 71.47%
2001 7.09% $ 93,531 0.36% 0.87% 5.09% 118.53%
2000 6.34% $ 30,365 0.36% 1.25% 6.15% 140.55%
1999 (4) 5.34% $ 3,207 0.00% 6.53% 5.50% 154.33%
1998 (5) 3.50%+ $ 991 0.00% 10.83% 5.88% 96.56%
1998 (6) 6.34% $ 1,195 0.00% 8.83% 5.97% 68.80%
- ----------------------------------------------------------------
Turner Ultra Short Duration Fixed Income Fund -- Class II Shares
- ----------------------------------------------------------------
2003* 0.39%+ $ 11,542 0.66% 0.82% 0.97% 61.07%
2002 2.69% $ 8,888 0.61% 0.85% 2.11% 71.47%
2001 6.82% $ 6,106 0.61% 1.10% 5.19% 118.53%
2000 6.00% $ 8,934 0.61% 1.48% 5.72% 140.55%
1999 (4) 5.00% $ 3,155 0.23% 6.76% 5.13% 154.33%
1998 (7) 3.26%+ $ -- 0.25% 11.08% 5.63% 96.56%
- ---------------------------------------------------------
Turner Short Duration Fixed Income Fund -- Class I Shares
- ---------------------------------------------------------
2003* 0.96%+ $ 296,873 0.41% 0.59% 1.90% 90.90%
2002 4.69% $ 264,010 0.36% 0.60% 3.27% 177.71%
2001 9.35% $ 68,405 0.36% 0.72% 5.65% 103.92%
2000 6.00% $ 42,092 0.36% 0.74% 5.94% 136.01%
1999 (8) 2.89% $ 38,687 0.24% 1.31% 6.21% 257.98%
1998 (5) 5.09%+ $ 12,015 0.24% 1.49% 5.84% 121.63%
1998 (6) 7.07% $ 15,544 0.24% 1.21% 5.85% 197.03%
- ----------------------------------------------------------
Turner Short Duration Fixed Income Fund -- Class II Shares
- ----------------------------------------------------------
2003* 0.74%+ $ 5,049 0.66% 0.84% 1.88% 90.90%
2002 4.53% $ 8,356 0.61% 0.85% 3.21% 177.71%
2001 9.10% $ 8,130 0.61% 0.96% 5.40% 103.92%
2000 5.92% $ 6,479 0.61% 0.95% 5.90% 136.01%
1999 (9) 5.64%+ $ 87 0.48% 0.95% 5.71% 257.98%
* For the six-month period ended March 31, 2003. All ratios for the period
have been annualized.
+ Returns are for the period indicated and have not been annualized.
++ Inclusive of waivers and reimbursements.
(1) The information set forth in this table for the periods prior the to May 1,
2002, is the financial data of the Penn Capital Strategic High Yield Bond
Fund (see Note 9). Effective May 1, 2002, Turner Investment Partners, Inc.
became the Fund's adviser.
(2) On January 25, 1999, shareholders of the Alpha Select Penn Capital Strategic
High Yield Bond Fund approved a tax-free reorganization under which all
assets and liabilities of the Fund were transferred to the TIP Penn Capital
Strategic High Yield Bond Fund.
(3) Commenced operations of February 27, 1998. All ratios for the period have
been annualized.
(4) On May 24, 1999 shareholders of the Alpha Select Turner Short Duration
Government Funds-One Year Portfolio (the "Fund") approved a tax-free
reorganization under which all assets and liabilities of the Fund were
transferred to the TIP Turner Short Duration Government Funds-One Year
Portfolio.
(5) On November 10, 1997 the Board of Trustees of TIP Institutional Funds
(formerly, The Solon Funds) approved a change in the Turner Short Duration
Government Funds Three Year and One Year Portfolios' fiscal year end from
February 28 to September 30, effective March 1, 1998. All ratios for the
period have been annualized.
(6) On January 22, 1998, shareholders of the Fund approved a change in the
advisor from Solon Asset Management, L.P. to Turner Investment Partners,
Inc.
(7) Commenced operations on February 27, 1998. All ratios for the period have
been annualized.
(8) On January 25, 1999 shareholders of the Alpha Select Turner Short Duration
Government Funds-Three Year Portfolio (the "Fund") approved a tax-free
reorganization under which all assets and liabilities of the Fund were
transferred to the TIPTurner Short Duration Government Funds-Three Year
Portfolio.
