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 811-8104
Alpha Select Fund
(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)
Alpha Select Funds
P.O. Box 219520
Kansas City, MO 64105-9520
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-888-BI-ALPHA
Date of fiscal year end: September 30, 2003
Date of reporting period: September 30, 2003
Item 1. Reports to Shareholders.
ANNUAL
REPORT
SEPTEMBER 30, 2003
ALPHA SELECT FUNDS [LOGO OMITTED]
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Target Select Equity Fund
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CONTENTS
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2 Total Returns and Fund Investment Objective
5 Statement of Net Assets
9 Statement of Operations
10 Statement of Changes in Net Assets
11 Financial Highlights
12 Notes to Financial Statements
16 Report of Independent Auditors
17 Notice to Shareholders
18 Trustees and Officers of Trust
ALPHA SELECT FUNDS
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The Alpha Select Funds offer the Target Select Equity Fund (the "Fund"), a
non-diversified mutual fund for individual and institutional investors with
three separate classes of shares: Class A, Class C, and Class I. The Class I
Shares are the only active class of shares as of September 30, 2003. The minimum
initial investment in the Class A and Class C Shares is $1,000 ($500 for
retirement plans), and the minimum initial investment in Class I Shares is
$2,500. The minimum amount for subsequent investments is $50 for Class A, Class
C, and Class I Shares. The Fund reserves the right to waive the minimum initial
investment, and may do so for financial intermediaries who purchase shares
through a brokerage firm or a mutual fund marketplace.
CONCENTRATED CAPITAL MANAGEMENT, LP ("CCM"), located in King of Prussia,
Pennsylvania, was formed on May 19, 2000, and serves as the Adviser to the Fund.
CCM has appointed TURNER INVESTMENT PARTNERS, INC. as sub-adviser to the
Target Select Equity Fund.
TURNER INVESTMENT PARTNERS, INC. is based in Berwyn, Pennsylvania. The
firm, founded in 1990, invests in equity, fixed-income, and balanced portfolios
on behalf of individuals and institutions. As of September 30, 2003, Turner had
over $10.7 billion in client assets under management.
Turner employs a quantitative investment model in its management of the
Fund. The model builds a portfolio of the best-ranked companies that is sector
neutral to the Russell 3000 Index, over-weighting Large/Small companies and
Growth/Value companies based on the forecast of Turners' asset allocation
models.
SHAREHOLDER SERVICES
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The Alpha Select Funds' shareholders receive annual and semiannual reports
and quarterly account statements. Shareholders who have questions about their
accounts may call a toll-free telephone number, 1-866-BI-ALPHA. Or they may
write to Alpha Select Funds, P.O. Box 219520, Kansas City, Missouri 64105-9520.
TARGET SELECT EQUITY FUND
CALENDAR ONE- THREE- FIVE- ANNUALIZED
TOTAL RETURNS* YEAR TO DATE YEAR YEAR YEAR INCEPTION
YEAR ENDING SEPTEMBER 30, 2003 RETURN RETURN RETURN RETURN TO DATE**
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TARGET SELECT EQUITY FUND 17.97% 23.82% (30.77)% 0.83% 1.33%
Russell 3000 Index 16.57 25.92 (9.68) 1.93 2.06
S&P 500 Index 14.72 24.39 (10.13) 1.00 1.89
Lipper Multi-Cap Growth Funds
Classification 16.46 23.86 (8.01) 4.11 1.85
*Past performance cannot guarantee future results. The investment return and
principal value of an investment will fluctuate, so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
**The inception date for the Target Select Equity Fund is December 31, 1997.
FUND INVESTMENT OBJECTIVE
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The TARGET SELECT EQUITY FUND seeks long-term capital appreciation. It
invests primarily (at least 80% of its net assets) in U.S. and foreign common
stocks and other equity securities of companies without regard to their market
capitalization. This is a non-fundamental investment policy that can be changed
by the Fund up to 60 days prior notice to shareholders. The Fund may invest in
securities of companies operating in a broad range of industries located in the
U.S. and overseas.
The Fund employs a multi-manager approach to take advantage of the best
investment ideas of a number of sub-advisers, each with its own investment
approach. Under a multi-manager approach, each sub-adviser manages a portion of
the Fund's assets, under the general supervision of the Fund's investment
adviser (such sub-advisers and investment adviser together, the "Advisers").
Here, each sub-adviser selects a relatively small number of securities, as few
as 10, for its portion of the Fund's assets. Such a focused security-selection
process permits each sub-adviser to act on only the investment ideas that it
thinks have the greatest return potential.
The Fund's investment adviser, Concentrated Capital Management, LP ("CCM")
ensures that the sub-advisers comply with the Fund's investment policies and
guidelines. CCM will also recommend the appointment of additional or replacement
sub-advisers to the Board of Trustees (the "Board").
Currently CCM employs and oversees one sub-adviser, Turner Investment
Partners, Inc., an affiliate of CCM, which currently manages 100% of the Fund's
total assets.
2
TARGET SELECT EQUITY FUND
FISCAL YEAR IN REVIEW
During the twelve months ended September 30, 2003, the stock market has
experienced a significant rally, but along with that rally, significant
volatility. Stocks benefited from widespread improvement in economic outlook.
Better corporate earnings, anticipation of increases in business spending and
stabilization of demand have all driven stock prices higher. In addition, the
Federal Reserve has maintained a low interest rate environment and recent tax
bills have given relief to some consumers, which also contributed to the
increasingly positive economic outlook. During the last twelve months, market
volatility has remained high, sparked by lingering investor concerns over the
economy, the progress of the war in Iraq and other geopolitical issues.
FUND PERFORMANCE
During the fiscal year ended September 30, 2003, the Target Select Equity
Fund delivered a total return of 23.82%. This compares with a total return of
25.92% for the Fund's benchmark, the Russell 3000 Index.
Contributing the most to performance for the period were the Fund's
holdings in the technology sector, which constituted approximately 13% of the
Fund on average. Specifically, exposure to companies in the computer peripherals
industry, including Western Digital Corporation and Storage Technology
Corporation, benefited the Fund. Selected holdings in the healthcare sector also
were good relative performers.
