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
Item 1. Reports to Stockholders.
[LOGO OMITTED]
May 2004
REPORT TO SHAREHOLDERS
[LOGO OMITTED]
To our Constellation Funds Shareholders:
Welcome! We are very excited to provide mutual funds that meet your investment
objectives and look forward to offering products and services to meet your
goals. We are committed to picking up where the Turner Funds left off, and to
ensuring that the change to Constellation has only a positive impact on
shareholders.
The results presented in this Semi-Annual Report are for the six month period
ended March 31, 2004. On that date, the Funds were still part of the Turner
Funds family, and the enclosed financial statements were prepared by management
for the Turner Funds. As a result, though, the Funds are referred to in the
financial schedules as Turner Funds. That will not recur.
We have provided with this letter a write-up on each Fund that came over from
Turner Funds to the Constellation Funds family on May 10, 2004. We will provide
quarterly commentary on all of these Funds, and will post holdings and
attribution-related information on the Funds on our website,
www.Constellationfundsgroup.com. You can also use our website to perform
transactions, such as buys, sells and exchanges. (Our website is currently under
development, but this functionality is available to you now.) Please use the
website going forward to obtain up-to-date information regarding the
Constellation Funds.
Alternatively, a Constellation Funds Shareholder Service Representative is ready
to assist you with any questions you may have regarding your Constellation Funds
account. The Constellation Funds Shareholder Service Group can be reached at
1-866-242-5742 Monday through Friday from 8:30 a.m. till 8:00 p.m. (EST). You
can also automatically access NAVs, performance information and account balances
by calling 1-866-242-5742.
Thank you for your support of the Constellation Funds Group. We aim to provide
best of class services that will help you meet your goals, and hope to continue
our relationship for years to come.
Sincerely,
[SIG]
John H. Grady
President, Constellation Funds
[LOGO OMITTED]
The CONSTELLATION CLOVER CORE VALUE FUND (FORMERLY KNOWN AS THE TURNER CORE
VALUE FUND) climbed 20.02%, surpassing the Russell 3000 Index's 14.94% gain by
5.08 percentage points. The Fund's energy and consumer stocks, especially the
issues of refiners and consumer-services companies with an international
presence, proved well chosen and were favorable catalysts to performance.
Hurting performance was an overweighting in health-care stocks, which lagged,
and disk-drive stocks in the technology sector that dropped following reports of
excess inventories in that industry.
THE CONSTELLATION CLOVER LARGE CAP VALUE FUND (FORMERLY KNOWN AS THE TURNER
LARGE CAP VALUE FUND) advanced 15.84%, trailing the Russell 1000 Value Index by
1.84 percentage points. Making positive contributions were utility stocks
(particularly stocks of "multi-utilities" that compete in both the regulated and
unregulated spheres of natural-gas and electricity markets) and
medical-equipment stocks. Impairing performance were the "Baby Bell"
regional-telecommunications stocks, which didn't do as well as lower-quality,
more speculative telecommunications shares did.
An emphasis on cyclical stocks helped the Constellation CLOVER SMALL CAP VALUE
FUND (FORMERLY KNOWN AS THE TURNER SMALL CAP VALUE FUND) to climb 24.97% and
outperform the Russell 2000 Value Index by 0.55 percentage points. Many of the
cyclical stocks the Fund owned benefited not only from solid earnings growth but
from an expansion of their price/earnings multiples. Retailing and
consumer-staples stocks led the way. Consumer-staples holdings did especially
well late in the period, benefiting from their issuers' historic ability to
generate dependable earnings growth -- an ability that was especially prized as
investors grew more cautious about the stock market's outlook. Energy and
financial stocks constrained performance.
The CONSTELLATION TIP SMALL CAP VALUE OPPORTUNITIES FUND (FORMERLY KNOWN AS THE
TURNER SMALL CAP VALUE OPPORTUNITIES FUND) generated the highest return of any
of our stock funds, 27.36%. The Fund's return outdid that of the Russell 2000
Value Index by 2.94 percentage points. Stock selection was generally admirable,
with six of 10 sector positions outperforming their index sectors. A 17%
position in autos/transportation and materials/processing stocks added the most
value to performance. Consumer-discretionary/services and technology stocks
produced subpar returns. The biggest gain came from the Fund's producer-durables
holdings, which soared 62%.
Good performance in major sector positions led the CONSTELLATION TIP TAX MANAGED
U.S. EQUITY FUND (FORMERLY KNOWN AS TURNER TAX MANAGED U.S. EQUITY FUND) to a
14.30% gain, trumping -- that is, outdoing, as opposed to the Trumping on the
hit reality-TV show The Apprentice -- the S&P 500 Index by 0.22 percentage
points. Contributing the most to results were
[LOGO OMITTED]
outperforming investments in the technology, consumer-discretionary/services,
materials/ processing, and health-care sectors, which accounted for 51% of
holdings. Materials/processing stocks, mainly semiconductor-capital-equipment
shares, reaped the biggest gain, 35%. Good absolute but relatively weak returns
in the financial-services sector, a 22% weighting, subtracted from results.
PERFORMANCE OF OUR SPECIALTY/SECTOR FUNDS
Discerning stock selection in companies with strong earnings prospects led to
double-digit gains for all four of our specialty/sector funds in the past six
months. The bulk of these gains were earned in the first half of the period. All
four outperformed their benchmarks.
Low interest rates, good earnings news, and rising capital markets were among
the catalysts driving financial-services stocks and the CONSTELLATION TIP
FINANCIAL SERVICES FUND (FORMERLY TURNER FINANCIAL SERVICES FUND). Also, both
the sector and the Fund profited from indications by the Federal Reserve that it
would keep interest rates low for some time (low rates have traditionally helped
boost the industry's profitability). The Fund returned 18.30%, beating the S&P
500 Financials Sector Index's 17.27% advance by 1.03 percentage points.
Contributing the most to the Fund's results were good relative returns in
brokerage, investment-management, diversified financial-services, and banking
stocks. Positions in financial-transaction-processing stocks, which were among
the sector's most richly priced, and mortgage stocks impaired results.
The CONSTELLATION TIP HEALTHCARE & BIOTECHNOLOGY FUND (FORMERLY KNOWN AS THE
TURNER HEALTHCARE & BIOTECHNOLOGY FUND) continued to perform better than the
lackluster health-care sector did; the sector's lack of pricing power and
disappointing earnings reports by prominent pharmaceutical companies remained
problematic. The Fund soared 15.78%, outperforming the S&P 500 Health Care
Sector Index's 7.85% gain by 7.93 percentage points. That outperformance
reflected an avoidance of the major pharmaceutical stocks and good relative
returns in biotechnology, specialty-pharmaceutical, medical-products, and
diagnostic-laboratory stocks. Positions in hospital-management stocks diminished
results.
The combination of small-cap value stocks and high-yield bonds remained
profitable for the CONSTELLATION STRATEGIC VALUE AND HIGH INCOME FUND (FORMERLY
KNOWN AS THE TURNER STRATEGIC VALUE AND HIGH INCOME FUND). The Fund gained
16.06%, surpassing the benchmark S&P 500 Index's 14.08% return by 1.98
percentage points. The small-cap stock component of the Fund returned more than
the high-yield bond component did. Winners included autos/transportation,
materials/processing, producer-durables, and utilities/communication stocks and
B-rated bonds in the packaging, household-products, utilities,
telecommunications, and cable-TV industries.
[LOGO OMITTED]
PERFORMANCE OF OUR FIXED INCOME FUNDS
Even as the economy picked up momentum, job growth remained generally sluggish
in the past six months. As a result the Federal Reserve hinted it was in no
hurry to raise rates anytime soon. That served to help steady the bond market.
Interest rates fell modestly at most maturities and boosted bond prices
modestly.
The CONSTELLATION CLOVER CORE FIXED INCOME FUND (FORMERLY KNOWN AS THE TURNER
CORE FIXED INCOME FUND) was up 2.42%, trailing the Lehman Brothers Aggregate
Bond Index's 2.98% return. The Fund's performance was diluted by a loss in a
health-care security, a high average credit quality (AA), and an underweighting
in corporate securities with longer maturities that provided the best
risk/reward profile. Government-bond holdings -- Treasury and agency securities
- -- enhanced results.
The CONSTELLATION CHARTWELL HIGH YIELD FUND (FORMERLY KNOWN AS THE TURNER HIGH
YIELD FUND) gained 5.13%, trailing the Merrill Lynch High-Yield, Cash-Pay
Index's 8.21% rise. The Fund's underperformance can be attributed almost
entirely to its average credit quality, BB, the highest in the
noninvestment-grade market. High-yield performance correlated inversely with
credit quality: the lower the quality, the better the performance. At the same
time, high-yield/Treasury spreads have shrunk markedly, from nine percentage
points in 2002 to four percentage points as of March 2004. Cyclical holdings in
industries such as packaging furnished extra return.
The CONSTELLATION CHARTWELL SHORT DURATION FIXED INCOME FUND (FORMERLY KNOWN AS
THE TURNER SHORT DURATION FIXED INCOME FUND - CLASS I SHARES) recorded a 1.30%
return, outdistancing the Lehman Brothers 1-3 Year U.S. Government Bond Index's
1.25% rise. The Fund had a 72% weighting in mortgage-backed securities, mainly
shorter-maturity mortgages that were relatively immune to prepayment risk and
offered extra income. An 8% weighting in corporate securities also added value.
A neutral average duration proved slightly counterproductive in a period when
rates fell.
The CONSTELLATION CHARTWELL ULTRA SHORT DURATION FIXED INCOME FUND (FORMERLY
KNOWN AS THE TURNER ULTRA SHORT DURATION FIXED INCOME FUND - CLASS I SHARES)
gained 0.97%, outperforming the Merrill Lynch Three-Month U.S. Treasury Bill
Index's 0.50% result by 0.47 percentage points. The Fund benefited from an 82%
weighting in short-term mortgage-backed securities that offered relatively
attractive yields; the yield advantage of short-duration mortgages was
substantial over Treasury bills, ranging from 1-1.5 percentage points during the
period. An average duration of 0.50 years, longer than the index's 0.25 years,
enhanced the Fund's price appreciation. A 1% weighting in agency securities
underperformed.
Turner Funds SEMIANNUAL REPORT
MARCH 31, 2004 (UNAUDITED)
VALUE FUNDS
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Turner Large Cap Value Fund
Turner Core Value Fund
Turner Small Cap Value Fund
Turner Small Cap Value Opportunities Fund
SECTOR/SPECIALTY FUNDS
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Turner Financial Services Fund
Turner Healthcare & Biotechnology Fund
Turner Tax Managed U.S. Equity Fund
Turner Strategic Value and High Income Fund
FIXED INCOME FUNDS
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Turner Core Fixed Income Fund
Turner High Yield Fund
Turner Ultra Short Duration Fixed Income Fund
Turner Short Duration Fixed Income Fund
<page>
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CONTENTS
1 Total returns of Turner Funds
3 Investment review:
Turner Large Cap Value Fund
4 Investment review:
Turner Core Value Fund
5 Investment review:
Turner Small Cap Value Fund
6 Investment review:
Turner Small Cap Value
Opportunities Fund
7 Investment review:
Turner Financial Services Fund
8 Investment review:
Turner Healthcare & Biotechnology Fund
9 Investment review:
Turner Tax Managed U.S. Equity Fund
10 Investment review:
Turner Strategic Value and High Income Fund
11 Investment review:
Turner Core Fixed Income Fund
12 Investment review:
Turner High Yield Fund
13 Investment review:
Turner Ultra Short Duration Fixed Income Fund
14 Investment review:
Turner Short Duration Fixed Income Fund
16 Financial Statements
72 Notes to Financial Statements
78 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 funds under the Constellation
Funds, a separate fund family. The enclosed report is for the twelve funds that
will reorganize. The minimum initial investment in a Turner Fund for regular
accounts is $2,500 and $2,000 for individual retirement accounts. The minimum
amount for subsequent investments is $50.
