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, 2004
Date of reporting period: March 31, 2004
TURNER FUNDS SEMIANNUAL REPORT
MARCH 31, 2004 (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
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
<page>
CONTENTS
1 Letter to Shareholders
4 Total returns of Turner Funds
6 Investment review:
Turner Disciplined Large Cap
Growth Fund
7 Investment review:
Turner Large Cap Growth
Opportunities Fund
8 Investment review:
Turner Midcap Growth Fund
9 Investment review:
Turner Small Cap Growth Fund
10 Investment review:
Turner Micro Cap Growth Fund
11 Investment review:
Turner Small Cap Equity Fund
12 Investment review:
Turner Technology Fund
13 Investment review:
Turner Concentrated Growth Fund
14 Investment review:
Turner New Enterprise Fund
15 Financial Statements
58 Notes to Financial Statements
63 Trustees and Officers of the Trust
TURNER FUNDS
As of March 31, 2004 the Turner Funds offered a series of twenty-one no-load
mutual funds to individual and institutional investors. On May 10, 2004 twelve
of the Turner Funds will reorganize into similar mutual funds under the
Constellation Funds, a separate fund family. The enclosed report is for the nine
remaining Turner Funds. The minimum initial investment in a Turner Fund for
regular accounts is $2,500 and $2,000 for individual retirement accounts.
Turner Investment Management, LLC, an affiliate of Turner Investment Partners,
serves as the investment adviser for the Small Cap Equity Fund. 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 $12 billion in equity and balanced portfolios
on behalf of individuals and institutions.
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.
<page>
LETTER TO SHAREHOLDERS
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March 2004
TO OUR SHAREHOLDERS
There are times when the stock market turns logic on its head, reacting
adversely to what most people would consider good news. Happily, the six-month
period ended March 31, 2004, wasn't one of those times.
The stock market on balance reacted rationally to favorable economic stimuli
during the period. Most importantly, higher corporate earnings and lower
interest rates led to positive -- and in some cases, robust -- total returns for
stocks and our own stock funds.
Earnings, the ultimate driver of stock prices, rebounded strongly from the
depressed levels of a year earlier. For instance, the earnings of the S&P 500
Index companies rose 23% in 2003 over the previous year, exceeding the
expectations of most economists and Wall Street analysts. Also, interest rates
were near the lowest levels since the Eisenhower administration, thanks to a
Federal Reserve that wanted to help energize the economy. The benchmark 10-year
Treasury yield declined from 3.94% to 3.84% during the period. Low interest
rates are good for stocks because they enhance the value of future earnings
streams. And for the past six months, the S&P 500 Index responded with a 14.08%
gain -- a perfectly reasonable reaction.
With a basically benign stock-market environment as a backdrop, here's how our
growth-stock funds, our sector/specialty-stock funds, and our core-stock fund
performed during the past six months.
PERFORMANCE OF OUR GROWTH FUNDS
(SEE PAGE 5 FOR IMPORTANT DISCLOSURE)
Growth stocks turned in robust returns in the past six-month period but
underperformed value stocks. Although all 10 market sectors recorded positive
returns, investors increasingly gravitated from stocks with high valuations to
less richly valued stocks of companies that were likely to sustain a consistent
pattern of earnings growth. As part of that trend, the broad-based Russell 3000
Growth Index advanced 11.84% during the period, underperforming its value
counterpart by 6.32 percentage points.
Our five growth funds generated returns varying from about 11% to 22%. Our
small-cap funds continued to reap the highest returns. (Since the bull market
began in October 2002, our small-cap funds have profited from an explosive
small-cap rally; for example, over the past 12 months, small stocks have
outperformed large stocks by more than 27 percentage points.) In general, our
holdings with above-average betas -- with volatility that's higher than that of
the stock market in aggregate -- flourished in the first half of the period but
performed less satisfactorily in the second half.
The TURNER DISCIPLINED LARGE CAP GROWTH FUND gained 10.93%, outperforming the
Russell Top 200 Growth Index's 9.68% gain. The fund's margin of outperformance
was due mainly to the extra return provided by good stock selection in three
large sector positions, technology, consumer discretionary/services, and
financial services, which accounted for 56% of holdings. Health-care and
utilities/communication holdings, a 26% weighting, detracted most from
performance.
The TURNER LARGE CAP GROWTH OPPORTUNITIES FUND advanced 14.33%, beating the
Russell Top 200 Growth Index by 4.65 percentage points. Sizable gains in
technology and consumer-discretionary/services stocks were largely responsible
for the fund's performance advantage; a 31% technology position reaped a return
of 15%, versus 6% for the index's technology sector, and a 23%
consumer-discretionary/services position returned 20%, almost double that of the
index sector. The fund's consumer-staples holdings underperformed the index
sector markedly.
Capitalizing on small stocks' strength and savvy stock selection, the TURNER
MICRO CAP GROWTH FUND rose 22.33%, topping the Russell 2000 Growth Index's
18.97% result. Eight of the fund's 10 sector investments returned more than
their index sectors did. Health-care, financial-services, and
autos/transportation stocks, which represented 35% of the portfolio, added the
most value. The fund's consumer-staples and technology holdings were the sole
detractors from results.
The TURNER MIDCAP GROWTH FUND (Class I Shares) produced a 16.22% gain that was
commendable in absolute terms (the degree of positive performance) but less so
in relative terms (performance versus its index). The fund lagged the Russell
Midcap Growth Index's 17.58% advance. Good absolute and relative returns in
energy, consumer-discretionary/services, technology, and health-care stocks were
negated by weak relative returns in utilities, producer-durables, and
autos/transportation stocks. Tech stocks were the fund's big gainer, up 29%.
The TURNER SMALL CAP GROWTH FUND climbed 17.32%, fueled by double-digit gains in
health-care, energy, autos/transportation and consumer-staples stocks. The
fund's energy holdings performed best in relative terms, rising 51% versus 31%
for the index sector. However, the fund's performance trailed that of the
Russell 2000 Growth Index by 1.65 percentage points. The fund's
producer-durables and materials/processing holdings accounted for much of the
performance deficit.
TURNER FUNDS 2004 SEMIANNUAL REPORT 1
LETTER TO SHAREHOLDERS (continued)
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PERFORMANCE OF OUR SPECIALTY/SECTOR FUNDS
(SEE PAGE 5 FOR IMPORTANT DISCLOSURE)
Discerning stock selection in companies with strong earnings prospects led to
double-digit gains for all three of our specialty/sector funds in the past six
months. The bulk of their gains were earned in the first half of the period. Two
of the three funds outperformed their benchmarks.
The TURNER CONCENTRATED GROWTH FUND returned 12.73%, trailing the S&P 500
Index's 14.08%. The fund's winners included semiconductor, software,
semiconductor-capital-equipment, retailing, and e-commerce stocks. The fund's
positions in the financial-services, energy, and autos/transportation sectors
dragged down performance.
The TURNER NEW ENTERPRISE FUND turned in a sterling six-month performance: it
gained 20.74%, versus 11.90% for the NASDAQ Composite Index. Technology stocks
represented the fund's biggest position by far, a 48% weighting, and contributed
the most extra return, more than eight percentage points. Also making
substantial contributions were autos/transportation and
consumer-discretionary/services stocks. Financial-services stocks had an adverse
impact on results.
Technology stocks, as represented by the Goldman Sachs Technology Composite
Index, cooled off from their previously torrid pace, but even so gained 12.39%.
For its part, the TURNER TECHNOLOGY FUND gained 18.27%, outpacing the index by
5.88 percentage points. Wireless, semiconductor, software, data-networking, and
Internet stocks did especially well. Financial-transaction-processing stocks
lagged.
PERFORMANCE OF OUR CORE FUND
(SEE PAGE 5 FOR IMPORTANT DISCLOSURE)
As investors focused increasingly on stock prices, value investing was the style
of choice in the past six months. Also, value stocks (which tend to be cyclical
stocks) benefited from the strengthening economic recovery and the much-improved
earnings of cyclical companies. Our core fund, the TURNER SMALL CAP EQUITY FUND,
profited most from value holdings -- holdings with price/earnings ratios below
the market average.
With outperforming investments in six of 10 market sectors, the fund gained
25.19%, outpacing the Russell 2000 Index's 21.69% advance by 3.50 percentage
points. The fund's biggest gains, of more than 40%, came from value sectors --
materials/processing, autos/transportation, utilities/communication, and energy.
The fund also invests in growth stocks, which in aggregate produced returns that
were admirable but less than those of value stocks. Financial-services holdings
suffered the greatest degree of underperformance, gaining 17% versus the index
sector's 22%.
WHAT'S AHEAD FOR STOCKS?
This recounting of how our stock funds did over the past six months is well and
good, but what you as a Turner Funds shareholder undoubtedly most want to know
is what's in store for the next six months -- what do we expect from the stock
market and what are the current investment strategies of our funds?
We think the stock market over the next several years will have an oscillating
but upward bias. For the remainder of 2004 we believe that cyclical stocks will
perform relatively well, benefiting from a strengthening economy, an inflation
rate that's likely to rise moderately, and a continuing hesitancy by the Federal
Reserve to raise interest rates for at least a few more months. (A consensus is
now growing that the Fed may hike rates this summer to cool the economy. But we
think that shouldn't put a major damper on stocks, based on historical
precedents. In the last five tightening cycles, in 1983, 1986, 1994, 1997, and
1999, the S&P 500 Index averaged a 14.9% return in the nine months after the
first Fed rate hike.)
In our estimation, stocks generally should benefit from an increase in
mergers-and-acquisitions activity, continuing productivity gains, and
double-digit growth in earnings. Indeed, the consensus of Wall Street analysts
is that the S&P 500 Index companies will increase their earnings per share by
14.1% over the next 12 months, according to I/B/E/S International.
However, we think the easy money has largely been made in the current bull
market; most stocks, including the most speculative stocks, went up in the
explosive initial phase of the rally. So we think the ability to pinpoint stocks
that can continue to rise will likely separate the outperforming mutual funds
from the underperforming mutual funds going forward.
As a result we are taking pains to make sure our growth and specialty/sector
funds hold stocks of companies that are most likely to report the strongest
earnings going forward; we think those stocks will do best in a market that may
be beset by periodic attacks of investor anxiety and the inevitable mixed market
and economic signals. (Indeed, the capital markets and the economy typically
have as many crosscurrents as the Colorado River.) We think companies that offer
especially good earnings potential now include retailers of premium-priced
goods; software providers; makers of biotechnology products,
broadband-communications systems, and wireless-communications networks;
investment managers; and firms in cyclical industries such as metals and
industrial products that tend to flourish when the economic cycle is maturing.
2 TURNER FUNDS 2004 SEMIANNUAL REPORT
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March 2004
Our core Small Cap Equity Fund is overweighted in shipping stocks (because we
think their fundamentals look good at this stage of the economic recovery);
consumer-discretionary/services stocks (because we think consumer spending
should remain robust); energy stocks (because we think the higher energy prices
of late haven't been fully factored into the prices of energy stocks); and
materials/processing stocks, especially paper and mining stocks (because we
think prices of commodities may continue to rise). In addition, the fund is
invested almost equally in growth and value stocks -- an indication of our
increased confidence in the ability of companies to meet or exceed Wall Street's
expectations about earnings. A year earlier, in contrast, we didn't have that
same degree of confidence, so as protection from possible earnings shocks, the
fund's allocation was tilted in favor of value stocks.
SOME FINAL POINTS
Finally, the stock market may not always act as rationally as it has in the past
six months. But no matter if the market acts like Dr. Jekyll or Mr. Hyde in the
near term, we think it's important to keep two points in mind and in the process
keep your head even as other investors may be losing theirs:
One, stocks have demonstrated a long-term upward bias. Year-to-year returns in
the S&P 500 Index have been positive 75% of the time since 1960. As we see it,
the prudent way to capitalize on that upward bias is to stay invested in stocks
and put time on your side -- reaping the rewards of the frequent up years that
allow your wealth to compound in the long run and riding out the infrequent down
years.
And two, no matter how rationally or irrationally the stock market behaves, we
will continue to work hard at maximizing the wealth you have entrusted to our
funds, providing you with a level of investment performance and service that we
ourselves would expect if we were in your shoes. And in a very real sense, we
are in your shoes; the money of our own investing teams is in our funds. We
thank you for your faith in us and look forward to reporting to you how well we
have done in capitalizing on future stock-market rationalities and
irrationalities.
/S/BOB TURNER
Bob Turner
CHAIRMAN AND CHIEF INVESTMENT OFFICER
TURNER INVESTMENT PARTNERS, ADVISER TO THE TURNER FUNDS
[PHOTO OMITTED]
BOB TURNER
TURNER FUNDS 2004 SEMIANNUAL REPORT 3
PERFORMANCE
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TOTAL RETURNS OF TURNER FUNDS
Through March 31, 2004
Year (Annualized) Total
Six to One Three Five Ten Since Assets
Fund Name/Index Months Date Year Years Years Years inception ($mil)
GROWTH
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TURNER DISCIPLINED LARGE CAP
GROWTH FUND 10.93 1.79 36.66 (2.33) N/A N/A (16.15) $99.10
Russell Top 200 Growth Index 9.68 (0.26) 28.01 (3.30) n/a n/a (14.74)
S&P 500 Index 14.08 1.69 35.12 0.63 n/a n/a (5.37)
INCEPTION DATE: 6/14/00
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TURNER LARGE CAP GROWTH
OPPORTUNITIES FUND 14.33 4.19 51.42 0.16 (4.25) N/A 7.39 $4.82
Russell Top 200 Growth Index 9.68 (0.26) 28.01 (3.30) (7.94) n/a 3.41
S&P 500 Index 14.08 1.69 35.12 0.63 (1.20) n/a 6.73
INCEPTION DATE: 1/31/97
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TURNER MIDCAP GROWTH FUND --
CLASS I SHARES(1) 16.22 3.23 52.72 1.87 4.94 N/A 14.88 $965.12
Russell Midcap Growth Index 17.58 4.83 49.63 5.00 2.29 n/a 7.57
INCEPTION DATE: 10/1/96
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TURNER SMALL CAP GROWTH FUND(1) 17.32 3.41 69.99 6.96 5.94 15.84 15.21 $233.40
Russell 2000 Growth Index 18.97 5.58 63.16 5.40 2.31 6.45 5.86
INCEPTION DATE: 2/7/94
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TURNER MICRO CAP GROWTH FUND(1) 22.33 6.08 66.52 15.41 33.35 N/A 34.52 $368.58
Russell 2000 Growth Index 18.97 5.58 63.16 5.40 2.31 n/a 0.63
INCEPTION DATE: 2/27/98
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CORE FUNDS
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TURNER SMALL CAP EQUITY FUND(1) 25.19 5.51 66.07 N/A N/A N/A 23.06 $23.27
Russell 2000 Index 21.69 6.26 63.83 n/a n/a n/a 11.06
INCEPTION DATE: 3/4/02
4 TURNER FUNDS 2004 SEMIANNUAL REPORT
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Year (Annualized) Total
Six to One Three Five Ten Since Assets
Fund Name/Index Months Date Year Years Years Years inception ($mil)
SPECIALTY
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TURNER TECHNOLOGY FUND(1)(2) 18.27 2.78 90.88 (5.15) N/A N/A (3.32) $22.28
Pacific Stock Exchange
Technology 100 Index 16.04 2.51 56.97 2.84 n/a n/a 3.97
Goldman Sachs Technology
Composite Index 12.39 (1.07) 53.30 (3.51) n/a n/a (10.04)
INCEPTION DATE: 6/30/99
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TURNER CONCENTRATED
GROWTH FUND 12.73 3.33 63.94 (3.12) N/A N/A (0.56) $50.53
S&P 500 Index 14.08 1.69 35.12 0.63 n/a n/a (2.67)
NASDAQ 100 Index 10.48 (1.97) 41.49 (2.81) n/a n/a (9.28)
INCEPTION DATE: 6/30/99
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TURNER NEW ENTERPRISE FUND 20.74 4.59 96.25 6.08 N/A N/A (15.83) $27.73
NASDAQ Composite Index 11.90 (0.35) 49.37 3.13 n/a n/a (16.43)
INCEPTION DATE: 6/30/00
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Returns less than one year are cumulative. The Turner Funds are distributed by
Constellation Investment Distribution Company, Inc., Berwyn, PA 19312.
THE INVESTOR SHOULD CONSIDER THE INVESTMENT OBJECTIVES, RISKS, CHARGES AND
EXPENSES BEFORE INVESTING. THIS INFORMATION CAN BE FOUND IN THE PROSPECTUS. 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. READ THE PROSPECTUS CAREFULLY BEFORE
INVESTING. 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. Past
performance is no guarantee of future results. Current performance may be lower
or higher than the performance data quoted. Please call (800) 224-6312 or visit
our website at www.turnerinvestments.com for updated performance information.
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. The holdings and
sector weightings of the Funds are subject to change.
(1) Investing in technology and science companies and small and mid
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.
TURNER FUNDS 2004 SEMIANNUAL REPORT 5
INVESTMENT REVIEW
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TURNER DISCIPLINED LARGE CAP GROWTH FUND
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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.
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SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
0.8% Energy
1.0% Utilities/communications
1.4% Autos/transportation
1.9% Materials & Processing
2.5% Producer durables
10.4% Consumer staples
10.6% Financial services
21.8% Consumer discretionary/services
23.3% Technology
25.2% Healthcare
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FUND PROFILE
MARCH 31, 2004
[] Ticker symbol TSGEX
[] CUSIP #87252R839
[] Top 10 holdings
(1) Pfizer
(2) General Electric
(3) Cisco Systems
(4) Dell
(5) Amgen
(6) Procter & Gamble
(7) American International Group
(8) PepsiCo
(9) Wal-Mart Stores
(10)EMC
[] % in 10 largest holdings 38.3%
[] Number of holdings 58
[] Price/earnings ratio 23.7
[] Weighted average market capitalization $94.37 billion n % of holdings with
positive earnings surprises 77.5% n % of holdings with negative earnings
surprises 21.3% n Net assets $99 million
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FUND PROFILE
MARCH 31, 2004
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VALUE GROWTH
INVESTMENT STYLE
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GROWTH OF A $10,000 INVESTMENT IN THE TURNER DISCIPLINED LARGE CAP GROWTH FUND:
JUNE 30, 2000-MARCH 31, 2004*
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
RUSSELL
TURNER DISCIPLINED RUSSELL TOP 200 1000
LARGE CAP GROWTH FUND GROWTH INDEX GROWTH INDEX
6/30/00 10000 10000 10000
SEP 00 9655 9304 9462
SEP 01 4626 5183 5143
SEP 02 3445 3950 3986
SEP 03 4548 4852 5019
MAR 04 5045 5321 5585
* 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, 2004
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PAST SIX PAST ONE PAST THREE SINCE
MONTHS YEAR YEARS INCEPTION
10.93% 36.66% (2.33%) (16.15%)
6 TURNER FUNDS 2004 SEMIANNUAL REPORT
INVESTMENT REVIEW
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TURNER LARGE CAP GROWTH OPPORTUNITIES FUND
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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.
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SECTOR WEIGHTINGS:
BAR CHART OMITTED, PLOT POINTS FOLLOWS]
1.2% AUTOMOTIVE/TRANSPORTATION
1.3% CONSUMER STAPLES
4.3% ENERGY
5.3% MATERIALS/PROCESSING
6.6% PRODUCER DURABLES
11.5% FINANCIAL SERVICES
18.4% HEALTHCARE
19.0% CONSUMER DISCRETIONARY/SERVICES
32.2% TECHNOLOGY
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FUND PROFILE
MARCH 31, 2004
[] Ticker symbol TLCGX
[] CUSIP #900297870
[] Top 10 holdings
(1) Cisco Systems
(2) Amgen
(3) Qualcomm
(4) EMC
(5) Dell
(6) SAP ADR
(7) Deere
(8) Motorola
(9) Analog Devices
(10)Juniper Networks
[] % in 10 largest holdings 24.6%
[] Number of holdings 65
[] Price/earnings ratio 24.7
[] Weighted average market capitalization $38.15 billion
[] % of holdings with positive earnings surprises 89.7%
[] % of holdings with negative earnings surprises 9.0%
[] Net assets $5 million
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FUND PROFILE
MARCH 31, 2004
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VALUE GROWTH
INVESTMENT STYLE
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GROWTH OF A $10,000 INVESTMENT IN THE TURNER LARGE CAP GROWTH OPPORTUNITIES
FUND: JANUARY 31, 1997-MARCH 31, 2004*
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
TURNER LARGE CAP GROWTH RUSSELL TOP 200 S&P 500
OPPORTUNITIES FUND GROWTH INDEX INDEX
1/31/97 10000 10000 10000
SEP 97 12279.8 12013 12202.3
SEP 98 14399.3 14165.7 13306.7
SEP 99 20586.6 19018.9 17005.9
SEP 00 30363.2 22233.1 19264.3
SEP 01 14055.1 12386 14136.1
SEP 02 10279.9 9439.4 11239.6
SEP 03 14585.2 11593.5 13981
MAR 04 16675 12716 15950
* 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, 2004
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PAST SIX PAST ONE PAST THREE PAST FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
14.33% 51.42% 0.16% (4.25%) 7.39%
TURNER FUNDS 2004 SEMIANNUAL REPORT 7
INVESTMENT REVIEW
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TURNER MIDCAP GROWTH FUND
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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.
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SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
2.1% AUTOS/TRANSPORTATION
2.1% UTILITIES/COMMUNICATION
2.3% CONSUMER STAPLES
3.6% ENERGY
4.0% MATERIALS/PROCESSING
6.9% PRODUCER DURABLES
11.1% FINANCIAL SERVICES
19.6% TECHNOLOGY
21.4% HEALTHCARE
26.5% CONSUMER DISCRETIONARY/SERVICES
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FUND PROFILE
MARCH 31, 2004
[] Ticker symbol TMGFX,
Class I Shares
[] CUSIP #900297409,
Class I Shares
[] Top 10 holdings
(1) Zimmer Holdings
(2) Biogen Idec
(3) International Game Technology
(4) Caremark Rx
(5) Symantec
(6) CDW
(7) Juniper Networks
(8) Aetna
(9) Ameritrade Holding
(10)National Semiconductor
[] % in 10 largest holdings 15.1%
[] Number of holdings 124
[] Price/earnings ratio 23.3
[] Weighted average market capitalization $5.94
[] % of holdings with positive earnings surprises 87.5%
[] % of holdings with negative earnings surprises 9.9%
[] Net assets $965 million, Class I Shares
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FUND PROFILE
MARCH 31, 2004
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VALUE GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER MIDCAP GROWTH FUND, CLASS I SHARES:
OCTOBER 31, 1996-MARCH 31, 2004*
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
TURNER MID CAP RUSSELL MIDCAP
CLASS I GROWTH INDEX
10/31/96 10000 10000
SEP 97 14248.5 13119
SEP 98 14425.2 11889.7
SEP 99 26552.4 16311.5
SEP 00 52401.2 26158.8
SEP 01 21484.5 12616.4
SEP 02 17015.7 10660.8
SEP 03 24128.3 14806.9
MAR 04 28042 17410
* 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.