The Fund's holdings in the producer durables sector detracted the most from
performance for the year. Specifically, companies such as Boeing and General
Dynamics Corporation in the aerospace and defense industry delivered weak
relative results. While several companies that the Fund owned, including Best
Buy and Cendant Corporation, were strong performers within the consumer
discretionary sector, our overall exposure to that sector detracted from results
for the year due to weak results from many of the other holdings.
FUND STRUCTURE & MANAGEMENT
A team of portfolio managers from Turner Investment Partners manages the
Fund. David Kovacs, Senior Portfolio Manager, serves as lead manager of this
team. The managers employ a multi-style, all capitalization approach, with the
ability to overweight the style or capitalization believed by management to
provide the best opportunity for strong performance and price appreciation. The
management team uses quantitative modeling to assist with asset allocation and
security selection decisions. They also review the fundamentals of each company
within the portfolio to ensure that recent events or news relating to the
company that cannot be identified by the quantitative model are considered and
their potential impact on stock performance is evaluated. This approach has
allowed the Fund to retain a well-diversified approach, with portfolio holdings
from a variety of distinct segments of the market.
OUTLOOK
Our outlook for stocks remains positive. Fund management believes the
economy, particularly consumer sentiment and corporate spending levels, will
continue to be a key factor impacting stock market performance. We have
identified several drivers that could spark economic growth well into 2004,
including a strengthening advertising environment, an expected rebound in
corporate information technology spending and the improving outlook for
employment.
Because stocks have rallied significantly already this year, we also
believe that the market may be more selective in rewarding companies going
forward. We believe that quality companies that can take advantage of operating
leverage and remain flexible in a changing environment are likely to benefit.
3
TARGET SELECT EQUITY FUND
GROWTH OF A $10,000 INVESTMENT IN THE TARGET SELECT EQUITY FUND:
DECEMBER 31, 1997-SEPTEMBER 30, 2003 *
[LINE GRAPH OMITTED, PLOT POINTS FOLLOWS]
ALPHA SELECT TARGET SELECT EQUITY FUND S&P 500 COMPOSITE INDEX RUSSELL 3000 INDEX
12/31/97 $10000 $10000 $10000
SEP 98 10350 10601 10222
SEP 99 18634 13548 12912
SEP 00 32507 15347 15261
SEP 01 13770 11262 11002
SEP 02 8712 8954 8931
SEP 03 10788 11138 11246
Annualized total returns
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PAST PAST PAST SINCE
ONE YEAR THREE YEARS FIVE YEARS INCEPTION
23.82% -30.77% 0.83% 1.33%
* 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 their original cost. The performance in the above graph does not reflect
the deduction of taxes that a shareholder will pay on fund distributions or the
redemption of fund shares. The inception date of the Target Select Equity Fund
is December 31, 1997.
4
STATEMENT OF NET ASSETS ALPHA SELECT FUNDS
September 30, 2003
TARGET SELECT Market
EQUITY FUND Shares Value
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COMMON STOCKS--96.5%
ADVERTISING & RELATED SERVICES--0.7%
AOL Time Warner* 260 $ 3,929
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AEROSPACE PRODUCT & PARTS MANUFACTURING--0.8%
Northrop Grumman 50 4,311
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ALUMINUM PRODUCTION & PROCESSING--0.4%
Alcoa 90 2,354
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AUTOMOBILE DEALERS--0.8%
Sonic Automotive 180 4,331
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BAKERIES & TORTILLA MANUFACTURING--0.8%
Sara Lee 250 4,590
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BASIC CHEMICAL MANUFACTURING--0.7%
EI du Pont de Nemours 90 3,601
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BEVERAGE MANUFACTURING--2.2%
Anheuser-Busch 90 4,440
Coca-Cola 180 7,733
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12,173
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BUILDING MATERIAL & SUPPLIES DEALERS--0.6%
Home Depot 110 3,503
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CABLE NETWORKS & PROGRAM DISTRIBUTION--1.6%
Comcast, Cl A* 150 4,632
COX Communications* 130 4,111
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8,743
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COMMERCIAL & SERVICE INDUSTRY
MACHINERY MANUFACTURING--0.5%
3M 40 2,763
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COMMUNICATIONS EQUIPMENT MANUFACTURING--1.2%
Trimble Navigation* 280 6,482
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Market
Shares Value
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COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--4.1%
EMC* 310 $ 3,915
Hewlett-Packard 280 5,421
International Business Machines 90 7,950
Western Digital* 370 4,769
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22,055
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COMPUTER SYSTEMS DESIGN & RELATED
SERVICES--0.8%
GTECH Holdings 100 4,285
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CONSUMER GOODS RENTAL--0.7%
Hollywood Entertainment* 230 3,910
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COURIERS--0.6%
United Parcel Service, Cl B 50 3,190
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DATA PROCESSING SERVICES--5.3%
CSG Systems International* 260 3,840
First Data 300 11,988
NDCHealth 280 5,866
Sybase* 420 7,144
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28,838
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DEPARTMENT STORES--2.6%
Wal-Mart Stores 250 13,963
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DEPOSITORY CREDIT INTERMEDIATION--7.9%
Bank of America 80 6,243
BankAtlantic Bancorp, Cl A 470 6,697
Citigroup 270 12,288
FirstFed Financial* 110 4,345
Netbank 600 7,470
Wells Fargo 110 5,665
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42,708
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ELECTRIC LIGHTING EQUIPMENT MANUFACTURING--1.3%
Acuity Brands 400 7,224
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5
STATEMENT OF NET ASSETS ALPHA SELECT FUNDS
September 30, 2003
TARGET SELECT Market
EQUITY FUND (Continued) Shares Value
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ELECTRIC POWER GENERATION, TRANSMISSION &
DISTRIBUTION--1.2%
Southern 230 $ 6,744
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ELECTRICAL EQUIPMENT MANUFACTURING--2.9%
General Electric 530 15,799
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ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--0.6%
Amazon.com* 70 3,385
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ELECTRONICS & APPLIANCE STORES--1.2%
IKON Office Solutions 910 6,652
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GROCERY STORES--0.6%
7-Eleven* 230 3,158