(9) Commenced operations on April 28, 1999. All ratios for the period have been
annualized.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2003 SEMIANNUAL REPORT 119
NOTES TO FINANCIAL STATEMENTS
NOTES TO FINANCIAL STATEMENTS
March 31, 2003
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 with 22 active portfolios. The financial statements included
herein are those of the Turner Disciplined Large Cap Growth Fund (the
"Disciplined Large Cap Growth Fund"), the Turner Large Cap Growth Opportunities
Fund (the "Large Cap Growth Opportunities Fund"), the Turner Midcap Growth Fund
(the "Midcap Growth Fund"), the Turner Small Cap Growth Fund (the "Small Cap
Growth Fund"), the Turner Micro Cap Growth Fund (the "Micro Cap Growth Fund"),
the Turner Large Cap Value Fund (the "Large Cap Value Fund"), the Turner Core
Value Fund (the "Core Value Fund") (formerly the Turner Midcap Value Fund), the
Turner Small Cap Value Fund (the "Small Cap Value Fund"), the Turner Small Cap
Value Opportunities Fund (the "Small Cap Value Opportunities Fund"), the Turner
Small Cap Equity Fund, (the "Small Cap Equity Fund"), the Turner Technology Fund
(the "Technology Fund"), the Turner Concentrated Growth Fund (the "Concentrated
Growth Fund"), the Turner New Enterprise Fund (the "New Enterprise Fund"), the
Turner Financial Services Fund (the "Financial Services Fund"), the Turner
Healthcare & Biotechnology Fund (the "Healthcare & Biotechnology Fund"), the
Turner Tax Managed U.S. Equity Fund (the "Tax Managed U.S. Equity Fund"), the
Turner Strategic Value and High Income Fund (the "Strategic Value and High
Income Fund"), the Turner Core Fixed Income Fund (the "Core Fixed Income Fund"),
the Turner Total Return Fixed Income Fund (the "Total Return Fixed Income
Fund"), the Turner High Yield Fund (the "High Yield Fund"), the Turner Ultra
Short Duration Fixed Income Fund (the "Ultra Short Duration Fixed Income Fund"),
and the Turner Short Duration Fixed Income Fund (the "Short Duration Fixed
Income Fund"), (each a "Fund" and collectively the "Funds").
Each Fund is registered as a diversified portfolio of the Trust with the
exception of the Disciplined Large Cap Growth Fund, the Large Cap Growth
Opportunities Fund, the Concentrated Growth Fund, the Financial Services Fund,
the Healthcare & Biotechnology Fund and the Tax Managed U.S. Equity Fund.
The Funds are registered to offer different classes of shares: Class I Shares,
Class II Shares, or both. The assets of each Fund are segregated, and a
shareholder's interest is limited to the Fund in which shares are held. The
Funds' prospectus provides a description of each Fund's investment objectives,
policies, and strategies along with information on the classes of shares
currently being offered.
As of March 31, 2003, the Turner International Opportunities Fund and the Turner
International Discovery Fund are also registered as diversified portfolios of
the Trust, but have not yet commenced operations.
The Small Cap Growth, the Micro Cap Growth Fund and the Small Cap Value Fund
were closed to new investors as of August 29, 1997, March 7, 2000, and December
28, 2001, respectively. Effective January 31, 2003, the Turner Small Cap Value
Fund re-opened to new investors.
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
accounting principles generally accepted in the United States 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 income
and expenses during the reported period. Actual results could differ from
those estimates.
SECURITY VALUATION--Investments in equity securities which are traded on a
national exchange (or reported on the NASDAQ national market system) are
stated at the last quoted sales price if readily available for such equity
securities on each business day; other equity securities traded in the
over-the-counter market and listed equity securities for which no sale was
reported on that date are stated at the last quoted bid price. Short-term
debt securities with maturities of 60 days or less are carried at amortized
cost, which approximates market value. Other debt securities are carried at
fair market value as determined pursuant to guidelines established by the
Board of Trustees. Debt securities for which market quotations are readily
available are valued on the basis of the last reported sales price, or, if no
sales are reported, the mean between representative bid and asked quotations.
Debt securities for which market quotations are not readily available may be
valued with reference to securities whose prices are more readily obtainable
and whose durations are comparable to the securities being valued. Subject to
the foregoing, other securities for which market quotations are not readily
available are valued at fair value as determined in good faith by the Board
of Trustees. The assets of the Strategic Value and High Income Fund consist
primarily of the investments in the underlying affiliated investment
companies, which are valued at their respective daily net asset values.
120 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
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, and interest income is
recognized on the accrual basis subject to the recognition of certain gains
and losses on mortgage- and asset-backed securities. Costs used in
determining realized gains and losses on the sales of investment securities
are those of the specific securities sold during the respective holding
period.
Securities purchased on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date. Such securities are included in
the portfolio and are subject to market fluctuations during this period. On
the date of the commitment to purchase or sell, the Funds designate specific
assets with a current value at least equal to the amount of the commitment to
be used for settling the commitment.
Certain Funds may enter into options on futures contracts for the purpose of
managing exposure to changing interest rates and securities prices. When a
Fund sells or purchases an option, an amount equal to the premium received or
paid by the Fund is recorded as a liability or an asset and is subsequently
adjusted to the current market value of the option written or purchased.
Premiums received or paid from purchasing options, which expire unexcerised,
are treated by the Fund on the expiration date as realized gains or losses.
The difference between the premium and the amount paid or received on
effecting a closing purchase or sale transaction, including brokerage
commissions, is also treated as a realized gain or loss. If an option is
exercised, the premium paid or received is added to the cost of the purchase
or proceeds from the sale in determining whether the Fund has realized a gain
or a loss on investment transactions. There were no option contracts open as
of March 31, 2003
NET ASSET VALUE PER SHARE--The net asset value per share is calculated each
business day for each class. It is computed by dividing the assets of each
class, less its liabilities, by the number of outstanding shares of each
class.
REPURCHASE AGREEMENTS--Securities pledged as collateral for repurchase
agreements are held by the custodian bank until the respective agreements
mature. Provisions of the repurchase agreements ensure that the market value
of the collateral, including accrued interest thereon, is not less than 102%.
In the event of default of the counterparty and the value of the collateral
declines or if the counterparty enters an insolvency proceeding, realization
of the collateral by the Funds may be delayed or limited.
EXPENSES--Expenses that are directly related to one of the funds are charged
to that fund. Other operating expenses of the Trust are prorated to the Funds
on the basis of relative daily net assets. In addition to the Funds' direct
expenses, shareholders of the Strategic Value and High Income Fund also bear
a proportionate share of the underlying funds' expenses.