Turner Investment Management, LLC, an affiliate of Turner Investment Partners,
serves as the investment adviser for the Small Cap Value Opportunities 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 $12 billion in equity, fixed-income, and
balanced portfolios on behalf of individuals and institutions.
Clover Capital Management, Inc., based in Pittsford, New York, serves as the
investment sub-adviser to the Large Cap Value, Core Value and Small Cap Value
Funds and the Core Fixed Income Fund.
SHAREHOLDER SERVICES
Turner Funds shareholders receive annual and semiannual reports, quarterly
account statements and a quarterly newsletter. Shareholders who have questions
about their accounts may call a toll-free
telephone number, 1-800-224-6312, visit our website, www.turnerinvestments.com.
Or they may write to Turner Funds, P.O. Box 219805, Kansas City, Missouri
64121-9805.
<page>
PERFORMANCE
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TOTAL RETURNS OF TURNER FUNDS
Through March 31, 2004
Year (Annualized) Total
Six to One Three Five Ten Since Assets
Fund Name/Index Months Date Year Years Years Years inception ($mil)
VALUE
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TURNER LARGE CAP VALUE FUND 15.84 2.65 39.69 1.06 3.83 N/A 4.96 $6.89
Russell 1000 Value Index 17.68 3.06 40.86 4.32 3.89 n/a 5.77
INCEPTION DATE: 10/31/97
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TURNER CORE VALUE FUND(1) 20.02 4.26 51.10 10.58 11.25 12.19 12.07 $58.81
Russell Midcap Value Index 21.38 5.35 51.60 11.71 10.57 13.96 14.90
Russell 3000 Index 14.94 2.23 38.19 1.95 0.14 11.45 11.43
INCEPTION DATE: 12/6/91
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TURNER SMALL CAP VALUE FUND(1) 24.97 6.95 73.54 13.39 20.79 N/A 15.71 $515.93
Russell 2000 Value Index 24.42 6.92 64.49 16.02 16.14 n/a 13.53
INCEPTION DATE: 2/28/96
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TURNER SMALL CAP VALUE
OPPORTUNITIES FUND(1) 27.36 7.47 73.64 N/A N/A N/A 26.24 $20.93
Russell 2000 Value Index 24.42 6.92 64.49 n/a n/a n/a 14.10
INCEPTION DATE: 3/4/02
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SPECIALTY
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TURNER FINANCIAL
SERVICES FUND(2) 18.30 4.35 59.30 7.90 8.03 N/A 13.84 $17.05
S&P 500 Financials Index 17.27 4.87 44.79 5.72 5.40 n/a 14.12
INCEPTION DATE: 5/22/96
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TURNER HEALTHCARE &
BIOTECHNOLOGY FUND(1)(2) 15.78 6.51 38.37 14.59 N/A N/A 12.25 $19.12
S&P 500 Healthcare Index 7.85 (0.55) 13.08 (1.36) n/a n/a (3.76)
INCEPTION DATE: 2/28/01
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TURNER TAX MANAGED
U.S. EQUITY FUND 14.30 2.68 39.24 0.44 N/A N/A (2.70) $5.78
After Taxes (Pre-Liquidation)(3) 14.30 2.68 39.24 0.44 n/a n/a (2.70)
After Taxes (Post-Liquidation)(3) 9.30 1.74 25.51 0.37 n/a n/a (2.29)
S&P 500 Index 14.08 1.69 35.12 0.63 n/a n/a (1.50)
Russell 1000 Growth Index 11.28 0.79 32.18 (1.74) n/a n/a (5.29)
INCEPTION DATE: 2/28/01
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TURNER STRATEGIC VALUE AND
HIGH INCOME FUND 16.06 4.29 43.28 N/A N/A N/A 32.65 $4.97
S&P 500 Index 14.08 1.69 35.12 n/a n/a n/a 20.63
INCEPTION DATE: 10/31/02
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TURNER FUNDS 2004 SEMIANNUAL REPORT 1
PERFORMANCE (continued)
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Year (Annualized) Total
Six to One Three Five Ten Since Assets
Fund Name/Index Months Date Year Years Years Years inception ($mil)
FIXED INCOME
- ---------------------------------------------------------------------------------------------------------------------------
TURNER CORE FIXED INCOME FUND 2.42 2.72 4.36 6.43 6.61 7.02 7.20 $37.59
Lehman Aggregate Bond Index 2.98 2.65 5.40 7.44 7.29 7.54 7.38
INCEPTION DATE: 12/6/91
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TURNER HIGH YIELD FUND 5.13 0.95 15.64 1.00 (1.37) N/A (1.54) $11.02
Merrill Lynch High Yield,
Cash Pay Index 8.21 2.23 21.67 8.74 5.71 n/a 5.22
INCEPTION DATE: 2/27/98
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TURNER ULTRA SHORT DURATION
FIXED INCOME FUND --
CLASS I SHARES 0.97 0.64 1.87 2.79 4.24 5.24 5.21 $399.48
Merrill Lynch 3-Month
U.S. Treasury Bill Index 0.50 0.24 1.08 2.01 3.49 4.38 4.37
INCEPTION DATE: 3/1/94
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TURNER SHORT DURATION FIXED
INCOME FUND-- CLASS I SHARES 1.30 1.04 2.49 4.06 4.98 5.76 5.65 $204.28
Lehman 1-3 Year U.S. Government
Bond Index 1.25 1.09 2.44 4.90 5.61 5.90 5.57
INCEPTION DATE: 3/1/94
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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.
(3) After-tax returns are shown using the highest individual federal income tax
rates in effect at the time of each distribution. They do not reflect the
impact of state and local taxes. Your after-tax return depends on your
individual tax situation, and may differ from the figures presented here. If
you own fund shares in a tax-deferred account such as an IRA or 401(K)
plan, this information does not apply to your investment because these
accounts are not subject to current taxes. After-returns for most funds are
calculated using the tax liability implied by each fund's declared
distributions. However, the exact tax characteristics of many distributions
are not known until after the close of the year. For certain funds,
conservative estimates are used based on fund history until final amounts
become available.
2 TURNER FUNDS 2004 SEMIANNUAL REPORT
INVESTMENT REVIEW
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TURNER LARGE CAP VALUE FUND
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FUND OBJECTIVE
The Turner Large Cap Value Fund seeks long-term total return. The Fund invests
primarily in common stocks and other equity securities of U.S. companies with
large market capitalizations that the Sub-Adviser, Clover Capital Management,
believes have low valuations and attractive dividend yields relative to the
market or to their own trading history. Large cap companies are defined for this
purpose as companies with market capitalizations at the time of purchase in the
range of those market capitalizations of companies included in the S&P 500
Index. In selecting specific securities for the Fund, Clover seeks to identify
companies whose stock is out-of-favor with investors.
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SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
1.9% TELECOMMUNICATIONS
5.3% UTILITIES/COMMUNICATION
6.0% CONSUMER STAPLES
7.4% HEALTHCARE
7.6% MATERIALS/PROCESSING
7.7% INDUSTRIALS
8.8%% ENERGY
9.1% TECHNOLOGY
13.0% CONSUMER DISCRETIONARY/SERVICES
29.8% FINANCIAL SERVICES
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FUND PROFILE
MARCH 31, 2004
[] Ticker symbol TLCVX
[] CUSIP #87252R706
[] Top 10 holdings
(1) Exxon Mobil
(2) Citigroup
(3) American International Group
(4) Bank of America
(5) PNC Financial Services Group
(6) CSX
(7) BP ADR
(8) Pfizer
(9) Mellon Financial
(10)ChevronTexaco
[] % in 10 largest holdings 22.8%
[] Number of holdings 90
[] Price/earnings ratio 15.5
[] Weighted average market capitalization $61.43 billion
[] Net assets $7 million
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VALUE GROWTH
INVESTMENT STYLE
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GROWTH OF A $10,000 INVESTMENT IN THE TURNER LARGE CAP VALUE FUND:
OCTOBER 31, 1997-MARCH 31, 2004*
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
TURNER LARGE CAP VALUE FUND S&P 500 INDEX RUSSELL 1000 VALUE INDEX
10/31/97 10000 10000 10000
Sep 98 9347 11283 10657
Sep 99 11793 14419 12652
Sep 00 14133 16334 13779
Sep 01 11947 11986 12551
Sep 02 9598 9530 10424
Sep 03 11779 11855 12964
Mar 04 13645 13524 15256
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Large Cap Value
Fund is October 31, 1997.
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2004
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PAST SIX PAST ONE PAST THREE PAST FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
15.84% 39.69% 1.06% 3.83% 4.96%
TURNER FUNDS 2004 SEMIANNUAL REPORT 3
INVESTMENT REVIEW
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TURNER CORE VALUE FUND
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FUND OBJECTIVE
The Turner Core Value Fund seeks long-term total return. The Fund invests
primarily in common stocks and other equity securities of U.S. companies with
medium and small market capitalizations that the Sub-Adviser, Clover Capital
Management, believes are undervalued relative to the market or their historic
valuation. Midcap companies are defined for this purpose as companies with
market capitalizations at the time of purchase in the range of those market
capitalizations of companies included in the Russell Midcap Index. The Fund will
invest in securities of companies operating in a broad range of industries based
primarily on value characteristics such as price-cash flow, price-earnings and
price-book value ratios. In selecting specific securities for the Fund, Clover
seeks to identify companies whose stock is out-of-favor with investors.
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SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
3.8% MATERIALS/PROCESSING
3.9% ENERGY
5.5% CONSUMER STAPLES
7.3% INDUSTRIALS
8.5% HEALTHCARE
10.6% TECHNOLOGY
11.6% UTILITIES/COMMUNICATION
14.3% CONSUMER DISCRETIONARY/SERVICES
27.2% FINANCIAL SERVICES
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FUND PROFILE
MARCH 31, 2004
[] Ticker symbol CCEVX
[] CUSIP #87252R102
[] Top 10 holdings
(1) Jones Apparel Group
(2) Baxter International
(3) Prudential Financial
(4) CVS
(5) CMS Energy
(6) Express Scripts
(7) Valero Energy
(8) ConAgra Foods
(9) SCANA
(10)Xcel Energy
[] % in 10 largest holdings 22.3%
[] Number of holdings 66
[] Price/earnings ratio 14.0
[] Weighted average market capitalization $8.34
[] Net assets $59 million
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VALUE GROWTH
INVESTMENT STYLE
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GROWTH OF A $10,000 INVESTMENT IN THE TURNER CORE VALUE FUND:
SEPTEMBER 30, 1993-MARCH 31, 2004*
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
TURNER CORE RUSSELL MIDCAP RUSSELL RUSSELL 3000
VALUE FUND VALUE INDEX INDEX 3000 VALUE INDEX
SEP 93 10000 10000 10000 10000
SEP 94 12087 10102 10255 9978
SEP 95 15157 12602 13261 12644
SEP 96 16832 14586 15783 14854
SEP 97 21281 20457 21886 21144
SEP 98 20004 19698 22900 21560
SEP 99 21230 21534 28927 25363
SEP 00 24132 24333 34188 27735
SEP 01 25218 24323 24646 25522
SEP 02 23612 22995 20008 21466
SEP 03 28714 29503 25194 26809
MAR 04 34463 35810 28958 31678
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Core Value Fund is
December 6, 1991.