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HEALTH & PERSONAL CARE STORES--0.4%
NBTY* 100 2,335
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INDUSTRIAL MACHINERY MANUFACTURING--1.5%
Applied Materials* 440 7,982
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INSURANCE CARRIERS--2.7%
American International Group 130 7,501
Amerigroup* 160 7,141
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14,642
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MOTOR VEHICLE PARTS MANUFACTURING--0.7%
ArvinMeritor 200 3,562
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NATURAL GAS DISTRIBUTION--1.8%
AGL Resources 230 6,479
UGI 110 3,182
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9,661
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NAVIGATIONAL/MEASURING/MEDICAL/
CONTROL INSTRUMENTS MANUFACTURING--4.3%
Analogic 110 5,280
Guidant 180 8,433
Lockheed Martin 80 3,692
Medtronic 130 6,100
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23,505
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Market
Shares Value
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NONDEPOSITORY CREDIT INTERMEDIATION--3.2%
American Express 100 $ 4,506
Fannie Mae 90 6,318
WFS Financial* 170 6,295
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17,119
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OFFICE SUPPLIES, STATIONERY & GIFT STORES--1.2%
School Specialty* 240 6,770
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OIL & GAS EXTRACTION--0.8%
St. Mary Land & Exploration 180 4,558
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OTHER INVESTMENT POOLS & FUNDS--1.5%
Kilroy Realty 280 7,994
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OTHER TRANSPORTATION EQUIPMENT
MANUFACTURING--1.5%
Harley-Davidson 60 2,892
United Defense Industries* 180 5,110
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8,002
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OUTPATIENT CARE CENTERS--1.8%
Select Medical* 340 9,792
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PETROLEUM & COAL PRODUCTS MANUFACTURING--4.0%
ChevronTexaco 70 5,002
ConocoPhillips 60 3,285
Exxon Mobil 360 13,176
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21,463
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PHARMACEUTICAL & MEDICINE MANUFACTURING--7.4%
Abbott Laboratories 170 7,233
Amgen* 80 5,166
Johnson & Johnson 150 7,428
Merck 130 6,581
Pfizer 450 13,671
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40,079
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PRINTING & RELATED SUPPORT ACTIVITIES--0.8%
Harland (John H.) 160 4,235
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PROFESSIONAL & COMMERCIAL EQUIPMENT &
SUPPLY WHOLESALE--1.6%
Owens & Minor 350 8,435
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6
STATEMENT OF NET ASSETS ALPHA SELECT FUNDS
September 30, 2003
TARGET SELECT Market
EQUITY FUND (Continued) Shares Value
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PULP, PAPER & PAPERBOARD MILLS--0.5%
International Paper 70 $ 2,731
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RADIO & TELEVISION BROADCASTING--2.3%
Fox Entertainment Group, Cl A* 310 8,677
Viacom, Cl B 100 3,830
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12,507
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SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--4.4%
JP Morgan Chase 331 11,363
Merrill Lynch 180 9,635
Morgan Stanley 60 3,028
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24,026
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SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--3.5%
Benchmark Electronics* 90 3,804
Intel 350 9,629
Micron Technology* 400 5,368
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18,801
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SHOE STORES--0.7%
Brown Shoe 120 3,804
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SOAP, CLEANERS & TOILET PREPARATION
MANUFACTURING--1.8%
Dial 140 3,016
Procter & Gamble 70 6,497
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9,513
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SOFTWARE PUBLISHERS--3.4%
Computer Associates International 200 5,222
Microsoft 480 13,339
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18,561
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TELECOMMUNICATIONS--3.2%
AT&T Wireless Services* 810 6,626
Verizon Communications 330 10,705
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17,331
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Shares/Face Market
Amount Value
- ------------------------------------------------------
TOBACCO MANUFACTURING--0.9%
Altria Group 110 $ 4,818
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TRAVELER ACCOMMODATION--0.5%
Ameristar Casinos* 110 2,754
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TOTAL COMMON STOCKS
(Cost $523,652) 523,671
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WARRANTS--0.0%
Dime Bancorp* (A) 300 48
MicroStrategy, Expires 06/24/07* 3 1
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TOTAL WARRANTS
(Cost $0) 49
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REPURCHASE AGREEMENT -- 8.1%
Morgan Stanley
0.800%, dated 09/30/03, to be
repurchased on 10/01/03,
repurchase price $43,858
(collateralized by U.S.
Government obligations, total
market value $44,800) (B) $43,858 43,858
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TOTAL REPURCHASE AGREEMENT
(Cost $43,858) 43,858
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TOTAL INVESTMENTS -- 104.6%
(Cost $567,510) 567,578
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OTHER ASSETS AND LIABILITIES-- (4.6%)
Receivable from Investment Advisor 10,047
Administrator Fees Payable (62)
Other Assets and Liabilities, net (35,033)
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TOTAL OTHER ASSETS AND LIABILITIES (25,048)
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TOTAL NET ASSETS--100.0% $ 542,530
==========
The accompanying notes are an integral part of the financial statements.
7
STATEMENT OF NET ASSETS ALPHA SELECT FUNDS
September 30, 2003
TARGET SELECT
EQUITY FUND (Concluded) Value
- ------------------------------------------------------
NET ASSETS:
Portfolio Capital
(unlimited authorization - no par value)
based on 108,658 outstanding shares
of beneficial interest $2,527,872
Undistributed net investment income 4,329
Accumulated net realized loss
on investments (1,989,787)
Net realized gain on foreign currency
transactions 48
Net unrealized appreciation on
investments 68
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TOTAL NET ASSETS-- 100% $ 542,530
==========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE $4.99
=====
(A)THIS WARRANT REPRESENTS A POTENTIAL DISTRIBUTION SETTLEMENT IN A LEGAL CLAIM
AND DOES NOT HAVE A STRIKE PRICE OR AN EXPIRATION DATE.
(B) TRI-PARTY REPURCHASE AGREEMENT
* NON-INCOME PRODUCING SECURITY
CL -- CLASS
The accompanying notes are an integral part of the financial statements.