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 Disciplined Large Cap Growth, Large Cap
Growth Opportunities, Midcap Growth, Small Cap Growth, Micro Cap Growth,
Small Cap Value Opportunities, Small Cap Equity, Technology, Concentrated
Growth, New Enterprise, Financial Services, Healthcare & Biotechnology and
Tax Managed U.S. Equity Funds declare and distribute net investment income,
if any, annually, as a dividend to shareholders. The Large Cap Value, Core
Value, Small Cap Value and Strategic Value and High Income Funds declare and
distribute net investment income, if any, quarterly, as a dividend to
shareholders. The Core Fixed Income, Total Return Fixed Income, High Yield,
Ultra Short Duration Fixed Income and Short Duration Fixed Income Funds
declare net investment income daily and distribute it monthly, 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. TRANSACTIONS WITH AFFILIATES:
Certain officers of the Trust are also officers of Turner Investment Partners,
Inc. ("Turner") and SEI Investments Global Funds Services (the
"Sub-Administrator") and/or SEI Investment Distribution Co. Such officers are
paid no fees by the Trust for serving as officers and trustees of the Trust.
The Trust has entered into an agreement with the SEI Investments Distribution
Co., an affiliate of the Sub-Administrator, to act as an agent in placing
repurchase agreements for the Funds. For its services, SEI Investments
Distribution Co.
received $42,160 for the six-month period ended March 31, 2003.
Certain Funds effect trades through Turner Investment Distributors, Inc., the
distributor for the Funds, for security purchases and sales transactions.
Commissions paid on those trades from the Trust for the six-month period ended
March 31, 2003 were $3,045,646.
TURNER FUNDS 2003 SEMIANNUAL REPORT 121
NOTES TO FINANCIAL STATEMENTS
4. ADMINISTRATION, SHAREHOLDER SERVICING, AND DISTRIBUTION AGREEMENTS:
Turner 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,
0.12% assets over $2 billion. Under a separate Sub-Administration Agreement
between Turner and SEI Investments Global Funds Services ("SEI"), SEI provides
sub-administrative services to the Funds. For the six-month period ended March
31, 2003, SEI was paid $966,611 by Turner.
Turner Investment Distributors, Inc., (the "Distributor") a broker dealer
subsidiary of Turner, provides distribution services to the Funds under a
Distribution Agreement. Turner Investment Distributors, Inc. also provides
shareholder servicing services to the Funds under a Shareholder Servicing Plan
and Agreement effective October 1, 2001.
The Disciplined Large Cap Growth, Large Cap Growth Opportunities, Midcap Growth,
Large Cap Value, Small Cap Value, Small Cap Value Opportunities, Small Cap
Equity, Concentrated Growth, Healthcare & Biotechnology, Tax Managed U.S.
Equity, High Yield, Ultra Short Duration Fixed Income and Short Duration Fixed
Income Funds have adopted a Distribution and Shareholder Service Plan for their
Class II Shares (the "Class II Plan"). Under the Class II Plan, a Plan adopted
pursuant to Rule 12b-1 under the Investment Company Act of 1940, the Distributor
is entitled to receive aggregate fees not exceeding 0.75% of each Fund's Class
II Shares' average daily net assets in return for providing a broad range of
distribution services. Currently, the Distributor receives aggregate fees of
0.25% of each Fund's Class II Shares' average daily net assets. In addition,
under the Class II Plan, the Distributor is entitled to receive aggregate fees
not exceeding 0.25% of each Fund's Class II Shares' average daily net assets in
return for providing a broad range of shareholder services.
DST Systems, Inc., (the "Transfer Agent"), serves as the transfer agent and
dividend disbursing agent for the Funds under a transfer agency agreement with
the Trust. The Funds pay amounts to third parties that provide sub-transfer
agency and other administrative services to the Funds.
Some Funds direct certain portfolio trades to brokers who pay a portion of their
expenses (Directed Brokerage). Under this arrangement, the following Funds had
expenses reduced by the amounts shown below. The effect on the Funds' expense
ratios, as a percentage of the average net assets of the Fund on an annualized
basis, for the six-month period ended March 31, 2003, is as follows:
FUND RATIO AMOUNT
- -------- ---------- ------------
Large Cap Growth Opportunities Fund 0.34% $ 5,345
Midcap Growth Fund 0.08% 228,656
Small Cap Growth Fund 0.15% 107,057
Micro Cap Growth Fund 0.07% 57,861
Small Cap Value Opportunities Fund 0.11% 580
Small Cap Equity Fund 0.10% 4,190
Technology Fund 0.52% 34,133
Concentrated Growth Fund 0.28% 42,670
New Enterprise Fund 0.58% 10,995
Financial Services Fund 0.01% 635
Healthcare & Biotechnology Fund 0.02% 1,258
Tax Managed U.S. Equity Fund 0.01% 332
5. INVESTMENT ADVISORY AGREEMENT:
The Trust and Turner are parties to an Investment Advisory Agreement dated April
28, 1996 under which the Adviser receives a fee, that is calculated daily and
paid monthly, based on the average daily net assets of the Funds. Turner
Investment Management, LLC, an affiliate of Turner Investment Partners, Inc.
serves as the investment adviser for the Small Cap Value Opportunities and Small
Cap Equity Funds. Clover Capital Management, Inc. serves as investment
sub-adviser to the Large Cap Value, Core Value, Small Cap Value and Core Fixed
Income Funds. Turner and Turner Investment Management, LLC have agreed to waive
all or a portion of their fees and to reimburse expenses in order to limit
operating expenses to a specified percentage of the average daily net assets of
certain Funds on an annualized basis. These waivers and reimbursements may be
terminated at any time.