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2004
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PAST SIX PAST ONE PAST THREE PAST FIVE PAST TEN SINCE
MONTHS YEAR YEARS YEARS YEARS INCEPTION
20.02% 51.10% 10.58% 11.25% 12.19% 12.07%
4 TURNER FUNDS 2004 SEMIANNUAL REPORT
INVESTMENT REVIEW
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TURNER SMALL CAP VALUE FUND
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FUND OBJECTIVE
The Turner Small Cap Value Fund seeks long-term total return. The Fund invests
primarily in common stocks and other equity securities of U.S. companies with
small market capitalizations that the Sub-Adviser, Clover Capital Management,
believes are undervalued relative to the market or to their historical
valuation. Small cap companies are defined for this purpose as companies with
market capitalizations at the time of purchase in the range of those market
capitalizations of companies included in the Russell 2000 Value Index. The Fund
will invest in securities of companies operating in a broad range of industries
based primarily on value characteristics such as price-cash flow, price-earnings
and price-book value ratios. In selecting specific securities for the Fund,
Clover seeks to identify companies whose stock is out-of-favor with investors.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
2.9% ENERGY
3.0% CONSUMER STABLES
6.0% MATERIALS/PROCESSING
6.8% UTILITIES/COMMUNICATION
7.5% HEALTHCARE
12.1% TECHNOLOGY
13.3% INDUSTRIALS
18.2% CONSUMER DISCRETIONARY/SERVICES
26.7% FINANCIAL SERVICES
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
[] Ticker symbol TCSVX
[] CUSIP #87252R300
[] Top 10 holdings
(1) CMS Energy
(2) Oakley
(3) Barnes & Noble
(4) Charlotte Russe Holding
(5) Electronics Boutique Holdings
(6) Activision
(7) Cooper Tire & Rubber
(8) FelCor Lodging Trust
(9) Stewart & Stevenson Services
(10)Calpine
[] % in 10 largest holdings 13.2%
[] Number of holdings 149
[] Price/earnings ratio 16.4
[] Weighted average market capitalization $1.22 billion
[] Net assets $516 million
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VALUE GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER SMALL CAP VALUE FUND:
FEBRUARY 29, 1996-MARCH 31, 2004*
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
TURNER SMALL RUSSELL RUSSELL 2000
CAP VALUE FUND 2000 INDEX VALUE INDEX
2/29/96 10000 10000 10000
SEP 96 10838 10752 10785
SEP 97 16169 14320 15385
SEP 98 12733 11596 13417
SEP 99 15511 13808 14199
SEP 00 20101 17037 16381
SEP 01 22543 13424 17299
SEP 02 20584 12175 17047
SEP 03 26072 16619 22444
MAR 04 32582 20224 27925
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Small Cap Value
Fund is February 28, 1996.
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2004
- --------------------------------------------------------------------------------
PAST SIX PAST ONE PAST THREE PAST FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
24.97% 73.54% 13.39% 20.79% 15.71%
TURNER FUNDS 2004 SEMIANNUAL REPORT 5
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER SMALL CAP VALUE OPPORTUNITIES FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Small Cap Value Opportunities Fund seeks long-term capital growth. It
invests primarily in equity securities of small capitalization companies that
the Adviser believes have the potential for growth and that appear to be trading
below their perceived value. Small capitalization companies are defined for this
purpose as companies with market capitalization at the time of purchase that is
within the range of capitalization represented in the Russell 2000 Value Index.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
3.2% ENERGY
3.5% AUTOMOTIVE & TRANSPORTATION
4.1% UTILITIES/COMMUNICATION
4.2% CONSUMER STAPLES
5.0% HEALTHCARE
5.2% PRODUCER DURABLES
11.3% TECHNOLOGY
15.6% MATERIALS/PROCESSING
18.9% CONSUMER DISCRETIONARY/SERVICES
29.0% FINANCIAL SERVICES
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
[] Ticker symbol TSVOX
[] CUSIP #87252R607
[] Top 10 holdings
(1) Boise Cascade
(2) People's Bank
(3) Apex Silver Mines
(4) Timken
(5) Steinway Musical Instruments
(6) Oxford Industries
(7) Lipman Electronic Engineering
(8) Brink's
(9) R.H. Donnelley
(10)Stone Energy
[] % in 10 largest holdings 20.0%
[] Number of holdings 78
[] Price/earnings ratio 17.8
[] Weighted average market capitalization $0.92 billion
[] Net assets $21 million
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VALUE GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER SMALL CAP VALUE OPPORTUNITIES FUND:
MARCH 31, 2002-MARCH 31, 2004*
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
TURNER SMALL CAP VALUE FRANK RUSSELL 2000
OPPORTUNITIES FUND VALUE INDEX
3/31/02 10000 10000
SEP 02 8737 7705
SEP 03 11995 10144
MAR 04 15277 12621
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Small Cap Value
Opportunities Fund is March 4, 2002.
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2004
- --------------------------------------------------------------------------------
PAST SIX MONTHS PAST ONE YEAR SINCE INCEPTION
27.36% 73.64% 26.24%
6 TURNER FUNDS 2004 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER FINANCIAL SERVICES FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Financial Services Fund seeks long-term capital appreciation. It
invests in common stocks and other equity securities of U.S. financial services
companies, including banks, brokerage houses, insurance companies and investment
advisory companies, that the Adviser believes have above average growth
potential or that are undervalued. The Adviser also invests in financial
services companies that it believes to be potential merger or acquisition
targets. The Fund's holdings will be concentrated in the financial services
industry.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINT FOLLOWS]
100.0% Financial services
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
[] Ticker symbol TFFIX
[] CUSIP #87252R698
[] Top 10 holdings
(1) Citigroup
(2) Goldman Sachs Group
(3) Morgan Stanley
(4) American International Group
(5) New York Community Bancorp
(6) Merrill Lynch
(7) Ameritrade Holding
(8) American Express
(9) Wells Fargo
(10)Allstate
[] % in 10 largest holdings 42.6%
[] Number of holdings 33
[] Price/earnings ratio 15.7
[] Weighted average market capitalization $42.88 billion
[] % of holdings with positive earnings surprises 85.1%
[] % of holdings with negative earnings surprises 12.7%
[] Net assets $17 million
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INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER FINANCIAL SERVICES FUND:
MAY 31, 1996-MARCH 31, 2004*
[LINE CHART OMITTED, PLOT POINTS FOLLOWS
TURNER FINANCIAL SERVICES FUND S&P 500 FINANCIALS INDEX
5/31/96 10000 10000
SEP 96 10752 10939
SEP 97 16893 17212
SEP 98 14579 16772
SEP 99 17684 19625
SEP 00 24439 26264
SEP 01 19326 22736
SEP 02 17204 19412
SEP 03 23389 24434
MAR 04 27670 28645
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Financial Services
Fund is May 22, 1996.
(1) Returns prior to November 12, 2001, represent performance of the Titan
Financial Services Fund.
ANNUALIZED TOTAL RETURNS(1)
Periods ending March 31, 2004
- --------------------------------------------------------------------------------
PAST SIX PAST ONE PAST THREE PAST FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
18.30% 59.30% 7.90% 8.03% 13.84%
TURNER FUNDS 2004 SEMIANNUAL REPORT 7
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER HEALTHCARE & BIOTECHNOLOGY FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Healthcare & Biotechnology Fund seeks long-term capital appreciation.
It invests in equity securities issued by healthcare and biotechnology companies
that are traded in the United States. Healthcare companies include
pharmaceutical companies, companies involved in research and development of
pharmaceutical products and services, companies involved in the operation of
health care facilities, and other companies involved in the design, manufacture,
or sale of health care-related products or services. Biotechnology companies are
engaged in the research, development, and manufacture of various
biotechnological products, services, and processes; manufacture and/or
distribute biotechnological and biomedical products, including devices and
instruments; provide or benefit significantly from scientific and technological
advances in biotechnology; or provide processes or services instead of, or in
addition to, products. The Fund's holdings will be concentrated in the
healthcare industry.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINT FOLLOWS]
100% HEALTHCARE & BIOTECHNOLOGY
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
[] Ticker symbol THBCX
[] CUSIP #87252R755
[] Top 10 holdings
(1) Pfizer
(2) UnitedHealth Group
(3) Pacificare Health Systems
(4) Anthem
(5) Caremark Rx
(6) Wyeth
(7) Guidant
(8) Medicis Pharmaceutical, Cl A
(9) OSI Pharmaceuticals
(10)Invitrogen
[] % in 10 largest holdings 38.1%
[] Number of holdings 47
[] Price/earnings ratio 20.3
[] Weighted average market capitalization $29.48 billion
[] % of holdings with positive earnings surprises 78.8%
[] % of holdings with negative earnings surprises 19.9%
[] Net assets $19 million
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INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER HEALTHCARE & BIOTECHNOLOGY FUND:
FEBRUARY 28, 2001-MARCH 31, 2004*
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
TURNER HEALTHCARE S&P 500 HEALTH
& BIOTECHNOLOGY FUND CARE INDEX
2/28/01 10000 10000
SEP 01 11151 9467
SEP 02 9851 7393
SEP 03 12336 8239
MAR 04 14282 8886
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Healthcare &
Biotechnology Fund is February 28, 2001.
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2004
- --------------------------------------------------------------------------------
PAST SIX PAST ONE PAST THREE SINCE
MONTHS YEAR YEARS INCEPTION
15.78% 38.37% 14.59% 12.25%
8 TURNER FUNDS 2004 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER TAX MANAGED U.S. EQUITY FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Tax Managed U.S. Equity Fund seeks long-term capital appreciation while
attempting to minimize the impact of taxes on the returns earned by
shareholders. The Fund's tax-sensitive investment strategy is intended to lead
to lower distributions of income and realized capital gains than funds managed
without regard to federal income tax consequences. It expects to employ a number
of strategies to minimize taxable distribution to shareholders. In selecting
companies, Turner typically invests for the long term and chooses securities
that it believes offer strong opportunities for long-term growth of capital.
When deciding to sell a security, Turner considers the negative tax impact of
realized capital gains and, if applicable, the positive tax impact of realized
capital losses. However, Turner may sell a security at a realized gain if it
determines that the potential tax cost is outweighed by the risk of owning the
security, or if more attractive investment opportunities are available.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
2.3% Autos/transportation
4.4% Producer durables
5.0% Materials/processing
6.0% Utilities/communications
6.0% Energy
7.9% Consumer staples
13.1% Healthcare
15.3% Technology
17.2% Consumer discretionary/services
22.8% Financial services
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
[] Ticker symbol TTMEX
[] CUSIP #87252R748
[] Top 10 holdings
(1) Citigroup
(2) Wal-Mart Stores
(3) Pfizer
(4) American International Group
(5) Cisco Systems
(6) General Electric
(7) Procter & Gamble
(8) Tyco International
(9) Morgan Stanley
(10)American Express
[] % in 10 largest holdings 25.0%
[] Number of holdings 100
[] Price/earnings ratio 20.4
[] Weighted average market capitalization $73.90 billion
[] % of holdings with positive earnings surprises 79.8%
[] % of holdings with negative earnings surprises 19.4%
[] Net assets $6 million
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INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER TAX MANAGED U.S. EQUITY FUND:
FEBRUARY 28, 2001-MARCH 31, 2004*
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
TURNER TAX MANAGED US EQUITY FUND S&P 500 COMPOSITE INDEX
2/28/01 10000 10000
SEP 01 8181 8459
SEP 02 6291 6726
SEP 03 8041 8366
MAR 04 9190 9544
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Tax Managed U.S.
Equity Fund is February 28, 2001.
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2004
- --------------------------------------------------------------------------------
PAST SIX MONTHS PAST ONE YEAR PAST THREE YEARS SINCE INCEPTION
14.30% 39.24% 0.44% (2.70%)
TURNER FUNDS 2004 SEMIANNUAL REPORT 9
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER STRATEGIC VALUE AND HIGH INCOME FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Strategic Value and High Income Fund seeks total return through a
combination of long-term capital growth and high current income. The Fund is a
"fund of funds", which means that it invests substantially all of its assets in
shares of other Turner Funds rather than in individual securities. As a fund of
funds, the Fund pursues its goal by investing substantially all of its assets in
shares of the Turner Small Cap Equity Fund, the Turner Small Cap Value
Opportunities Fund, the Turner High Yield Fund and the Turner Ultra Short
Duration Fixed Income Fund. As a result, the investment performance of the Fund
is directly related to the performance of the underlying funds. As of March 31,
2004 the Turner Strategic Value and High Income Fund was investing approximately
50% of its assets in each of the Small Cap Value Opportunities Fund and High
Yield Fund.