** Class II Shares were offered beginning on September 24, 2001. Class II
Shares' performance for the periods prior to September 24, 2001 reflects the
performance of the Fund's Class I Shares. The performance of the Class II
Shares has been adjusted for the differences in fees between the classes.
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2004
- --------------------------------------------------------------------------------
PAST PAST PAST PAST
SIX ONE THREE FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
Class I
Shares 16.22% 52.72% 1.87% 4.94% 14.88%
Class II
Shares 15.86% 51.86% 2.22%** 4.95%** 14.70%**
8 TURNER FUNDS 2004 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]
1.4% CONSUMER STAPLES
1.4% UTILITIES/COMMUNICATION
3.2% AUTOMOTIVE/TRANSPORTATION
4.0% MATERIALS & PROCESSING
4.7% ENERGY
7.6% PRODUCER DURABLES
12.4% FINANCIAL SERVICES
21.0% CONSUMER DISCRETIONARY/SERVICES
21.4% TECHNOLOGY
22.7% HEALTHCARE
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
[] Ticker symbol TSCEX
[] CUSIP #900297300
[] Top 10 holdings
(1) MGI Pharma
(2) Dade Behring Holdings
(3) F5 Networks
(4) Sierra Health Services
(5) Plexus
(6) Vitesse Semiconductor
(7) Exar
(8) Cooper
(9) Scientific Games, Cl A
(10)East-West Bancorp
[] % in 10 largest holdings 12.9%
[] Number of holdings 141
[] Price/earnings ratio 21.9
[] Weighted average market capitalization $1.15 billion
[] % of holdings with positive earnings surprises 78.4%
[] % of holdings with negative earnings surprises 18.4%
[] Net assets $233 million
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
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VALUE GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER SMALL CAP GROWTH FUND:
FEBRUARY 28, 1994-MARCH 31, 2004*
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
TURNER SMALL CAP GROWTH FUND RUSSELL 2000 GROWTH INDEX
2/28/94 10000 10000
SEP 94 10303.2 9618.09
SEP 95 15812.4 12328.5
SEP 96 24102.8 13883.1
SEP 97 28113.5 17124.8
SEP 98 23362.3 12872.7
SEP 99 37178.8 17073.1
SEP 00 58025 22136.9
SEP 01 29122.7 12708.8
SEP 02 23484.6 10400.9
SEP 03 35132.9 14740.2
MAR 04 41218 17536
* 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, 2004
- --------------------------------------------------------------------------------
PAST SIX PAST ONE PAST THREE PAST FIVE PAST TEN SINCE
MONTHS YEAR YEARS YEARS YEARS INCEPTION
17.32% 69.99% 6.96% 5.94% 15.84% 15.21%
TURNER FUNDS 2004 SEMIANNUAL REPORT 9
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]
0.5% UTILITIES/COMMUNICATION
2.2% CONSUMER STAPLES
2.4% AUTOS/TRANSPORTATION
3.2% PRODUCER DURABLES
5.2% MATERIALS/PROCESSING
7.2% ENERGY
12.7% FINANCIAL SERVICES
15.4% TECHNOLOGY
17.8% HEALTHCARE
22.5% CONSUMER DISCRETIONARY/SERVICES
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
[] Ticker symbol TMCGX
[] CUSIP #872524301
[] Top 10 holdings
(1) Oxford Industries
(2) Sierra Health Services
(3) Petroleum Development
(4) Salix Pharmaceuticals
(5) Jarden
(6) Roto-Rooter
(7) Sola International
(8) Genesee & Wyoming, Cl A
(9) Genesco
(10)ESCO Technologies
[] % in 10 largest holdings 18.3%
[] Number of holdings 122
[] Price/earnings ratio 19.0
[] Weighted average market capitalization $0.55 billion
[] % of holdings with positive earnings surprises 77.9%
[] % of holdings with negative earnings surprises 19.3%
[] Net assets $369 million
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
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VALUE GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER MICRO CAP GROWTH FUND:
FEBRUARY 28, 1998-MARCH 31, 2004*
[LINE CHART 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
SEP 03 49709 8731
MAR 04 60809 10388
* 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, 2004
- --------------------------------------------------------------------------------
PAST SIX PAST ONE PAST THREE PAST FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
22.33% 66.52% 15.41% 33.35% 34.52%
10 TURNER FUNDS 2004 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]
3.4% CONSUMER STAPLES
3.5% UTILITIES/COMMUNICATION
4.8% AUTOMOTIVE/TRANSPORTATION
5.3% ENERGY
5.9% PRODUCER DURABLES
9.5% HEALTHCARE
9.7% TECHNOLOGY
10.4% MATERIALS/PROCESSING
18.6% FINANCIAL SERVICES
22.9% CONSUMER DISCRETIONARY/SERVICES
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
[] Ticker symbol TSEIX
[] CUSIP #87252R714
[] Top 10 holdings
(1) Laidlaw International
(2) Apex Silver Mines
(3) Brink's
(4) People's Bank
(5) Analogic
(6) Boise Cascade
(7) Accredo Health
(8) Jarden
(9) Dade Behring Holdings
(10)R.H. Donnelley
[] % in 10 largest holdings 17.4%
[] Number of holdings 97
[] Price/earnings ratio 18.5
[] Weighted average market capitalization $1.25 billion
[] Net assets $23 million
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
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VALUE GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER SMALL CAP EQUITY FUND:
MARCH 31, 2002-MARCH 31, 2004*
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
TURNER SMALL CAP EQUITY FUND RUSSELL 2000 INDEX
3/31/02 10000 10000
SEP 02 8789 7203
SEP 03 11605 9833
MAR 04 14528 11965
* 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 RETURN
Periods ending March 31, 2004
- --------------------------------------------------------------------------------
PAST SIX MONTHS PAST ONE YEAR SINCE INCEPTION
25.19% 66.07% 23.06%
TURNER FUNDS 2004 SEMIANNUAL REPORT 11
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 by 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 POINT FOLLOWS]
98.8% TECHNOLOGY
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
[] Ticker symbol TTECX
[] CUSIP #87252R870
[] Top 10 holdings
(1) Cisco Systems
(2) National Semiconductor
(3) Dell
(4) EMC
(5) eBay
(6) Comverse Technology
(7) Nvidia
(8) Intel
(9) Red Hat
(10)Yahoo!
[] % in 10 largest holdings 35.5%
[] Number of holdings 41
[] Price/earnings ratio 33.0
[] Weighted average market capitalization $27.60 billion
[] % of holdings with positive earnings surprises 87.7%
[] % of holdings with negative earnings surprises 10.0%
[] Net assets $22 million
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
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INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER TECHNOLOGY FUND:
JUNE 30, 1999-MARCH 31, 2004*
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
TURNER PACIFIC STOCK GOLDMAN SACHS
TECHNOLOGY EXCHANGE TECHNOLOGY TECHNOLOGY
FUND 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
SEP 03 7202 10372 5378
MAR 04 8518 12036 6045
* 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, 2004
- --------------------------------------------------------------------------------
PAST SIX PAST ONE PAST THREE SINCE
MONTHS YEAR YEARS INCEPTION
18.27% 90.88% (5.15%) (3.32%)
12 TURNER FUNDS 2004 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]
3.6% Financial services
4.5% Energy
7.2% Producer durables
8.5% Healthcare
10.7% Materials/processing
15.9% Consumer discretionary/services
47.6% Technology
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
[] Ticker symbol TTOPX
[] CUSIP #87252R862
[] Top 10 holdings
(1) Motorola
(2) Applied Materials
(3) SAP ADR
(4) EMC
(5) Watson Pharmaceuticals
(6) Nvidia
(7) Biogen Idec
(8) Silicon Laboratories
(9) Dell
(10)CDW
[] % in 10 largest holdings 43.7%
[] Number of holdings 29
[] Price/earnings ratio 26.8
[] Weighted average market capitalization $25.05 billion
[] % of holdings with positive earnings surprises 88.3%
[] % of holdings with negative earnings surprises 11.7%
[] Net assets $51 million
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
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INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER CONCENTRATED GROWTH FUND:
JUNE 30, 1999-MARCH 31, 2004*
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
TURNER CONCENTRATED S&P 500 NASDAQ
GROWTH FUND INDEX 100 INDEX
6/30/99 10000 10000 10000
SEP 99 13990 9376 10485
SEP 00 27782 10622 15553
SEP 01 8223 7794 5092
SEP 02 5754 6197 3631
SEP 03 8638 7709 5696
MAR 04 9737 8794 6293
* 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 Concentrated
Growth Fund is June 30, 1999.
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2004
- --------------------------------------------------------------------------------
PAST SIX PAST ONE PAST THREE SINCE
MONTHS YEAR YEARS INCEPTION
12.73% 63.94% (3.12%) (0.56%)
TURNER FUNDS 2004 SEMIANNUAL REPORT 13
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]
2.6% Energy
6.7% Financial services
6.8% Healthcare
13.1% Producer durables
19.6% Consumer discretionary/services
49.6% Technology
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
[] Ticker symbol TBTBX
[] CUSIP #87252R797
[] Top 10 holdings
(1) Comverse Technology
(2) Marvel Enterprises
(3) F5 Networks
(4) Cisco Systems
(5) Nvidia
(6) Formfactor
(7) Juniper Networks
(8) Electronic Arts
(9) Vishay Intertechnology
(10)Lam Research
[] % in 10 largest holdings 34.4%
[] Number of holdings 43
[] Price/earnings ratio 28.6
[] Weighted average market capitalization $12.40 billion
[] % of holdings with positive earnings surprises 88.5%
[] % of holdings with negative earnings surprises 8.0%
[] Net assets $28 million
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
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INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER NEW ENTERPRISE FUND:
JUNE 30, 2000-MARCH 31, 2004*
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
TURNER NEW ENTERPRISE FUND NASDAQ COMPOSITE INDEX
6/30/00 10000 10000
SEP 00 12520 9264
SEP 01 3290 3792
SEP 02 2270 2976
SEP 03 4340 4556
MAR 04 5241 5099
* 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, 2004
- --------------------------------------------------------------------------------
PAST SIX PAST ONE PAST THREE SINCE
MONTHS YEAR YEARS INCEPTION
20.74% 96.25% 6.08% (15.83%)
14 TURNER FUNDS 2004 SEMIANNUAL REPORT
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER DISCIPLINED LARGE CAP GROWTH FUND
March 31, 2004
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--98.6%
- --------------------------------------------------------------------------------
ADVERTISING & RELATED SERVICES--1.1%
- --------------------------------------------------------------------------------
Time Warner* 63,930 $ 1,078
----------
Total Advertising & related services 1,078
----------
- --------------------------------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--1.0%
- --------------------------------------------------------------------------------
Caterpillar 12,600 996
----------
Total Agriculture, construction &
mining machinery manufacturing 996
----------
- --------------------------------------------------------------------------------
ALUMINA & ALUMINUM PRODUCTION &
PROCESSING--0.8%
- --------------------------------------------------------------------------------
Alcoa 21,560 748
----------
Total Alumina & aluminum
production & processing 748
----------
- --------------------------------------------------------------------------------
BEVERAGE MANUFACTURING--2.9%
- --------------------------------------------------------------------------------
PepsiCo 52,440 2,824
----------
Total Beverage manufacturing 2,824
----------
- --------------------------------------------------------------------------------
BUILDING MATERIAL & SUPPLIES DEALERS--1.5%
- --------------------------------------------------------------------------------
Lowe's 27,070 1,519
----------
Total Building material &
supplies dealers 1,519
----------
- --------------------------------------------------------------------------------
COLLEGES, UNIVERSITIES &
PROFESSIONAL SCHOOLS--1.1%
- --------------------------------------------------------------------------------
Apollo Group, Cl A*# 13,000 1,119
----------
Total Colleges, universities &
professional schools 1,119
----------
- --------------------------------------------------------------------------------
COMMERCIAL & SERVICE INDUSTRY
MACHINERY MANUFACTURING--1.0%
- --------------------------------------------------------------------------------
Alcon# 16,340 1,034
----------
Total Commercial & service industry
machinery manufacturing 1,034
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--9.9%
- --------------------------------------------------------------------------------
Cisco Systems* 224,070 $ 5,270
Motorola 85,470 1,504
Qualcomm 30,540 2,029
Sony ADR 24,810 1,037
----------
Total Communications equipment
manufacturing 9,840
----------
- --------------------------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--5.4%
- --------------------------------------------------------------------------------
Dell* 97,940 3,293
EMC* 150,870 2,053
----------
Total Computer & peripheral
equipment manufacturing 5,346
----------
- --------------------------------------------------------------------------------
DEPARTMENT STORES--3.6%
- --------------------------------------------------------------------------------
Target 18,100 815
Wal-Mart Stores 46,590 2,781
----------
Total Department stores 3,596
----------
- --------------------------------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--1.5%
- --------------------------------------------------------------------------------
Citigroup 28,770 1,487
----------
Total Depository credit intermediation 1,487
----------
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT MANUFACTURING--5.5%
- --------------------------------------------------------------------------------
General Electric 177,870 5,429
----------
Total Electrical equipment manufacturing 5,429
----------
- --------------------------------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--1.0%
- --------------------------------------------------------------------------------
eBay* 14,310 992
----------
Total Electronic shopping &
mail-order houses 992
----------
- --------------------------------------------------------------------------------
FOOTWEAR MANUFACTURING--1.3%
- --------------------------------------------------------------------------------
Nike, Cl B 16,200 1,262
----------
Total Footwear manufacturing 1,262
----------
- --------------------------------------------------------------------------------
GRAIN & OILSEED MILLING--1.2%
- --------------------------------------------------------------------------------
Archer-Daniels-Midland 71,750 1,210
----------
Total Grain & oilseed milling 1,210
----------
TURNER FUNDS 2004 SEMIANNUAL REPORT 15
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER DISCIPLINED LARGE CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
GROCERY & RELATED PRODUCT WHOLESALERS--1.7%
- --------------------------------------------------------------------------------
Sysco 43,270 $ 1,690
----------
Total Grocery & related product
wholesalers 1,690
----------
- --------------------------------------------------------------------------------
HEALTH & PERSONAL CARE STORES--1.4%
- --------------------------------------------------------------------------------
Walgreen 42,810 1,411
----------
Total Health & personal care stores 1,411
----------
- --------------------------------------------------------------------------------
INFORMATION SERVICES--2.9%
- --------------------------------------------------------------------------------
Juniper Networks*# 55,880 1,453
Yahoo!* 28,350 1,378
----------
Total Information services 2,831
----------
- --------------------------------------------------------------------------------
INSURANCE CARRIERS--5.6%
- --------------------------------------------------------------------------------
American International Group 41,310 2,948
Anthem* 10,800 979
UnitedHealth Group 25,100 1,617
----------
Total Insurance carriers 5,544
----------
- --------------------------------------------------------------------------------
LIMITED-SERVICE EATING PLACES--1.0%
- --------------------------------------------------------------------------------
Starbucks* 26,200 989
----------
Total Limited-service eating places 989
----------
- --------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--4.0%
- --------------------------------------------------------------------------------
Boston Scientific* 30,470 1,291
St. Jude Medical* 20,440 1,474
Zimmer Holdings* 16,330 1,205
----------
Total Medical equipment &
supplies manufacturing 3,970
----------
- --------------------------------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/CONTROL INSTRUMENTS MANUFACTURING--1.2%
- --------------------------------------------------------------------------------
Guidant 19,100 1,210
----------
Total Navigational/measuring/medical/
control instruments manufacturing 1,210
----------
- --------------------------------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--1.8%
- --------------------------------------------------------------------------------
American Express 33,940 1,760
----------
Total Nondepository credit intermediation 1,760
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
OIL & GAS EXTRACTION--0.8%
- --------------------------------------------------------------------------------
Apache 18,800 $ 812
----------
Total Oil & gas extraction 812
----------
- --------------------------------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--1.1%
- --------------------------------------------------------------------------------
Corning* 100,070 1,119
----------
Total Other electrical equipment &
component manufacturing 1,119
----------
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--1.4%
- --------------------------------------------------------------------------------
International Game Technology 29,880 1,343
----------
Total Other miscellaneous manufacturing 1,343
----------
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--12.6%
- --------------------------------------------------------------------------------
Amgen* 53,970 3,139
Forest Laboratories* 14,300 1,024
Pfizer 203,437 7,131
Teva Pharmaceutical
Industries ADR 19,310 1,225
----------
Total Pharmaceutical & medicine
manufacturing 12,519
----------
- --------------------------------------------------------------------------------
RADIO & TELEVISION BROADCASTING--0.9%
- --------------------------------------------------------------------------------
Univision Communications, Cl A* 25,400 839
----------
Total Radio & television broadcasting 839
----------
- --------------------------------------------------------------------------------
RAIL TRANSPORTATION--1.4%
- --------------------------------------------------------------------------------
Norfolk Southern 62,270 1,376
----------
Total Rail transportation 1,376
----------
- --------------------------------------------------------------------------------
SCIENTIFIC R&D SERVICES--3.6%
- --------------------------------------------------------------------------------
Biogen Idec* 27,300 1,518
Genentech* 19,400 2,053
----------
Total Scientific r&d services 3,571
----------
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--4.4%
- --------------------------------------------------------------------------------
Charles Schwab 144,990 1,683
Goldman Sachs Group 11,260 1,175
Morgan Stanley 25,650 1,470
----------
Total Security & commodity contracts
intermediation & brokerage 4,328
----------
16 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER DISCIPLINED LARGE CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC COMPONENT MANUFACTURING--7.0%
- --------------------------------------------------------------------------------
Analog Devices 35,780 $ 1,718
Applied Materials* 66,690 1,426
Broadcom, Cl A* 36,790 1,441
Tyco International 38,880 1,114
Xilinx* 32,040 1,217
----------
Total Semiconductor & other electronic
component manufacturing 6,916
----------
- --------------------------------------------------------------------------------
SOAP, CLEANERS & TOILET PREPARATION
MANUFACTURING--4.1%
- --------------------------------------------------------------------------------
Avon Products 12,200 925
Procter & Gamble 29,860 3,132
----------
Total Soap, cleaners & toilet
preparation manufacturing 4,057
----------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--2.0%
- --------------------------------------------------------------------------------
SAP ADR 50,250 1,975
----------
Total Software publishers 1,975
----------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS--0.9%
- --------------------------------------------------------------------------------
America Movil ADR* 24,200 935
----------
Total Telecommunications 935
----------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $84,613) 97,675
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES--0.1%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 51,300 51
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD
AS COLLATERAL FOR LOANED SECURITIES
(COST $51) 51
- --------------------------------------------------------------------------------
Value
Shares (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT--1.0%
- --------------------------------------------------------------------------------
Blackrock TempCash Fund,
Institutional Shares 1,036,536 $ 1,037
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $1,037) 1,037
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--99.7%
(COST $85,701) 98,763
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--0.3%
- --------------------------------------------------------------------------------
Obligation to return securities
lending collateral (51)
Payable due to investment adviser (40)
Payable due to administrator (12)
Other assets and liabilities, net 441
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET 338
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares (unlimited
authorization -- no par value)
based on 19,362,054 outstanding shares
of beneficial interest 116,467
Undistributed net investment income 13
Accumulated net realized loss
on investments (30,441)
Net unrealized appreciation
on investments 13,062
- --------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $99,101
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $5.12
- --------------------------------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2004 (see Note 9 in Notes to
Financial Statements). The total value of securities on loan at March 31,
2004 was $50,160.