8
STATEMENT OF OPERATIONS ALPHA SELECT FUNDS
For the Year Ended September 30, 2003
TARGET SELECT
EQUITY FUND
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Investment Income:
Dividend.................................................................................. $ 5,742
Interest ................................................................................. 174
Security Lending ......................................................................... 829
Less: Foreign Taxes Withheld ............................................................. (201)
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Total Investment Income................................................................. 6,544
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Expenses:
Investment Advisory Fees.................................................................. 10,857
Administrator Fees ....................................................................... 630
Transfer Agent Fees ...................................................................... 48,762
Professional Fees......................................................................... 39,654
Registration Fees......................................................................... 19,600
Trustee Fees ............................................................................. 18,190
Custodian Fees ........................................................................... 14,740
Printing Fees ............................................................................ 9,252
Insurance and Other Fees ................................................................. 1,107
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Total Expenses ...................................................................... 162,792
Less: Investment Advisory Fee Waiver................................................. (10,857)
Reimbursements by Adviser....................................................... (149,694)
Directed Brokerage.............................................................. (88)
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Net Expenses .......................................................................... 2,153
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Net Investment Income................................................................ 4,391
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Net Realized Gain From Securities Sold.................................................... 76,763
Net Realized Gain on Foreign Currency Transactions ....................................... 48
Net Change in Unrealized Appreciation of Investment Securities............................ 9,346
Net Change in Unrealized Depreciation on Foreign Currency and
Translation of Other Assets and Liablilities in Foreign Currency........................ (24)
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Net Realized and Unrealized Gain on Investments........................................... 86,133
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Net Increase in Net Assets Resulting From Operations...................................... $ 90,524
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The accompanying notes are an integral part of the financial statements.
9
STATEMENT OF CHANGES IN NET ASSETS ALPHA SELECT FUNDS
For the Years Ended September 30,
TARGET SELECT
EQUITY FUND
------------------------
2003 2002
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Investment Activities:
Net Investment Income (Loss)........................................ $ 4,391 $ (5,687)
Net Realized Gain (Loss) From Securities Sold....................... 76,763 (347,147)
Net Realized Gain on Foreign Currency Transactions.................. 48 306
Net Change in Unrealized Appreciation of Investment Securities...... 9,346 290,268
Net Change in Unrealized Appreciation (Depreciation) of Foreign
Currency and Translation of Other Assets and Liabilities in
Foreign Currency.................................................. (24) 7
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Net Increase (Decrease) in Net Assets Resulting
From Operations............................................... 90,524 (62,253)
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Capital Share Transactions:
Proceeds From Shares Issued......................................... 232,684 96,300
Cost of Shares Redeemed............................................. (73,239) (1,500,025)
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Increase (Decrease) in Net Assets From
Capital Share Transactions................................... 159,445 (1,403,725)
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Total Increase (Decrease) in Net Assets........................... 249,969 (1,465,978)
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Net Assets:
Beginning of Year................................................. 292,561 1,758,539
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End of Year ...................................................... $542,530 $ 292,561
===========================================================================================================
Shares Issued and Redeemed:
Issued.............................................................. 51,360 14,359
Redeemed............................................................ (15,282) (217,786)
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Net Increase (Decrease) in Capital Shares........................... 36,078 (203,427)
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The accompanying notes are an integral part of the financial statements.
10
FINANCIAL HIGHLIGHTS ALPHA SELECT FUNDS
For a Share Outstanding Throughout Each Period
Net Net Net
Asset Net Realized and Distributions Distributions Asset Assets
Value Investment Unrealized from Net from Value End
Beginning Income Gains (Losses) Investment Capital End Total of Period
of Period (Loss) on Investments Income Gains of Period Return+ (000)
--------- ---------- --------------- ------------- ------------- --------- --------- ---------
- -------------------------
TARGET SELECT EQUITY FUND
- -------------------------
2003 $ 4.03 $0.05 $ 0.91 $ -- $ -- $ 4.99 23.82% $ 543
2002 6.37 (0.09) (2.25) -- -- 4.03 (36.73) 293
2001(2) 21.84 (0.02) (10.32) -- (5.13) 6.37 (57.64) 1,759
2000 17.17 (0.06) 10.74 -- (6.01) 21.84 74.45 4,506
1999 10.34 (0.07) 7.80 -- (0.90) 17.17 80.04 1,839
FINANCIAL HIGHLIGHTS ALPHA SELECT FUNDS
For a Share Outstanding Throughout Each Period
Ratio
of Net
Ratio Investment
Ratio of of Total Income
Net Expenses Expenses (Loss) Portfolio
to Average to Average to Average Turnover
Net Assets++ Net Assets Net Assets Rate
------------ ---------- ---------- ---------
- -------------------------
TARGET SELECT EQUITY FUND
- -------------------------
2003 0.49%(1) 37.26% 1.02% 837.39%
2002 1.10 26.94 (0.80) 984.03
2001(2) 1.23(3) 10.29 (0.26) 681.78
2000 1.30 6.06 (0.55) 1,081.55
1999 1.30 10.19 (0.56) 1,279.40
+ Returns are for the period indicated and have not been annualized.
++ Inclusive of directed brokerage arrangements, waivers and reimbursements.
(1) Effective May 20, 2003 the maximum expense cap changed from 1.22% to 1.50%.
(2) On October 19, 2000 shareholders of the TIP Target Select Equity Fund (the
"Fund") approved a tax-free reorganization under which all assets and
liabilities of the Fund were transferred to the Alpha Select Funds Target Select
Equity Fund. In connection with the reorganization, shareholders approved a
change in the adviser from Turner Investment Partners, Inc. to Concentrated
Capital Management, LP.