The Advisory fee for some of the Funds may be subject to a monthly performance
adjustment based on such Fund's performance relative to the performance of a
comparative index as presented in the Funds' prospectus. These performance-based
fees will go into effect once a Fund has been in operation for at least one
year. If a Fund outperforms its comparative index by a specified amount, Turner
will receive higher advisory fees for the next period. Conversely, if a Fund
underperforms its comparative index Turner will receive lower advisory fees for
the next period. In cases where the performance-based fee has been applied,
Turner has voluntarily agreed to waive all or a portion of their fees and to
reimburse expenses in order to keep such Fund's "other expenses" (excluding
distribution fees) from exceeding a specified percentage of the average daily
net assets of the Fund on an annualized basis. Accordingly, the advisory fee,
expense caps and performance-based fee adjustments are as follows:
122 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
ADVISORY FEES OTHER TOTAL
----------------------------- EXPENSES EXPENSES
FUND (LOW) (BASE) (HIGH) CAP CAP
- -------- ------ ------ ------- ------ ------
Disciplined Large Cap
Growth Fund n/a 0.60% n/a n/a 0.75%
Large Cap Growth
Opportunities Fund n/a 0.75 n/a n/a 1.25
Midcap Growth Fund n/a 0.75 n/a n/a 1.25(1)
Small Cap Growth Fund n/a 1.00 n/a n/a 1.25
Micro Cap Growth Fund n/a 1.00 n/a n/a 1.40
Large Cap Value Fund n/a 0.74 n/a n/a 1.25(2)
Core Value Fund n/a 0.74 n/a n/a 1.25(3)
Small Cap Value Fund n/a 0.85 n/a n/a 1.40
Small Cap Value
Opportunities Fund n/a 0.95 n/a n/a 1.45
Small Cap Equity Fund(4) n/a 0.85 n/a 0.25% n/a
Technology Fund 0.70% 1.10 1.50% 0.50 n/a
Concentrated Growth
Fund 0.70 1.10 1.50 0.25 n/a
New Enterprise Fund 0.70 1.10 1.50 0.25 n/a
Financial Services Fund 0.75 1.00 1.25 0.40 n/a
Healthcare &
Biotechnology Fund 0.75 1.00 1.25 0.75 n/a
Tax Managed U.S.
Equity Fund n/a 0.75 n/a n/a 1.25
Strategic Value and
High Income n/a 0.10 n/a n/a 0.25(5)
Core Fixed Income Fund n/a 0.45 n/a n/a 0.80(6)
Total Return Fixed
Income Fund n/a 0.50 n/a n/a 0.45
High Yield Fund n/a 0.55 n/a n/a 0.80(7)
Ultra Short Duration
Fixed Income Fund n/a 0.25 n/a n/a 0.41(1)(8)
Short Duration Fixed
Income Fund n/a 0.25 n/a n/a 0.41(1)(8)
(1) REPRESENTS MAXIMUM EXPENSE RATIO FOR CLASS I SHARES WHERE FUNDS OFFER BOTH
CLASS I SHARES AND CLASS II SHARES.
(2) EFFECTIVE FEBRUARY 1, 2003, THE BOARD OF TRUSTEES AGREED TO INCREASE THE
CONTRACTUAL TOTAL EXPENSE CAP FROM 0.95% TO 1.25%.
(3) EFFECTIVE FEBRUARY 1, 2003, THE BOARD OF TRUSTEES AGREED TO INCREASE THE
CONTRACTUAL TOTAL EXPENSE CAP FROM 1.10% TO 1.25%.
(4) THE BOARD OF TRUSTEES HAS CONTRACTUALLY AGREED TO REDUCE THE ADVISORY FEE
BY 0.10% FROM 0.95% TO 0.85% AND TO KEEP "OTHER" EXPENSES FROM EXCEEDING
0.25% THROUGH JANUARY 31, 2004.
(5) EFFECTIVE FEBRUARY 1, 2003, THE BOARD OF TRUSTEES AGREED TO DECREASE THE
CONTRACTUAL TOTAL EXPENSE CAP FROM 0.50% TO 0.25%.
(6) EFFECTIVE FEBRUARY 1, 2003, THE BOARD OF TRUSTEES AGREED TO INCREASE THE
CONTRACTUAL TOTAL EXPENSE CAP FROM 0.75% TO 0.80%.
(7) EFFECTIVE FEBRUARY 1, 2003, THE BOARD OF TRUSTEES AGREED TO INCREASE THE
CONTRACTUAL TOTAL EXPENSE CAP FROM 0.68% TO 0.80%.
(8) EFFECTIVE OCTOBER 1, 2002, THE BOARD OF TRUSTEES AGREED TO INCREASE THE
CONTRACTUAL TOTAL EXPENSE CAP FROM 0.36% TO 0.41%.