ADR - American depository receipt
Cl - Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2004 SEMIANNUAL REPORT 17
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER LARGE CAP GROWTH OPPORTUNITIES FUND
March 31, 2004
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--99.6%
- --------------------------------------------------------------------------------
ADVERTISING & RELATED SERVICES--1.2%
- --------------------------------------------------------------------------------
Time Warner* 3,300 $ 56
----------
Total Advertising & related services 56
----------
- --------------------------------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING MACHINERY MANUFACTURING--3.8%
- --------------------------------------------------------------------------------
Caterpillar 1,100 87
Deere 1,400 97
----------
Total Agriculture, construction &
mining machinery manufacturing 184
----------
- --------------------------------------------------------------------------------
ALUMINA & ALUMINUM PRODUCTION &
PROCESSING--1.3%
- --------------------------------------------------------------------------------
Alcoa 1,770 61
----------
Total Alumina & aluminum
production & processing 61
----------
- --------------------------------------------------------------------------------
BUILDING MATERIAL & SUPPLIES DEALERS--1.3%
- --------------------------------------------------------------------------------
Lowe's 1,150 65
----------
Total Building material & supplies dealers 65
----------
- --------------------------------------------------------------------------------
COLLEGES, UNIVERSITIES &
PROFESSIONAL SCHOOLS--1.4%
- --------------------------------------------------------------------------------
Apollo Group, Cl A* 770 66
----------
Total Colleges, universities &
professional schools 66
----------
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--10.3%
- --------------------------------------------------------------------------------
Cisco Systems* 9,300 219
Motorola 5,400 95
Qualcomm 1,900 126
Sony ADR 1,350 56
----------
Total Communications equipment
manufacturing 496
----------
- --------------------------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--4.9%
- --------------------------------------------------------------------------------
Dell* 3,450 116
EMC* 8,830 120
----------
Total Computer & peripheral
equipment manufacturing 236
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--1.7%
- --------------------------------------------------------------------------------
Citigroup 1,600 $ 83
----------
Total Depository credit intermediation 83
----------
- --------------------------------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--1.3%
- --------------------------------------------------------------------------------
eBay* 940 65
----------
Total Electronic shopping &
mail-order houses 65
----------
- --------------------------------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--1.5%
- --------------------------------------------------------------------------------
CDW 1,080 73
----------
Total Electronics & appliance stores 73
----------
- --------------------------------------------------------------------------------
FOOTWEAR MANUFACTURING--1.7%
- --------------------------------------------------------------------------------
Nike, Cl B 1,080 84
----------
Total Footwear manufacturing 84
----------
- --------------------------------------------------------------------------------
GRAIN & OILSEED MILLING--1.3%
- --------------------------------------------------------------------------------
Archer-Daniels-Midland 3,700 62
----------
Total Grain & oilseed milling 62
----------
- --------------------------------------------------------------------------------
HEALTH & PERSONAL CARE STORES--1.5%
- --------------------------------------------------------------------------------
Omnicare 1,650 73
----------
Total Health & personal care stores 73
----------
- --------------------------------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--1.4%
- --------------------------------------------------------------------------------
Kla-Tencor* 1,330 67
----------
Total Industrial machinery
manufacturing 67
----------
- --------------------------------------------------------------------------------
INFORMATION SERVICES--3.3%
- --------------------------------------------------------------------------------
Juniper Networks* 3,590 93
Yahoo!* 1,350 66
----------
Total Information services 159
----------
- --------------------------------------------------------------------------------
INSURANCE CARRIERS--2.1%
- --------------------------------------------------------------------------------
American International Group 780 56
Anthem* 480 43
----------
Total Insurance carriers 99
----------
18 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER LARGE CAP GROWTH OPPORTUNITIES FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
JEWELRY, LUGGAGE & LEATHER GOODS STORES--1.2%
- --------------------------------------------------------------------------------
Tiffany 1,500 $ 57
----------
Total Jewelry, luggage &
leather goods stores 57
----------
- --------------------------------------------------------------------------------
LIMITED-SERVICE EATING PLACES--1.5%
- --------------------------------------------------------------------------------
Starbucks* 1,940 73
----------
Total Limited-service eating places 73
----------
- --------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--4.3%
- --------------------------------------------------------------------------------
Boston Scientific* 1,840 78
St. Jude Medical* 820 59
Zimmer Holdings* 980 72
----------
Total Medical equipment &
supplies manufacturing 209
----------
- --------------------------------------------------------------------------------
METAL ORE MINING--2.7%
- --------------------------------------------------------------------------------
Freeport-McMoRan Copper &
Gold, Cl B 1,600 63
Phelps Dodge* 820 67
----------
Total Metal ore mining 130
----------
- --------------------------------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/CONTROL INSTRUMENTS MANUFACTURING--1.1%
- --------------------------------------------------------------------------------
Guidant 800 51
----------
Total Navigational/measuring/medical/
control instruments manufacturing 51
----------
- --------------------------------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--1.4%
- --------------------------------------------------------------------------------
American Express 1,320 68
----------
Total Nondepository credit intermediation 68
----------
- --------------------------------------------------------------------------------
OFFICES OF PHYSICIANS--1.1%
- --------------------------------------------------------------------------------
Caremark Rx* 1,640 55
----------
Total Offices of physicians 55
----------
- --------------------------------------------------------------------------------
OIL & GAS EXTRACTION--4.3%
- --------------------------------------------------------------------------------
Apache 1,500 65
Murphy Oil 1,150 73
XTO Energy 2,750 69
----------
Total Oil & gas extraction 207
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--1.3%
- --------------------------------------------------------------------------------
Corning* 5,610 $ 63
----------
Total Other electrical equipment &
component manufacturing 63
----------
- --------------------------------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--1.2%
- --------------------------------------------------------------------------------
T. Rowe Price Group 1,100 59
----------
Total Other financial investment activities 59
----------
- --------------------------------------------------------------------------------
OTHER LEATHER & ALLIED PRODUCT
MANUFACTURING--1.2%
- --------------------------------------------------------------------------------
Coach* 1,380 57
----------
Total Other leather & allied
product manufacturing 57
----------
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--1.6%
- --------------------------------------------------------------------------------
International Game Technology 1,660 75
----------
Total Other miscellaneous manufacturing 75
----------
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--6.8%
- --------------------------------------------------------------------------------
Amgen* 2,190 127
Forest Laboratories* 800 57
Teva Pharmaceutical Industries ADR 1,050 67
Watson Pharmaceuticals* 1,800 77
----------
Total Pharmaceutical & medicine
manufacturing 328
----------
- --------------------------------------------------------------------------------
RAIL TRANSPORTATION--1.2%
- --------------------------------------------------------------------------------
Norfolk Southern 2,550 56
----------
Total Rail transportation 56
----------
- --------------------------------------------------------------------------------
SCIENTIFIC R&D SERVICES--2.7%
- --------------------------------------------------------------------------------
Biogen Idec* 1,100 61
Genentech* 630 67
----------
Total Scientific r&d services 128
----------
TURNER FUNDS 2004 SEMIANNUAL REPORT 19
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER LARGE CAP GROWTH OPPORTUNITIES FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--5.9%
- --------------------------------------------------------------------------------
Ameritrade Holding* 4,800 $ 74
Charles Schwab 5,100 59
Goldman Sachs Group 820 86
Morgan Stanley 1,170 67
----------
Total Security & commodity contracts
intermediation & brokerage 286
----------
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC COMPONENT MANUFACTURING--14.6%
- --------------------------------------------------------------------------------
Analog Devices 1,960 94
Applied Materials* 3,180 68
Broadcom, Cl A* 1,850 73
National Semiconductor* 2,100 93
Nvidia* 3,250 86
Sanmina-SCI* 6,710 74
Silicon Laboratories* 1,500 79
Tyco International 2,270 65
Xilinx* 1,900 72
----------
Total Semiconductor & other electronic
component manufacturing 704
----------
- --------------------------------------------------------------------------------
SOAP, CLEANERS & TOILET PREPARATION
MANUFACTURING--1.3%
- --------------------------------------------------------------------------------
Avon Products 800 61
----------
Total Soap, cleaners & toilet preparation
manufacturing 61
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--3.0%
- --------------------------------------------------------------------------------
SAP ADR 2,550 $ 100
Symantec* 1,010 47
----------
Total Software publishers 147
----------
- --------------------------------------------------------------------------------
TRAVELER ACCOMMODATION--1.2%
- --------------------------------------------------------------------------------
Starwood Hotels &
Resorts Worldwide 1,480 59
----------
Total Traveler accommodation 59
----------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $4,234) 4,802
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CASH EQUIVALENT--0.1%
- --------------------------------------------------------------------------------
Blackrock TempCash Fund,
Institutional Shares 4,020 4
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $4) 4
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--99.7%
(COST $4,238) $4,806
- --------------------------------------------------------------------------------
Percentages are based on net assets of $4,819,925.
* Non-income producing security
ADR - American depository receipt
Cl - Class
The accompanying notes are an integral part of the financial statements.
20 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MIDCAP GROWTH FUND
March 31, 2004
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--99.6%
- --------------------------------------------------------------------------------
ADVERTISING & RELATED SERVICES--0.5%
- --------------------------------------------------------------------------------
Interpublic Group* 313,160 $ 4,816
----------
Total Advertising & related services 4,816
----------
- --------------------------------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
Smith International* 157,890 8,449
----------
Total Agriculture, construction &
mining machinery manufacturing 8,449
----------
- --------------------------------------------------------------------------------
ARCHITECTURAL, ENGINEERING &
RELATED SERVICES--0.7%
- --------------------------------------------------------------------------------
Tetra Tech* 302,690 6,496
----------
Total Architectural, engineering &
related services 6,496
----------
- --------------------------------------------------------------------------------
BOILER, TANK & SHIPPING CONTAINER
MANUFACTURING--0.4%
- --------------------------------------------------------------------------------
Ball 57,030 3,866
----------
Total Boiler, tank & shipping container
manufacturing 3,866
----------
- --------------------------------------------------------------------------------
CABLE NETWORKS & PROGRAM DISTRIBUTION--0.6%
- --------------------------------------------------------------------------------
Cablevision Systems, Cl A* 268,020 6,132
----------
Total Cable networks &
program distribution 6,132
----------
- --------------------------------------------------------------------------------
CLOTHING STORES--1.6%
- --------------------------------------------------------------------------------
Chico's FAS*# 207,990 9,651
Pacific Sunwear of California* 234,000 5,742
----------
Total Clothing stores 15,393
----------
- --------------------------------------------------------------------------------
COLLEGES, UNIVERSITIES &
PROFESSIONAL SCHOOLS--0.7%
- --------------------------------------------------------------------------------
Education Management*# 209,150 6,657
----------
Total Colleges, universities &
professional schools 6,657
----------
- --------------------------------------------------------------------------------
COMMERCIAL/INDUSTRIAL EQUIPMENT
RENTAL & LEASING--1.2%
- --------------------------------------------------------------------------------
Comverse Technology* 649,970 11,790
----------
Total Commercial/industrial equipment
rental & leasing 11,790
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--1.9%
- --------------------------------------------------------------------------------
Polycom* 407,040 $ 8,641
Vimpel-Communications ADR* 31,460 3,272
Western Wireless, Cl A* 277,230 6,479
----------
Total Communications equipment
manufacturing 18,392
----------
- --------------------------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--1.2%
- --------------------------------------------------------------------------------
Integrated Device Technology* 453,568 6,804
Zebra Technologies, Cl A* 74,415 5,162
----------
Total Computer & peripheral equipment
manufacturing 11,966
----------
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--0.7%
- --------------------------------------------------------------------------------
Checkfree*# 222,710 6,561
----------
Total Computer systems design &
related services 6,561
----------
- --------------------------------------------------------------------------------
CUTLERY & HANDTOOL MANUFACTURING--0.8%
- --------------------------------------------------------------------------------
Pentair 123,190 7,268
----------
Total Cutlery & handtool manufacturing 7,268
----------
- --------------------------------------------------------------------------------
DAIRY PRODUCT MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Dean Foods* 132,960 4,441
----------
Total Dairy product manufacturing 4,441
----------
- --------------------------------------------------------------------------------
DEEP SEA, COASTAL & GREAT LAKES
WATER TRANSPORTATION--1.4%
- --------------------------------------------------------------------------------
Royal Caribbean Cruises# 115,220 5,081
Teekay Shipping 122,660 8,452
----------
Total Deep sea, coastal & great lakes
water transportation 13,533
----------
- --------------------------------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--2.3%
- --------------------------------------------------------------------------------
New York Community Bancorp 210,910 7,230
Northern Trust 102,500 4,775
Sovereign Bancorp 259,970 5,569
UCBH Holdings# 119,200 4,773
----------
Total Depository credit intermediation 22,347
----------
- --------------------------------------------------------------------------------
DRUGS & DRUGGISTS' SUNDRIES WHOLESALE--1.2%
- --------------------------------------------------------------------------------
Henry Schein* 159,425 11,386
----------
Total Drugs & druggists'
sundries wholesale 11,386
----------
TURNER FUNDS 2004 SEMIANNUAL REPORT 21
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MIDCAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
ELECTRIC POWER GENERATION,
TRANSMISSION & DISTRIBUTION--0.4%
- --------------------------------------------------------------------------------
AES* 483,580 $ 4,125
----------
Total Electric power generation,
transmission & distribution 4,125
----------
- --------------------------------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--1.4%
- --------------------------------------------------------------------------------
CDW 200,200 13,536
----------
Total Electronics & appliance stores 13,536
----------
- --------------------------------------------------------------------------------
EMPLOYMENT SERVICES--1.0%
- --------------------------------------------------------------------------------
Manpower 208,310 9,686
----------
Total Employment services 9,686
----------
- --------------------------------------------------------------------------------
ENGINE, TURBINE & POWER TRANSMISSION
EQUIPMENT MANUFACTURING--0.4%
- --------------------------------------------------------------------------------
Cummins 72,290 4,225
----------
Total Engine, turbine & power
transmission equipment
manufacturing 4,225
----------
- --------------------------------------------------------------------------------
FREIGHT TRANSPORTATION ARRANGEMENT--0.6%
- --------------------------------------------------------------------------------
Expeditors International
Washington 143,200 5,655
----------
Total Freight transportation
arrangement 5,655
----------
- --------------------------------------------------------------------------------
FULL-SERVICE RESTAURANTS--1.6%
- --------------------------------------------------------------------------------
Cheesecake Factory* 172,470 7,956
Rare Hospitality International* 85,121 2,362
Ruby Tuesday 160,970 5,175
----------
Total Full-service restaurants 15,493
----------
- --------------------------------------------------------------------------------
GROCERY STORES--0.6%
- --------------------------------------------------------------------------------
Whole Foods Market 74,770 5,604
----------
Total Grocery stores 5,604
----------
- --------------------------------------------------------------------------------
HEALTH & PERSONAL CARE STORES--1.7%
- --------------------------------------------------------------------------------
NBTY* 179,130 6,660
Omnicare 213,580 9,468
----------
Total Health & personal care stores 16,128
----------
- --------------------------------------------------------------------------------
HOME FURNISHINGS STORES--1.6%
- --------------------------------------------------------------------------------
Cost Plus* 112,945 4,715
Williams-Sonoma* 307,310 10,510
----------
Total Home furnishings stores 15,225
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
HOUSEHOLD & INSTITUTIONAL FURNITURE
& KITCHEN CABINET MANUFACTURING--0.4%
- --------------------------------------------------------------------------------
Ethan Allen Interiors# 89,470 $ 3,692
----------
Total Household & institutional
furniture & kitchen cabinet
manufacturing 3,692
----------
- --------------------------------------------------------------------------------
HVAC & COMMERCIAL REFRIGERATION
EQUIPMENT MANUFACTURING--0.8%
- --------------------------------------------------------------------------------
American Standard* 68,400 7,781
----------
Total Hvac & commercial refrigeration
equipment manufacturing 7,781
----------
- --------------------------------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--2.1%
- --------------------------------------------------------------------------------
Kla-Tencor* 207,510 10,448
Lam Research* 404,635 10,201
----------
Total Industrial machinery
manufacturing 20,649
----------
- --------------------------------------------------------------------------------
INFORMATION SERVICES--3.0%
- --------------------------------------------------------------------------------
CNET Networks* 860,190 8,886
Juniper Networks*# 515,040 13,396
Sina*# 179,379 6,786
----------
Total Information services 29,068
----------
- --------------------------------------------------------------------------------
INSURANCE CARRIERS--2.8%
- --------------------------------------------------------------------------------
Aetna 144,140 12,932
Axis Capital Holdings 145,000 4,285
Pacificare Health Systems* 258,660 10,230
----------
Total Insurance carriers 27,447
----------
- --------------------------------------------------------------------------------
JEWELRY, LUGGAGE & LEATHER GOODS STORES--0.7%
- --------------------------------------------------------------------------------
Tiffany 185,900 7,096
----------
Total Jewelry, luggage & leather
goods stores 7,096
----------
- --------------------------------------------------------------------------------
LIMITED-SERVICE EATING PLACES--1.3%
- --------------------------------------------------------------------------------
Starbucks* 325,210 12,277
----------
Total Limited-service eating places 12,277
----------
- --------------------------------------------------------------------------------
MANAGEMENT, SCIENTIFIC & TECHNICAL
CONSULTING SERVICES--1.1%
- --------------------------------------------------------------------------------
Monster Worldwide*# 396,265 10,382
----------
Total Management, scientific &
technical consulting services 10,382
----------
22 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MIDCAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
MEDICAL & DIAGNOSTIC LABORATORIES--0.5%
- --------------------------------------------------------------------------------
Laboratory Corp. of
America Holdings* 111,600 $ 4,380
----------
Total Medical & diagnostic
laboratories 4,380
----------
- --------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--5.0%
- --------------------------------------------------------------------------------
C.R. Bard 108,250 10,570
Inamed*# 148,955 7,936
Varian Medical Systems* 123,000 10,616
Zimmer Holdings* 257,900 19,028
----------
Total Medical equipment &
supplies manufacturing 48,150
----------
- --------------------------------------------------------------------------------
METAL ORE MINING--1.9%
- --------------------------------------------------------------------------------
Freeport-McMoRan Copper &
Gold, Cl B 205,170 8,020
Phelps Dodge* 131,070 10,703
----------
Total Metal ore mining 18,723
----------
- --------------------------------------------------------------------------------
MINING SUPPORT ACTIVITIES--0.7%
- --------------------------------------------------------------------------------
Nabors Industries* 145,430 6,653
----------
Total Mining support activities 6,653
----------
- --------------------------------------------------------------------------------
MOTOR VEHICLE MANUFACTURING--0.6%
- --------------------------------------------------------------------------------
Navistar International* 124,640 5,715
----------
Total Motor vehicle manufacturing 5,715
----------
- --------------------------------------------------------------------------------
NATURAL GAS DISTRIBUTION--0.6%
- --------------------------------------------------------------------------------
Williams 596,480 5,708
----------
Total Natural gas distribution 5,708
----------
- --------------------------------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/CONTROL INSTRUMENTS MANUFACTURING--2.4%
- --------------------------------------------------------------------------------
Eaton 68,420 3,845
Fisher Scientific International* 201,280 11,078
PerkinElmer 403,650 8,352
----------
Total Navigational/measuring/
medical/control instruments
manufacturing 23,275
----------
- --------------------------------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--0.4%
- --------------------------------------------------------------------------------
CapitalSource* 190,560 4,278
----------
Total Nondepository credit
intermediation 4,278
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
NURSING CARE FACILITIES--0.7%
- --------------------------------------------------------------------------------
Manor Care 199,450 $ 7,039
----------
Total Nursing care facilities 7,039
----------
- --------------------------------------------------------------------------------
OFFICES OF PHYSICIANS--1.5%
- --------------------------------------------------------------------------------
Caremark Rx* 443,350 14,741
----------
Total Offices of physicians 14,741
----------
- --------------------------------------------------------------------------------
OIL & GAS EXTRACTION--1.5%
- --------------------------------------------------------------------------------
Chesapeake Energy# 480,040 6,432
XTO Energy 312,750 7,894
----------
Total Oil & gas extraction 14,326
----------
- --------------------------------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--1.3%
- --------------------------------------------------------------------------------
Corning* 1,081,870 12,095
----------
Total Other electrical equipment &
component manufacturing 12,095
----------
- --------------------------------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--3.6%
- --------------------------------------------------------------------------------
Affiliated Managers Group*# 136,920 7,473
Investors Financial Services# 224,470 9,275
SEI Investments 262,724 8,670
T. Rowe Price Group# 170,670 9,187
----------
Total Other financial
investment activities 34,605
----------
- --------------------------------------------------------------------------------
OTHER FOOD MANUFACTURING--0.6%
- --------------------------------------------------------------------------------
McCormick 175,870 5,895
----------
Total Other food manufacturing 5,895
----------
- --------------------------------------------------------------------------------
OTHER LEATHER & ALLIED PRODUCT
MANUFACTURING--1.2%
- --------------------------------------------------------------------------------
Coach* 273,160 11,197
----------
Total Other leather & allied
product manufacturing 11,197
----------
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--2.7%
- --------------------------------------------------------------------------------
International Game Technology 351,800 15,817
Marvel Enterprises* 526,215 10,098
----------
Total Other miscellaneous
manufacturing 25,915
----------
TURNER FUNDS 2004 SEMIANNUAL REPORT 23
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MIDCAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--4.1%
- --------------------------------------------------------------------------------
Elan ADR* 253,330 $ 5,224
Invitrogen*# 107,640 7,717
IVAX* 187,220 4,263
Neurocrine Biosciences*# 101,807 6,017
OSI Pharmaceuticals* 112,100 4,304
Taro Pharmaceuticals Industries*# 69,750 4,045
Watson Pharmaceuticals* 178,830 7,652
----------
Total Pharmaceutical & medicine
manufacturing 39,222
----------
- --------------------------------------------------------------------------------
PRIMARY METAL MANUFACTURING--0.8%
- --------------------------------------------------------------------------------
United States Steel 208,430 7,768
----------
Total Primary metal manufacturing 7,768
----------
- --------------------------------------------------------------------------------
PROFESSIONAL & COMMERCIAL EQUIPMENT &
SUPPLY WHOLESALE--0.5%
- --------------------------------------------------------------------------------
Patterson Dental*# 70,220 4,818
----------
Total Professional & commercial
equipment & supply wholesale 4,818
----------
- --------------------------------------------------------------------------------
PROFESSIONAL, SCIENTIFIC &
TECHNICAL SERVICES--0.8%
- --------------------------------------------------------------------------------
Alliance Data Systems*# 237,550 7,970
----------
Total Professional, scientific &
technical services 7,970
----------
- --------------------------------------------------------------------------------
RADIO & TELEVISION BROADCASTING--1.9%
- --------------------------------------------------------------------------------
Citadel Broadcasting* 236,390 4,125
Univision Communications, Cl A* 196,050 6,472
XM Satellite Radio Holdings*# 258,800 7,246
----------
Total Radio & television broadcasting 17,843
----------
- --------------------------------------------------------------------------------
SCIENTIFIC R&D SERVICES--2.6%
- --------------------------------------------------------------------------------
Biogen Idec* 299,140 16,632
Gen-Probe*# 251,239 8,394
----------
Total Scientific r&d services 25,026
----------
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--2.8%
- --------------------------------------------------------------------------------
Ameritrade Holding* 811,920 12,503
Knight Trading Group* 302,670 3,832
Legg Mason 116,080 10,770
----------
Total Security & commodity contracts
intermediation & brokerage 27,105
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--10.9%
- --------------------------------------------------------------------------------
Broadcom, Cl A* 271,540 $10,636
Cymer* 166,510 6,429
Fairchild Semiconductor
International* 179,150 4,305
Formfactor* 305,560 6,395
Marvell Technology Group*# 151,110 6,808
Molex# 155,340 4,721
National Semiconductor* 280,710 12,472
Nvidia* 351,950 9,323
PMC-- Sierra* 623,864 10,587
Power-One* 419,200 4,636
Sanmina-SCI* 996,300 10,969
Silicon Laboratories* 162,740 8,606
Vishay Intertechnology* 455,560 9,722
----------
Total Semiconductor & other electronic
component manufacturing 105,609
----------
- --------------------------------------------------------------------------------
SHIP & BOAT BUILDING--0.7%
- --------------------------------------------------------------------------------
Brunswick 166,580 6,801
----------
Total Ship & boat building 6,801
----------
- --------------------------------------------------------------------------------
SHOE STORES--0.6%
- --------------------------------------------------------------------------------
Foot Locker 234,400 6,048
----------
Total Shoe stores 6,048
----------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--6.5%
- --------------------------------------------------------------------------------
Citrix Systems* 534,990 11,566
Electronic Arts*# 230,570 12,442
Openwave Systems* 562,489 7,504
Red Hat*# 404,589 9,249
Symantec* 316,510 14,654
VeriSign* 445,250 7,387
----------
Total Software publishers 62,802
----------
- --------------------------------------------------------------------------------
SPECIALIZED DESIGN SERVICES--0.6%
- --------------------------------------------------------------------------------
Avaya* 357,000 5,669
----------
Total Specialized design services 5,669
----------
- --------------------------------------------------------------------------------
SPORTING GOODS/HOBBY/MUSICAL
INSTRUMENT STORES--0.4%
- --------------------------------------------------------------------------------
Sports Authority* 100,860 4,042
----------
Total Sporting goods/hobby/
musical instrument stores 4,042
----------
24 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MIDCAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS--0.8%
- --------------------------------------------------------------------------------
Adtran 271,062 $ 8,140
----------
Total Telecommunications 8,140
----------
- --------------------------------------------------------------------------------
TRAVELER ACCOMMODATION--2.3%
- --------------------------------------------------------------------------------
MGM Mirage* 182,190 8,262
Starwood Hotels & Resorts
Worldwide 180,490 7,310
Station Casinos 152,620 6,741
----------
Total Traveler accommodation 22,313
----------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $768,666) 961,433
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
WARRANTS--0.0%
- --------------------------------------------------------------------------------
MicroStrategy, Expires 06/24/07* 1,550 --
- --------------------------------------------------------------------------------
TOTAL WARRANTS
(COST $0) --
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--5.6%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 54,533,400 54,533
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD
AS COLLATERAL FOR LOANED SECURITIES
(COST $54,533) 54,533
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--105.2%
(COST $823,199) 1,015,966
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(5.2)%
- --------------------------------------------------------------------------------
Obligation to return securities
lending collateral (54,533)
Payable due to investment adviser (606)
Payable due to administrator (113)
Other assets and liabilities, net 4,981
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (50,271)
- --------------------------------------------------------------------------------
Value
(000)
- --------------------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 42,505,975 outstanding shares
of beneficial interest $ 1,410,492
Portfolio capital of Class II Shares
(unlimited authorization -- no par value)
based on 25,552 outstanding shares
of beneficial interest 466
Accumulated net investment loss (3,870)
Accumulated net realized loss
on investments (634,160)
Net unrealized appreciation
on investments 192,767
- --------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $965,695
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES
($965,121,724 / 42,505,975 SHARES) $22.71
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS II SHARES
($573,242 / 25,552 SHARES) $22.43
- --------------------------------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2004 (see Note 9 in Notes to
Financial Statements). The total value of securities on loan at March 31,
2004 was $52,614,074.