(3) On November 1, 2000 the maximum expense cap changed from 1.30% to 1.22%.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
11
NOTES TO FINANCIAL STATEMENTS ALPHA SELECT FUNDS
September 30, 2003
1. ORGANIZATION:
ALPHA SELECT FUNDS (the "Trust"), a Delaware business trust, is registered under
the Investment Company Act of 1940, as amended, as an open-end management
investment company with one portfolio, the Target Select Equity Fund (the
"Fund"). The Fund is registered to offer three separate classes of shares: Class
A Shares, Class C Shares and Class I Shares. The Class I Shares are the only
active class of shares as of September 30, 2003. The Fund is non-diversified,
and may therefore be invested in equity securities of a limited number of
issuers. The Fund's prospectus provides a description of the Fund's investment
objectives, policies, and strategies.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of the significant accounting policies followed by
the Fund.
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. Securities
listed on a foreign exchange are valued based on quotations from the
primary market in which they are traded. Long-term debt securities are
valued by an independent pricing service and such prices are believed to
reflect the fair value of such securities. Short-term obligations with
maturities of sixty days or less are valued at amortized cost which
approximates market value. Subject to the foregoing, other securities and
assets for which market quotations are not readily available are valued at
fair value as determined in good faith by or under the direction of the
Fund's Board of Trustees.
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. 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.
FOREIGN CURRENCY TRANSLATION -- The books and records of the Fund are
maintained in U.S. dollars on the following basis: (I) market value of
investment securities, other assets and liabilities at the current rate of
exchange; and (II) purchases and sales of investment securities, income and
expenses at the relevant rates of exchange prevailing on the respective
date of such transaction.
For foreign equity securities, the Fund does not isolate that portion of
gains and losses on investment securities that is due to changes in the
foreign exchange rates from that which is due to changes in market prices
of equity securities.
The Fund reports certain foreign currency related transactions as
components of realized and unrealized gains and losses for financial
reporting purposes, whereas such components are treated as ordinary income
for Federal income tax purposes.
12
NOTES TO FINANCIAL STATEMENTS (Continued) ALPHA SELECT FUNDS
September 30, 2003
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 Fund may be delayed or limited.
DISTRIBUTIONS TO SHAREHOLDERS -- Distributions from net investment income
are declared and paid to shareholders annually. Any net realized capital
gains on sales of securities are distributed to shareholders at least
annually.
3. TRANSACTIONS WITH AFFILIATES:
Certain officers of the Trust are also officers of Turner Investment Partners,
Inc. (the Sub-Adviser and Administrator) and SEI Investments Global Funds
Services (the Sub-Administrator) and/or SEI Investments Distribution Co. Such
officers are paid no fees by the Trust for serving as officers and trustees of
the Trust.
The Fund effects trades through Turner Investment Distributors, Inc. (the
"Distributor") for security purchases and sales transactions. Commissions paid
through those trades for the Fund for the year ended September 30, 2003, were
$10,114.
4. ADMINISTRATION, SHAREHOLDER SERVICING AND DISTRIBUTION AGREEMENTS:
Turner Investment Partners, Inc. ("Turner") provides administrative services to
the Fund under an Administration Agreement with the Trust. For its services,
Turner receives an annual fee of 0.15% of the aggregate average daily net assets
of the Trust up to $2 billion, and 0.12% on such assets in excess of $2 billion
(subject to applicable waivers). Under a separate Sub-Administration Agreement
between Turner and the Sub-Administrator, the Sub-Administrator provides
accounting and other administrative services to the Fund. For the year ended
September 30, 2003, the Sub-Administrator was paid $334 by Turner.
The Distributor, a broker dealer subsidiary of Turner, provides distribution
services and shareholder servicing to the Fund under separate Distribution and
shareholder servicing agreements.
DST Systems, Inc. serves as the Transfer Agent and dividend disbursing agent for
the Fund under a transfer agency agreement with the Trust. The Fund reimburses
Turner for amounts paid to third parties that provide sub-transfer agency and
other administrative services to the Fund.
The Fund has directed certain portfolio trades to brokers who paid a portion of
its expenses (Directed Brokerage). For the year ended September 30, 2003, the
Fund's expenses were reduced by $88 under this arrangement. The effect on the
Fund's expense ratio as a percentage of the average net assets of the Fund on an
annualized basis for the yearended September 30, 2003 was 0.02%.
5. INVESTMENT ADVISORY AGREEMENT:
The Trust and Concentrated Capital Management, LP (the "Adviser") are parties to
an Investment Advisory Agreement dated May 23, 2000, under which the Adviser
receives an annual fee base equal to 1.0625% of the average daily net assets of
the Fund. The Fund has one Sub-Adviser, Turner Investment Partners, Inc. (the
Sub-Adviser). For its services, the Sub-Adviser is entitled to receive a fee
payable by the Adviser. The Adviser has contractually agreed to waive all or a
portion of its fees and to reimburse expenses of the Fund in order to limit its
total operating expenses (as a percentage of average daily net assets on an
13
NOTES TO FINANCIAL STATEMENTS (Continued) ALPHA SELECT FUNDS
September 30, 2003
annualized basis) to not more than 1.50% and to voluntarily keep the Fund's
"other expenses" (as a percentage of average daily net assets on an annualized
basis) from exceeding 0.1575%.
The Advisory fee is comprised of a base fee and a performance adjustment that
increases or decreases the total fee depending upon the performance of the Fund
relative to the Fund's performance benchmark. The Fund's base fee is accrued
daily and paid monthly, based on average net assets during the performance
period. The performance period consists of the current month plus the previous
11 months.
The performance adjustment is calculated and paid monthly by comparing the
Fund's performance to that of the Fund's performance benchmark (the Russell 3000
Index) over the 12-month period. The annual performance adjustment is multiplied
by the average net assets of the Fund over the entire performance period, which
is then multiplied by a fraction, the numerator of which is the number of days
in the month and the denominator of which is 365 (366 in leap years). The
resulting amount is then added to (in the case of overperformance) or subtracted
from (in the case of underperformance) the base fee. The base advisory fee,
annual adjustment rate and over/under performance relative to the benchmark
threshold is as follows:
BASE ANNUAL OVER/
ADVISORY ADJUSTMENT UNDER
FEE RATE PERFORMANCE
---------- ------------ -----------
1.0625% +/-0.15% +/-3.00%
During the year ended September 30, 2003, the Fund's Advisory Fees were adjusted
in accordance with the policy described above as follows:
BASE PERFORMANCE GROSS
ADVISER FEE ADJUSTMENT ADVISER FEE
----------- ----------- -----------
$4,777 $6,080* $10,857*
*Includes an additional $6,872 worth of fees due to a change in the performance
fee calculation. These amounts have been waived by Turner.