During the six-month period ended March 31, 2003, the following Funds' Advisory
Fees were adjusted in accordance with the performance based fee described above:
BASE PERFORMANCE GROSS
FUND ADVISER FEE ADJUSTMENT ADVISER FEE
- -------- ----------- ----------- -----------
Technology Fund $ 71,537 $(26,014) $ 45,523
Concentrated Growth Fund 168,402 (61,239) 107,163
New Enterprise Fund 20,825 (7,573) 13,252
Financial Services Fund 61,505 2,633 64,138
Healthcare &
Biotechnology Fund 50,924 6,439 57,363
6. INVESTMENT TRANSACTIONS:
The cost of security purchases and the proceeds from security sales, other than
short-term investments, for the six-month period ended March 31, 2003, were as
follows (000):
PURCHASES SALES
FUND (000) (000)
- -------- --------- ----------
Disciplined Large Cap
Growth Fund $66,211 $69,328
Large Cap Growth
Opportunities Fund 4,268 7,518
Midcap Growth Fund 567,419 674,562
Small Cap Growth Fund 124,415 134,570
Micro Cap Growth Fund 95,718 88,074
Large Cap Value Fund 805 1,200
Core Value Fund 13,013 13,590
Small Cap Value Fund 66,249 157,687
Small Cap Value
Opportunities Fund 1,636 1,498
Small Cap Equity Fund 10,930 9,593
Technology Fund 42,554 42,870
Concentrated Growth Fund 129,610 131,494
New Enterprise Fund 10,160 10,072
Financial Services Fund 5,818 6,738
Healthcare & Biotechnology Fund 12,340 11,911
Tax Managed U.S. Equity Fund 5,730 6,143
Strategic Value and
High Income Fund 72 10
High Yield Fund 8,779 9,103
PURCHASES (000) SALES (000)
FUND GOV'T OTHER GOV'T OTHER
- ------ -------- ------- ------- --------
Core Fixed
Income Fund $ 4,860 $3,970 $ 6,427 $ 1,342
Total Return Fixed
Income Fund 10,427 266 10,109 373
Ultra Short Duration
Fixed Income Fund 104,821 734 191,795 12,204
Short Duration Fixed
Income Fund 150,970 759 157,522 7,832
TURNER FUNDS 2003 SEMIANNUAL REPORT 123
NOTES TO FINANCIAL STATEMENTS
7. FEDERAL INCOME TAXES:
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. To the extent that distributions from net investment
income and net realized capital gains exceed amounts reported in the financial
statements, such amounts are reported separately.
The amounts of distributions from net investment income and net realized capital
gains are determined in accordance with Federal income tax regulations, which
may differ from those amounts determined under accounting principles generally
accepted in the United States of America. These book/tax differences are either
temporary or permanent in nature. These differences are primarily due to wash
sales. In addition, certain Funds may utilize earnings and profits distributed
to shareholders on redemption of shares as part of the dividends paid deduction
for income tax purposes. The character of distributions made during the year
from net investment income or net realized gains, and the timing of
distributions where the fiscal year in which the amounts are distributed may
differ from the year that the income or realized gains (losses) were recorded by
the Fund. To the extent these differences are permanent, adjustments are made to
the appropriate equity accounts in the period that the differences arise.
For Federal income tax purposes, capital loss carryforwards may be carried
forward and applied against future capital gains.
At September 30, 2002, the Funds had capital loss carryforwards available to
offset future realized capital gains through the indicated expiration dates
(000):
EXPIRING SEPTEMBER 30,
- ---------------------------------------------------------------------------------------------------------------------------
2007 2008 2009 2010 TOTAL
-------- -------- -------- -------- --------
Disciplined Large Cap Growth Fund $ -- $ -- $ 468 $ 18,287 $ 18,755
Large Cap Growth Opportunities Fund -- -- 2,029 8,526 10,555
Midcap Growth Fund -- -- 44,477 516,580 561,057
Small Cap Growth Fund -- -- 26,939 130,308 157,247
Micro Cap Growth Fund -- -- 2,734 3,228 5,962
Large Cap Value Fund -- -- 65 320 385
Small Cap Value Fund -- -- -- 2,255 2,255
Technology Fund -- -- 16,482 108,583 125,065
Concentrated Growth Fund -- -- 14,953 132,529 147,482
New Enterprise Fund -- -- 1,650 7,183 8,833
Tax Managed U.S. Equity Fund -- -- -- 871 871
High Yield Fund 1,141 2,916 2,590 4,590 11,237
124 TURNER FUNDS 2003 SEMIANNUAL REPORT
(Unaudited)
At March 31, 2003, the total cost of securities for Federal income tax purposes
and the aggregate gross unrealized appreciation and depreciation for the
securities held by the Funds were as follows (000):
NET UNREALIZED
FEDERAL UNREALIZED UNREALIZED APPRECIATION
FUND TAX COST APPRECIATION DEPRECIATION (DEPRECIATION)
- ---- ------------ ------------ -------------- --------------
Disciplined Large Cap Growth Fund $ 61,210 $ 3,846 $ (3,649) $ 197
Large Cap Growth Opportunities Fund 1,775 122 (72) 50
Midcap Growth Fund 528,670 52,373 (22,458) 29,915
Small Cap Growth Fund 156,801 9,170 (10,572) (1,402)
Micro Cap Growth Fund 190,371 25,674 (10,582) 15,092
Large Cap Value Fund 4,745 138 (962) (824)
Core Value Fund 45,280 3,097 (4,862) (1,765)
Small Cap Value Fund 424,275 17,098 (105,152) (88,054)
Small Cap Value Opportunities Fund 1,134 68 (76) (8)
Small Cap Equity Fund 10,303 586 (417) 169
Technology Fund 15,842 819 (391) 428
Concentrated Growth Fund 38,241 1,274 (1,156) 118
New Enterprise Fund 4,843 284 (169) 115
Financial Services Fund 11,990 508 (1,058) (550)
Healthcare & Biotechnology Fund 12,699 1,000 (327) 673
Tax Managed U.S. Equity Fund 4,592 289 (161) 128
Strategic Value and High Income Fund 61 1 -- 1
Core Fixed Income Fund 38,452 2,554 (631) 1,923
Total Return Fixed Income Fund 6,941 23 (22) 1
High Yield Fund 9,843 378 (58) 320
Ultra Short Duration Fixed Income Fund 607,564 1,137 (424) 713
Short Duration Fixed Income Fund 310,762 2,624 (303) 2,321
8. CONCENTRATIONS/RISKS:
Certain Funds invest a high percentage of their assets in specific sectors of
the market in order to achieve a potentially greater investment return. As a
result, the Funds may be more susceptible to economic, political, and regulatory
developments in a particular sector of the market, positive or negative, and may
experience increased volatility on the Fund's net asset value and magnified
effect on the total return.