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 2004 SEMIANNUAL REPORT 25
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
March 31, 2004
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--99.9%
- --------------------------------------------------------------------------------
ADVERTISING & RELATED SERVICES--0.6%
- --------------------------------------------------------------------------------
aQuantive* 138,400 $ 1,329
----------
Total Advertising & related services 1,329
----------
- --------------------------------------------------------------------------------
AGENCIES & OTHER INSURANCE
RELATED ACTIVITIES--0.6%
- --------------------------------------------------------------------------------
USI Holdings* 102,740 1,519
----------
Total Agencies & other insurance
related activities 1,519
----------
- --------------------------------------------------------------------------------
ARCHITECTURAL, ENGINEERING &
RELATED SERVICES--1.7%
- --------------------------------------------------------------------------------
Plexus* 154,130 2,742
Tetra Tech* 60,160 1,291
----------
Total Architectural, engineering &
related services 4,033
----------
- --------------------------------------------------------------------------------
BASIC CHEMICAL MANUFACTURING--1.3%
- --------------------------------------------------------------------------------
Airgas 58,720 1,251
Minerals Technologies 30,340 1,732
----------
Total Basic chemical manufacturing 2,983
----------
- --------------------------------------------------------------------------------
CLOTHING STORES--3.2%
- --------------------------------------------------------------------------------
Carter's* 34,020 972
Casual Male Retail Group*# 171,630 1,775
HOT Topic* 48,160 1,274
Jos. A. Bank Clothiers* 36,015 1,296
Pacific Sunwear of California* 90,170 2,213
----------
Total Clothing stores 7,530
----------
- --------------------------------------------------------------------------------
COAL MINING--0.7%
- --------------------------------------------------------------------------------
Arch Coal 51,680 1,622
----------
Total Coal mining 1,622
----------
- --------------------------------------------------------------------------------
COLLEGES, UNIVERSITIES &
PROFESSIONAL SCHOOLS--0.9%
- --------------------------------------------------------------------------------
Strayer Education 17,740 2,075
----------
Total Colleges, universities &
professional schools 2,075
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMERCIAL/INDUSTRIAL EQUIPMENT
RENTAL & LEASING--0.7%
- --------------------------------------------------------------------------------
Audiocodes* 135,900 $ 1,576
----------
Total Commercial/industrial
equipment rental & leasing 1,576
----------
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--2.3%
- --------------------------------------------------------------------------------
MRV Communications* 435,560 1,451
Plantronics* 28,550 1,045
Powerwave Technologies*# 124,790 973
Western Wireless, Cl A* 85,440 1,997
----------
Total Communications equipment
manufacturing 5,466
----------
- --------------------------------------------------------------------------------
COMMUNITY CARE FACILITIES FOR THE ELDERLY--0.7%
- --------------------------------------------------------------------------------
NeighborCare* 65,830 1,596
----------
Total Community care facilities
for the elderly 1,596
----------
- --------------------------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--0.8%
- --------------------------------------------------------------------------------
Integrated Device Technology* 129,390 1,941
----------
Total Computer & peripheral
equipment manufacturing 1,941
----------
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--1.8%
- --------------------------------------------------------------------------------
Digitas* 129,090 1,329
Epicor Software* 115,390 1,531
Sapient* 223,050 1,345
----------
Total Computer systems design &
related services 4,205
----------
- --------------------------------------------------------------------------------
DATA PROCESSING SERVICES--0.9%
- --------------------------------------------------------------------------------
Global Payments 46,490 2,096
----------
Total Data processing services 2,096
----------
- --------------------------------------------------------------------------------
DEATH CARE SERVICES--0.7%
- --------------------------------------------------------------------------------
Stewart Enterprises* 221,110 1,607
----------
Total Death care services 1,607
----------
26 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--5.1%
- --------------------------------------------------------------------------------
Bank of the Ozarks# 40,991 $ 1,129
Bankunited Financial, Cl A* 50,890 1,512
Boston Private Financial Holdings 66,180 1,853
East-West Bancorp 44,796 2,509
Local Financial* 44,450 969
Southwest Bancorp of Texas 63,960 2,413
Wintrust Financial 30,680 1,492
----------
Total Depository credit intermediation 11,877
----------
- --------------------------------------------------------------------------------
DIRECT SELLING ESTABLISHMENTS--0.7%
- --------------------------------------------------------------------------------
J. Jill Group* 75,320 1,546
----------
Total Direct selling establishments 1,546
----------
- --------------------------------------------------------------------------------
EMPLOYMENT SERVICES--1.5%
- --------------------------------------------------------------------------------
Administaff* 77,440 1,350
MPS Group* 192,210 2,137
----------
Total Employment services 3,487
----------
- --------------------------------------------------------------------------------
ENGINE, TURBINE & POWER TRANSMISSION
EQUIPMENT MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
China Yuchai International 53,530 1,071
----------
Total Engine, turbine & power transmission
equipment manufacturing 1,071
----------
- --------------------------------------------------------------------------------
FRUIT & TREE NUT FARMING--0.5%
- --------------------------------------------------------------------------------
John B. Sanfilippo & Son* 31,360 1,151
----------
Total Fruit & tree nut farming 1,151
----------
- --------------------------------------------------------------------------------
FULL-SERVICE RESTAURANTS--1.5%
- --------------------------------------------------------------------------------
PF Chang's China Bistro*# 35,240 1,773
Rare Hospitality International* 60,820 1,688
----------
Total Full-service restaurants 3,461
----------
- --------------------------------------------------------------------------------
GENERAL MEDICAL & SURGICAL HOSPITALS--0.4%
- --------------------------------------------------------------------------------
American Healthways*# 41,770 1,020
----------
Total General medical &
surgical hospitals 1,020
----------
- --------------------------------------------------------------------------------
GROCERY & RELATED PRODUCT WHOLESALERS--0.3%
- --------------------------------------------------------------------------------
United Natural Foods* 14,940 718
----------
Total Grocery & related
product wholesalers 718
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
HEALTH & PERSONAL CARE STORES--1.5%
- --------------------------------------------------------------------------------
Accredo Health* 52,480 $ 2,000
NBTY* 39,120 1,454
----------
Total Health & personal care stores 3,454
----------
- --------------------------------------------------------------------------------
HOME FURNISHINGS STORES--1.4%
- --------------------------------------------------------------------------------
Cost Plus* 37,610 1,570
Tuesday Morning* 50,810 1,751
----------
Total Home furnishings stores 3,321
----------
- --------------------------------------------------------------------------------
HVAC & COMMERCIAL REFRIGERATION
EQUIPMENT MANUFACTURING--0.6%
- --------------------------------------------------------------------------------
Engineered Support Systems 27,710 1,352
----------
Total Hvac & commercial refrigeration
equipment manufacturing 1,352
----------
- --------------------------------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--1.1%
- --------------------------------------------------------------------------------
Varian Semiconductor
Equipment Associates*# 58,750 2,467
----------
Total Industrial machinery
manufacturing 2,467
----------
- --------------------------------------------------------------------------------
INFORMATION SERVICES--4.1%
- --------------------------------------------------------------------------------
CNET Networks* 208,950 2,158
eSpeed, Cl A* 52,320 1,097
FindWhat.com*# 80,900 1,752
iVillage* 225,140 1,549
Mindspeed Technologies* 231,610 1,512
RSA Security* 80,980 1,522
----------
Total Information services 9,590
----------
- --------------------------------------------------------------------------------
INSURANCE CARRIERS--2.5%
- --------------------------------------------------------------------------------
Bristol West Holdings* 67,770 1,383
Direct General* 41,670 1,508
Platinum Underwriters Holdings 47,460 1,521
Selective Insurance Group 43,670 1,532
----------
Total Insurance carriers 5,944
----------
- --------------------------------------------------------------------------------
LAWN & GARDEN EQUIPMENT &
SUPPLIES STORES--0.6%
- --------------------------------------------------------------------------------
Tractor Supply* 34,430 1,333
----------
Total Lawn & garden equipment &
supplies stores 1,333
----------
TURNER FUNDS 2004 SEMIANNUAL REPORT 27
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
MANAGEMENT, SCIENTIFIC & TECHNICAL
CONSULTING SERVICES--1.9%
- --------------------------------------------------------------------------------
DiamondCluster International* 149,660 $ 1,449
Korn/Ferry International* 58,990 944
Navigant Consulting* 102,980 2,083
----------
Total Management, scientific &
technical consulting services 4,476
----------
- --------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--3.1%
- --------------------------------------------------------------------------------
Armor Holdings* 50,100 1,658
Cooper 47,740 2,578
Inamed* 35,525 1,893
Wright Medical Group* 37,540 1,152
----------
Total Medical equipment &
supplies manufacturing 7,281
----------
- --------------------------------------------------------------------------------
MOTION PICTURE & VIDEO INDUSTRIES--0.4%
- --------------------------------------------------------------------------------
Lions Gate Entertainment* 149,750 936
----------
Total Motion picture & video industries 936
----------
- --------------------------------------------------------------------------------
MOTOR VEHICLE BODY & TRAILER
MANUFACTURING--1.2%
- --------------------------------------------------------------------------------
Wabash National*# 67,070 1,583
Winnebago Industries 37,750 1,176
----------
Total Motor vehicle body &
trailer manufacturing 2,759
----------
- --------------------------------------------------------------------------------
NATURAL GAS DISTRIBUTION--0.6%
- --------------------------------------------------------------------------------
Quicksilver Resources* 34,350 1,331
----------
Total Natural gas distribution 1,331
----------
- --------------------------------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/CONTROL INSTRUMENTS MANUFACTURING--2.1%
- --------------------------------------------------------------------------------
Roper Industries 31,660 1,528
Varian* 57,740 2,319
Veeco Instruments* 41,380 1,161
----------
Total Navigational/measuring/medical/
control instruments manufacturing 5,008
----------
- --------------------------------------------------------------------------------
NURSING CARE FACILITIES--1.7%
- --------------------------------------------------------------------------------
Genesis HealthCare* 74,325 1,810
Kindred Healthcare* 41,710 2,098
----------
Total Nursing care facilities 3,908
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
OIL & GAS EXTRACTION--2.2%
- --------------------------------------------------------------------------------
KCS Energy* 125,770 $ 1,346
Southwestern Energy* 67,150 1,620
Tom Brown* 59,900 2,252
----------
Total Oil & gas extraction 5,218
----------
- --------------------------------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--3.0%
- --------------------------------------------------------------------------------
Andrew* 84,030 1,471
Artesyn Technologies* 179,990 1,713
GrafTech International* 109,640 1,639
Wilson Greatbatch
Technologies*# 58,900 2,137
----------
Total Other electrical equipment &
component manufacturing 6,960
----------
- --------------------------------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--0.4%
- --------------------------------------------------------------------------------
Affiliated Managers Group* 18,945 1,034
----------
Total Other financial
investment activities 1,034
----------
- --------------------------------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--1.2%
- --------------------------------------------------------------------------------
IDEX 36,520 1,588
Nordson 29,630 1,110
----------
Total Other general purpose
machinery manufacturing 2,698
----------
- --------------------------------------------------------------------------------
OTHER HEAVY CONSTRUCTION--0.7%
- --------------------------------------------------------------------------------
Dycom Industries* 65,620 1,740
----------
Total Other heavy construction 1,740
----------
- --------------------------------------------------------------------------------
OTHER INVESTMENT POOLS & FUNDS--1.7%
- --------------------------------------------------------------------------------
Kilroy Realty 43,450 1,542
Ventas 88,030 2,419
----------
Total Other investment pools & funds 3,961
----------
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--2.7%
- --------------------------------------------------------------------------------
Alliance Gaming*# 56,710 1,822
Multimedia Games*# 76,710 1,898
Scientific Games, Cl A* 136,640 2,558
----------
Total Other miscellaneous manufacturing 6,278
----------
28 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
OTHER NONMETALLIC MINERAL
PRODUCT MANUFACTURING--0.7%
- --------------------------------------------------------------------------------
CARBO Ceramics 24,640 $ 1,551
----------
Total Other nonmetallic mineral
product manufacturing 1,551
----------
- --------------------------------------------------------------------------------
OUTPATIENT CARE CENTERS--2.3%
- --------------------------------------------------------------------------------
Select Medical 149,740 2,501
Sierra Health Services* 79,050 2,877
----------
Total Outpatient care centers 5,378
----------
- --------------------------------------------------------------------------------
PETROLEUM & COAL PRODUCTS
MANUFACTURING--0.6%
- --------------------------------------------------------------------------------
Headwaters* 52,510 1,345
----------
Total Petroleum & coal products
manufacturing 1,345
----------
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--8.7%
- --------------------------------------------------------------------------------
Dade Behring Holdings* 90,360 4,019
Digene*# 46,700 1,605
Impax Laboratories* 68,870 1,541
KV Pharmaceutical, Cl A* 69,390 1,704
MGI Pharma* 66,880 4,097
NPS Pharmaceuticals* 39,150 1,118
Onyx Pharmaceuticals*# 34,910 1,412
OSI Pharmaceuticals* 49,450 1,899
QLT* 43,740 1,117
Salix Pharmaceuticals* 58,830 1,707
----------
Total Pharmaceutical & medicine
manufacturing 20,219
----------
- --------------------------------------------------------------------------------
RAIL TRANSPORTATION--0.6%
- --------------------------------------------------------------------------------
Genesee & Wyoming, Cl A* 52,380 1,294
----------
Total Rail transportation 1,294
----------
- --------------------------------------------------------------------------------
SCHEDULED AIR TRANSPORTATION--1.0%
- --------------------------------------------------------------------------------
Airtran Holdings* 198,140 2,354
----------
Total Scheduled air transportation 2,354
----------
- --------------------------------------------------------------------------------
SCIENTIFIC R&D SERVICES--2.7%
- --------------------------------------------------------------------------------
Covance* 64,160 2,210
Gen-Probe* 67,220 2,246
Nektar Therapeutics* 86,620 1,869
----------
Total Scientific r&d services 6,325
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS INTERMEDIATION & BROKERAGE--1.1%
- --------------------------------------------------------------------------------
Jefferies Group 38,460 $ 1,359
Knight Trading Group* 95,180 1,205
----------
Total Security & commodity contracts
intermediation & brokerage 2,564
----------
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--8.7%
- --------------------------------------------------------------------------------
Aeroflex* 152,380 2,051
Benchmark Electronics* 41,510 1,307
Cymer* 44,190 1,706
Exar* 142,790 2,642
Integrated Silicon Solutions* 78,500 1,393
Lattice Semiconductor* 63,780 557
Micrel* 110,630 1,477
Microsemi* 159,470 2,181
Omnivision Technologies* 70,980 1,938
ON Semiconductor* 116,310 877
Power-One* 139,810 1,546
Vitesse Semiconductor* 374,770 2,657
----------
Total Semiconductor & other
electronic component
manufacturing 20,332
----------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--7.1%
- --------------------------------------------------------------------------------
Advent Software* 65,590 1,227
Akamai Technologies*# 131,000 1,721
F5 Networks* 99,140 3,356
Filenet* 73,370 1,955
Hyperion Solutions* 36,960 1,532
Openwave Systems* 127,286 1,698
SkillSoft ADR*# 100,363 1,295
TIBCO Software* 210,060 1,716
Verint Systems* 69,700 2,154
----------
Total Software publishers 16,654
----------
- --------------------------------------------------------------------------------
SPORTING GOODS/HOBBY/MUSICAL
INSTRUMENT STORES--0.8%
- --------------------------------------------------------------------------------
Sports Authority* 48,950 1,962
----------
Total Sporting goods/hobby/
musical instrument stores 1,962
----------
TURNER FUNDS 2004 SEMIANNUAL REPORT 29
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
STEEL PRODUCT MANUFACTURING
FROM PURCHASED STEEL--0.6%
- --------------------------------------------------------------------------------
Steel Dynamics* 56,560 $ 1,402
----------
Total Steel product manufacturing
from purchased steel 1,402
----------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS--2.2%
- --------------------------------------------------------------------------------
Anaren* 63,880 1,008
Commonwealth Telephone
Enterprises* 30,470 1,250
Oplink Communications* 474,810 1,192
Tekelec* 100,020 1,659
----------
Total Telecommunications 5,109
----------
- --------------------------------------------------------------------------------
WASTE COLLECTION--0.7%
- --------------------------------------------------------------------------------
Waste Connections* 43,260 1,723
----------
Total Waste collection 1,723
----------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $188,766) 233,170
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
WARRANTS--0.0%
- --------------------------------------------------------------------------------
MicroStrategy, Expires 06/24/07* 4,419 1
- --------------------------------------------------------------------------------
TOTAL WARRANTS
(COST $0) 1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--5.9%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 13,878,440 13,878
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $13,878) 13,878
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--105.8%
(COST $202,644) 247,049
- --------------------------------------------------------------------------------
Value
(000)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(5.8)%
- --------------------------------------------------------------------------------
Obligation to return securities
lending collateral $ (13,878)
Payable due to investment adviser (171)
Payable due to administrator (27)
Other assets and liabilities, net 424
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (13,652)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 10,538,015 outstanding shares
of beneficial interest 350,061
Accumulated net investment loss (1,058)
Accumulated net realized loss
on investments (160,011)
Net unrealized appreciation
on investments 44,405
- --------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $233,397
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $22.15
- --------------------------------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2004 (see Note 9 in Notes to
Financial Statements). The total value of securities on loan at March 31,
2004 was $13,218,648.
ADR - American depository receipt
Cl - Class
The accompanying notes are an integral part of the financial statements.