6. INVESTMENT TRANSACTIONS:
The total cost of security purchases and the proceeds from security sales, other
than short-term investments, for the year ended September 30, 2003, were as
follows:
Purchases ........................... $3,749,407
Sales ............................... 3,585,184
7. FEDERAL INCOME TAXES:
The Fund is classified as a separate taxable entity for Federal income tax
purposes. The Fund intends to continue to qualify as a separate "regulated
investment company" under the Internal Revenue Code and make the requisite
distributions to shareholders that will be sufficient to relieve it from Federal
income tax and Federal excise tax. Therefore, no Federal tax provision is
required.
The amounts of 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. 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.
Accordingly, the following permanent differences have been reclassified to/from
the following accounts:
UNDISTRIBUTED NET ACCUMULATED NET PAID-IN-
INVESTMENT INCOME INVESTMENT GAIN CAPITAL
----------------- --------------- --------
47 (47) --
14
NOTES TO FINANCIAL STATEMENTS (Concluded) ALPHA SELECT FUNDS
September 30, 2003
As of September 30, 2003, the components of Accumulated Losses on a tax basis
for the Target Select Equity Fund were as follows:
AMOUNT
------------
Capital loss carryforwards ......... $ (1,989,788)
Undistributed ordinary income ...... 4,378
Unrealized appreciation ............ 68
------------
Total accumulated losses ........... $ (1,985,342)
The Fund had capital loss carryforwards at September 30, 2003 as follows:
YEAR LOSS EXPIRES AMOUNT
- ----------------- ------------
2011 ............................... $ 218,750
2010 ............................... 1,649,644
2009 ............................... 121,394
For Federal income tax purposes, capital loss carryforwards may be carried
forward and applied against future capital gains.
At September 30, 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 Fund was as follows:
Federal tax cost $ 567,510
=========
Aggregate gross unrealized appreciation $ 11,867
Aggregate gross unrealized depreciation (11,935)
---------
Net unrealized appreciation ........ $ 68
=========
8. FORWARD FOREIGN CURRENCY CONTRACTS:
The Fund can enter into forward foreign currency exchange contracts as a hedge
against portfolio positions and in connection with portfolio purchases and sales
of securities denominated in foreign currency. Such contracts, which protect the
value of the Fund's investment securities against a decline in the value of the
hedged currency, do not eliminate fluctuations in the underlying prices of the
securities. They simply establish an exchange rate at a future date. Although
such contracts tend to minimize the risk of loss due to a decline in the value
of a hedged currency, at the same time they tend to limit any potential gain
that might be realized should the value of such foreign currency increase. There
were no forward foreign currency contracts outstanding at September 30, 2003.
9. LOANS OF PORTFOLIO SECURITIES:
The Fund may lend securities in its portfolio pursuant to a securities lending
agreement ("Lending Agreement") with the Turner Funds (an affiliate) and 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. The Fund is receiving an annual fee for its
participation in the Lending Agreement. In the event of bankruptcy of the
borrower, realization/retention of the collateral may be subject to legal
proceedings.
No securities were on loan as of September 30, 2003.
15
REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Board of Trustees
Alpha Select Funds - Target Select Equity Fund
We have audited the accompanying statement of net assets of the Alpha Select
Funds - Target Select Equity Fund (the "Fund") as of September 30, 2003, and
the related statement of operations for the year then ended, the statements of
changes in net assets for each of the two years in the period then ended and the
financial highlights for each of the 5 years in the period ended September 30,
2003. These financial statements and financial highlights are the responsibility
of the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of September 30, 2003, by correspondence with the custodian and brokers
or by appropriate auditing procedures where replies from brokers were not
received. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Alpha Select Funds - Target Select Equity Fund at September 30, 2003, the
results of its operations for the year then ended, the changes in its net assets
for each of the two years in the period then ended and its financial highlights
for each of the 5 years in the period ended September 30, 2003, in conformity
with accounting principles generally accepted in the United States.
/S/ERNST & YOUNG LLP
Philadelphia, Pennsylvania
November 13, 2003
16
NOTICE TO SHAREHOLDERS
OF
TARGET SELECT EQUITY FUND
(Unaudited)
For shareholders that do not have a September 30, 2003 tax year end, this notice
is for informational purposes only. For shareholders with a September 30, 2003,
please consult your tax advisor as to the pertinence of this notice. For the
fiscal year ended September 30, 2003, the Fund is designating the following
items with regard to distributions paid during the year.
LONG TERM
(20% RATE) ORDINARY
CAPITAL GAIN INCOME TAX EXEMPT
PORTFOLIO DISTRIBUTIONS DISTRIBUTIONS INTEREST
--------- ------------- ------------- --------------
Target Select Equity Fund ......................... 0% 0% 0%
DIVIDENDS
QUALIFYING
FOR CORPORATE
DIVIDENDS QUALIFYING
TOTAL RECEIVABLE DIVIDENDS
PORTFOLIO DISTRIBUTIONS DEDUCTION (1) INCOME (2)
--------- ------------- ------------- --------------
Target Select Equity Fund ......................... 0% 0% 0%
- ----------------
(1) Qualifying dividends represent dividends which qualify for the corporate
dividends received deduction and is reflected as a percentage of "Ordinary
Income Distributors".
(2) The percentage in this column represents the amount of "Qualifying Dividend
Income" as created by the Jobs and Growth Tax Relief Reconciliation Act of 2003
and is reflected as a percentage of "Ordinary Income Distributions". It is the
intention of the aforementioned fund to designate the maximum amount permitted
by law.