9. FUND MERGERS/REORGANIZATIONS:
On November 12, 2001, all the assets and liabilities of the Professionally
Managed Portfolios - Titan Financial Services Fund (the "Titan Fund") were
transferred into the Turner Financial Services Fund. Under the Plan of
Reorganization, 1,277,621 shares of the Turner Financial Services Fund were
issued for net assets of $15,606,228 (including unrealized appreciation of
$1,419,384) of the Titan Financial Services Fund in a tax-free exchange. The
value of the Turner Financial Services Fund was $450,959 which included
undistributed net investment income of $3,155, accumulated gains of $25,016 and
unrealized losses of $2,281. Under the Plan of Reorganization, the Titan Fund is
the accounting survivor, and the financial reporting subsequent to November 12,
2001 reflects the performance and accounting history of the Titan Fund.
On August 17, 2002, the Mercury Select Growth Fund reorganized into the Turner
Large Cap Growth Opportunities Fund. This reorganization was accomplished in two
steps. The Mercury Select Growth Fund historically invested all of its assets in
the corresponding portfolio of Mercury Master Trust in a "master/feeder"
structure. The Mercury Select Growth Fund received a distribution of all of the
assets and liabilities of the Mercury Master Trust in return for the Mercury
Select Growth Fund's interests in the master portfolio in a "redemption-in-kind"
transaction. Immediately after this redemption, the Mercury Select Growth Fund
Class I, A, B and C transferred all of its assets and liabilities to the Turner
Large Cap Growth Opportunities Fund Class I. Under the Agreement and Plan of
Reorganization, 710,025 shares of the Turner Large Cap Growth Opportunities Fund
were issued for net assets of $5,852,119 (including unrealized appreciation of
$13,903) of the Mercury Select Growth
TURNER FUNDS 2003 SEMIANNUAL REPORT 125
NOTES TO FINANCIAL STATEMENTS (Unaudited)
Fund in a tax-free exchange. The value of the Turner Large Cap Growth
Opportunities Fund was $5,852,119, which included unrealized gains of $13,903.
The financial reporting prior to August 17, 2002 reflects the performance and
accounting history of the Mercury Select Growth Fund.
In a tax-free reorganization, the Penn Capital Strategic High Yield Bond Fund
(part of the Turner Funds) transferred all of its assets and liabilities into
the Turner High Yield Fund on May 1, 2002.
10. LOANS OF PORTFOLIO SECURITIES:
The Funds may lend securities in their portfolio pursuant to a securities
lending agreement ("Lending Agreement") with Goldman Sachs & Co. 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. Cash collateral received is invested
pursuant to the terms approved by the board of trustees. All such investments
are made at the risk of the Funds and, as such, the Funds are liable for
investment losses. Net income earned on investment of cash collateral and loan
fees received on non-cash collateral are allocated between Goldman Sachs & Co.
and the Funds in accordance with the Lending Agreement.
In the event of bankruptcy of the borrower, realization/ retention of the
collateral may be subject to legal proceedings.
Cash collateral received in connection with securities lending is invested in
Boston Global Investment Trust -- Quality Portfolio. The market value of
collateral at March 31, 2003, with respect to such loans were as follows:
MARKET VALUE MARKET VALUE
OF SECURITIES OF COLLATERAL
LOANED (000) (000)
------------- -------------
Large Cap Growth
Opportunities Fund $ 26 $ 31
Midcap Growth Fund 45,167 48,827
Small Cap Growth Fund 15,248 16,263
Micro Cap Growth Fund 36,852 38,352
Large Cap Value Fund 25 32
Core Value Fund 4,391 4,684
Small Cap Value Fund 10,146 11,516
Small Cap Value
Opportunities Fund 17 18
Small Cap Equity Fund 1,883 1,966
Technology Fund 4,071 4,400
Concentrated Growth Fund 9,459 10,264
New Enterprise Fund 1,042 1,126
Healthcare & Biotechnology
Fund 2,929 3,036
High Yield Fund 248 261
Short Duration Fixed
Income Fund 2,574 2,699
11. SUBSEQUENT EVENT:
On April 7, 2003, the Total Return Fixed Income Fund received a redemption of
$6,473,892.