30 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
March 31, 2004
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--89.1%
- --------------------------------------------------------------------------------
ADVERTISING & RELATED SERVICES--0.5%
- --------------------------------------------------------------------------------
Modem Media* 308,070 $ 2,002
----------
Total Advertising & related services 2,002
----------
- --------------------------------------------------------------------------------
AGENCIES & OTHER INSURANCE
RELATED ACTIVITIES--1.2%
- --------------------------------------------------------------------------------
LabOne*# 145,280 4,417
----------
Total Agencies & other insurance
related activities 4,417
----------
- --------------------------------------------------------------------------------
AUTOMOTIVE EQUIPMENT RENTAL & LEASING--0.9%
- --------------------------------------------------------------------------------
Dollar Thrifty Automotive Group* 128,570 3,249
----------
Total Automotive equipment
rental & leasing 3,249
----------
- --------------------------------------------------------------------------------
AUTOMOTIVE PARTS, ACCESSORIES & TIRE STORES--0.8%
- --------------------------------------------------------------------------------
MarineMax* 111,710 2,968
----------
Total Automotive parts, accessories &
tire stores 2,968
----------
- --------------------------------------------------------------------------------
BASIC CHEMICAL MANUFACTURING--1.1%
- --------------------------------------------------------------------------------
Tetra Technologies*# 148,200 3,872
----------
Total Basic chemical manufacturing 3,872
----------
- --------------------------------------------------------------------------------
BEER/WINE/DISTILLED ALCOHOLIC
BEVERAGE WHOLESALE--0.6%
- --------------------------------------------------------------------------------
Central European Distribution*# 63,150 2,042
----------
Total Beer/wine/distilled alcoholic
beverage wholesale 2,042
----------
- --------------------------------------------------------------------------------
BEVERAGE MANUFACTURING--0.2%
- --------------------------------------------------------------------------------
Robert Mondavi*# 23,419 886
----------
Total Beverage manufacturing 886
----------
- --------------------------------------------------------------------------------
BUSINESS SUPPORT SERVICES--2.0%
- --------------------------------------------------------------------------------
Bankrate*# 204,570 4,073
Icon ADR* 41,380 1,462
Startek 51,420 1,869
----------
Total Business support services 7,404
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
CLOTHING STORES--2.0%
- --------------------------------------------------------------------------------
Casual Male Retail Group*# 288,670 $ 2,985
Goody's Family Clothing# 118,910 1,697
Jos. A. Bank Clothiers*# 79,605 2,866
----------
Total Clothing stores 7,548
----------
- --------------------------------------------------------------------------------
COMMERCIAL/INDUSTRIAL EQUIPMENT
RENTAL & LEASING--1.7%
- --------------------------------------------------------------------------------
Audiocodes* 168,060 1,949
Ditech Communications* 141,850 2,365
NMS Communications* 278,924 1,997
----------
Total Commercial/industrial equipment
rental & leasing 6,311
----------
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--1.0%
- --------------------------------------------------------------------------------
Comtech Telecommunications*# 48,850 1,133
Radyne Comstream*# 249,590 2,371
----------
Total Communications equipment
manufacturing 3,504
----------
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--3.5%
- --------------------------------------------------------------------------------
Digitas*# 252,340 2,597
IMPAC Medical Systems*# 92,828 2,089
Lipman Electronic Engineering* 39,770 1,863
Quality Systems* 42,780 1,943
SafeNet* 57,610 2,163
Sapient* 386,130 2,328
----------
Total Computer systems design &
related services 12,983
----------
- --------------------------------------------------------------------------------
CUT & SEW APPAREL MANUFACTURING--3.0%
- --------------------------------------------------------------------------------
Oxford Industries# 238,050 10,996
----------
Total Cut & sew apparel manufacturing 10,996
----------
- --------------------------------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--7.9%
- --------------------------------------------------------------------------------
BankAtlantic Bancorp, Cl A 260,700 4,421
Bankunited Financial, Cl A*# 90,370 2,684
Boston Private Financial
Holdings# 97,240 2,723
Commercial Capital Bancorp*# 171,036 3,920
TURNER FUNDS 2004 SEMIANNUAL REPORT 31
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
FirstFed Financial* 61,740 $ 2,848
IberiaBank# 45,250 2,663
Nara Bancorp 74,440 2,205
PFF Bancorp 67,368 2,569
Seacoast Financial Services# 86,140 2,886
Sterling Financial* 62,631 2,310
----------
Total Depository credit intermediation 29,229
----------
- --------------------------------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--0.7%
- --------------------------------------------------------------------------------
PC Mall*# 147,970 2,714
----------
Total Electronic shopping &
mail-order houses 2,714
----------
- --------------------------------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--0.2%
- --------------------------------------------------------------------------------
Navarre*# 111,120 663
----------
Total Electronics & appliance stores 663
----------
- --------------------------------------------------------------------------------
EMPLOYMENT SERVICES--1.0%
- --------------------------------------------------------------------------------
Gevity HR# 131,850 3,850
----------
Total Employment services 3,850
----------
- --------------------------------------------------------------------------------
FRUIT & TREE NUT FARMING--0.7%
- --------------------------------------------------------------------------------
John B. Sanfilippo & Son* 69,710 2,558
----------
Total Fruit & tree nut farming 2,558
----------
- --------------------------------------------------------------------------------
GROCERY STORES--0.9%
- --------------------------------------------------------------------------------
Smart & Final* 295,940 3,397
----------
Total Grocery stores 3,397
----------
- --------------------------------------------------------------------------------
HOME HEALTH CARE SERVICES--0.7%
- --------------------------------------------------------------------------------
Intuitive Surgical*# 149,249 2,537
----------
Total Home health care services 2,537
----------
- --------------------------------------------------------------------------------
HOUSEHOLD APPLIANCE MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Middleby* 43,820 2,002
----------
Total Household appliance manufacturing 2,002
----------
- --------------------------------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
Mattson Technology* 271,570 3,248
----------
Total Industrial machinery
manufacturing 3,248
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
INFORMATION SERVICES--1.9%
- --------------------------------------------------------------------------------
Autobytel* 249,570 $ 3,294
FindWhat.com*# 97,130 2,103
SupportSoft* 146,780 1,616
----------
Total Information services 7,013
----------
- --------------------------------------------------------------------------------
INSURANCE CARRIERS--2.4%
- --------------------------------------------------------------------------------
ProAssurance* 71,130 2,489
Triad Guaranty* 69,480 3,665
Universal American Financial* 212,890 2,555
----------
Total Insurance carriers 8,709
----------
- --------------------------------------------------------------------------------
MANAGEMENT, SCIENTIFIC & TECHNICAL
CONSULTING SERVICES--2.6%
- --------------------------------------------------------------------------------
Charles River Associates* 136,180 4,465
DiamondCluster International*# 194,410 1,882
Navigant Consulting*# 166,780 3,374
----------
Total Management, scientific &
technical consulting services 9,721
----------
- --------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--3.0%
- --------------------------------------------------------------------------------
Advanced Neuromodulation
Systems*# 81,045 2,925
Hanger Orthopedic Group* 173,800 3,137
Sola International*# 214,590 4,989
----------
Total Medical equipment & supplies
manufacturing 11,051
----------
- --------------------------------------------------------------------------------
MINING SUPPORT ACTIVITIES--1.4%
- --------------------------------------------------------------------------------
Oceaneering International*# 91,910 2,799
Willbros Group*# 152,340 2,286
----------
Total Mining support activities 5,085
----------
- --------------------------------------------------------------------------------
MISCELLANEOUS NONDURABLE
GOODS WHOLESALE--0.5%
- --------------------------------------------------------------------------------
Source Interlink* 147,780 1,847
----------
Total Miscellaneous nondurable
goods wholesale 1,847
----------
32 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
MOTOR VEHICLE BODY & TRAILER
MANUFACTURING--1.1%
- --------------------------------------------------------------------------------
Monaco Coach*# 149,220 $ 3,999
----------
Total Motor vehicle body &
trailer manufacturing 3,999
----------
- --------------------------------------------------------------------------------
MOTOR VEHICLE PARTS MANUFACTURING--1.3%
- --------------------------------------------------------------------------------
ESCO Technologies*# 103,590 4,778
----------
Total Motor vehicle parts manufacturing 4,778
----------
- --------------------------------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/CONTROL INSTRUMENTS MANUFACTURING--2.5%
- --------------------------------------------------------------------------------
Aclara BioSciences* 269,250 1,055
Credence Systems*# 252,160 2,996
EDO# 107,890 2,598
Herley Industries*# 71,970 1,359
LeCroy* 49,110 1,020
----------
Total Navigational/measuring/medical/
control instruments manufacturing 9,028
----------
- --------------------------------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--1.3%
- --------------------------------------------------------------------------------
Cash America International 132,620 3,057
Ezcorp* 63,425 652
United PanAm Financial* 72,290 1,156
----------
Total Nondepository credit
intermediation 4,865
----------
- --------------------------------------------------------------------------------
NONFERROUS PRODUCTION & PROCESSING--1.1%
- --------------------------------------------------------------------------------
Encore Wire* 71,472 2,662
Intermagnetics General* 51,770 1,372
----------
Total Nonferrous production &
processing 4,034
----------
- --------------------------------------------------------------------------------
NURSING CARE FACILITIES--0.5%
- --------------------------------------------------------------------------------
Mariner Health Care* 118,180 2,013
----------
Total Nursing care facilities 2,013
----------
- --------------------------------------------------------------------------------
OIL & GAS EXTRACTION--4.8%
- --------------------------------------------------------------------------------
Brigham Exploration* 335,750 2,468
Comstock Resources* 221,000 4,391
KCS Energy* 62,870 673
Petroleum Development* 292,500 8,380
Southwestern Energy* 72,190 1,741
----------
Total Oil & gas extraction 17,653
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--1.0%
- --------------------------------------------------------------------------------
Ultralife Batteries*# 169,470 $ 3,615
----------
Total Other electrical equipment &
component manufacturing 3,615
----------
- --------------------------------------------------------------------------------
OTHER FABRICATED METAL PRODUCT
MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Metals USA* 134,920 1,745
----------
Total Other fabricated metal
product manufacturing 1,745
----------
- --------------------------------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
JLG Industries# 237,900 3,402
----------
Total Other general purpose
machinery manufacturing 3,402
----------
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS
MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Shuffle Master*# 39,920 1,856
----------
Total Other miscellaneous manufacturing 1,856
----------
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS STORE RETAILERS--0.5%
- --------------------------------------------------------------------------------
Brookstone*# 72,360 1,991
----------
Total Other miscellaneous store retailers 1,991
----------
- --------------------------------------------------------------------------------
OUTPATIENT CARE CENTERS--3.9%
- --------------------------------------------------------------------------------
Amsurg* 118,150 2,683
Psychiatric Solutions*# 98,229 1,842
Sierra Health Services* 268,530 9,774
----------
Total Outpatient care centers 14,299
----------
- --------------------------------------------------------------------------------
PETROLEUM & COAL PRODUCTS
MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
ElkCorp 120,510 3,265
----------
Total Petroleum & coal products
manufacturing 3,265
----------
TURNER FUNDS 2004 SEMIANNUAL REPORT 33
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--4.5%
- --------------------------------------------------------------------------------
Able Laboratories*# 79,310 $ 1,549
Atherogenics*# 140,980 3,224
Nabi Biopharmaceuticals* 179,310 2,788
Penwest Pharmaceuticals*# 88,550 1,294
Salix Pharmaceuticals*# 263,160 7,637
----------
Total Pharmaceutical & medicine
manufacturing 16,492
----------
- --------------------------------------------------------------------------------
PLASTICS PRODUCT MANUFACTURING--1.5%
- --------------------------------------------------------------------------------
Jarden*# 156,765 5,567
----------
Total Plastics product manufacturing 5,567
----------
- --------------------------------------------------------------------------------
PLUMBING, HEATING & AIR CONDITIONING
CONTRACTOR--1.5%
- --------------------------------------------------------------------------------
Roto-Rooter 108,790 5,499
----------
Total Plumbing, heating &
air conditioning contractor 5,499
----------
- --------------------------------------------------------------------------------
PROFESSIONAL & COMMERCIAL EQUIPMENT &
SUPPLY WHOLESALE--1.3%
- --------------------------------------------------------------------------------
Mobility Electronics*# 368,020 3,349
Neoware Systems*# 124,817 1,282
----------
Total Professional & commercial
equipment & supply wholesale 4,631
----------
- --------------------------------------------------------------------------------
RAIL TRANSPORTATION--1.3%
- --------------------------------------------------------------------------------
Genesee & Wyoming, Cl A*# 199,387 4,925
----------
Total Rail transportation 4,925
----------
- --------------------------------------------------------------------------------
REMEDIATION & OTHER WASTE
MANAGEMENT SERVICES--1.6%
- --------------------------------------------------------------------------------
Metal Management*# 122,420 4,490
Sunopta* 126,500 1,251
----------
Total Remediation & other waste
management services 5,741
----------
- --------------------------------------------------------------------------------
RESIDENTIAL BUILDING CONSTRUCTION--1.0%
- --------------------------------------------------------------------------------
Brookfield Homes 41,980 1,473
Levitt* 97,305 2,384
----------
Total Residential building construction 3,857
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
SCIENTIFIC R&D SERVICES--2.3%
- --------------------------------------------------------------------------------
GTX* 73,070 $ 760
Interpore International* 121,330 1,745
Inveresk Research Group* 143,650 4,082
ViroLogic*# 582,400 1,765
----------
Total Scientific r&d services 8,352
----------
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC COMPONENT MANUFACTURING--2.7%
- --------------------------------------------------------------------------------
Aeroflex*# 231,660 3,118
Merix*# 178,030 3,284
Richardson Electronics 136,080 1,648
TTM Technologies*# 140,560 1,732
----------
Total Semiconductor & other
electronic component
manufacturing 9,782
----------
- --------------------------------------------------------------------------------
SHOE STORES--1.3%
- --------------------------------------------------------------------------------
Genesco*# 207,880 4,819
----------
Total Shoe stores 4,819
----------
- --------------------------------------------------------------------------------
SOCIAL ASSISTANCE--0.7%
- --------------------------------------------------------------------------------
Providence Service* 151,020 2,691
----------
Total Social assistance 2,691
----------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--1.3%
- --------------------------------------------------------------------------------
Ansys*# 42,900 1,705
MSC.Software*# 229,060 2,018
Progress Software*# 47,960 1,150
----------
Total Software publishers 4,873
----------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS--1.2%
- --------------------------------------------------------------------------------
EMS Technologies* 108,140 2,088
Glenayre Technologies* 124,700 281
PTEK Holdings*# 233,390 2,145
----------
Total Telecommunications 4,514
----------
- --------------------------------------------------------------------------------
TRAVELER ACCOMMODATION--1.4%
- --------------------------------------------------------------------------------
Ameristar Casinos*# 92,230 3,113
MTR Gaming Group*# 191,130 1,911
----------
Total Traveler accommodation 5,024
----------
34 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
WASTE TREATMENT & DISPOSAL--0.7%
- --------------------------------------------------------------------------------
Casella Waste Systems, Cl A* 171,929 $ 2,500
----------
Total Waste treatment & disposal 2,500
----------
- --------------------------------------------------------------------------------
WATER, SEWAGE & OTHER SYSTEMS--0.2%
- --------------------------------------------------------------------------------
Artesian Resources, Cl A 28,197 796
----------
Total Water, sewage & other systems 796
----------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $253,348) 328,412
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--25.2%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 92,689,350 92,689
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $92,689) 92,689
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CASH EQUIVALENTS--11.6%
- --------------------------------------------------------------------------------
Blackrock TempCash Fund,
Institutional Shares 18,337,029 18,337
PNC Bank Money Market Fund 24,478,312 24,478
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(COST $42,815) 42,815
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--125.9%
(COST $388,852) 463,916
- --------------------------------------------------------------------------------
Value
(000)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(25.9)%
- --------------------------------------------------------------------------------
Obligation to return securities
lending collateral $ (92,689)
Payable due to investment adviser (314)
Payable due to administrator (43)
Other assets and liabilities, net (2,292)
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (95,338)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 7,441,057 outstanding shares
of beneficial interest 261,546
Accumulated net investment loss (1,461)
Accumulated net realized gain
on investments 33,429
Net unrealized appreciation
on investments 75,064
- --------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $368,578
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $49.53
- --------------------------------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2004 (see Note 9 in Notes to
Financial Statements). The total value of securities on loan at March 31,
2004 was $89,462,594.
ADR - American depository receipt
Cl - Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2004 SEMIANNUAL REPORT 35
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP EQUITY FUND
March 31, 2004
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--93.8%
- --------------------------------------------------------------------------------
AGENCIES & OTHER INSURANCE
RELATED ACTIVITIES--0.9%
- --------------------------------------------------------------------------------
LabOne* 7,200 $ 219
----------
Total Agencies & other insurance
related activities 219
----------
- --------------------------------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--1.4%
- --------------------------------------------------------------------------------
Oil States International* 7,460 100
Terex* 6,420 238
----------
Total Agriculture, construction &
mining machinery manufacturing 338
----------
- --------------------------------------------------------------------------------
ARCHITECTURAL & STRUCTURAL METALS
MANUFACTURING--1.0%
- --------------------------------------------------------------------------------
Griffon* 10,350 224
----------
Total Architectural & structural
metals manufacturing 224
----------
- --------------------------------------------------------------------------------
BASIC CHEMICAL MANUFACTURING--2.0%
- --------------------------------------------------------------------------------
Church & Dwight 6,720 291
Great Lakes Chemical 7,640 182
----------
Total Basic chemical manufacturing 473
----------
- --------------------------------------------------------------------------------
BOILER, TANK & SHIPPING CONTAINER
MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Silgan Holdings* 2,530 116
----------
Total Boiler, tank & shipping
container manufacturing 116
----------
- --------------------------------------------------------------------------------
CLOTHING STORES--0.7%
- --------------------------------------------------------------------------------
AnnTaylor Stores* 4,080 175
----------
Total Clothing stores 175
----------
- --------------------------------------------------------------------------------
COAL MINING--1.3%
- --------------------------------------------------------------------------------
Fording Canadian Coal Trust 7,300 295
----------
Total Coal mining 295
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Viasat*# 4,500 $ 112
----------
Total Communications equipment
manufacturing 112
----------
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--3.1%
- --------------------------------------------------------------------------------
Digital River* 4,150 97
Enterasys Networks* 49,060 124
Inter-Tel 7,620 229
Intergraph* 11,255 272
----------
Total Computer systems design &
related services 722
----------
- --------------------------------------------------------------------------------
DEEP SEA, COASTAL & GREAT LAKES
WATER TRANSPORTATION--1.6%
- --------------------------------------------------------------------------------
Alexander & Baldwin 8,070 267
OMI* 10,060 115
----------
Total Deep sea, coastal & great lakes
water transportation 382
----------
- --------------------------------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--4.4%
- --------------------------------------------------------------------------------
BankAtlantic Bancorp, Cl A 13,695 232
Brookline Bancorp 10,670 170
People's Bank 9,010 419
Webster Financial 4,170 212
----------
Total Depository credit intermediation 1,033
----------
- --------------------------------------------------------------------------------
DRUGS & DRUGGISTS' SUNDRIES WHOLESALE--1.3%
- --------------------------------------------------------------------------------
Nu Skin Enterprises 14,750 297
----------
Total Drugs & druggists' sundries wholesale 297
----------
- --------------------------------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--0.7%
- --------------------------------------------------------------------------------
Insight Enterprises* 8,130 157
----------
Total Electronics & appliance stores 157
----------
- --------------------------------------------------------------------------------
ENGINE, TURBINE & POWER TRANSMISSION
EQUIPMENT MANUFACTURING--0.3%
- --------------------------------------------------------------------------------
China Yuchai International 4,070 81
----------
Total Engine, turbine & power transmission
equipment manufacturing 81
----------
36 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP EQUITY FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
FOOTWEAR MANUFACTURING--1.0%
- --------------------------------------------------------------------------------
K-Swiss, Cl A 9,570 $ 234
----------
Total Footwear manufacturing 234
----------
- --------------------------------------------------------------------------------
FULL-SERVICE RESTAURANTS--1.0%
- --------------------------------------------------------------------------------
Rare Hospitality International* 8,220 228
----------
Total Full-service restaurants 228
----------
- --------------------------------------------------------------------------------
HEALTH & PERSONAL CARE STORES--2.8%
- --------------------------------------------------------------------------------
Accredo Health* 9,380 358
NBTY* 7,860 292
----------
Total Health & personal care stores 650
----------
- --------------------------------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--1.1%
- --------------------------------------------------------------------------------
Imation# 6,830 257
----------
Total Industrial machinery manufacturing 257
----------
- --------------------------------------------------------------------------------
INFORMATION SERVICES--2.6%
- --------------------------------------------------------------------------------
Ask Jeeves* 6,130 219
Avocent* 4,460 164
Interactive Data* 12,440 221
----------
Total Information services 604
----------
- --------------------------------------------------------------------------------
INSURANCE CARRIERS--5.3%
- --------------------------------------------------------------------------------
Delphi Financial Group, Cl A 5,650 237
IPC Holdings 5,750 226
Odyssey Re Holdings# 8,300 224
ProAssurance* 7,330 257
Selective Insurance Group 8,400 295
----------
Total Insurance carriers 1,239
----------
- --------------------------------------------------------------------------------
INVESTIGATION & SECURITY SERVICES--2.0%
- --------------------------------------------------------------------------------
Brink's 16,725 461
----------
Total Investigation & security services 461
----------
- --------------------------------------------------------------------------------
LIMITED-SERVICE EATING PLACES--1.3%
- --------------------------------------------------------------------------------
Lone Star Steakhouse & Saloon 10,350 302
----------
Total Limited-service eating places 302
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--0.3%
- --------------------------------------------------------------------------------
Cardiotech International* 12,360 $ 64
----------
Total Medical equipment &
supplies manufacturing 64
----------
- --------------------------------------------------------------------------------
METAL ORE MINING--3.3%
- --------------------------------------------------------------------------------
Apex Silver Mines*# 21,830 492
Golden Star Resources* 39,390 282
----------
Total Metal ore mining 774
----------
- --------------------------------------------------------------------------------
MINING (EXCEPT OIL & GAS)--1.2%
- --------------------------------------------------------------------------------
Hecla Mining* 32,530 274
----------
Total Mining (except oil & gas) 274
----------
- --------------------------------------------------------------------------------
MISCELLANEOUS NONDURABLE
GOODS WHOLESALE--2.8%
- --------------------------------------------------------------------------------
Central Garden and Pet* 6,410 231
Handleman* 7,680 184
Source Interlink* 18,450 230
----------
Total Miscellaneous nondurable
goods wholesale 645
----------
- --------------------------------------------------------------------------------
MOTOR VEHICLE BODY & TRAILER
MANUFACTURING--0.7%
- --------------------------------------------------------------------------------
Wabash National* 6,560 155
----------
Total Motor vehicle body &
trailer manufacturing 155
----------
- --------------------------------------------------------------------------------
NATURAL GAS DISTRIBUTION--1.0%
- --------------------------------------------------------------------------------
AGL Resources 8,320 241
----------
Total Natural gas distribution 241
----------
- --------------------------------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/CONTROL INSTRUMENTS MANUFACTURING--3.3%
- --------------------------------------------------------------------------------
Analogic 8,840 402
Dionex* 4,240 224
United Industrial 6,980 132
----------
Total Navigational/measuring/
medical/control instruments
manufacturing 758
----------
TURNER FUNDS 2004 SEMIANNUAL REPORT 37
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP EQUITY FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
NEWSPAPER/PERIODICAL/BOOK/
DATABASE PUBLISHERS--1.5%
- --------------------------------------------------------------------------------
R.H. Donnelley* 7,405 $ 346
----------
Total Newspaper/periodical/book/
database publishers 346
----------
- --------------------------------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--1.2%
- --------------------------------------------------------------------------------
Cash America International 11,620 268
----------
Total Nondepository credit
intermediation 268
----------
- --------------------------------------------------------------------------------
NURSING CARE FACILITIES--0.5%
- --------------------------------------------------------------------------------
Kindred Healthcare* 2,260 114
----------
Total Nursing care facilities 114
----------
- --------------------------------------------------------------------------------
OFFICE SUPPLIES, STATIONERY & GIFT STORES--1.2%
- --------------------------------------------------------------------------------
School Specialty* 7,700 274
----------
Total Office supplies, stationery &
gift stores 274
----------
- --------------------------------------------------------------------------------
OIL & GAS EXTRACTION--2.5%
- --------------------------------------------------------------------------------
KCS Energy* 14,670 157
Range Resources* 24,960 303
Southwestern Energy* 4,890 118
----------
Total Oil & gas extraction 578
----------
- --------------------------------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--1.7%
- --------------------------------------------------------------------------------
Gilat Satellite Networks* 13,810 122
Rayovac* 9,400 269
----------
Total Other electrical equipment &
component manufacturing 391
----------
- --------------------------------------------------------------------------------
OTHER FOOD MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
Hain Celestial Group* 9,750 215
----------
Total Other food manufacturing 215
----------
- --------------------------------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Lincoln Electric Holdings 4,240 119
----------
Total Other general purpose
machinery manufacturing 119
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
OTHER INVESTMENT POOLS & FUNDS--2.6%
- --------------------------------------------------------------------------------
Alexandria Real Estate Equities 4,710 $ 297
Capital Automotive REIT 8,840 312
----------
Total Other investment pools & funds 609
----------
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--2.3%
- --------------------------------------------------------------------------------
Multimedia Games* 11,720 290
WMS Industries* 7,670 238
----------
Total Other miscellaneous manufacturing 528
----------
- --------------------------------------------------------------------------------
OTHER PROFESSIONAL/SCIENTIFIC/
TECHNICAL SERVICE--0.5%
- --------------------------------------------------------------------------------
Dendrite International* 7,170 115
----------
Total Other professional/scientific/
technical service 115
----------
- --------------------------------------------------------------------------------
OUTPATIENT CARE CENTERS--1.0%
- --------------------------------------------------------------------------------
Sierra Health Services* 6,660 242
----------
Total Outpatient care centers 242
----------
- --------------------------------------------------------------------------------
PAPER & PAPER PRODUCT WHOLESALE--1.7%
- --------------------------------------------------------------------------------
Boise Cascade 11,090 384
----------
Total Paper & paper product wholesale 384
----------
- --------------------------------------------------------------------------------
PETROLEUM & COAL PRODUCTS
MANUFACTURING--1.1%
- --------------------------------------------------------------------------------
Headwaters* 9,620 246
----------
Total Petroleum & coal products
manufacturing 246
----------
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--4.7%
- --------------------------------------------------------------------------------
Axcan Pharma*# 16,990 324
Dade Behring Holdings* 7,800 347
Discovery Laboratories* 14,850 181
Ligand Pharmaceuticals, Cl B* 12,040 242
----------
Total Pharmaceutical & medicine
manufacturing 1,094
----------
- --------------------------------------------------------------------------------
PLASTICS PRODUCT MANUFACTURING--2.2%
- --------------------------------------------------------------------------------
Applied Films* 5,590 156
Jarden* 9,950 353
----------
Total Plastics product manufacturing 509
----------
38 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP EQUITY FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
PROFESSIONAL, SCIENTIFIC &
TECHNICAL SERVICES--0.9%
- --------------------------------------------------------------------------------
Alliance Data Systems* 6,500 $ 218
----------
Total Professional, scientific &
technical services 218
----------
- --------------------------------------------------------------------------------
PULP, PAPER & PAPERBOARD MILLS--0.9%
- --------------------------------------------------------------------------------
Temple-Inland 3,470 220
----------
Total Pulp, paper & paperboard mills 220
----------
- --------------------------------------------------------------------------------
RADIO & TELEVISION BROADCASTING--2.6%
- --------------------------------------------------------------------------------
Emmis Communications, Cl A*# 11,360 270
Gray Television 13,740 201
Spanish Broadcasting System* 13,190 138
----------
Total Radio & television broadcasting 609
----------
- --------------------------------------------------------------------------------
SCIENTIFIC R&D SERVICES--1.6%
- --------------------------------------------------------------------------------
Nektar Therapeutics* 5,440 118
Symyx Technologies* 8,770 251
----------
Total Scientific r&d services 369
----------
- --------------------------------------------------------------------------------
SECURITIES & COMMODITY EXCHANGES--1.1%
- --------------------------------------------------------------------------------
Chicago Mercantile Exchange# 2,590 251
----------
Total Securities & commodity exchanges 251
----------
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--2.1%
- --------------------------------------------------------------------------------
Jefferies Group 7,520 266
Piper Jaffray* 4,120 223
----------
Total Security & commodity contracts
intermediation & brokerage 489
----------
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC COMPONENT MANUFACTURING--1.6%
- --------------------------------------------------------------------------------
Amphenol, Cl A* 5,700 169
NAM TAI Electronics# 8,450 215
----------
Total Semiconductor & other electronic
component manufacturing 384
----------
- --------------------------------------------------------------------------------
SERVICES TO BUILDINGS & DWELLINGS--1.0%
- --------------------------------------------------------------------------------
Rollins 9,160 236
----------
Total Services to buildings & dwellings 236
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
SOAP, CLEANERS & TOILET PREPARATION
MANUFACTURING--1.1%
- --------------------------------------------------------------------------------
Elizabeth Arden* 11,890 $ 251
----------
Total Soap, cleaners & toilet
preparation manufacturing 251
----------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--0.9%
- --------------------------------------------------------------------------------
Borland Software* 13,430 122
MSC.Software* 9,050 80
----------
Total Software publishers 202
----------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS--2.4%
- --------------------------------------------------------------------------------
Alamosa Holdings*# 56,260 328
NII Holdings, Cl B* 6,820 239
----------
Total Telecommunications 567
----------
- --------------------------------------------------------------------------------
TRUCK TRANSPORTATION--2.1%
- --------------------------------------------------------------------------------
Laidlaw International* 33,980 494
----------
Total Truck transportation 494
----------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $18,393) 21,832
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--7.1%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 1,638,700 1,639
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $1,639) 1,639
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CASH EQUIVALENTS--7.0%
- --------------------------------------------------------------------------------
Blackrock TempCash Fund,
Institutional Shares 1,159,035 1,159
Blackrock TempFund,
Institutional Shares 471,417 471
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(COST $1,630) 1,630
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--107.9%
(COST $21,662) 25,101
- --------------------------------------------------------------------------------
TURNER FUNDS 2004 SEMIANNUAL REPORT 39
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP EQUITY FUND
Value
(000)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(7.9)%
- --------------------------------------------------------------------------------
Obligation to return securities
lending collateral $ (1,639)
Payable due to investment adviser (13)
Payable due to administrator (3)
Payable due to distributor (5)
Other assets and liabilities, net (176)
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (1,836)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------------------
Portfolio capital of Class II Shares
(unlimited authorization -- no par value)
based on 1,664,790 outstanding shares
of beneficial interest 18,934
Accumulated net investment loss (35)
Accumulated net realized gain
on investments 927
Net unrealized appreciation
on investments 3,439
- --------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $23,265
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS II SHARES $13.97
- --------------------------------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2004 (see Note 9 in Notes to
Financial Statements). The total value of securities on loan at March 31,
2004 was $1,548,033.