17
TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED)
TRUSTEES
- --------------------------------------------------------------------------------
ALFRED C. SALVATO
- --------------------------------------------------------------------------------
ADDRESS 13 Fountain Court, Cherry Hill, NJ 08034
AGE (45)
POSITION(S) HELD WITH FUND Trustee
TERM OF OFFICE AND LENGTH OF TIME SERVED Trustee since 1996
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Treasurer, Thomas Jefferson
University Health Care Pension Fund since 1995, and Assistant Treasurer,
1988-1995.
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN BY TRUSTEE 1
OTHER DIRECTORSHIPS HELD Turner Funds
- --------------------------------------------------------------------------------
RONALD FILANTE
- --------------------------------------------------------------------------------
ADDRESS 51 Verdun Avenue, New Rochelle, NY 10804
AGE (58)
POSITION(S) HELD WITH FUND Trustee
TERM OF OFFICE AND LENGTH OF TIME SERVED Trustee since 1996
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Associate Professor of
Finance, Pace University, since 1987.
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN BY TRUSTEE 1
OTHER DIRECTORSHIPS HELD N/A
- --------------------------------------------------------------------------------
STEPHEN J. KNEELEY (1)
- --------------------------------------------------------------------------------
ADDRESS 1205 Westlakes Drive, Suite 100, Berwyn, PA 19312
AGE (40)
POSITION(S) HELD WITH FUND Trustee, President & Chief Executive Officer
TERM OF OFFICE AND LENGTH OF TIME SERVED Trustee since 2001
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS TID Director, President of
Turner - Chief Executive Officer of Turner, 1990-2001.
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN BY TRUSTEE 1
OTHER DIRECTORSHIPS HELD University of Richmond
OFFICERS
- --------------------------------------------------------------------------------
JOHN H. GRADY, JR.
- --------------------------------------------------------------------------------
ADDRESS 1205 Westlakes Drive, Suite 100, Berwyn, PA 19312
AGE (42)
POSITION(S) HELD WITH FUND Executive Vice President & Secretary
TERM OF OFFICE AND LENGTH OF TIME SERVED Vice President & Secretary since 2001
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Chief Operating Officer,
General Counsel and Chief Legal Officer of Turner since February, 2001.
TID President and Chief Operating Officer since September 2001. Partner,
Morgan, Lewis & Bockius LLP (October 1995-January 2001).
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
- --------------------------------------------------------------------------------
BRIAN M. FERKO
- --------------------------------------------------------------------------------
ADDRESS 1205 Westlakes Drive, Suite 100, Berwyn, PA 19312
AGE (32)
POSITION(S) HELD WITH FUND Vice President & Assistant Secretary
TERM OF OFFICE AND LENGTH OF TIME SERVED Vice President & Assistant Secretary
since 2000
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS TID Vice President, Director
of Mutual Fund Administration and Operations for the Turner Funds since 1997.
Relationship Manager, SEI Investments (1995-1997).
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
- ----------
(1)Mr. Kneeley is considered to be an "interested person" of the Fund as
defined in the Investment Company Act of 1940 because he is President of
Turner Investment Partners, Inc.
18
TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED) (CONTINUED)
- --------------------------------------------------------------------------------
TODD B. CIPPERMAN
- --------------------------------------------------------------------------------
ADDRESS SEI Investments, One Freedom Valley Drive, Oaks, PA 19456
AGE (36)
POSITION(S) HELD WITH FUND Vice President and Assistant Secretary
TERM OF OFFICE AND LENGTH OF TIME SERVED Vice President & Assistant Secretary
since 1996
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Vice President and Assistant
Secretary of SEI Investments since 1995. Previously, Associate, Dewey
Ballantine, 1994-1995. Associate, Winston and Strawn, 1991-1994.
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
- --------------------------------------------------------------------------------
PETER GOLDEN
- --------------------------------------------------------------------------------
ADDRESS SEI Investments, One Freedom Valley Drive, Oaks, PA 19456
AGE (39)
POSITION(S) HELD WITH FUND Controller and Chief Financial Officer
TERM OF OFFICE AND LENGTH OF TIME SERVED Controller and Chief Financial
Officer since 2001
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Director of Fund Accounting
of SEI Investments since June 2001. Previously, Vice President of Fund
Administration, JPMorgan Chase & Co., March 2000-April 2001; Vice President,
Fund and Pension Accounting, Chase Manhattan Bank, June 1997-March 2000.
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
- --------------------------------------------------------------------------------
LYDIA A. GAVALIS
- --------------------------------------------------------------------------------
ADDRESS SEI Investments, One Freedom Valley Drive, Oaks, PA 19456
AGE (39)
POSITION(S) HELD WITH FUND Vice President and Assistant Secretary
TERM OF OFFICE AND LENGTH OF TIME SERVED Vice President and Assistant
Secretary since 1999
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Vice President and Assistant
Secretary of SEI Investments since 1998. Assistant General Counsel and Director
of Arbitration, Philadelphia Stock Exchange, 1989-1998.
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
- --------------------------------------------------------------------------------
WILLIAM E. ZITELLI, JR.
- --------------------------------------------------------------------------------
ADDRESS SEI Investments, One Freedom Valley Drive, Oaks, PA 19456
AGE (35)
POSITION(S) HELD WITH FUND Vice President and Assistant Secretary
TERM OF OFFICE AND LENGTH OF TIME SERVED Vice President and Assistant
Secretary since 2000
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Vice President and Assistant
Secretary of SEI Investments since August 2000. Vice President, Merrill Lynch &
Co. Asset Management Group (1998-2000). Associate at Pepper Hamilton LP
(1997-1998). Associate at Reboul, MacMurray, Hewitt, Maynard & Kristol
(1994-1997).
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
- --------------------------------------------------------------------------------
TIMOTHY D. BARTO
- --------------------------------------------------------------------------------
ADDRESS SEI Investments, One Freedom Valley Drive, Oaks, PA 19456
AGE (35)
POSITION(S) HELD WITH FUND Vice President and Assistant Secretary
TERM OF OFFICE AND LENGTH OF TIME SERVED Vice President and Assistant
Secretary since 2000
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Vice President and Assistant
Secretary of SEI Investments since December 1999. Associate at Dechert Price &
Rhoads (1997-1999). Associate at Richter, Miller & Finn (1994-1997).