126 TURNER FUNDS 2003 SEMIANNUAL REPORT
TRUSTEES AND OFFICERS OF THE TRUST (Unaudited)
TERM OF
OFFICE
AND NUMBER OF
POSITION LENGTH PORTFOLIOS IN OTHER
HELD WITH OF TIME PRINCIPAL OCCUPATION(S) COMPLEX OVERSEEN DIRECTORSHIPS
NAME, ADDRESS, AND AGE THE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE*
- ------------------------------------------------------------------------------------------------------------------------------------
Robert E. Turner Trustee Trustee Chairman and Chief Investment Officer - 22 ACP Funds,
1205 Westlakes Drive since 1996 Growth Equities of Turner since 1990. Alpha Select
Suite 100 Funds
Berwyn, PA 19312 Bradley
(46) University,
Episcopal
Academy
- ------------------------------------------------------------------------------------------------------------------------------------
*Mr. Turner is deemed to be an "Interested Trustee" by virtue of his relationship with Turner Investment Partners, Inc.
- ------------------------------------------------------------------------------------------------------------------------------------
NON-INTERESTED TRUSTEES
- ------------------------------------------------------------------------------------------------------------------------------------
Alfred C. Salvato Trustee Trustee Treasurer, Thomas Jefferson University 22 Alpha Select
13 Fountain Court since 1996 Health Care Pension Fund since 1995, and Funds
Cherry Hill, NJ 08034 Assistant Treasurer, 1988-1995
(44)
- ------------------------------------------------------------------------------------------------------------------------------------
Janet F. Sansone Trustee Trustee Self-employed. Consultant since 1999. 22 N/A
1023 North Pitt Street since 1997 Senior Vice President of Human Resources
Alexandria, VA 22314-1525 of Frontier Corporation (telecommunica
(57) tions company), (1993-1999).
- ------------------------------------------------------------------------------------------------------------------------------------
Dr. John T. Wholihan Trustee Trustee Professor and Dean, Loyola Marymount 22 TDK Mediactive
7900 Loyola Blvd. since 1996 University, since 1984. Director, TDK
Los Angeles, CA 90045-8395 Mediactive.
(64)
- ------------------------------------------------------------------------------------------------------------------------------------
EXECUTIVE OFFICERS
- ------------------------------------------------------------------------------------------------------------------------------------
Stephen J. Kneeley President President TID Director, President of Turner-- Chief N/A N/A
1205 Westlakes Drive and Chief and Chief Operating Officer of Turner, 1990-2001.
Suite 100 Executive Executive
Berwyn, PA 19312 Officer Officer
(39) since 1997
- ------------------------------------------------------------------------------------------------------------------------------------
John H. Grady, Jr.
1205 Westlakes Drive Executive Vice Chief Operating Officer, General Counsel N/A N/A
Suite 100 Vice President and Chief Legal Officer of Turner since
Berwyn, PA 19312 President & & February, 2001. TID President and Chief
(41) Secretary Secretary Operating Officer since September 2001.
since 2001 Partner, Morgan, Lewis & Bockius LLP
(October 1995-January 2001).
- ------------------------------------------------------------------------------------------------------------------------------------
Brian M. Ferko Vice Vice TID Vice President, Director of Mutual N/A N/A
1205 Westlakes Drive President & President & Fund Administration and Operations for
Suite 100 Assistant Assistant the Turner Funds since 1997. Relationship
Berwyn, PA 19312 Secretary Secretary Manager, SEI Investments (1995-1997).
(31) since 2000
- ------------------------------------------------------------------------------------------------------------------------------------
Todd B. Cipperman Vice Vice Vice President and Assistant Secretary of N/A N/A
SEI Investments, President President SEI Investments since 1995. Previously,
One Freedom and and Associate, Dewey Ballantine, 1994-1995.
Valley Drive Assistant Assistant Associate, Winston and Strawn, 1991-
Oaks, PA 19456 Secretary Secretary 1994.
(35) since 1996
- ------------------------------------------------------------------------------------------------------------------------------------
Peter Golden Controller Controller Director of Fund Accounting of SEI N/A N/A
SEI Investments, and Chief and Chief Investments since June 2001. Previously,
One Freedom Accounting Accounting Vice President of Fund Administration, J.P.
Valley Drive Officer Officer Morgan Chase & Co., March 2000 to April
Oaks, PA 19456 since 2001 2001; Vice President, Fund and Pension
(38) Accounting, June 1997 to March 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
TURNER FUNDS 2003 SEMIANNUAL REPORT 127
TRUSTEES AND OFFICERS OF THE TRUST (Unaudited)
TERM OF
OFFICE
AND NUMBER OF
POSITION LENGTH PORTFOLIOS IN OTHER
HELD WITH OF TIME PRINCIPAL OCCUPATION(S) COMPLEX OVERSEEN DIRECTORSHIPS
NAME, ADDRESS, AND AGE THE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD
- ------------------------------------------------------------------------------------------------------------------------------------
EXECUTIVE OFFICERS (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
Lydia A. Gavalis Vice Vice Vice President and Assistant Secretary of SEI N/A N/A
SEI Investments, President President Investments since 1998. Assistant General
One Freedom and and Counsel and Director of Arbitration,
Valley Drive Assistant Assistant Philadelphia Stock Exchange, 1989-1998.
Oaks, PA 19456 Secretary Secretary
(38) since 1999
- ------------------------------------------------------------------------------------------------------------------------------------
William E. Zitelli, Jr. Vice Vice Vice President and Assistant Secretary of SEI N/A N/A
SEI Investments, President President Investments since August 2000. Vice
One Freedom and and President, Merrill Lynch & Co. Asset
Valley Drive Assistant Assistant Management Group (1998-2000). Associate at
Oaks, PA 19456 Secretary Secretary Pepper Hamilton LLP (1997-1998). Associate
(34) since 2000 Kristol (1994-1997).