Cl - Class
REIT - Real estate investment trust
The accompanying notes are an integral part of the financial statements.
40 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER TECHNOLOGY FUND
March 31, 2004
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--99.9%
- --------------------------------------------------------------------------------
COMMERCIAL/INDUSTRIAL EQUIPMENT
RENTAL & LEASING--3.3%
- --------------------------------------------------------------------------------
Comverse Technology* 40,970 $ 743
----------
Total Commercial/industrial
equipment rental & leasing 743
----------
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--7.1%
- --------------------------------------------------------------------------------
Cisco Systems* 42,620 1,002
Motorola 32,610 574
----------
Total Communications equipment
manufacturing 1,576
----------
- --------------------------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--9.8%
- --------------------------------------------------------------------------------
Dell* 26,490 891
EMC* 63,480 864
Integrated Device Technology* 28,950 434
----------
Total Computer & peripheral
equipment manufacturing 2,189
----------
- --------------------------------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--3.7%
- --------------------------------------------------------------------------------
eBay* 11,990 831
----------
Total Electronic shopping &
mail-order houses 831
----------
- --------------------------------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--2.4%
- --------------------------------------------------------------------------------
CDW 7,950 538
----------
Total Electronics & appliance stores 538
----------
- --------------------------------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--2.6%
- --------------------------------------------------------------------------------
Kla-Tencor* 11,330 570
----------
Total Industrial machinery manufacturing 570
----------
- --------------------------------------------------------------------------------
INFORMATION SERVICES--8.6%
- --------------------------------------------------------------------------------
CNET Networks* 60,460 624
Juniper Networks*# 24,710 643
Yahoo!* 13,310 647
----------
Total Information services 1,914
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--2.2%
- --------------------------------------------------------------------------------
Corning* 43,690 $ 488
----------
Total Other electrical equipment &
component manufacturing 488
----------
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--5.0%
- --------------------------------------------------------------------------------
Invitrogen* 7,430 533
Watson Pharmaceuticals* 13,410 574
----------
Total Pharmaceutical &
medicine manufacturing 1,107
----------
- --------------------------------------------------------------------------------
SCIENTIFIC R&D SERVICES--2.1%
- --------------------------------------------------------------------------------
Gen-Probe* 14,080 470
----------
Total Scientific r&d services 470
----------
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--4.0%
- --------------------------------------------------------------------------------
Ameritrade Holding* 27,680 426
Charles Schwab 39,090 454
----------
Total Security & commodity contracts
intermediation & brokerage 880
----------
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--33.0%
- --------------------------------------------------------------------------------
Analog Devices 9,230 443
Applied Materials* 26,200 560
Broadcom, Cl A* 14,290 560
Cymer* 10,400 402
Intel 24,570 668
National Semiconductor* 20,670 918
Nvidia* 25,470 675
PMC - Sierra* 26,370 448
Sanmina-SCI* 48,920 539
Silicon Laboratories* 9,860 521
Vishay Intertechnology* 26,240 560
Vitesse Semiconductor* 68,300 484
Xilinx* 15,320 582
----------
Total Semiconductor & other electronic
component manufacturing 7,360
----------
TURNER FUNDS 2004 SEMIANNUAL REPORT 41
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER TECHNOLOGY FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--11.9%
- --------------------------------------------------------------------------------
Openwave Systems*# 37,170 $ 496
Red Hat* 29,080 665
SAP ADR 15,730 618
Symantec* 10,690 495
TIBCO Software* 46,000 376
----------
Total Software publishers 2,650
----------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS--4.2%
- --------------------------------------------------------------------------------
Adtran 14,840 446
Oplink Communications* 197,700 496
----------
Total Telecommunications 942
----------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $20,397) 22,258
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
WARRANTS--0.0%
- --------------------------------------------------------------------------------
MicroStrategy, Expires 06/24/07* 3,426 1
- --------------------------------------------------------------------------------
TOTAL WARRANTS
(COST $0) 1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--4.8%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 1,055,600 1,056
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $1,056) 1,056
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CASH EQUIVALENT--0.2%
- --------------------------------------------------------------------------------
Blackrock TempCash Fund,
Institutional Shares 53,086 53
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $53) 53
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--104.9%
(COST $21,506) 23,368
- --------------------------------------------------------------------------------
Value
(000)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(4.9)%
- --------------------------------------------------------------------------------
Obligation to return securities
lending collateral $ (1,056)
Payable due to investment adviser (22)
Payable due to administrator (3)
Other assets and liabilities, net (12)
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (1,093)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 3,549,259 outstanding shares
of beneficial interest 150,198
Accumulated net investment loss (173)
Accumulated net realized loss
on investments (129,612)
Net unrealized appreciation
on investments 1,862
- --------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $22,275
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $6.28
- --------------------------------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2004 (see Note 9 in Notes to
Financial Statements). The total value of securities on loan at March 31,
2004 was $989,600.
ADR - American depository receipt
Cl - Class
The accompanying notes are an integral part of the financial statements.
42 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER CONCENTRATED GROWTH FUND
March 31, 2004
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--97.9%
- --------------------------------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--4.7%
- --------------------------------------------------------------------------------
Deere 17,860 $ 1,238
Smith International* 21,490 1,150
----------
Total Agriculture, construction &
mining machinery manufacturing 2,388
----------
- --------------------------------------------------------------------------------
ALUMINA & ALUMINUM PRODUCTION &
PROCESSING--3.8%
- --------------------------------------------------------------------------------
Alcoa 55,740 1,934
----------
Total Alumina & aluminum
production & processing 1,934
----------
- --------------------------------------------------------------------------------
COMMERCIAL/INDUSTRIAL EQUIPMENT
RENTAL & LEASING--2.0%
- --------------------------------------------------------------------------------
Comverse Technology* 56,270 1,021
----------
Total Commercial/industrial
equipment rental & leasing 1,021
----------
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--8.9%
- --------------------------------------------------------------------------------
Cisco Systems* 83,030 1,953
Motorola 143,250 2,521
----------
Total Communications equipment
manufacturing 4,474
----------
- --------------------------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--8.6%
- --------------------------------------------------------------------------------
Dell* 59,760 2,009
EMC* 170,000 2,314
----------
Total Computer & peripheral
equipment manufacturing 4,323
----------
- --------------------------------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--4.0%
- --------------------------------------------------------------------------------
CDW 29,596 2,001
----------
Total Electronics & appliance stores 2,001
----------
- --------------------------------------------------------------------------------
INFORMATION SERVICES--3.0%
- --------------------------------------------------------------------------------
Yahoo!* 31,100 1,511
----------
Total Information services 1,511
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
MANAGEMENT, SCIENTIFIC & TECHNICAL
CONSULTING SERVICES--3.1%
- --------------------------------------------------------------------------------
Monster Worldwide*# 59,090 $ 1,548
----------
Total Management, scientific &
technical consulting services 1,548
----------
- --------------------------------------------------------------------------------
METAL ORE MINING--3.9%
- --------------------------------------------------------------------------------
Phelps Dodge* 24,170 1,974
----------
Total Metal ore mining 1,974
----------
- --------------------------------------------------------------------------------
OIL & GAS EXTRACTION--2.2%
- --------------------------------------------------------------------------------
XTO Energy 43,787 1,105
----------
Total Oil & gas extraction 1,105
----------
- --------------------------------------------------------------------------------
OTHER LEATHER & ALLIED PRODUCT
MANUFACTURING--3.7%
- --------------------------------------------------------------------------------
Coach* 46,040 1,887
----------
Total Other leather & allied
product manufacturing 1,887
----------
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--2.2%
- --------------------------------------------------------------------------------
Marvel Enterprises* 57,090 1,095
----------
Total Other miscellaneous manufacturing 1,095
----------
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--4.4%
- --------------------------------------------------------------------------------
Watson Pharmaceuticals* 52,320 2,239
----------
Total Pharmaceutical & medicine
manufacturing 2,239
----------
- --------------------------------------------------------------------------------
PRIMARY METAL MANUFACTURING--2.9%
- --------------------------------------------------------------------------------
United States Steel 39,970 1,490
----------
Total Primary metal manufacturing 1,490
----------
- --------------------------------------------------------------------------------
SCIENTIFIC R&D SERVICES--4.0%
- --------------------------------------------------------------------------------
Biogen Idec* 36,810 2,047
----------
Total Scientific r&d services 2,047
----------
TURNER FUNDS 2004 SEMIANNUAL REPORT 43
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER CONCENTRATED GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--3.6%
- --------------------------------------------------------------------------------
Charles Schwab 154,880 $ 1,798
----------
Total Security & commodity contracts
intermediation & brokerage 1,798
----------
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--28.3%
- --------------------------------------------------------------------------------
Analog Devices 41,150 1,976
Applied Materials* 111,790 2,390
Broadcom, Cl A* 45,830 1,795
National Semiconductor*# 44,720 1,987
Nvidia*# 83,150 2,203
Sanmina-SCI* 175,610 1,933
Silicon Laboratories*# 38,220 2,021
----------
Total Semiconductor & other
electronic component
manufacturing 14,305
----------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--4.6%
- --------------------------------------------------------------------------------
SAP ADR 59,100 2,322
----------
Total Software publishers 2,322
----------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $48,185) 49,462
- --------------------------------------------------------------------------------
Value
Shares (000)
- --------------------------------------------------------------------------------
WARRANTS--0.0%
- --------------------------------------------------------------------------------
MicroStrategy, Expires 06/24/07* 166 $ --
- --------------------------------------------------------------------------------
TOTAL WARRANTS
(COST $0) --
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR LOANED SECURITIES--7.9%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 3,987,800 3,988
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $3,988) 3,988
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--105.8%
(COST $52,173) $53,450
- --------------------------------------------------------------------------------
Percentages are based on net assets of $50,529,633.
* Non-income producing security
# Security fully or partially on loan at March 31, 2004 (see Note 9 in Notes to
Financial Statements). The total value of securities on loan at March 31,
2004 was $3,902,240.
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.
44 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER NEW ENTERPRISE FUND
March 31, 2004
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--98.4%
- --------------------------------------------------------------------------------
COMMERCIAL/INDUSTRIAL EQUIPMENT
RENTAL & LEASING--4.6%
- --------------------------------------------------------------------------------
Comverse Technology* 69,910 $ 1,268
----------
Total Commercial/industrial
equipment rental & leasing 1,268
----------
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--3.6%
- --------------------------------------------------------------------------------
Cisco Systems* 42,760 1,006
----------
Total Communications equipment
manufacturing 1,006
----------
- --------------------------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--2.0%
- --------------------------------------------------------------------------------
Integrated Device Technology* 36,470 547
----------
Total Computer & peripheral
equipment manufacturing 547
----------
- --------------------------------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--2.2%
- --------------------------------------------------------------------------------
eBay* 9,000 624
----------
Total Electronic shopping &
mail-order houses 624
----------
- --------------------------------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--1.5%
- --------------------------------------------------------------------------------
CDW 6,220 421
----------
Total Electronics & appliance stores 421
----------
- --------------------------------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--4.4%
- --------------------------------------------------------------------------------
Lam Research* 30,240 762
MKS Instruments*# 19,150 460
----------
Total Industrial machinery manufacturing 1,222
----------
- --------------------------------------------------------------------------------
INFORMATION SERVICES--9.5%
- --------------------------------------------------------------------------------
CNET Networks* 65,130 673
Juniper Networks*# 34,440 896
Mindspeed Technologies* 55,050 359
Sina* 18,420 697
----------
Total Information services 2,625
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
MINING SUPPORT ACTIVITIES--2.6%
- --------------------------------------------------------------------------------
Nabors Industries* 15,910 $ 728
----------
Total Mining support activities 728
----------
- --------------------------------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/CONTROL INSTRUMENTS MANUFACTURING--3.3%
- --------------------------------------------------------------------------------
Eaton 7,330 412
Fisher Scientific International*# 9,260 510
----------
Total Navigational/measuring/medical/
control instruments manufacturing 922
----------
- --------------------------------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--2.1%
- --------------------------------------------------------------------------------
Corning* 50,930 569
----------
Total Other electrical equipment &
component manufacturing 569
----------
- --------------------------------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--4.2%
- --------------------------------------------------------------------------------
Affiliated Managers Group*# 11,265 615
SEI Investments 16,430 542
----------
Total Other financial investment activities 1,157
----------
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--3.7%
- --------------------------------------------------------------------------------
Marvel Enterprises* 53,235 1,022
----------
Total Other miscellaneous manufacturing 1,022
----------
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--4.9%
- --------------------------------------------------------------------------------
Teva Pharmaceutical Industries ADR 10,910 692
Watson Pharmaceuticals* 15,790 675
----------
Total Pharmaceutical &
medicine manufacturing 1,367
----------
- --------------------------------------------------------------------------------
RADIO & TELEVISION BROADCASTING--2.7%
- --------------------------------------------------------------------------------
XM Satellite Radio Holdings*# 26,510 742
----------
Total Radio & television broadcasting 742
----------
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--2.5%
- --------------------------------------------------------------------------------
Ameritrade Holding* 45,490 701
----------
Total Security & commodity contracts
intermediation & brokerage 701
----------
TURNER FUNDS 2004 SEMIANNUAL REPORT 45
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER NEW ENTERPRISE FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--26.5%
- --------------------------------------------------------------------------------
Applied Materials* 33,050 $ 706
Broadcom, Cl A* 12,810 502
Formfactor* 43,130 903
Merix*# 25,850 477
Nvidia* 34,530 915
PMC-- Sierra* 43,620 740
Power-One* 35,860 397
Sanmina-SCI* 65,440 720
Silicon Laboratories* 13,240 700
Vishay Intertechnology* 40,360 861
Vitesse Semiconductor*# 58,530 415
----------
Total Semiconductor & other electronic
component manufacturing 7,336
----------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--16.4%
- --------------------------------------------------------------------------------
Akamai Technologies* 49,980 657
Citrix Systems* 24,040 520
Electronic Arts* 16,270 878
F5 Networks*# 30,090 1,018
Openwave Systems* 43,700 583
Symantec* 11,150 516
VeriSign* 22,950 381
----------
Total Software publishers 4,553
----------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS--1.7%
- --------------------------------------------------------------------------------
Adtran# 15,860 475
----------
Total Telecommunications 475
----------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $24,944) 27,285
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--12.7%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 3,503,800 3,504
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $3,504) 3,504
- --------------------------------------------------------------------------------
Value
Shares (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT--1.5%
- --------------------------------------------------------------------------------
Blackrock TempCash Fund,
Institutional Shares 423,570 $ 424
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $424) 424
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--112.6%
(COST $28,872) 31,213
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(12.6)%
- --------------------------------------------------------------------------------
Obligation to return securities
lending collateral (3,504)
Payable due to investment adviser (15)
Payable due to administrator (3)
Other assets and liabilities, net 39
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (3,483)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 5,292,156 outstanding shares
of beneficial interest 34,629
Accumulated net investment loss (55)
Accumulated net realized loss
on investments (9,185)
Net unrealized appreciation
on investments 2,341
- --------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $27,730
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $5.24
- --------------------------------------------------------------------------------
* Non-income producing security
# Security fully or partially on loan at March 31, 2004 (see Note 9 in Notes to
Financial Statements). The total value of securities on loan at March 31,
2004 was $3,219,515.
ADR - American depository receipt
Cl - Class
The accompanying notes are an integral part of the financial statements.
46 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (000) (Unaudited)
Turner Turner
Large Cap Growth Concentrated
Opportunities Growth
Fund Fund
--------------------------------------------------------------------
03/31/04 03/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
Assets:
- ------------------------------------------------------------------------------------------------------------------------------------
Investment securities at cost $ 4,238 $ 52,173
- ------------------------------------------------------------------------------------------------------------------------------------
Investment securities at value $ 4,806 $ 53,450
Receivable for investment securities sold 354 3,012
Receivable for capital shares sold 15 107
Receivable for dividend and interest income 3 12
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 5,178 56,581
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities:
Obligation to return securities lending collateral -- 3,988
Payable for investment securities purchased 349 1,898
Payable for capital shares redeemed -- 64
Payable due to investment adviser 1 50
Payable due to administrator 1 6
Accrued expenses 7 28
Payable to custodian -- 17
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 358 6,051
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets $ 4,820 $50,530
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets:
Portfolio capital, Class I Shares $17,524 $204,212
Accumulated net investment loss (12) (262)
Accumulated net realized loss on investments (13,260) (154,697)
Net unrealized appreciation on investments 568 1,277
- ------------------------------------------------------------------------------------------------------------------------------------
Total net assets $ 4,820 $ 50,530
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest:(1)
Class I Shares(2) 450,757 7,406,371
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share, Class I Shares $ 10.69 $ 6.82
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Unlimited authorization-- no par value.
(2) Shares have not been rounded.
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 2004 SEMIANNUAL REPORT 47
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (000)
Turner
Turner Large Cap
Disciplined Growth Turner
Large Cap Opportunities Midcap
Growth Fund Fund Growth Fund
--------------------------------------------------------------------------
10/1/03 thru 10/1/03 thru 10/1/03 thru
3/31/04 3/31/04 3/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 422 $ 12 $ 1,003
Interest -- -- 14
Securities lending 1 1 151
Foreign taxes withheld (1) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 422 13 1,168
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 272 16 3,357
Administrator fees 64 3 628
Distribution fees(1) -- -- 1
Shareholder service fees(1) -- -- 1
Transfer agent fees 20 14 690
Printing fees 12 -- 112
Professional fees 11 -- 98
Custodian fees 10 5 56
Registration fees 7 -- 60
Trustees' fees 2 -- 16
Insurance and other fees 2 -- 19
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses 400 38 5,038
Less:
Investment advisory fees waived (59) (13) --
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 341 25 5,038
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 81 (12) (3,870)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain from
securities sold 3,996 355 57,627
Net unrealized appreciation
of investment securities 4,953 192 70,905
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments 8,949 547 128,532
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $9,030 $535 $124,662
- ------------------------------------------------------------------------------------------------------------------------------------
(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.