- --------------------------------------------------------------------------------
CURRENT INVESTMENT WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
44.5% Turner High Yield Fund
55.5% Turner Small Cap Value Opportunities Fund
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
[] Ticker symbol TSVIX
[] CUSIP #900297862
[] 2 holdings
(1) Turner Small Cap Value Opportunities Fund, Cl II
(2) Turner High Yield Fund, Cl I
[] % in 2 holdings 100.0%
[] Number of holdings 2
[] Net assets $5 million
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VALUE BLEND GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER STRATEGIC VALUE AND HIGH
INCOME FUND:
OCTOBER 31, 2002-MARCH 31, 2004*
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
TURNER STRATEGIC VALUE & S&P
HIGH INCOME FUND INDEX
10/31/02 10000 10000
SEP 03 12860 11434
MAR 04 14926 13044
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Strategic Value and
High Income Fund is October 31, 2002.
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2004
- --------------------------------------------------------------------------------
PAST SIX MONTHS PAST ONE YEAR SINCE INCEPTION
16.06% 43.28% 32.65%
10 TURNER FUNDS 2004 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER CORE FIXED INCOME FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Core Fixed Income Fund seeks high current income consistent with
reasonable risk to capital. The Fund invests primarily in U.S. government
obligations and other investment grade fixed income securities, including
corporate debt obligations and mortgage- and asset-backed securities. In
selecting investments for the Fund, the Sub-Adviser, Clover Capital Management,
chooses fixed income securities of issuers that it believes will offer
attractive income potential with an acceptable level of risk. Clover will invest
in fixed income obligations of different types and maturities depending on its
current assessment of the relative market values of the sectors in which the
Fund invests. Clover does not attempt to forecast interest rate changes.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
6.5% Agency debt
9.2% Treasury securities
36.5% Mortgage-backed securities
45.0% Corporate bonds
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
[] Ticker symbol TCFIX
[] CUSIP #87252R201
[] Top 10 holdings
(1) U.S. Treasury Bonds,
7.50%, 11/15/16
(2) FNMA Pool #254759
(3) SLMA
(4) FNMA CMO/REMIC Ser 2003-41, Cl XT
(5) Natural Fuel Gas, Ser D, MTN
(6) Emerson Electric
(7) FNMA Pool #738783
(8) Dial
(9) Marsh & McLennan
(10)Scana, Ser B, MTN
[] % in 10 largest holdings 40.6% n Number of holdings 54
[] Average effective duration 4.47 years
[] Average yield to maturity 3.4%
[] Average credit quality AAA3
[] Net assets $38 million
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-----------------------------------
SHORT LONG
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER CORE FIXED INCOME FUND:
SEPTEMBER 30, 1993-MARCH 31, 2004*
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
TURNER CORE FIXED INCOME FUND LEHMAN US AGGREGATE BOND INDEX
SEP 93 10000 10000
SEP 94 9730 9678
SEP 95 11075 11040
SEP 96 11649 11578
SEP 97 12771 12706
SEP 98 14217 14167
SEP 99 13964 14115
SEP 00 14971 15102
SEP 01 16766 17057
SEP 02 18250 18524
SEP 03 18865 19524
MAR 04 19321 20106
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Core Fixed Income
Fund is December 6, 1991.
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2004
- --------------------------------------------------------------------------------
PAST SIX PAST ONE PAST THREE PAST FIVE PAST TEN SINCE
MONTHS YEAR YEARS YEARS YEARS INCEPTION
2.42% 4.36% 6.43% 6.61% 7.02% 7.20%
TURNER FUNDS 2004 SEMIANNUAL REPORT 11
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER HIGH YIELD FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner High Yield Fund seeks high current income and capital appreciation.
It invests primarily in fixed income securities rated below investment grade.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
1.1% Financial services
1.4% Technology
2.1% Producer durables
3.4% Healthcare
4.4% Automotive/transportation
4.6% Energy
5.3% Real Estate
7.7% Consumer staples
9.5% Miscellaneous
15.6% Consumer discretionary/services
17.8% Utilities/communications
23.4% Materials/processing
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
[] Ticker symbol PCSHX
[] CUSIP #872524707
[] Top 10 holdings
(1) Tenneco Automotive, Ser B
(2) Town Sports International
(3) Solo Cup
(4) Ply Gem Industries
(5) WCI Communities
(6) Owens-Brockway Glass Container
(7) AES
(8) Mediacom Broadband
(9) Courtyard By Marriott II, Ser B
(10)LNR Property
[] % in 10 largest holdings 15.6%
[] Number of holdings 95
[] Average effective duration 3.87 years
[] Average maturity 7.21 years
[] Average yield to maturity 7.83%
[] Average credit quality B1
[] Net assets $11 million
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SHORT LONG
MATURITY AVERAGE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER HIGH YIELD FUND:
FEBRUARY 28, 1998-MARCH 31, 2004*
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
TURNER HIGH YIELD MERRILL LYNCH HIGH YIELD,
BOND FUND CASH PAY INDEX
2/28/98 10000 10000
SEP 98 9278 9895
SEP 99 10080 10265
SEP 00 10137 10391
SEP 01 7739 10045
SEP 02 7116 9825
SEP 03 8653 12598
MAR 04 9097 13632
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner High Yield Fund is
February 27, 1998. Prior to May 1, 2002, Penn Capital Management Company, Inc.
served as investment adviser to the Fund.
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2004
- --------------------------------------------------------------------------------
PAST SIX PAST ONE PAST THREE PAST FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
5.13% 15.64% 1.00% (1.37%) (1.54%)
12 TURNER FUNDS 2004 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER ULTRA SHORT DURATION FIXED INCOME FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Ultra Short Duration Fixed Income Fund seeks to produce maximum total
return consistent with the preservation of capital and investment prudence. It
invests primarily in high-grade securities issued or guaranteed by the U.S.
government or its agencies. The Fund seeks to limit fluctuations in principal
and reduce interest-rate risk by maintaining an average effective duration no
greater than that of a one-year Treasury note.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
1.4% AGENCY SECURITIES
2.4% ASSET-BACKED SECURITIES
82.2% MORTGAGE-BACKED SECURITIES
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
[] Ticker symbol TSDOX,
Class I Shares
[] CUSIP #872524103,
Class I Shares
[] Top 10 holdings
(1) FHLMC CMO/REMIC Ser 2463, Cl PE
(2) GNMA CMO/REMIC Ser 2003-34, Cl PM
(3) FHLMC CMO/REMIC Ser 2586, Cl XG
(4) FNMA CMO/REMIC Ser 2002-82, Cl PC
(5) FHLMC CMO/REMIC Ser 2527, Cl LU
(6) FNMA CMO/REMIC Ser 2001-4, Cl PB
(7) FHLMC CMO/REMIC Ser 2416, Cl PN
(8) FNMA CMO/REMIC Ser 2003-46, Cl PA
(9) FHLMC CMO/REMIC Ser 2650, Cl FX
(10)FHLMC CMO/REMIC Ser 2440, Cl OG
[] % in 10 largest holdings 31.8%
[] Number of holdings 88
[] Average effective duration 0.50 years
[] Average maturity 1.18 years
[] Average yield to maturity 2.23%
[] Average credit quality AGY
[] Convexity (0.17)
[] Net assets $399 million, Class I Shares
C H -----------------------------------
R I | |
E G | |
D H | |
I X | |
T | |
| |
Q -----------------------------------
U | |
A | |
L | |
I | |
T | |
Y -----------------------------------
| |
| |
| |
| |
L | |
O | |
W -----------------------------------
SHORT LONG
MATURITY AVERAGE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER ULTRA SHORT DURATION FIXED INCOME
FUND, CLASS I SHARES:
MARCH 31, 1994-MARCH 31, 2004*
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
TURNER ULTRA SHORT DURATION MERRILL LYNCH
FIXED INCOME FUND 3-MONTH U.S. TREASURY BILL
CLASS I INDEX
3/31/94 10000 10000
SEP-94 10220 10206
SEP-95 10923 10806
SEP-96 11691 11398
SEP-97 12415 12012
SEP-98 13187 12656
SEP-99 13891 13251
SEP-00 14772 14017
1-SEP 15819 14781
2-SEP 16286 15076
3-SEP 16514 15276
4-MAR 16674 15352
* These figures represent past performance, which is no guarantee
of future results. The investment return and principal value of an investment
will fluctuate, so an investor's shares, when redeemed, may be worth more or
less than its original cost. The performance in the above graph does not reflect
the deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Ultra Short
Duration Fixed Income Fund (Class I Shares) is March 1, 1994.
** Class II Shares were offered beginning on February 27, 1998. Class II Shares'
performance for the periods prior to February 27, 1998 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 PAST
SIX ONE THREE FIVE TEN SINCE
MONTHS YEAR YEARS YEARS YEARS INCEPTION
Class I
Shares 0.97% 1.87% 2.79% 4.24% 5.24% 5.21%
Class II
Shares 0.85% 1.61% 2.53% 3.96% 5.06%** 5.03%**
TURNER FUNDS 2004 SEMIANNUAL REPORT 13
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER SHORT DURATION FIXED INCOME FUND
- --------------------------------------------------------------------------------
FUND OBJECTIVE
The Turner Short Duration Fixed Income Fund seeks to
produce maximum total return consistent with the preservation of capital and
investment prudence. It invests primarily in high-grade securities issued or
guaranteed by the U.S. government or its agencies. The Fund seeks to limit
fluctuations in principal and reduce interest rate risk by maintaining an
average effective duration no greater than that of a three-year Treasury Bill.
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS:
[BAR CHART OMITTED, PLOT POINTS FOLLOWS]
0.1% CONSUMER DISCRETION
1.8% UTILITIES/COMMUNICATIONS
2.2% FINANCIAL SERVICES
2.3% TREASURY SECURITIES
2.6% MATERIALS & PROCESSING
3.8% ASSET-BACKED SECURITIES
7.1% AGENCY DEBT
74.0% MORTGAGE-BACKED SECURITIES
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2004
[] Ticker symbol TSDGX,
Class I Shares
[] CUSIP #872524202,
Class I Shares
[] Top 10 holdings
(1) FHLMC CMO/REMIC Ser 2416, Cl PN
(2) FNMA Pool #535560
(3) FNMA CMO/REMIC Ser 2003-34, Cl GJ
(4) FNMA CMO/REMIC Ser 2001-68, Cl JL
(5) FNMA CMO/REMIC Ser 2003-33, Cl PC
(6) FHLMC CMO/REMIC Ser 2590, Cl UL
(7) FHLMC CMO/REMIC Ser 2515, Cl ED
(8) FHLMC CMO/REMIC Ser 2537, Cl LA
(9) U.S. Treasury Notes
(10)FHLMC CMO/REMIC Ser 2575, Cl QP
[] % in 10 largest holdings 33.6%
[] Number of holdings 101
[] Average effective duration 1.38 years
[] Average maturity 1.52 years
[] Average yield to maturity 2.72%
[] Average credit quality AGY
[] Convexity (0.22)
[] Net assets $204 million, Class I Shares
C H -----------------------------------
R I | |
E G | |
D H | |
I X | |
T | |
| |
Q -----------------------------------
U | |
A | |
L | |
I | |
T | |
Y -----------------------------------
| |
| |
| |
| |
L | |
O | |
W -----------------------------------
SHORT LONG
MATURITY AVERAGE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER SHORT DURATION FIXED INCOME FUND,
CLASS I SHARES:
MARCH 31, 1994-MARCH 31, 2004*
[LINE CHART OMITTED, PLOT POINTS FOLLOWS]
TURNER SHORT DURATION LEHMAN 1-3 YEAR
FIXED INCOME FUND US GOVERNMENT BOND
CLASS I INDEX
3/31/94 10000 10000
SEP-94 10153 10101
SEP-95 11046 10927
SEP-96 11711 11547
SEP-97 12542 12342
SEP-98 13555 13321
SEP-99 13946 13746
SEP-00 14783 14549
1-SEP 16165 16101
2-SEP 16923 17043
3-SEP 17287 17520
4-MAR 17512 17739
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than its original cost. The performance in the above graph does not reflect the
deduction of taxes the shareholder will pay on fund distributions or the
redemptions of fund shares. The inception date of the Turner Short Duration
Fixed Income Fund (Class I Shares) is March 1, 1994.