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
19
TRUSTEES AND OFFICERS OF THE TRUST (UNAUDITED) (CONCLUDED)
- --------------------------------------------------------------------------------
CHRISTINE M. MCCULLOUGH
- --------------------------------------------------------------------------------
ADDRESS SEI Investments, One Freedom Valley Drive, Oaks, PA 19456
AGE (42)
POSITION(S) HELD WITH FUND Vice President and Assistant Secretary
TERM OF OFFICE AND LENGTH OF TIME SERVED Vice President and Assistant
Secretary since 2000
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Vice President and Assistant
Secretary of SEI Investments since December 1999. Associate at White and
Williams LLP (1991-1999). Associate at Montgomery, McCracken, Walker & Rhoads
(1990-1991).
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
- --------------------------------------------------------------------------------
BRIAN MCNALLY
- --------------------------------------------------------------------------------
ADDRESS 1205 Westlakes Drive, Suite 100, Berwyn, PA 19312
AGE (45)
POSITION(S) HELD WITH FUND Vice President
TERM OF OFFICE AND LENGTH OF TIME SERVED Vice President since 2002
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Deputy Counsel for Turner
since October 2002. Previously, Assistant General Counsel with Bank of America
(September 1997-July 2002).
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
- --------------------------------------------------------------------------------
JOHN CANNING
- --------------------------------------------------------------------------------
ADDRESS 1205 Westlakes Drive, Suite 100, Berwyn, PA 19312
AGE (32)
POSITION(S) HELD WITH FUND Vice President
TERM OF OFFICE AND LENGTH OF TIME SERVED Vice President since 2002
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Assistant Director of Mutual
Fund Administration and Operations since 2000. Previously, Implementations
Analyst with SEI Investments (December 1998-December 2000). Transfer Agent
Manager with Pilgrim Baxter and Associates (February 1998-December 1998).
Account Director with SEI Investments (July 1993-February 1998).
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
- --------------------------------------------------------------------------------
ANTOINETTE ROBBINS
- --------------------------------------------------------------------------------
ADDRESS 1205 Westlakes Drive, Suite 100, Berwyn, PA 19312
AGE (40)
POSITION(S) HELD WITH FUND Vice President
TERM OF OFFICE AND LENGTH OF TIME SERVED Vice President since 2002
PRINCIPAL OCCUPATION(S) DURING THE PAST 5 YEARS Director of Compliance for
Turner since 2002. Previously, Senior Gift Planning Officer with American
Civil Liberties Union (May 2001-August 2001). Assistant Vice President,
Counsel with Equitable Financial Consultants, Inc. (March 1996-March 2001).
NUMBER OF PORTFOLIOS IN COMPLEX OVERSEEN BY TRUSTEE N/A
OTHER DIRECTORSHIPS HELD N/A
20
Notes
Notes
[BLANK PAGE]
TRUST
Alpha Select Funds
P.O. Box 219520
Kansas City, MO 64105-9520
INVESTMENT ADVISER
Concentrated Capital Management, LP
SUB-ADVISER
Turner Investment Partners, Inc.
DISTRIBUTOR
Turner Investment Distributors, Inc.
ADMINISTRATOR
Turner Investment Partners, Inc.
LEGAL COUNSEL
Morgan, Lewis & Bockius LLP
INDEPENDENT AUDITORS
Ernst & Young LLP
To open an account, receive account information, make inquiries, or request
literature:
1-888-BI-ALPHA
THIS REPORT WAS PREPARED FOR SHAREHOLDERS OF THE ALPHA SELECT TARGET SELECT
EQUITY FUND. IT MAY BE DISTRIBUTED TO OTHERS ONLY IF PRECEDED OR ACCOMPANIED BY
A CURRENT PROSPECTUS, WHICH CONTAINS DETAILED INFORMATION.
ALP-AR-001-0300
Item 2. Code of Ethics.
The registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer and principal
accounting officer.
Item 3. Audit Committee Financial Expert.
The Board of Trustees of the Turner Funds has determined that the Board's Audit
Committee does not have an "audit committee financial expert," as the Securities
and Exchange Commission has defined that term. After carefully considering all
of the factors involved in the definition of "audit committee financial expert,"
the Board determined that none of the members of the audit committee met all
five qualifications in the definition, although some members of the Audit
Committees met some of the qualifications. The Board also determined that while
the Audit Committee members have general financial expertise, given the size and
types of the Turner Funds and in light of the nature of the accounting and
valuation issues they have presented over the past several years, it did not
appear that the Audit Committee members lacked any necessary skill to serve on
the Audit Committee.
Item 4. Principal Accountant Fees and Services.
Not applicable - only effective for annual reports for periods ending on or
after December 15, 2003.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. (Reserved)
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. (Reserved)
Item 9. Controls and Procedures.
(a) The certifying officers, whose certifications are included herewith, have
evaluated the registrant's disclosure controls and procedures within 90 days of
the filing date of this report. In their opinion, based on their evaluation, the
registrant's disclosure controls and procedures are adequately designed, and are
operating effectively to ensure, that information required to be disclosed by
the registrant in the reports it files or submits under the Securities Exchange
Act of 1934 is recorded, processed, summarized and reported within the time
periods specified in the Securities and Exchange Commission's rules and forms.
(b) There were no significant changes in the registrant's internal control over
financial reporting that occurred during the registrant's last fiscal half-year
that has materially affected, or is reasonably likely to materially affect, the
registrants internal control over financial reporting.
Items 10. Exhibits.
(a)(1) Code of Ethics attached hereto.
(a)(2) A separate certification for the principal executive officer and the
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed
herewith.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment
Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing
as an Exhibit.
SIGNATURES
Pursuant to the requirements of the securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Alpha Select Funds
By (Signature and Title)* /s/ Stephen J. Kneeley
-------------------------------------
Stephen J. Kneeley, President and CEO
Date 11/20/03
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 11/20/03
By (Signature and Title)* /s/ Peter J. Golden
-------------------------------------
Peter J. Golden, Controller and CAO
Date 11/20/03
* Print the name and title of each signing officer under his or her signature.