48 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
Turner Turner Turner
Small Cap Micro Cap Small Cap
Growth Fund Growth Fund Equity Fund
--------------------------------------------------------- -------
10/1/03 thru 10/1/03 thru 10/1/03 thru
3/31/04 3/31/04 3/31/04
- ---------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 274 $ 599 $ 91
Interest 3 21 1
Securities lending 91 116 1
Foreign taxes withheld -- (2) (2)
- ---------------------------------------------------------------------------------------------------------------------------
Total Investment Income 368 734 91
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 1,142 1,603 79
Administrator fees 160 225 13
Distribution fees(1) -- -- 23
Shareholder service fees(1) -- -- --
Transfer agent fees 155 237 24
Printing fees 29 37 2
Professional fees 26 32 2
Custodian fees 39 30 12
Registration fees 16 19 1
Trustees' fees 4 5 --
Insurance and other fees 5 6 1
- ---------------------------------------------------------------------------------------------------------------------------
Total expenses 1,576 2,194 157
Less:
Investment advisory fees waived (150) -- (31)
- ---------------------------------------------------------------------------------------------------------------------------
Net expenses 1,426 2,194 126
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (1,058) (1,460) (35)
- ---------------------------------------------------------------------------------------------------------------------------
Net realized gain from
securities sold 23,392 38,196 1,561
Net unrealized appreciation
of investment securities 11,219 22,157 2,036
- ---------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments 34,611 60,353 3,597
- ---------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $33,553 $58,893 $3,562
- ---------------------------------------------------------------------------------------------------------------------------
Turner
Turner Concentrated Turner
Technology Growth New Enterprise
Fund Fund Fund
----------------------------------------------------------
10/1/03 thru 10/1/03 thru 10/1/03 thru
3/31/04 3/31/04 3/31/04
- --------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 11 $ 103 $ 44
Interest -- 1 --
Securities lending 7 8 5
Foreign taxes withheld -- -- --
- --------------------------------------------------------------------------------------------------------------------
Total Investment Income 18 112 49
- --------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 134 307 77
Administrator fees 16 37 15
Distribution fees(1) -- -- --
Shareholder service fees(1) -- -- --
Transfer agent fees 45 41 27
Printing fees 3 7 2
Professional fees 2 6 1
Custodian fees 7 10 6
Registration fees 2 4 1
Trustees' fees -- 1 --
Insurance and other fees 1 1 --
- --------------------------------------------------------------------------------------------------------------------
Total expenses 210 414 129
Less:
Investment advisory fees waived (19) (40) (25)
- --------------------------------------------------------------------------------------------------------------------
Net expenses 191 374 104
- --------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (173) (262) (55)
- --------------------------------------------------------------------------------------------------------------------
Net realized gain from
securities sold 3,440 5,862 34
Net unrealized appreciation
of investment securities 226 263 1,627
- --------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments 3,666 6,125 1,661
- --------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $3,493 $5,863 $1,606
- --------------------------------------------------------------------------------------------------------------------
TURNER FUNDS 2004 SEMIANNUAL REPORT 49
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (000)
Turner Turner
Disciplined Large Large Cap Growth
Cap Growth Fund Opportunities Fund
------------------------------------------------------------------------------------
10/1/03 year 10/1/03 year
thru ended thru ended
3/31/04 9/30/03 3/31/04 9/30/03
- ------------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ 81 $ 19 $ (12) $ (23)
Net realized gain from securities sold 3,996 5,005 355 347
Net change in unrealized
appreciation of investments 4,953 13,660 192 724
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 9,030 18,684 535 1,048
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares (87) (3) -- --
Realized capital gains
Class I Shares -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (87) (3) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 27,326 45,621 1,029 2,060
Proceeds from shares issued in lieu
of cash distributions 87 3 -- --
Cost of shares redeemed (16,671) (44,860) (295) (4,404)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions 10,742 764 734 (2,344)
- ------------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued -- -- -- --
Cost of shares redeemed -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from
Class II Shares transactions -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions 10,742 764 734 (2,344)
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 19,685 19,445 1,269 (1,296)
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 79,416 59,971 3,551 4,847
- ------------------------------------------------------------------------------------------------------------------------------------
End of year/period $ 99,101 $ 79,416 $4,820 $ 3,551
- ------------------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income
(accumulated net investment loss) $ 13 $ 19 $ (12) $ --
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued and redeemed:
Class I Shares
Issued 5,474 11,156 99 264
Issued in lieu of cash distributions 17 1 -- --
Redeemed (3,335) (11,102) (28) (619)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares 2,156 55 71 (355)
- ------------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- -- -- --
Redeemed -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in Class II Shares -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares 2,156 55 71 (355)
- ------------------------------------------------------------------------------------------------------------------------------------
Amounts designated as "--" are either $0 or have been rounded to $0
The accompanying notes are an integral part of the financial statements.
50 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
Turner Turner
Midcap Growth Small Cap Growth
Fund Fund
-----------------------------------------------------------------------------------
10/1/03 year 10/1/03 year
thru ended thru ended
3/31/04 9/30/03 3/31/04 9/30/03
- ------------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (3,870) $ (5,270) $ (1,058) $ (1,268)
Net realized gain from securities sold 57,627 70,989 23,392 21,681
Net change in unrealized
appreciation of investments 70,905 145,875 11,219 45,503
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 124,662 211,594 33,553 65,916
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares -- -- -- --
Realized capital gains
Class I Shares -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 273,595 383,552 74,578 99,160
Proceeds from shares issued in lieu
of cash distributions -- -- -- --
Cost of shares redeemed (206,854) (382,529) (67,525) (116,466)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions 66,741 1,023 7,053 (17,306)
- ------------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued 215 281 -- --
Cost of shares redeemed (134) (33) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from
Class II Shares transactions 81 248 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions 66,822 1,271 7,053 (17,306)
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 191,484 212,865 40,606 48,610
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 774,211 561,346 192,791 144,181
- ------------------------------------------------------------------------------------------------------------------------------------
End of year/period $ 965,695 $ 774,211 $233,397 $ 192,791
- ------------------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income
(accumulated net investment loss) $ (3,870) $ -- $ (1,058) $ --
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued and redeemed:
Class I Shares
Issued 12,271 23,309 3,471 6,123
Issued in lieu of cash distributions -- -- -- --
Redeemed (9,359) (24,432) (3,143) (7,335)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares 2,912 (1,123) 328 (1,212)
- ------------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued 10 17 -- --
Redeemed (6) (2) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in Class II Shares 4 15 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares 2,916 (1,108) 328 (1,212)
- ------------------------------------------------------------------------------------------------------------------------------------
Turner
Micro Cap Growth
Fund
-----------------------------------------
10/1/03 year
thru ended
3/31/04 9/30/03
- -------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (1,460) $ (1,563)
Net realized gain from securities sold 38,196 17,304
Net change in unrealized
appreciation of investments 22,157 37,172
- -------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 58,893 52,913
- -------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares -- --
Realized capital gains
Class I Shares (6,514) --
- -------------------------------------------------------------------------------------------
Total dividends and distributions (6,514) --
- -------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 93,785 99,782
Proceeds from shares issued in lieu
of cash distributions 6,268 --
Cost of shares redeemed (37,694) (76,985)
- -------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions 62,359 22,797
- -------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued -- --
Cost of shares redeemed -- --
- -------------------------------------------------------------------------------------------
Increase in net assets from
Class II Shares transactions -- --
- -------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions 62,359 22,797
- -------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 114,738 75,710
- -------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 253,840 178,130
- -------------------------------------------------------------------------------------------
End of year/period $368,578 $253,840
- -------------------------------------------------------------------------------------------
Undistributed net investment income
(accumulated net investment loss) $ (1,461) $ (1)
- -------------------------------------------------------------------------------------------
Shares issued and redeemed:
Class I Shares
Issued 1,971 2,849
Issued in lieu of cash distributions 137 --
Redeemed (802) (2,273)
- -------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares 1,306 576
- -------------------------------------------------------------------------------------------
Class II Shares
Issued -- --
Redeemed -- --
- -------------------------------------------------------------------------------------------
Increase in Class II Shares -- --
- -------------------------------------------------------------------------------------------
Net increase (decrease) in shares 1,306 576
- -------------------------------------------------------------------------------------------
TURNER FUNDS 2004 SEMIANNUAL REPORT 51
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (000)
Turner
Small Cap
Equity Fund
------------------------------------------
10/1/03 year
thru ended
3/31/04 9/30/03
- ------------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment loss $ (35) $ (24)
Net realized gain from securities sold 1,561 922
Net change in unrealized appreciation of investments 2,036 1,619
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 3,562 2,517
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares -- --
Class II Shares -- (6)
Realized capital gains
Class I Shares -- --
Class II Shares (1,367) --
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (1,367) (6)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued -- --
Cost of shares redeemed -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class I Shares transactions -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued 9,811 8,457
Proceeds from shares issued in lieu of cash distributions 1,362 6
Cost of shares redeemed (2,660) (5,677)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from Class II Shares transactions 8,513 2,786
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share transactions 8,513 2,786
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase in net assets 10,708 5,297
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 12,557 7,260
- ------------------------------------------------------------------------------------------------------------------------------------
End of year/period $23,265 $12,557
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulated net investment loss $ (35) $ --
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued and redeemed:
Class I Shares
Issued -- --
Redeemed -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued 734 825
Issued in lieu of cash distributions 106 1
Redeemed (198) (583)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in Class II Shares 642 243
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares 642 243
- ------------------------------------------------------------------------------------------------------------------------------------
Amounts designated as "--" are either $0 or have been rounded to $0
The accompanying notes are an integral part of the financial statements.
52 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
Turner
Technology
Fund
- ------------------------------------------------------------------------------------------------------------------------
10/1/03 year
thru ended
3/31/04 9/30/03
- ------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment loss $ (173) $ (145)
Net realized gain from securities sold 3,440 5,352
Net change in unrealized appreciation of investments 226 2,787
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 3,493 7,994
- ------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares -- --
Class II Shares -- --
Realized capital gains
Class I Shares -- --
Class II Shares -- --
- ------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions -- --
- ------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 4,822 10,933
Cost of shares redeemed (5,736) (10,893)
- ------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class I Shares transactions (914) 40
- ------------------------------------------------------------------------------------------------------------------------
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 (914) 40
- ------------------------------------------------------------------------------------------------------------------------
Total increase in net assets 2,579 8,034
- ------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 19,696 11,662
- ------------------------------------------------------------------------------------------------------------------------
End of year/period $22,275 $ 19,696
- ------------------------------------------------------------------------------------------------------------------------
Accumulated net investment loss $ (173) $ --
- ------------------------------------------------------------------------------------------------------------------------
Shares issued and redeemed:
Class I Shares
Issued 765 2,520
Redeemed (923) (2,659)
- ------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares (158) (139)
- ------------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- --
Issued in lieu of cash distributions -- --
Redeemed -- --
- ------------------------------------------------------------------------------------------------------------------------
Increase in Class II Shares -- --
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares (158) (139)
- ------------------------------------------------------------------------------------------------------------------------
Turner
Concentrated
Growth Fund
- -----------------------------------------------------------------------------------------------------------------
10/1/03 year
thru ended
3/31/04 9/30/03
- -----------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment loss $ (262) $ (312)
Net realized gain from securities sold 5,862 11,689
Net change in unrealized appreciation of investments 263 2,298
- -----------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 5,863 13,675
- -----------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares -- --
Class II Shares -- --
Realized capital gains
Class I Shares -- --
Class II Shares -- --
- -----------------------------------------------------------------------------------------------------------------
Total dividends and distributions -- --
- -----------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 11,878 17,521
Cost of shares redeemed (14,215) (13,374)
- -----------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class I Shares transactions (2,337) 4,147
- -----------------------------------------------------------------------------------------------------------------
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 (2,337) 4,147
- -----------------------------------------------------------------------------------------------------------------
Total increase in net assets 3,526 17,822
- -----------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 47,004 29,182
- -----------------------------------------------------------------------------------------------------------------
End of year/period $ 50,530 $ 47,004
- -----------------------------------------------------------------------------------------------------------------
Accumulated net investment loss $ (262) $ --
- -----------------------------------------------------------------------------------------------------------------
Shares issued and redeemed:
Class I Shares
Issued 1,784 3,316
Redeemed (2,151) (2,791)
- -----------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares (367) 525
- -----------------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- --
Issued in lieu of cash distributions -- --
Redeemed -- --
- -----------------------------------------------------------------------------------------------------------------
Increase in Class II Shares -- --
- -----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares (367) 525
- -----------------------------------------------------------------------------------------------------------------
Turner
New
Enterprise Fund
- -------------------------------------------------------------------------------------------------------------------
10/1/03 year
thru ended
3/31/04 9/30/03
- -------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment loss $ (55) $ (57)
Net realized gain from securities sold 34 2,039
Net change in unrealized appreciation of investments 1,627 1,041
- -------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 1,606 3,023
- -------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares -- --
Class II Shares -- --
Realized capital gains
Class I Shares -- --
Class II Shares -- --
- -------------------------------------------------------------------------------------------------------------------
Total dividends and distributions -- --
- -------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 23,555 13,046
Cost of shares redeemed (10,899) (5,799)
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class I Shares transactions 12,656 7,247
- -------------------------------------------------------------------------------------------------------------------
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 12,656 7,247
- -------------------------------------------------------------------------------------------------------------------
Total increase in net assets 14,262 10,270
- -------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 13,468 3,198
- -------------------------------------------------------------------------------------------------------------------
End of year/period $ 27,730 $13,468
- -------------------------------------------------------------------------------------------------------------------
Accumulated net investment loss $ (55) $ --
- -------------------------------------------------------------------------------------------------------------------
Shares issued and redeemed:
Class I Shares
Issued 4,326 3,150
Redeemed (2,135) (1,455)
- -------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares 2,191 1,695
- -------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- --
Issued in lieu of cash distributions -- --
Redeemed -- --
- -------------------------------------------------------------------------------------------------------------------
Increase in Class II Shares -- --
- -------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares 2,191 1,695
- -------------------------------------------------------------------------------------------------------------------
FUNDS 2004 SEMIANNUAL REPORT 53
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Realized and
Net asset unrealized Dividends Distributions
value, Net gains from net from Net asset
beginning investment (losses) on investment capital value, end
of period income (loss) investments income gains of period
- ------------------------------------------------------------------------------------------------------------------------------------
Turner Disciplined Large Cap Growth Fund-- Class I Shares
- ---------------------------------------------------------
2004* $ 4.62 -- 0.50 --** -- $ 5.12
2003 $ 3.50 -- 1.12 --** -- $ 4.62
2002 $ 4.70 -- (1.20) -- -- $ 3.50
2001 $ 9.81 -- (5.11) -- -- $ 4.70
2000 (1) $10.00 -- (0.19) -- -- $ 9.81
- --------------------------------------------------------------
Turner Large Cap Growth Opportunities Fund-- Class I Shares(2)
- --------------------------------------------------------------
2004* $ 9.35 (0.03) 1.37 -- -- $10.69
2003 $ 6.59 (0.06) 2.82 -- -- $ 9.35
2002 $ 9.01 (0.08) (2.34) -- -- $ 6.59
2001 $26.20 (0.10)(3) (11.63) -- (5.46) $ 9.01
2000 $18.90 (0.16) 8.94 -- (1.48) $26.20
1999 $13.22 (0.08) 5.76 -- -- $18.90
- -------------------------------------------
Turner Midcap Growth Fund -- Class I Shares
- -------------------------------------------
2004* $19.54 (0.09) 3.26 -- -- $22.71
2003 $13.78 (0.14) (3) 5.90 -- -- $19.54
2002 $17.40 (0.14) (3.48) -- -- $13.78
2001 $46.52 (0.16) (25.89) -- (3.07) $17.40
2000 $25.53 (0.10) 23.79 -- (2.70) $46.52
1999 $13.87 (0.06) 11.72 -- -- $25.53
- --------------------------------------------
Turner Midcap Growth Fund -- Class II Shares
- --------------------------------------------
2004* $19.36 (0.16) 3.23 -- -- $22.43
2003 $13.72 (0.23) (3) 5.87 -- -- $19.36
2002 $17.41 (0.22) (3) (3.47) -- -- $13.72
2001 (5) $17.30 -- 0.11 -- -- $17.41
- ----------------------------------------------
Turner Small Cap Growth Fund -- Class I Shares
- ----------------------------------------------
2004* $18.88 (0.10) 3.37 -- -- $22.15
2003 $12.62 (0.12) 6.38 -- -- $18.88
2002 $15.65 (0.20) (2.83) -- -- $12.62
2001 $44.79 (0.04) (18.63) -- (10.47) $15.65
2000 $34.20 (0.12) 17.89 -- (7.18) $44.79
1999 $21.49 (0.26) 12.97 -- -- $34.20
- ----------------------------------------------
Turner Micro Cap Growth Fund -- Class I Shares
- ----------------------------------------------
2004* $41.38 (0.20) 9.36 -- 1.01) $49.53
2003 $32.04 (0.25) 9.59 -- -- $41.38
2002 $32.08 (0.33) 0.29(6) -- -- $32.04
2001 $45.92 (0.12) (9.02) -- (4.70) $32.08
2000 $21.09 (0.18) 26.52 -- (1.51) $45.92
1999 (7) $ 9.88 (0.05) 11.26 -- -- $21.09
* For the six-month period ended March 31, 2004. 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.
54 TURNER FUNDS 2004 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 Disciplined Large Cap Growth Fund-- Class I Shares
- ---------------------------------------------------------
2004* 10.93%+ $ 99,101 0.75% 0.88% 0.18% 67.59%
2003 32.01% $ 79,416 0.75% 0.97% 0.03% 201.35%
2002 (25.53)% $ 59,971 0.65% 0.90% -- % 272.99%
2001 (52.09)% $ 53,048 0.74% 1.03% (0.14)% 376.49%
2000 (1) (1.90)%+ $ 4,656 0.75% 3.35% (0.14)% 128.14%
- --------------------------------------------------------------
Turner Large Cap Growth Opportunities Fund-- Class I Shares(2)
- --------------------------------------------------------------
2004* 14.33%+ $ 4,820 1.25% 1.86% (0.66)% 125.96%
2003 41.88% $ 3,551 1.25% 1.53% (0.77)% 282.15%
2002 (26.86)% $ 4,847 1.26%(4) 5.98%(4) (0.71)% 391.98%
2001 (53.71)% $ 9,776 1.25%(4) 3.49%(4) (0.69)% 400.04%
2000 47.49% $ 41,555 0.84%(4) 1.37%(4) (0.71)% 131.19%
1999 42.97% $ 8,459 1.00% 2.41% (0.47)% 370.71%
- -------------------------------------------
Turner Midcap Growth Fund -- Class I Shares
- -------------------------------------------
2004* 16.22%+ $ 965,122 1.12% 1.12% (0.86)% 69.26%
2003 41.80% $ 773,788 1.15% 1.18% (0.87)% 208.80%
2002 (20.80)% $ 561,244 1.05% 1.16% (0.81)% 259.62%
2001 (59.00)% $ 595,761 1.04% 1.12% (0.77)% 335.57%
2000 97.35% $1,203,756 1.03% 1.07% (0.68)% 306.97%
1999 84.07% $ 148,830 1.03% 1.08% (0.53)% 290.79%
- --------------------------------------------
Turner Midcap Growth Fund -- Class II Shares
- --------------------------------------------
2004* 15.86%+ $ 573 1.62% 1.62% (1.36)% 69.26%
2003 41.11% $ 423 1.65% 1.68% (1.36)% 208.80%
2002 (21.19)% $ 102 1.55% 1.66% (1.25)% 259.62%
2001 (5) 0.64%+ $ 7 1.54% 1.95% (1.04)% 335.57%
- ----------------------------------------------
Turner Small Cap Growth Fund -- Class I Shares
- ----------------------------------------------
2004* 17.32%+ $ 233,397 1.25% 1.38% (0.93)% 84.32%
2003 49.60% $ 192,791 1.25% 1.41% (0.79)% 187.95%
2002 (19.36)% $ 144,181 1.25% 1.40% (0.99)% 188.34%
2001 (49.81)% $ 241,876 1.25% 1.40% (0.96)% 176.11%
2000 56.07% $ 528,928 1.25% 1.27% (0.93)% 203.01%
1999 59.14% $ 254,077 1.25% 1.31% (0.98)% 223.61%
- ----------------------------------------------
Turner Micro Cap Growth Fund -- Class I Shares
- ----------------------------------------------
2004* 22.33%+ $ 368,578 1.37% 1.37% (0.91)% 71.79%
2003 29.15% $ 253,840 1.40% 1.44% (0.81)% 147.77%
2002 (0.12)% $ 178,130 1.31% 1.42% (0.88)% 88.89%
2001 (20.23)% $ 160,010 1.25% 1.40% (0.50)% 121.96%
2000 129.02% $ 187,107 1.25% 1.35% (0.79)% 179.08%
1999 (7) 113.46% $ 12,963 0.90% 2.86% (0.47)% 239.32%
(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 Turner Micro Cap Growth
Fund.
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 2004 SEMIANNUAL REPORT 55
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Realized and
Net asset unrealized Dividends Distributions
value, Net gains from net from Net asset
beginning investment (losses) on investment capital value, end
of period loss investments income gains of period
- --------------------------------------------------------------------------------------------------------------------------------
Turner Small Cap Equity Fund -- Class II Shares
- -----------------------------------------------
2004* $12.27 (0.02) 3.00 -- (1.28) $13.97
2003 $ 9.30 (0.02) 3.00 (0.01) -- $12.27
2002 (1) $10.00 -- (0.70) -- -- $ 9.30
- ----------------------------------------
Turner Technology Fund -- Class I Shares
- ----------------------------------------
2004* $ 5.31 (0.04) 1.01 -- -- $ 6.28
2003 $ 3.03 (0.04) 2.32 -- -- $ 5.31
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 (2) $10.00 (0.02) 4.08 -- -- $14.06
- ------------------------------------------------
Turner Concentrated Growth Fund-- Class I Shares
- ------------------------------------------------
2004* $ 6.05 (0.04) 0.81 -- -- $ 6.82
2003 $ 4.03 (0.04) 2.06 -- -- $ 6.05
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 (2) $10.00 (0.02) 4.01 -- -- $13.99
- --------------------------------------------
Turner New Enterprise Fund -- Class I Shares
- --------------------------------------------
2004* $ 4.34 (0.01) 0.91 -- -- $ 5.24
2003 $ 2.27 (0.02) 2.09 -- -- $ 4.34
2002 $ 3.29 (0.04) (0.98) -- -- $ 2.27
2001 (3) $12.52 (0.03) (9.20) -- -- $ 3.29
2000 (4) $10.00 (0.01) 2.53 -- -- $12.52
* For the six-month period ended March 31, 2004. 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) Commenced operations on March 4, 2002. All ratios for the period have been
annualized.