** Class II Shares were offered beginning on April 28, 1999. Class II Shares'
performance for the periods prior to April 28, 1999 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 PAST
SIX ONE THREE FIVE TEN SINCE
MONTHS YEAR YEARS YEARS YEARS INCEPTION
Class I
Shares 1.30% 2.49% 4.06% 4.98% 5.76% 5.65%
Class II
Shares 1.27% 2.33% 3.80% 5.98%** 6.14%** 6.02%**
14 TURNER FUNDS 2004 SEMIANNUAL REPORT
[This page intentionally left blank.]
TURNER FUNDS 2004 SEMIANNUAL REPORT 15
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER LARGE CAP VALUE FUND
March 31, 2004
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--96.8%
- --------------------------------------------------------------------------------
ADVERTISING & RELATED SERVICES--1.1%
- --------------------------------------------------------------------------------
Interpublic Group* 2,975 $ 46
Time Warner* 1,650 28
---------
Total Advertising & related services 74
---------
- --------------------------------------------------------------------------------
AEROSPACE PRODUCT & PARTS
MANUFACTURING--1.1%
- --------------------------------------------------------------------------------
Honeywell International 2,325 79
---------
Total Aerospace product &
parts manufacturing 79
---------
- --------------------------------------------------------------------------------
AGENCIES & OTHER INSURANCE
RELATED ACTIVITIES--1.4%
- --------------------------------------------------------------------------------
AON 3,500 98
---------
Total Agencies & other insurance
related activities 98
---------
- --------------------------------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--0.6%
- --------------------------------------------------------------------------------
Baker Hughes 1,125 41
---------
Total Agriculture, construction &
mining machinery manufacturing 41
---------
- --------------------------------------------------------------------------------
ALUMINA & ALUMINUM PRODUCTION &
PROCESSING--1.0%
- --------------------------------------------------------------------------------
Alcan 1,550 69
---------
Total Alumina & aluminum
production & processing 69
---------
- --------------------------------------------------------------------------------
BASIC CHEMICAL MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
E.I. du Pont de Nemours 1,450 61
---------
Total Basic chemical manufacturing 61
---------
- --------------------------------------------------------------------------------
BEVERAGE MANUFACTURING--1.5%
- --------------------------------------------------------------------------------
Anheuser-Busch 1,950 99
---------
Total Beverage manufacturing 99
---------
- --------------------------------------------------------------------------------
CABLE NETWORKS & PROGRAM DISTRIBUTION--1.6%
- --------------------------------------------------------------------------------
Comcast, Cl A* 2,275 63
COX Communications, Cl A* 1,450 46
---------
Total Cable networks &
program distribution 109
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
CLOTHING STORES--1.1%
- --------------------------------------------------------------------------------
American Eagle Outfitters* 2,725 $ 74
---------
Total Clothing stores 74
---------
- --------------------------------------------------------------------------------
COMMERCIAL & SERVICE INDUSTRY
MACHINERY MANUFACTURING--0.8%
- --------------------------------------------------------------------------------
Bausch & Lomb 925 56
---------
Total Commercial & service industry
machinery manufacturing 56
---------
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--1.4%
- --------------------------------------------------------------------------------
Nokia ADR 4,625 94
---------
Total Communications equipment
manufacturing 94
---------
- --------------------------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--1.5%
- --------------------------------------------------------------------------------
Dell* 1,125 38
International Business Machines 200 19
Lexmark International* 525 48
---------
Total Computer & peripheral
equipment manufacturing 105
---------
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--0.6%
- --------------------------------------------------------------------------------
Computer Sciences* 1,025 41
---------
Total Computer systems design &
related services 41
---------
- --------------------------------------------------------------------------------
CONVERTED PAPER PRODUCT MANUFACTURING--1.5%
- --------------------------------------------------------------------------------
Smurfit-Stone Container* 5,875 103
---------
Total Converted paper product
manufacturing 103
---------
- --------------------------------------------------------------------------------
CUT & SEW APPAREL MANUFACTURING--1.3%
- --------------------------------------------------------------------------------
Jones Apparel Group 2,375 86
---------
Total Cut & sew apparel manufacturing 86
---------
- --------------------------------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--17.6%
- --------------------------------------------------------------------------------
Bank of America 1,955 158
Bank of New York 3,400 107
Citigroup 3,810 197
16 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER LARGE CAP VALUE FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
Mellon Financial 3,765 $ 118
New York Community Bancorp 2,475 85
PNC Financial Services Group 2,650 147
SunTrust Banks 1,400 98
US Bancorp 2,975 82
Wachovia 1,900 89
Washington Mutual 1,550 66
Wells Fargo 1,125 64
---------
Total Depository credit intermediation 1,211
---------
- --------------------------------------------------------------------------------
ELECTRIC POWER GENERATION,
TRANSMISSION & DISTRIBUTION--3.1%
- --------------------------------------------------------------------------------
Aquila* 10,275 49
CMS Energy* 5,925 53
Energy East 1,825 46
Xcel Energy 3,750 67
---------
Total Electric power generation,
transmission & distribution 215
---------
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT MANUFACTURING--0.8%
- --------------------------------------------------------------------------------
General Electric 1,900 58
---------
Total Electrical equipment manufacturing 58
---------
- --------------------------------------------------------------------------------
ELECTRICAL GOODS WHOLESALE--0.8%
- --------------------------------------------------------------------------------
Avnet* 2,275 56
---------
Total Electrical goods wholesale 56
---------
- --------------------------------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--0.8%
- --------------------------------------------------------------------------------
RadioShack 1,750 58
---------
Total Electronics & appliance stores 58
---------
- --------------------------------------------------------------------------------
FRUIT & VEGETABLE PRESERVING &
SPECIALTY FOOD MANUFACTURING--0.6%
- --------------------------------------------------------------------------------
H.J. Heinz 1,075 40
---------
Total Fruit & vegetable preserving &
specialty food manufacturing 40
---------
- --------------------------------------------------------------------------------
GROCERY STORES--1.4%
- --------------------------------------------------------------------------------
Albertson's 4,425 98
---------
Total Grocery stores 98
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
HEALTH & PERSONAL CARE STORES--1.9%
- --------------------------------------------------------------------------------
CVS 1,750 $ 62
Omnicare 1,500 66
---------
Total Health & personal care stores 128
---------
- --------------------------------------------------------------------------------
HOUSEHOLD APPLIANCE MANUFACTURING--1.1%
- --------------------------------------------------------------------------------
Maytag 2,475 78
---------
Total Household appliance manufacturing 78
---------
- --------------------------------------------------------------------------------
INSURANCE CARRIERS--6.7%
- --------------------------------------------------------------------------------
Ace 2,075 89
Allstate 775 35
American International Group 2,275 162
Metlife 1,750 63
MGIC Investment 875 56
Prudential Financial 1,325 59
---------
Total Insurance carriers 464
---------
- --------------------------------------------------------------------------------
LIMITED-SERVICE EATING PLACES--1.3%
- --------------------------------------------------------------------------------
Darden Restaurants 3,600 89
---------
Total Limited-service eating places 89
---------
- --------------------------------------------------------------------------------
MACHINERY, EQUIPMENT &
SUPPLIES WHOLESALE--0.8%
- --------------------------------------------------------------------------------
W.W. Grainger 1,125 54
---------
Total Machinery, equipment &
supplies wholesale 54
---------
- --------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Baxter International 1,125 35
---------
Total Medical equipment &
supplies manufacturing 35
---------
- --------------------------------------------------------------------------------
MINING SUPPORT ACTIVITIES--0.6%
- --------------------------------------------------------------------------------
Diamond Offshore Drilling 1,650 40
---------
Total Mining support activities 40
---------
- --------------------------------------------------------------------------------
MOTION PICTURE & VIDEO INDUSTRIES--0.9%
- --------------------------------------------------------------------------------
Clear Channel Communications 1,500 64
---------
Total Motion picture & video industries 64
---------
TURNER FUNDS 2004 SEMIANNUAL REPORT 17
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER LARGE CAP VALUE FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
MOTOR VEHICLE MANUFACTURING--1.3%
- --------------------------------------------------------------------------------
General Motors 1,825 $ 86
---------
Total Motor vehicle manufacturing 86
---------
- --------------------------------------------------------------------------------
NATURAL GAS DISTRIBUTION--2.2%
- --------------------------------------------------------------------------------
KeySpan 2,275 87
Sempra Energy 2,100 67
---------
Total Natural gas distribution 154
---------
- --------------------------------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--1.0%
- --------------------------------------------------------------------------------
Providian Financial* 5,000 66
---------
Total Nondepository credit intermediation 66
---------
- --------------------------------------------------------------------------------
OFFICE FURNITURE (INCLUDING FIXTURES)
MANUFACTURING--1.4%
- --------------------------------------------------------------------------------
Furniture Brands International 3,075 99
---------
Total Office furniture (including fixtures)
manufacturing 99
---------
- --------------------------------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
Emerson Electric 1,075 64
---------
Total Other electrical equipment &
component manufacturing 64
---------
- --------------------------------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--0.8%
- --------------------------------------------------------------------------------
Janus Capital Group 3,500 57
---------
Total Other financial investment activities 57
---------
- --------------------------------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--1.3%
- --------------------------------------------------------------------------------
SPX* 1,950 89
---------
Total Other general purpose
machinery manufacturing 89
---------
- --------------------------------------------------------------------------------
OTHER INVESTMENT POOLS & FUNDS--1.0%
- --------------------------------------------------------------------------------
FelCor Lodging Trust* 6,425 67
---------
Total Other investment pools & funds 67
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
PETROLEUM & COAL PRODUCTS
MANUFACTURING--7.6%
- --------------------------------------------------------------------------------
BP ADR 2,490 $ 127
ChevronTexaco 1,275 112
Exxon Mobil 6,900 287
---------
Total Petroleum & coal products
manufacturing 526
---------
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--3.9%
- --------------------------------------------------------------------------------
Abbott Laboratories 1,125 46
Johnson & Johnson 1,125 57
Merck 875 39
Pfizer 3,575 125
---------
Total Pharmaceutical & medicine
manufacturing 267
---------
- --------------------------------------------------------------------------------
PULP, PAPER & PAPERBOARD MILLS--2.6%
- --------------------------------------------------------------------------------
International Paper 2,200 93
MeadWestvaco 3,125 88
---------
Total Pulp, paper & paperboard mills 181
---------
- --------------------------------------------------------------------------------
RADIO & TELEVISION BROADCASTING--1.2%
- --------------------------------------------------------------------------------
Viacom, Cl B 2,050 80
---------
Total Radio & television broadcasting 80
---------
- --------------------------------------------------------------------------------
RAIL TRANSPORTATION--2.7%
- --------------------------------------------------------------------------------
Burlington Northern Santa Fe 1,650 52
CSX 4,525 137
---------
Total Rail transportation 189
---------
- --------------------------------------------------------------------------------
SCIENTIFIC R&D SERVICES--1.2%
- --------------------------------------------------------------------------------
Biogen Idec* 1,500 83
---------
Total Scientific r&d services 83
---------
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--1.3%
- --------------------------------------------------------------------------------
Goldman Sachs Group 275 28
Morgan Stanley 1,060 61
---------
Total Security & commodity contracts
intermediation & brokerage 89
---------
18 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER LARGE CAP VALUE FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC COMPONENT MANUFACTURING--4.4%
- --------------------------------------------------------------------------------
Analog Devices 425 $ 21
Flextronics International* 6,175 106
Micron Technology* 4,925 82
National Semiconductor* 925 41
Taiwan Semiconductor
Manufacturing ADR* 5,075 53
---------
Total Semiconductor & other electronic
component manufacturing 303
---------
- --------------------------------------------------------------------------------
SOAP, CLEANERS & TOILET PREPARATION
MANUFACTURING--1.7%
- --------------------------------------------------------------------------------
Gillette 1,600 63
Procter & Gamble 525 55
---------
Total Soap, cleaners & toilet preparation
manufacturing 118
---------
- --------------------------------------------------------------------------------
SPECIALIZED DESIGN SERVICES--0.5%
- --------------------------------------------------------------------------------
Avaya* 2,000 32
---------
Total Specialized design services 32
---------
- --------------------------------------------------------------------------------
STEEL PRODUCT MANUFACTURING
FROM PURCHASED STEEL--1.6%
- --------------------------------------------------------------------------------
International Steel Group* 2,875 111
---------
Total Steel product manufacturing from
purchased steel 111
---------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS--1.9%
- --------------------------------------------------------------------------------
SBC Communications 2,875 71
Verizon Communications 1,700 62
---------
Total Telecommunications 133
---------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $6,112) 6,671
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RIGHTS--0.0%
- --------------------------------------------------------------------------------
Seagate (A)* 425 --
- --------------------------------------------------------------------------------
TOTAL RIGHTS
(COST $0) --
- --------------------------------------------------------------------------------
Value
Shares (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT--3.3%
- --------------------------------------------------------------------------------
Blackrock TempCash Fund,
Institutional Shares 228,426 $ 228
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $228) 228
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.1%
(COST $6,340) 6,899
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(0.1)%
- --------------------------------------------------------------------------------
Payable due to investment adviser (3)
Payable due to administrator (1)
Other assets and liabilities, net (1)
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (5)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 624,528 outstanding shares
of beneficial interest 6,993
Accumulated net realized loss
on investments (658)
Net unrealized appreciation
on investments 559
- --------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $6,894
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $11.04
- --------------------------------------------------------------------------------
* Non-income producing security
(A) - This security was issued for possible settlement of pending litigation and
does not have an expiration date.