- ------------------------------------------------------------------------------------------------------------------------------------
Timothy D. Barto Vice Vice Vice President and Assistant Secretary of SEI N/A N/A
SEI Investments, President President Investments since December 1999. Associate
One Freedom and and at Dechert Price & Rhoads (1997-1999).
Valley Drive Assistant Assistant Associate at Richter, Miller & Finn
Oaks, PA 19456 Secretary Secretary (1994-1997).
(34) since 2000
- ------------------------------------------------------------------------------------------------------------------------------------
Christine M. McCullough Vice Vice Vice President and Assistant Secretary of SEI N/A N/A
SEI Investments, President President Investments since December 1999. Associate
One Freedom and and at White and Williams LLP (1991-1999).
Valley Drive Assistant Assistant Associate at Montgomery, McCracken, Walker
Oaks, PA 19456 Secretary Secretary & Rhoads (1990-1991).
(41) since 2000
- ------------------------------------------------------------------------------------------------------------------------------------
Diane J. Drake Vice Vice Deputy Counsel for Turner since October N/A N/A
1205 Westlakes Drive President President 2001. Previously, Associate, Stradley, Ronon,
Suite 100 and and Stevens & Young, LLP (June 1998-October
Berwyn, PA 19312 Assistant Assistant 2001). Staff Attorney, Rodney Square
(35) Secretary Secretary Management Corporation (November
since 2001 1996-June 1998).
- ------------------------------------------------------------------------------------------------------------------------------------
Brian McNally Vice Vice Deputy General Counsel for Turner since N/A N/A
1205 Westlakes Drive President President 2002. Previously Assistant General Counsel
Suite 100 since 2002 with Bank of America (September 1997-
Berwyn, PA 19312 July 2002).
(44)
- ------------------------------------------------------------------------------------------------------------------------------------
John Canning Vice Vice Assistant Director of Mutual Fund N/A N/A
1205 Westlakes Drive President President Administration and Operations since 2000.
Suite 100 since 2002 Previously Implementations Analyst with SEI
Berwyn, PA 19312 Investments (December 1998-December
(31) 2000). Transfer Agent Manager with Pilgrim
Baxter and Associates (February 1998- December
1998). Account Director with SEI
Investments (July 1993-February 1998).
- ------------------------------------------------------------------------------------------------------------------------------------
Antoinette Robbins Vice Vice Director of Compliance for Turner since 2002. N/A N/A
1205 Westlakes Drive President President Previously Senior Gift Planning Officer with
Suite 100 since 2002 American Civil Liberties Union (May 2001-
Berwyn, PA 19312 August 2001). Assistant Vice President,
(39) Inc. (March 1996-May 2001).
- ------------------------------------------------------------------------------------------------------------------------------------
128 TURNER FUNDS 2003 SEMIANNUAL REPORT
NOTES
NOTES
NOTES
TURNER FUNDS
TURNER FUNDS TRUSTEES
ALFRED C. SALVATO
Treasurer
Thomas Jefferson University Health Care Pension Fund
JANET F. SANSONE
Consultant
ROBERT E. TURNER
Chairman and Chief Investment Officer -
Growth Equities
Turner Investment Partners, Inc.
DR. JOHN T. WHOLIHAN
Professor and Dean, College of Business
Loyola Marymount University
INVESTMENT ADVISERS
TURNER INVESTMENT PARTNERS, INC.
TURNER INVESTMENT MANAGEMENT, LLC
Berwyn, Pennsylvania
DISTRIBUTOR
TURNER INVESTMENT DISTRIBUTORS, INC.
Berwyn, Pennsylvania
ADMINISTRATOR
TURNER INVESTMENT PARTNERS, INC.
Berwyn, Pennsylvania
LEGAL COUNSEL
MORGAN, LEWIS & BOCKIUS LLP
Philadelphia, Pennsylvania
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
Philadelphia, Pennsylvania
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.
[BLANK PAGE]
[TURNER LOGO OMITTED]
TURNER FUNDS
P.O. Box 219805
Kansas City, MO 64121-9805
Telephone: 1-800-224-6312
Email:# mutualfunds@turnerinvestments.com
Web Site: www.turnerinvestments.com
TUR-SA-002-0300
ITEM 2. CODE OF ETHICS.
Not applicable at this time.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable at this time.
ITEMS 4-6. (RESERVED)
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable at this time.
ITEMS 8. (RESERVED)
ITEM 9. CONTROLS AND PROCEDURES.
(a) Not applicable at this time.
(b) There were no significant changes in the registrant's internal controls or
in other factors that could significantly affect these controls subsequent to
the date of our evaluation.
ITEMS 10. EXHIBITS.
File the exhibits listed below as part of this Form. Letter or number the
exhibits in the sequence indicated.
(a) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2, to the extent that the registrant intends to
satisfy the Item 2 requirements through filing of an exhibit: Not applicable.
(b) A separate certification for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2 under the Act (17
CFR 270.30a-2) in the exact form set forth below: Attached hereto.
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
By (Signature and Title)* \s\ Stephen J. Kneeley
-----------------------------------
Stephen J. Kneeley, President and CEO
Date 5/29/03
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. Kneeley
-----------------------------------
Stephen J. Kneeley, President and CEO
Date 5/29/03
By (Signature and Title)* \s\ Peter J. Golden
-----------------------------------
Peter J. Golden, Controller and CAO
Date 5/29/03
* Print the name and title of each signing officer under his or her signature.