(2) Commenced operations on June 30, 1999. All ratios for the period have been
annualized.
(3) 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 Turner New Enterprise
Fund and to change a non-fundamental investment policy of the Fund to be
consistent with the Turner New Enterprise Fund's investment objectives.
(4) Commenced operations on June 30, 2000. 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.
56 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
Ratio of net
Net Ratio of Ratio of total investment
assets end net expenses expenses loss Portfolio
Total of period to average to average to average turnover
return (000) net assets++ net assets net assets++ rate+++
- ------------------------------------------------------------------------------------------------------------------------------------
Turner Small Cap Equity Fund -- Class II Shares
- -----------------------------------------------
2004* 25.19%+ $ 23,265 1.35% 1.68% (0.38)% 102.78%
2003 32.04% $ 12,557 1.32% 2.05% (0.26)% 287.39%
2002 (1) (7.00)%+ $ 7,260 1.35% 3.02% (0.07)% 86.94%
- ----------------------------------------
Turner Technology Fund -- Class I Shares
- ----------------------------------------
2004* 18.27%+ $ 22,275 1.66% 1.82% (1.50)% 203.12%
2003 75.25% $ 19,696 1.13% 1.49% (0.97)% 523.75%
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 (2) 40.60%+ $ 8,296 1.35% 3.89% (0.87)% 317.32%
- ------------------------------------------------
Turner Concentrated Growth Fund-- Class I Shares
- ------------------------------------------------
2004* 12.73%+ $ 50,530 1.43% 1.58% (1.00)% 299.78%
2003 50.12% $ 47,004 1.23% 1.60% (0.90)% 762.18%
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 (2) 39.90%+ $ 16,112 1.35% 2.55% (0.87)% 369.11%
- --------------------------------------------
Turner New Enterprise Fund -- Class I Shares
- --------------------------------------------
2004* 20.74%+ $ 27,730 0.97% 1.21% (0.52)% 157.59%
2003 91.19% $ 13,468 1.16% 1.99% (0.95)% 451.37%
2002 (31.00)% $ 3,198 0.98% 2.04% (0.92)% 754.09%
2001 (3) (73.72)% $ 6,144 1.28% 3.13% (1.04)% 758.98%
2000 (4) 25.20%+ $ 13,750 1.35% 2.87% (0.83)% 83.02%
TURNER FUNDS 2004 SEMIANNUAL REPORT 57
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
March 31, 2004
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 21 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 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") and the Turner New Enterprise Fund (the "New
Enterprise Fund"), each a "Fund" and collectively the "Funds". The financial
statements of the remaining funds are presented separately.
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 and the Concentrated Growth Fund, each of which are
non-diversified.
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, 2004, 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 Micro Cap Growth Fund was closed to new investors as of March 7, 2000.
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 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 are stated at the official closing 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. Equity securities that are traded on the NASDAQ National Market System
for which quotations are readily available are valued at the official closing
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 (the "Board"). 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.
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.
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 writes 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 writing or purchasing options,
which expire unexercised, 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, 2004.
58 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
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 100%.
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 specifically attributed to one of the Funds are
charged to that Fund. Certain other expenses of the Funds are prorated among
the Funds on the basis of relative daily net assets. Other common expenses of
the Trust are allocated among the Funds on the basis of relative daily net
assets.
CLASSES--Class specific expenses are borne by that class. Income, non-class
specific expenses and realized/unrealized gains and losses are allocated to
the respective classes on the basis of the relative daily net assets.
DIVIDENDS AND DISTRIBUTIONS--The Funds declare and distribute net investment
income, if any, annually, as a dividend to shareholders. Any net realized
capital gains on sales of securities for all Funds are distributed to
shareholders at least annually.
3. TRANSACTIONS WITH AFFILIATES:
Certain officers of the Trust are also officers of Turner Investment Partners,
Inc. ("Turner") and SEI Investments Global Funds Services ("SEI") 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 Trust has entered into an agreement with SEI Investments Distribution Co.,
an affiliate of SEI, to act as an agent in placing repurchase agreements for the
Funds. For its services, SEI Investments Distribution Co. received $4,394 for
the six-months ended March 31, 2004. Effective October 24, 2003, this Agreement
was discontinued.
Certain Funds effect trades through Turner Investment Distributors, Inc.,
(currently known as Constellation Investment Distribution Company, Inc.) the
distributor for the Funds, for security purchases and sales transactions.
Commissions paid on those trades from the Trust for the six-months ended March
31, 2004 were $1,721,498.
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, SEI provides sub-administrative services to the Trust.
For the six-months ended March 31, 2004, SEI was paid $918,192 by Turner.
Constellation Investment Distribution Company, Inc., (the "Distributor")
provides distribution services to the Funds under a Distribution Agreement.
Prior to March 15, 2004, Turner Investment Distributors, Inc., a broker dealer
subsidiary of Turner, provided distribution services to the Funds. The
Distributor 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,
Small Cap Equity and Concentrated Growth 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, as amended, 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. serves as the transfer agent and dividend disbursing agent for
the Funds under a transfer agency agreement with the Trust. The Funds reimburse
Turner for amounts paid to third parties that provide sub-transfer agency and
other administrative services to the Funds.
5. INVESTMENT ADVISORY AGREEMENT:
The Trust and Turner are parties to an Investment Advisory Agreement dated April
28, 1996 under which Turner receives a fee, that is calculated daily and paid
monthly, based on the average daily net assets of certain Funds. Pursuant to an
Advisory Agreement dated February 28, 2002, Turner Investment Management, LLC,
an affiliate of Turner serves as the investment adviser for the Small Cap Equity
Fund.
For its services, Turner and Turner Investment Management, LLC receive annual
fees, which are calculated daily and paid
TURNER FUNDS 2004 SEMIANNUAL REPORT 59
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
monthly, based on average daily net assets. 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.
Accordingly, the advisory fee and expense caps for certain funds are as follows:
TOTAL
ADVISORY EXPENSE
FEES CAP
----- ------
Disciplined Large Cap Growth Fund 0.60% 0.75%
Large Cap Growth Opportunities Fund 0.75 1.25
Midcap Growth Fund 0.75 1.25(1)
Small Cap Growth Fund 1.00 1.25
Micro Cap Growth Fund 1.00 1.40
Small Cap Equity Fund(2) 0.85 1.35
(1) REPRESENTS MAXIMUM EXPENSE RATIO FOR CLASS I SHARES WHERE FUNDS OFFER BOTH
CLASS I SHARES AND CLASS II SHARES.
(2) TURNER MANAGEMENT, LLCHAS 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, 2005.
For the remaining Funds, 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 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.
In cases where the advisory fee is comprised of a base fee and a performance
adjustment, 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
base advisory fee, annual adjustment rate, over/under performance relative to
the benchmark threshold, and other expense cap are as follows:
BASE ANNUAL OTHER
ADVISORY ADJUSTMENT BENCHMARK EXPENSES
FEE RATE THRESHOLD(1) CAP
------ ------- ----------- ------
Technology Fund 1.10% +/-0.40% +/-2.00% 0.50%
Concentrated Growth Fund 1.10 +/-0.40 +/-2.50 0.25
New Enterprise Fund 1.10 +/-0.40 +/-2.50 0.25
(1) SEE THE FUND'S PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION FOR MORE
INFORMATION REGARDING THE FUNDS' PERFORMANCE BENCHMARK.
During the six-months
ended March 31, 2004, the Funds' advisory fees were adjusted in accordance with
the policy described above:
BASE NET ADVISER
ADVISER PERFORMANCE FEE BEFORE
FEE ADJUSTMENT WAIVERS
------- ---------- -----------
Technology Fund $127,087 $ 6,590 $133,677
Concentrated Growth Fund 286,866 20,329 307,195
New Enterprise Fund 116,898 (39,944) 76,954
6. INVESTMENT TRANSACTIONS:
The cost of security purchases and the proceeds from security sales, other than
short-term investments, for the six-months ended March 31, 2004, were as follows
(000):
PURCHASES SALES
FUND (000) (000)
- ---- --------- ----------
Disciplined Large Cap
Growth Fund $ 70,555 $ 60,628
Large Cap Growth
Opportunities Fund 6,071 5,368
Midcap Growth Fund 686,791 608,568
Small Cap Growth Fund 193,474 187,260
Micro Cap Growth Fund 248,238 210,602
Small Cap Equity Fund 24,913 17,536
Technology Fund 46,132 47,560
Concentrated Growth Fund 152,424 155,626
New Enterprise Fund 44,781 32,215
7. FEDERAL TAX POLICIES AND INFORMATION:
Each of the Funds is classified as a separate taxable entity for Federal income
tax purposes. Each of the Funds intends to continue to qualify as a separate
"regulated investment company" under the Internal Revenue Code and make the
requisite distributions to shareholders that will be sufficient to relieve it
from Federal income tax and Federal excise tax. Therefore, no Federal tax
provision is required. 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
60 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
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. 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.
The tax character of dividends and distributions paid during the periods ended
September 30, 2003 and September 30, 2002 were as follows (000):
ORDINARY LONG-TERM RETURN OF
INCOME CAPITAL GAIN CAPITAL TOTAL
------- ----------- -------- -----
Disciplined Large Cap Growth Fund
2003 $ 3 $ -- $ -- $ 3
2002 -- -- -- --
Small Cap Equity Fund
2003 6 -- -- 6
2002 -- -- -- --
As of September 30, 2003, the components of distributable earnings (accumulated
losses) on a tax basis were as follows (000):
UNDISTRIBUTED UNDISTRIBUTED CAPITAL POST-
ORDINARY LONG-TERM LOSS OCTOBER
INCOME CAPITAL GAIN CARRYFORWARD LOSSES
------------ ------------- ------------ -------
Disciplined Large Cap Growth Fund $ 19 $ -- $ (33,893) $ --
Large Cap Growth Opportunities Fund -- -- (13,569) --
Midcap Growth Fund -- -- (690,557) --
Small Cap Growth Fund -- -- (183,242) --
Micro Cap Growth Fund -- 2,024 -- --
Small Cap Equity Fund 582 166 -- --
Technology Fund -- -- (133,052) --
Concentrated Growth Fund -- -- (160,332) --
New Enterprise Fund -- -- (9,219) --
TOTAL
DISTRIBUTABLE
OTHER EARNINGS
UNREALIZED TEMPORARY (ACCUMULATED
APPRECIATION DIFFERENCES LOSSES)
------------ ----------- ------------
Disciplined Large Cap Growth Fund $ 7,565 $ -- $ (26,309)
Large Cap Growth Opportunities Fund 330 -- (13,239)
Midcap Growth Fund 120,632 -- (569,925)
Small Cap Growth Fund 33,025 -- (150,217)
Micro Cap Growth Fund 52,630 (1) 54,653
Small Cap Equity Fund 1,388 -- 2,136
Technology Fund 1,636 -- (131,416)
Concentrated Growth Fund 787 -- (159,545)
New Enterprise Fund 714 -- (8,505)
Post-October losses represent losses realized on investment transactions from
November 1, 2002 through September 30, 2003 that, in accordance with Federal
income tax regulations, a Fund may elect to defer and treat as having arisen in
the following year. For Federal income tax purposes, capital loss carryforwards
may be carried forward and applied against future capital gains.
At September 30, 2003, the Funds had capital loss carryforwards available to
offset future realized capital gains through the indicated expiration dates
(000):
EXPIRING SEPTEMBER 30,
---------------------------------------------------------------------
2009 2010 2011 TOTAL
-------- --------- --------- ----------
Disciplined Large Cap Growth Fund $ 468 $ 18,287 $ 15,138 $ 33,893
Large Cap Growth Opportunities Fund 2,029 8,526 3,014 13,569
Midcap Growth Fund 44,477 516,580 129,500 690,557
Small Cap Growth Fund 26,939 130,308 25,995 183,242
Technology Fund 16,482 108,584 7,986 133,052
Concentrated Growth Fund 14,953 132,529 12,850 160,332
New Enterprise Fund 1,651 7,183 385 9,219
During the year ended September 30, 2003, the Microcap Growth Fund utilized
capital loss carryforwards of $5,961,448 to offset capital gains.
TURNER FUNDS 2004 SEMIANNUAL REPORT 61
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
At March 31,2004, 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
FEDERAL UNREALIZED UNREALIZED UNREALIZED
FUND TAX COST APPRECIATION DEPRECIATION APPRECIATION
- ---- --------- ------------ ------------ --------------
Disciplined Large Cap Growth Fund $ 85,798 $ 13,951 $ (986) $ 12,965
Large Cap Growth Opportunities Fund 4,245 617 (56) 561
Midcap Growth Fund 823,365 205,573 (12,972) 192,601
Small Cap Growth Fund 202,728 48,564 (4,243) 44,321
Micro Cap Growth Fund 388,969 80,903 (5,956) 74,947
Small Cap Equity Fund 21,697 3,593 (189) 3,404
Technology Fund 21,507 2,573 (712) 1,861
Concentrated Growth Fund 52,250 2,142 (942) 1,200
New Enterprise Fund 28,880 2,925 (592) 2,333
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.
The Funds enter into contracts that contain a variety of indemnifications. The
Funds' maximum exposure under these arrangements is unknown. However, the Funds
have not had prior claims or losses pursuant to these contracts and expect the
risk of loss to be remote.
9. 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. All such investments are made at
the risk of the Funds and, as such, the Funds are liable for investment losses.
The Funds are receiving an annual fee for their participation in the Lending
Agreement which is allocated among participating Turner Funds based on estimated
lending activity.
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.
10. SUBSEQUENT EVENT
Effective May 10, 2004, the Large Cap Value Fund, Core Value Fund, Small Cap
Value Fund, Small Cap Value Opportunities Fund, Financial Services Fund,
Healthcare & Biotechnology Fund, Tax Managed U.S. Equity Fund, Strategic Value
and High Income Fund, Core Fixed Income Fund, High Yield Fund, Ultra Short
Duration Fixed Income Fund and Short Duration Fixed Income Fund (each a "Turner
Fund" and collectively the "Turner Funds") will reorganize each Turner Fund into
a substantially similar series (each a "Constellation Fund" and collectively the
"Constellation Funds") of Constellation Funds (the "Constellation Trust") in a
tax-free reorganization. Each shareholder will receive a number of shares of a
Constellation Fund equal in dollar value and in the number of shares of each
Turner Fund as of May 10, 2004. Each Constellation Fund will have the same
investment objectives and policies, and substantially the same risks, policies,
restrictions and limitations, as an existing Turner Fund. Constellation
Investment Management Company is the Investment Adviser to the Constellation
Funds.
62 TURNER FUNDS 2004 SEMIANNUAL REPORT
TRUSTEES AND OFFICERS OF THE TRUST (Unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
TERM OF
OFFICE NUMBER OF
AND PORTFOLIOS IN
POSITION LENGTH COMPLEX OTHER
HELD WITH OF TIME PRINCIPAL OCCUPATION(S) 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 21 ACP Funds,
1205 Westlakes Drive since 1996 of Turner since 1990. Bradley University,
Suite 100 Episcopal Academy,
Berwyn, PA 19312 Westlakes
(47) Institutiona
Portfoli
- ------------------------------------------------------------------------------------------------------------------------------------
*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 21 Alpha Select
13 Fountain Court since 1996 Health Care Pension Fund since 1995, Funds
Cherry Hill, NJ 08034 and Assistant Treasurer, 1988-1995.
(45)
- ------------------------------------------------------------------------------------------------------------------------------------
Janet F. Sansone Trustee Trustee Self-employed. Consultant since 1999. 21 N/A
1023 North Pitt Street since 1997 Senior Vice President of Human Resources
Alexandria, VA 22314-1525 of Frontier Corporation (telecommunica-
(58) tions company), (1993-1999).
- ------------------------------------------------------------------------------------------------------------------------------------
Dr. John T. Wholihan Trustee Trustee Professor and Dean, Loyola Marymount 21 TDK Mediactive
1 LMU Boulevard since 1996 University, since 1984. Director, TDK
Los Angeles, CA 90045-8395 Mediactive.
(65)
- ------------------------------------------------------------------------------------------------------------------------------------
EXECUTIVE OFFICERS
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas R. Trala, Jr. President President Chief Operating Officer of Turner since N/A N/A
1205 Westlakes Drive since 2004 2004 and Chief Financial Officer since
Suite 100 1995.
Berwyn, PA 19312
(37)
- ------------------------------------------------------------------------------------------------------------------------------------
Brian M. Ferko Vice Vice President TID Vice President, Director of Mutual N/A N/A
1205 Westlakes Drive President & & Assistant Fund Administration and Operations for
Suite 100 Assistant Secretary the Turner Funds since 1997.
Berwyn, PA 19312 Secretary since 2000 Relationship Manager, SEI
(32) Investments (1995-1997).
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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 Financial Financial 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
(39) Accounting, Chase Manhattan Bank,
June 1997 to March 2000.
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Lydia A. Gavalis Vice Vice Vice President and Assistant Secretary of N/A N/A
SEI Investments, President President SEI Investments since 1998. Assistant
One Freedom and Assistant and General Counsel and Director of
Valley Drive Secretary Assistant Arbitration, Philadelphia Stock
Oaks, PA 19456 Secretary Exchange, 1989-1998.
(39) since 1999
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TURNER FUNDS 2004 SEMIANNUAL REPORT 63
TRUSTEES AND OFFICERS OF THE TRUST (Unaudited)
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TERM OF
OFFICE NUMBER OF
AND PORTFOLIOS IN
POSITION LENGTH COMPLEX OTHER
HELD WITH OF TIME PRINCIPAL OCCUPATION(S) OVERSEEN DIRECTORSHIPS
NAME, ADDRESS, AND AGE THE FUND SERVED DURING PAST 5 YEARS BY TRUSTEE HELD
- ------------------------------------------------------------------------------------------------------------------------------------
EXECUTIVE OFFICERS (CONTINUED)
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William E. Zitelli, Jr. Vice Vice Vice President and Assistant N/A N/A
SEI Investments, President President Secretary of SEI Investments
One Freedom and and since August 2000. Vice
Valley Drive Assistant Assistant President, Merrill Lynch &
Oaks, PA 19456 Secretary Secretary Co. Asset Management Group
(35) since 2000 (1998-2000). Associate at
Pepper Hamilton LLP
(1997-1998). Associate
at Reboul, MacMurray, Hewitt,
Maynard & Kristol (1994-1997).
- ------------------------------------------------------------------------------------------------------------------------------------
Timothy D. Barto Vice Vice Vice President and Assistant N/A N/A
SEI Investments, President President Secretary of SEI Investments
One Freedom and and since December 1999. Associate
Valley Drive Assistant Assistant at Dechert Price & Rhoads
Oaks, PA 19456 Secretary Secretary (1997-1999). Associate at
(35) since 2000 Richter, Miller & Finn
(1994-1997).
- ------------------------------------------------------------------------------------------------------------------------------------
Christine M. McCullough Vice Vice Vice President and Assistant Secretary N/A N/A
SEI Investments, President President of SEI Investments since December
One Freedom and and 1999. Associate at White and Williams
Valley Drive Assistant Assistant LLP (1991-1999). Associate at Montgomery,
Oaks, PA 19456 Secretary Secretary McCracken, Walker & Rhoads (1990-1991).
(42) since 2000
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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 and Secretary since 2002 with Bank of America (September 1997-
Berwyn, PA 19312 Secretary July 2002)
(45) since 2004
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64 TURNER FUNDS 2004 SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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
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
CONSTELLATION INVESTMENT DISTRIBUTION
COMPANY, INC.
Berwyn, Pennsylvania
ADMINISTRATOR
TURNER INVESTMENT PARTNERS, INC.
Berwyn, 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.
The Board of Trustees of the Trust has delegated responsibility for decisions
regarding proxy voting for securities held by each Fund to Turner Investment
Management, LLC ("TIM") (with respect to the Small Cap Equity Fund only) and to
Turner Investment Partners, Inc. (with respect to each other Fund). TIM and
Turner Investment Partners, Inc., will vote such proxies in accordance with
their respective proxy policies and procedures, which are included in Appendix B
to the SAI. The Board of Trustees will periodically review each Fund's proxy
voting record.
Beginning in 2004, the Trust will be required to disclose annually each Fund's
complete proxy voting record on new Form N-PX. The first filing of Form N-PX
will cover the period from July 1, 2003 through June 30, 2004, and is due no
later than August 31, 2004. Once filed, Form N-PX for each Fund will be
available via the Funds' website, www.turnerinvestments.com. Each Fund's Form
N-PX will also be available on the SEC's website at http://www.sec.gov.
TURNER FUNDS
- ------------------------------------------
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 1. Reports to Stockholders.
Item 2. Code of Ethics.
Not applicable for semi-annual report.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual report.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual report.
Item 5. Audit Committee of Listed Registrants.
Not applicable to open-end investment management companies.
Item 6. (Reserved)
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable to open-end investment management companies.
Item 8. Purchasers of Equity Securities by Closed-End Management Company and
Affiliated Purchasers.
Not applicable.
Item 9. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 10. 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 11. Exhibits.
(a)(1) Not applicable for semi-annual report.
(a)(2) A separate certification for the principal executive officer and the
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Investment Company Act of 1940, as amended (17 CFR 270.30a-2(a)), are filed
herewith.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment
Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing
as an Exhibit.
- --------------------------------------------------------------------------------
SIGNATURES
Pursuant to the requirements of the securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Turner Funds
By (Signature and Title)* /s/ Thomas R. Trala, Jr.
----------------------------------
Thomas R. Trala, Jr., President
Date 5/24/04
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/ Thomas R. Trala, Jr.
----------------------------------
Thomas R. Trala, Jr., President
Date 5/24/04
By (Signature and Title)* /s/ Peter J. Golden
----------------------------------
Peter J. Golden, Controller and CFO
Date 5/24/04
* Print the name and title of each signing officer under his or her signature.