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 19
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER CORE VALUE FUND
March 31, 2004
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--91.9%
- --------------------------------------------------------------------------------
ADMINISTRATION OF HUMAN
RESOURCE PROGRAMS--2.2%
- --------------------------------------------------------------------------------
Express Scripts* 17,000 $ 1,268
---------
Total Administration of human
resource programs 1,268
---------
- --------------------------------------------------------------------------------
ADVERTISING & RELATED SERVICES--0.9%
- --------------------------------------------------------------------------------
Interpublic Group* 33,500 515
---------
Total Advertising & related services 515
---------
- --------------------------------------------------------------------------------
AGENCIES & OTHER INSURANCE
RELATED ACTIVITIES--1.0%
- --------------------------------------------------------------------------------
Willis Group Holdings 15,000 558
---------
Total Agencies & other insurance
related activities 558
---------
- --------------------------------------------------------------------------------
ANIMAL SLAUGHTERING & PROCESSING--2.0%
- --------------------------------------------------------------------------------
ConAgra Foods 44,000 1,185
---------
Total Animal slaughtering & processing 1,185
---------
- --------------------------------------------------------------------------------
BASIC CHEMICAL MANUFACTURING--1.5%
- --------------------------------------------------------------------------------
Akzo Nobel ADR# 24,300 902
---------
Total Basic chemical manufacturing 902
---------
- --------------------------------------------------------------------------------
CLOTHING STORES--1.6%
- --------------------------------------------------------------------------------
American Eagle Outfitters*# 34,000 917
---------
Total Clothing stores 917
---------
- --------------------------------------------------------------------------------
COMMUNITY CARE FACILITIES FOR THE ELDERLY--1.0%
- --------------------------------------------------------------------------------
NeighborCare*# 25,000 606
---------
Total Community care facilities
for the elderly 606
---------
- --------------------------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--1.6%
- --------------------------------------------------------------------------------
Maxtor* 117,000 954
---------
Total Computer & peripheral
equipment manufacturing 954
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--0.9%
- --------------------------------------------------------------------------------
BISYS Group*# 31,000 $ 520
---------
Total Computer systems design &
related services 520
---------
- --------------------------------------------------------------------------------
CONVERTED PAPER PRODUCT MANUFACTURING--1.5%
- --------------------------------------------------------------------------------
Pactiv* 40,000 890
---------
Total Converted paper product
manufacturing 890
---------
- --------------------------------------------------------------------------------
CUT & SEW APPAREL MANUFACTURING--2.9%
- --------------------------------------------------------------------------------
Jones Apparel Group 47,000 1,699
---------
Total Cut & sew apparel
manufacturing 1,699
---------
- --------------------------------------------------------------------------------
DATA PROCESSING SERVICES--1.7%
- --------------------------------------------------------------------------------
eFunds* 60,000 984
---------
Total Data processing services 984
---------
- --------------------------------------------------------------------------------
DEPARTMENT STORES--1.6%
- --------------------------------------------------------------------------------
Federated Department Stores 17,500 946
---------
Total Department stores 946
---------
- --------------------------------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--7.0%
- --------------------------------------------------------------------------------
Banknorth Group# 16,000 545
Charter One Financial 21,500 760
Hibernia, Cl A 46,000 1,081
Sovereign Bancorp 40,000 857
Webster Financial# 17,500 887
---------
Total Depository credit intermediation 4,130
---------
- --------------------------------------------------------------------------------
ELECTRIC POWER GENERATION, TRANSMISSION &
DISTRIBUTION--9.5%
- --------------------------------------------------------------------------------
CMS Energy* 147,000 1,316
NiSource 52,000 1,105
Puget Energy 38,500 861
SCANA 33,000 1,166
Xcel Energy 65,000 1,158
---------
Total Electric power generation,
transmission & distribution 5,606
---------
20 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER CORE VALUE FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--1.0%
- --------------------------------------------------------------------------------
RadioShack 17,000 $ 564
---------
Total Electronics & appliance stores 564
---------
- --------------------------------------------------------------------------------
FOOTWEAR MANUFACTURING--1.0%
- --------------------------------------------------------------------------------
Reebok International 14,000 579
---------
Total Footwear manufacturing 579
---------
- --------------------------------------------------------------------------------
FURNITURE & HOME FURNISHING WHOLESALE--0.9%
- --------------------------------------------------------------------------------
United Stationers* 12,500 526
---------
Total Furniture & home
furnishing wholesale 526
---------
- --------------------------------------------------------------------------------
GENERAL MEDICAL & SURGICAL HOSPITALS--1.0%
- --------------------------------------------------------------------------------
Triad Hospitals* 18,500 570
---------
Total General medical & surgical hospitals 570
---------
- --------------------------------------------------------------------------------
GROCERY STORES--1.2%
- --------------------------------------------------------------------------------
Kroger* 42,000 699
---------
Total Grocery stores 699
---------
- --------------------------------------------------------------------------------
HEALTH & PERSONAL CARE STORES--2.3%
- --------------------------------------------------------------------------------
CVS 38,000 1,341
---------
Total Health & personal care stores 1,341
---------
- --------------------------------------------------------------------------------
INFORMATION SERVICES--1.3%
- --------------------------------------------------------------------------------
Dun & Bradstreet* 14,500 776
---------
Total Information services 776
---------
- --------------------------------------------------------------------------------
INSURANCE CARRIERS--11.9%
- --------------------------------------------------------------------------------
Aflac 26,000 1,044
AMBAC Financial Group 12,000 885
Fidelity National Financial 15,400 610
Platinum Underwriters Holdings 17,500 561
Prudential Financial 30,000 1,343
Radian Group 18,500 788
Safeco 25,000 1,079
Travelers Property Casualty, Cl B 40,000 691
---------
Total Insurance carriers 7,001
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
LUMBER & OTHER CONSTRUCTION
MATERIALS WHOLESALE--1.4%
- --------------------------------------------------------------------------------
Yellow Roadway* 23,800 $ 801
---------
Total Lumber & other construction
materials wholesale 801
---------
- --------------------------------------------------------------------------------
MEDICAL & DIAGNOSTIC LABORATORIES--1.8%
- --------------------------------------------------------------------------------
Quest Diagnostics* 13,000 1,077
---------
Total Medical & diagnostic laboratories 1,077
---------
- --------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--2.4%
- --------------------------------------------------------------------------------
Baxter International 46,500 1,436
---------
Total Medical equipment &
supplies manufacturing 1,436
---------
- --------------------------------------------------------------------------------
MOTOR VEHICLE PARTS MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
Delphi 55,000 548
---------
Total Motor vehicle parts manufacturing 548
---------
- --------------------------------------------------------------------------------
NATURAL GAS DISTRIBUTION--2.0%
- --------------------------------------------------------------------------------
KeySpan# 30,000 1,147
---------
Total Natural gas distribution 1,147
---------
- --------------------------------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/
CONTROL INSTRUMENTS MANUFACTURING--1.4%
- --------------------------------------------------------------------------------
Thermo Electron* 30,000 848
---------
Total Navigational/measuring/
medical/control instruments
manufacturing 848
---------
- --------------------------------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--2.7%
- --------------------------------------------------------------------------------
Countrywide Credit Industry 8,500 815
Freddie Mac 13,500 797
---------
Total Nondepository credit
intermediation 1,612
---------
- --------------------------------------------------------------------------------
OFFICE FURNITURE (INCLUDING FIXTURES)
MANUFACTURING--1.5%
- --------------------------------------------------------------------------------
Furniture Brands International# 27,500 885
---------
Total Office furniture (including fixtures)
manufacturing 885
---------
TURNER FUNDS 2004 SEMIANNUAL REPORT 21
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER CORE VALUE FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
OIL & GAS EXTRACTION--1.8%
- --------------------------------------------------------------------------------
Pioneer Natural Resources* 33,000 $ 1,066
---------
Total Oil & gas extraction 1,066
---------
- --------------------------------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--1.0%
- --------------------------------------------------------------------------------
SPX* 12,500 569
---------
Total Other general purpose machinery
manufacturing 569
---------
- --------------------------------------------------------------------------------
OTHER INVESTMENT POOLS & FUNDS--1.1%
- --------------------------------------------------------------------------------
iStar Financial 15,700 664
---------
Total Other investment pools & funds 664
---------
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--1.1%
- --------------------------------------------------------------------------------
Callaway Golf 35,000 664
---------
Total Other miscellaneous manufacturing 664
---------
- --------------------------------------------------------------------------------
PETROLEUM & COAL PRODUCTS
MANUFACTURING--2.0%
- --------------------------------------------------------------------------------
Valero Energy 20,000 1,199
---------
Total Petroleum & coal products
manufacturing 1,199
---------
- --------------------------------------------------------------------------------
PRINTING & RELATED SUPPORT ACTIVITIES--1.0%
- --------------------------------------------------------------------------------
Quebecor World 32,000 589
---------
Total Printing & related support activities 589
---------
- --------------------------------------------------------------------------------
PROFESSIONAL & COMMERCIAL EQUIPMENT &
SUPPLY WHOLESALE--1.7%
- --------------------------------------------------------------------------------
Ingram Micro, Cl A* 54,000 977
---------
Total Professional & commercial
equipment & supply wholesale 977
---------
- --------------------------------------------------------------------------------
RESIDENTIAL BUILDING CONSTRUCTION--0.8%
- --------------------------------------------------------------------------------
Lafarge ADR# 21,500 439
---------
Total Residential building construction 439
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--3.2%
- --------------------------------------------------------------------------------
E*Trade Group* 41,000 $ 548
Goldman Sachs Group 5,500 574
Merrill Lynch 13,000 774
---------
Total Security & commodity contracts
intermediation & brokerage 1,896
---------
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--1.8%
- --------------------------------------------------------------------------------
LSI Logic* 58,100 543
Solectron*# 95,000 525
---------
Total Semiconductor & other electronic
component manufacturing 1,068
---------
- --------------------------------------------------------------------------------
SHIP & BOAT BUILDING--1.7%
- --------------------------------------------------------------------------------
Brunswick 25,000 1,021
---------
Total Ship & boat building 1,021
---------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--1.4%
- --------------------------------------------------------------------------------
Compuware* 110,000 820
---------
Total Software publishers 820
---------
- --------------------------------------------------------------------------------
WASTE TREATMENT & DISPOSAL--1.7%
- --------------------------------------------------------------------------------
Republic Services 37,500 1,015
---------
Total Waste treatment & disposal 1,015
---------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $42,229) 54,077
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--6.7%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 3,948,600 3,949
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $3,949) 3,949
- --------------------------------------------------------------------------------
22 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER CORE VALUE FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENTS--7.4%
- --------------------------------------------------------------------------------
Blackrock TempCash Fund,
Institutional Shares 2,914,467 $ 2,915
Blackrock TempFund,
Institutional Shares 1,409,323 1,409
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(COST $4,324) 4,324
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--106.0%
(COST $50,502) 62,350
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(6.0)%
- --------------------------------------------------------------------------------
Obligation to return securities
lending collateral (3,949)
Payable due to investment adviser (36)
Payable due to administrator (7)
Other assets and liabilities, net 453
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (3,539)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 3,576,708 outstanding shares
of beneficial interest 44,095
Accumulated net realized gain
on investments 2,868
Net unrealized appreciation
on investments 11,848
- --------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $58,811
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $16.44
- --------------------------------------------------------------------------------
* 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 $3,831,110.
ADR - American depository receipt
Cl - Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2004 SEMIANNUAL REPORT 23
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP VALUE FUND
March 31, 2004
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--96.8%
- --------------------------------------------------------------------------------
ACCOUNTING/TAX PREPARATION/
BOOKKEEPING/PAYROLL SERVICES--0.5%
- --------------------------------------------------------------------------------
NCO Group* 107,000 $ 2,501
---------
Total Accounting/tax preparation/
bookkeeping/payroll services 2,501
---------
- --------------------------------------------------------------------------------
ACTIVITIES RELATED TO CREDIT
INTERMEDIATION--0.5%
- --------------------------------------------------------------------------------
Rewards Network* 240,000 2,400
---------
Total Activities related to credit
intermediation 2,400
---------
- --------------------------------------------------------------------------------
AGENCIES & OTHER INSURANCE
RELATED ACTIVITIES--1.0%
- --------------------------------------------------------------------------------
Arthur J. Gallagher 151,000 4,918
---------
Total Agencies & other insurance
related activities 4,918
---------
- --------------------------------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--1.6%
- --------------------------------------------------------------------------------
AGCO* 231,175 4,788
Terex* 99,000 3,660
---------
Total Agriculture, construction &
mining machinery manufacturing 8,448
---------
- --------------------------------------------------------------------------------
ALUMINA & ALUMINUM PRODUCTION &
PROCESSING--0.6%
- --------------------------------------------------------------------------------
Tredegar# 227,600 3,330
---------
Total Alumina & aluminum
production & processing 3,330
---------
- --------------------------------------------------------------------------------
APPAREL, PIECE GOODS & NOTIONS
WHOLESALE--0.5%
- --------------------------------------------------------------------------------
Men's Wearhouse* 104,650 2,781
---------
Total Apparel, piece goods &
notions wholesale 2,781
---------
- --------------------------------------------------------------------------------
ARCHITECTURAL, ENGINEERING &
RELATED SERVICES--0.5%
- --------------------------------------------------------------------------------
Washington Group International* 63,000 2,306
---------
Total Architectural, engineering &
related services 2,306
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
AUTOMOBILE DEALERS--0.4%
- --------------------------------------------------------------------------------
United Auto Group 83,000 $ 2,271
---------
Total Automobile dealers 2,271
---------
- --------------------------------------------------------------------------------
AUTOMOTIVE EQUIPMENT RENTAL & LEASING--0.4%
- --------------------------------------------------------------------------------
Ryder System 48,250 1,869
---------
Total Automotive equipment
rental & leasing 1,869
---------
- --------------------------------------------------------------------------------
BASIC CHEMICAL MANUFACTURING--0.4%
- --------------------------------------------------------------------------------
Arch Chemicals 74,600 2,106
---------
Total Basic chemical manufacturing 2,106
---------
- --------------------------------------------------------------------------------
BOOK, PERIODICAL & MUSIC STORES--1.4%
- --------------------------------------------------------------------------------
Barnes & Noble*# 227,200 7,407
---------
Total Book, periodical & music stores 7,407
---------
- --------------------------------------------------------------------------------
CHEMICAL MANUFACTURING--0.3%
- --------------------------------------------------------------------------------
Georgia Gulf 43,925 1,324
---------
Total Chemical manufacturing 1,324
---------
- --------------------------------------------------------------------------------
CLOTHING STORES--3.1%
- --------------------------------------------------------------------------------
American Eagle Outfitters*# 211,000 5,689
Charlotte Russe Holding*# 403,000 7,375
Charming Shoppes*# 385,000 2,999
---------
Total Clothing stores 16,063
---------
- --------------------------------------------------------------------------------
COAL MINING--0.2%
- --------------------------------------------------------------------------------
Massey Energy 48,000 1,059
---------
Total Coal mining 1,059
---------
- --------------------------------------------------------------------------------
COMMERCIAL/INDUSTRIAL EQUIPMENT
RENTAL & LEASING--0.7%
- --------------------------------------------------------------------------------
United Rentals* 201,100 3,574
---------
Total Commercial/industrial
equipment rental & leasing 3,574
---------
24 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP VALUE FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--1.7%
- --------------------------------------------------------------------------------
Anadigics* 246,550 $ 1,534
Checkpoint Systems* 119,600 2,260
Nice Systems ADR*# 217,400 5,170
---------
Total Communications equipment
manufacturing 8,964
---------
- --------------------------------------------------------------------------------
COMMUNITY CARE FACILITIES FOR THE ELDERLY--0.8%
- --------------------------------------------------------------------------------
NeighborCare* 180,000 4,365
---------
Total Community care facilities
for the elderly 4,365
---------
- --------------------------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--0.6%
- --------------------------------------------------------------------------------
Iomega 165,000 922
Maxtor* 255,686 2,084
---------
Total Computer & peripheral
equipment manufacturing 3,006
---------
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--1.1%
- --------------------------------------------------------------------------------
Carreker* 282,000 2,233
Ciber* 304,800 3,353
---------
Total Computer systems design &
related services 5,586
---------
- --------------------------------------------------------------------------------
CONVERTED PAPER PRODUCT MANUFACTURING--0.7%
- --------------------------------------------------------------------------------
Playtex Products* 540,900 3,738
---------
Total Converted paper product
manufacturing 3,738
---------
- --------------------------------------------------------------------------------
CUT & SEW APPAREL MANUFACTURING--1.3%
- --------------------------------------------------------------------------------
Ashworth* 471,000 4,098
Tommy Hilfiger* 140,000 2,380
---------
Total Cut & sew apparel manufacturing 6,478
---------
- --------------------------------------------------------------------------------
DATA PROCESSING SERVICES--1.4%
- --------------------------------------------------------------------------------
Acxiom* 237,900 5,224
eFunds* 136,400 2,237
---------
Total Data processing services 7,461
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
DEATH CARE SERVICES--0.9%
- --------------------------------------------------------------------------------
Service International* 594,600 $ 4,442
---------
Total Death care services 4,442
---------
- --------------------------------------------------------------------------------
DEPARTMENT STORES--0.3%
- --------------------------------------------------------------------------------
ShopKo Stores* 112,100 1,639
---------
Total Department stores 1,639
---------
- --------------------------------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--9.1%
- --------------------------------------------------------------------------------
Astoria Financial 68,200 2,594
BankAtlantic Bancorp, Cl A 290,000 4,918
Bankunited Financial, Cl A*# 186,100 5,527
Colonial BancGroup 272,600 5,043
Dime Community Bancshares 122,500 2,493
Hibernia, Cl A 155,050 3,642
Hudson United Bancorp 72,000 2,740
Sky Financial Group 164,000 4,256
Sterling Financial* 76,246 2,813
Texas Regional Bancshares, Cl A 108,500 4,617
Trustmark 95,500 2,779
Webster Financial 109,000 5,527
---------
Total Depository credit intermediation 46,949
---------
- --------------------------------------------------------------------------------
ELECTRIC POWER GENERATION, TRANSMISSION &
DISTRIBUTION--6.2%
- --------------------------------------------------------------------------------
Alliant Energy 77,000 2,007
Avista 211,000 3,992
Calpine* 1,224,400 5,718
CMS Energy* 896,500 8,024
El Paso Electric* 180,000 2,491
Northeast Utilities 141,400 2,637
Reliant Resources*# 686,000 5,632
Sierra Pacific Resources*# 216,550 1,602
---------
Total Electric power generation,
transmission & distribution 32,103
---------
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT MANUFACTURING--0.2%
- --------------------------------------------------------------------------------
Magnetek* 127,600 965
---------
Total Electrical equipment
manufacturing 965
---------
TURNER FUNDS 2004 SEMIANNUAL REPORT 25
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP VALUE FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
FOOTWEAR MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
Vans* 326,200 $ 4,828
---------
Total Footwear manufacturing 4,828
---------
- --------------------------------------------------------------------------------
FOUNDRIES--0.6%
- --------------------------------------------------------------------------------
Intermet 671,800 3,023
---------
Total Foundries 3,023
---------
- --------------------------------------------------------------------------------
FRUIT & TREE NUT FARMING--0.6%
- --------------------------------------------------------------------------------
Chiquita Brands International* 144,600 3,015
---------
Total Fruit & tree nut farming 3,015
---------
- --------------------------------------------------------------------------------
GENERAL FREIGHT TRUCKING--0.6%
- --------------------------------------------------------------------------------
Celadon Group*# 186,625 3,104
---------
Total General freight trucking 3,104
---------
- --------------------------------------------------------------------------------
GENERAL MEDICAL & SURGICAL HOSPITALS--1.7%
- --------------------------------------------------------------------------------
Province Healthcare* 339,700 5,401
Triad Hospitals* 106,000 3,267
---------
Total General medical &
surgical hospitals 8,668
---------
- --------------------------------------------------------------------------------
GLASS & GLASS PRODUCT MANUFACTURING--0.2%
- --------------------------------------------------------------------------------
Owens-Illinois* 84,300 1,182
---------
Total Glass & glass product manufacturing 1,182
---------
- --------------------------------------------------------------------------------
HEALTH & PERSONAL CARE STORES--0.8%
- --------------------------------------------------------------------------------
NBTY* 117,000 4,350
---------
Total Health & personal care stores 4,350
---------
- --------------------------------------------------------------------------------
HOUSEHOLD APPLIANCE MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
Helen of Troy* 145,150 4,501
---------
Total Household appliance
manufacturing 4,501
---------
- --------------------------------------------------------------------------------
HVAC & COMMERCIAL REFRIGERATION EQUIPMENT MANUFACTURING--0.7%
- --------------------------------------------------------------------------------
Lennox International# 201,000 3,729
---------
Total Hvac & commercial refrigeration
equipment manufacturing 3,729
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
INFORMATION SERVICES--2.2%
- --------------------------------------------------------------------------------
Earthlink* 245,200 $ 2,172
Hooper Holmes 752,200 4,694
Register.com* 365,000 2,161
S1* 308,700 2,346
---------
Total Information services 11,373
---------
- --------------------------------------------------------------------------------
INSURANCE CARRIERS--8.0%
- --------------------------------------------------------------------------------
American Financial Group 170,800 5,095
Delphi Financial Group, Cl A 126,000 5,295
FPIC Insurance Group*# 125,400 2,875
HCC Insurance Holdings 121,650 3,933
Infinity Property & Casualty* 126,000 3,960
Ohio Casualty* 174,000 3,478
Phoenix 300,200 4,026
Platinum Underwriters Holdings 130,000 4,166
Scottish Re Group 230,000 5,564
Triad Guaranty* 52,000 2,743
---------
Total Insurance carriers 41,135
---------
- --------------------------------------------------------------------------------
LUMBER & OTHER CONSTRUCTION
MATERIALS WHOLESALE--1.0%
- --------------------------------------------------------------------------------
Overnite* 82,150 1,889
Yellow Roadway* 100,000 3,367
---------
Total Lumber & other construction
materials wholesale 5,256
---------
- --------------------------------------------------------------------------------
MANAGEMENT, SCIENTIFIC & TECHNICAL
CONSULTING SERVICES--0.4%
- --------------------------------------------------------------------------------
First Consulting Group* 352,000 2,204
---------
Total Management, scientific &
technical consulting services 2,204
---------
- --------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--2.4%
- --------------------------------------------------------------------------------
Conmed* 78,000 2,304
Oakley 530,000 7,865
Vital Signs 70,000 2,361
---------
Total Medical equipment &
supplies manufacturing 12,530
---------
26 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP VALUE FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
METAL & MINERAL (EXCEPT PETROLEUM)
WHOLESALE--0.3%
- --------------------------------------------------------------------------------
Reliance Steel & Aluminum 43,700 $ 1,536
---------
Total Metal & mineral (except
petroleum) wholesale 1,536
---------
- --------------------------------------------------------------------------------
METALWORKING MACHINERY MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Milacron# 705,000 2,446
---------
Total Metalworking machinery
manufacturing 2,446
---------
- --------------------------------------------------------------------------------
MINING SUPPORT ACTIVITIES--1.2%
- --------------------------------------------------------------------------------
Grey Wolf* 510,000 2,111
Key Energy Services* 391,150 4,303
---------
Total Mining support activities 6,414
---------
- --------------------------------------------------------------------------------
MOTOR VEHICLE MANUFACTURING--0.7%
- --------------------------------------------------------------------------------
Federal Signal 178,000 3,533
---------
Total Motor vehicle manufacturing 3,533
---------
- --------------------------------------------------------------------------------
NATURAL GAS DISTRIBUTION--0.6%
- --------------------------------------------------------------------------------
NUI# 105,000 1,776
SEMCO Energy 225,650 1,277
---------
Total Natural gas distribution 3,053
---------
- --------------------------------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/
CONTROL INSTRUMENTS MANUFACTURING--1.4%
- --------------------------------------------------------------------------------
Coherent*# 126,000 3,313
FEI* 138,500 3,026
Molecular Devices* 56,850 1,071
---------
Total Navigational/measuring/medical/
control instruments manufacturing 7,410
---------
- --------------------------------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--1.4%
- --------------------------------------------------------------------------------
Advanta, Cl B 175,000 2,905
Providian Financial* 316,000 4,140
---------
Total Nondepository credit intermediation 7,045
---------
- --------------------------------------------------------------------------------
NONFERROUS PRODUCTION & PROCESSING--0.3%
- --------------------------------------------------------------------------------
Wolverine Tube* 208,850 1,752
---------
Total Nonferrous production & processing 1,752
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
NONSCHEDULED AIR TRANSPORTATION--0.8%
- --------------------------------------------------------------------------------
CNF 117,000 $ 3,931
---------
Total Nonscheduled air transportation 3,931
---------
- --------------------------------------------------------------------------------
NURSING CARE FACILITIES--0.2%
- --------------------------------------------------------------------------------
Genesis HealthCare* 37,500 913
---------
Total Nursing care facilities 913
---------
- --------------------------------------------------------------------------------
OFFICE FURNITURE (INCLUDING FIXTURES)
MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
Furniture Brands International 136,000 4,379
---------
Total Office furniture (including
fixtures) manufacturing 4,379
---------
- --------------------------------------------------------------------------------
OFFICE SUPPLIES, STATIONERY & GIFT STORES--0.4%
- --------------------------------------------------------------------------------
School Specialty*# 60,000 2,134
---------
Total Office supplies, stationery & gift stores 2,134
---------
- --------------------------------------------------------------------------------
OFFICES OF DENTISTS--0.3%
- --------------------------------------------------------------------------------
Orthodontic Centers of America*# 200,000 1,580
---------
Total Offices of dentists 1,580
---------
- --------------------------------------------------------------------------------
OFFICES OF PHYSICIANS--1.1%
- --------------------------------------------------------------------------------
Waddell & Reed Financial, Cl A 231,800 5,684
---------
Total Offices of physicians 5,684
---------
- --------------------------------------------------------------------------------
OIL & GAS EXTRACTION--1.7%
- --------------------------------------------------------------------------------
Cabot Oil & Gas 113,050 3,455
Encore Acquisition* 116,000 3,213
Magnum Hunter Resources* 200,000 2,028
---------
Total Oil & gas extraction 8,696
---------
- --------------------------------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--1.4%
- --------------------------------------------------------------------------------
GrafTech International* 171,550 2,565
Rayovac* 160,500 4,590
---------
Total Other electrical equipment &
component manufacturing 7,155
---------
TURNER FUNDS 2004 SEMIANNUAL REPORT 27
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP VALUE FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
OTHER FABRICATED METAL PRODUCT
MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
Timken 205,000 $ 4,762
--------
Total Other fabricated metal
product manufacturing 4,762
---------
- --------------------------------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--0.8%
- --------------------------------------------------------------------------------
BKF Capital Group* 51,900 1,339
WP Stewart 145,000 2,891
---------
Total Other financial
investment activities 4,230
---------
- --------------------------------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--1.6%
- --------------------------------------------------------------------------------
Flowserve* 118,000 2,472
Stewart & Stevenson Services# 400,700 5,858
---------
Total Other general purpose machinery
manufacturing 8,330
---------
- --------------------------------------------------------------------------------
OTHER INVESTMENT POOLS & FUNDS--4.1%
- --------------------------------------------------------------------------------
Developers Diversified Realty 70,000 2,828
FelCor Lodging Trust* 576,000 6,002
HRPT Properties Trust 332,850 3,761
LTC Properties 229,050 4,148
US Restaurant Properties 227,550 4,265
---------
Total Other investment pools & funds 21,004
---------
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Callaway Golf 130,050 2,468
---------
Total Other miscellaneous manufacturing 2,468
---------
- --------------------------------------------------------------------------------
OTHER PROFESSIONAL/SCIENTIFIC/
TECHNICAL SERVICE--1.4%
- --------------------------------------------------------------------------------
Dendrite International*# 182,500 2,920
VCA Antech* 115,000 4,097
---------
Total Other professional/scientific/
technical service 7,017
---------
- --------------------------------------------------------------------------------
OUTPATIENT CARE CENTERS--0.2%
- --------------------------------------------------------------------------------
Curative Health Services*# 93,000 1,246
---------
Total Outpatient care centers 1,246
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
PULP, PAPER & PAPERBOARD MILLS--2.9%
- --------------------------------------------------------------------------------
Buckeye Technologies* 319,650 $ 3,312
Caraustar Industries* 231,750 2,700
Chesapeake 110,200 2,630
Packaging Corporation
of America 181,000 4,083
Wausau-Mosinee Paper 171,650 2,419
---------
Total Pulp, paper & paperboard mills 15,144
---------
- --------------------------------------------------------------------------------
RADIO & TELEVISION BROADCASTING--2.0%
- --------------------------------------------------------------------------------
Cumulus Media, Cl A*# 241,000 4,817
Entravision Communications, Cl A* 370,000 3,319
Hearst-Argyle Television 78,500 2,111
---------
Total Radio & television
broadcasting 10,247
---------
- --------------------------------------------------------------------------------
RUBBER PRODUCT MANUFACTURING--1.2%
- --------------------------------------------------------------------------------
Cooper Tire & Rubber# 304,850 6,143
---------
Total Rubber product manufacturing 6,143
---------
- --------------------------------------------------------------------------------
SCHEDULED AIR TRANSPORTATION--0.6%
- --------------------------------------------------------------------------------
MAIR Holdings* 325,000 2,971
---------
Total Scheduled air transportation 2,971
---------
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--1.0%
- --------------------------------------------------------------------------------
Raymond James Financial 109,575 2,723
SWS Group# 129,000 2,310
---------
Total Security & commodity contracts
intermediation & brokerage 5,033
---------
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--2.5%
- --------------------------------------------------------------------------------
Arrow Electronics* 162,000 4,124
Fairchild Semiconductor
International* 58,000 1,394
Integrated Silicon Solutions* 174,000 3,087
IXYS* 275,000 2,585
Methode Electronics 130,500 1,683
---------
Total Semiconductor & other electronic
component manufacturing 12,873
---------
28 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP VALUE FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
SHOE STORES--1.1%
- --------------------------------------------------------------------------------
Payless Shoesource* 400,275 $ 5,588
---------
Total Shoe stores 5,588
---------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--1.8%
- --------------------------------------------------------------------------------
Activision* 412,500 6,526
THQ*# 138,000 2,791
---------
Total Software publishers 9,317
---------
- --------------------------------------------------------------------------------
SPORTING GOODS/HOBBY/MUSICAL
INSTRUMENT STORES--1.4%
- --------------------------------------------------------------------------------
Electronics Boutique Holdings*# 237,000 6,958
---------
Total Sporting goods/hobby/musical
instrument stores 6,958
---------
- --------------------------------------------------------------------------------
STEEL PRODUCT MANUFACTURING FROM
PURCHASED STEEL--1.4%
- --------------------------------------------------------------------------------
AK Steel Holding* 649,400 3,812
NS Group* 274,500 3,568
---------
Total Steel product manufacturing
from purchased steel 7,380
---------
- --------------------------------------------------------------------------------
TRAVEL ARRANGEMENT & RESERVATION SERVICES--0.8%
- --------------------------------------------------------------------------------
Navigant International* 78,400 1,411
Pegasus Solutions* 225,000 2,628
---------
Total Travel arrangement &
reservation services 4,039
---------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $411,452) 499,362
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--6.7%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 34,604,100 34,604
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $34,604) 34,604
- --------------------------------------------------------------------------------
Value
Shares (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT--3.5%
- --------------------------------------------------------------------------------
Blackrock TempCash Fund,
Institutional Shares 18,116,855 $ 18,117
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $18,117) 18,117
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--107.0%
(COST $464,173) 552,083
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(7.0)%
- --------------------------------------------------------------------------------
Obligation to return securities
lending collateral (34,604)
Payable due to investment adviser (364)
Payable due to administrator (60)
Other assets and liabilities, net (1,127)
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (36,155)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 21,498,215 outstanding shares
of beneficial interest 457,526
Distributions in excess of net
investment income (264)
Accumulated net realized loss
on investments (29,244)
Net unrealized appreciation
on investments 87,910
- --------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $515,928
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $24.00
- --------------------------------------------------------------------------------
* 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 $32,765,512.
ADR - American depository receipt
Cl - Class
The accompanying Notes are an integral part of the financial statements.
TURNER FUNDS 2004 SEMIANNUAL REPORT 29
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER SMALL CAP VALUE OPPORTUNITIES FUND
March 31, 2004
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--90.3%
- --------------------------------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--1.3%
- --------------------------------------------------------------------------------
Terex* 7,070 $ 261
---------
Total Agriculture, construction &
mining machinery manufacturing 261
---------
- --------------------------------------------------------------------------------
AMUSEMENT PARKS & ARCADES--1.0%
- --------------------------------------------------------------------------------
Cedar Fair 6,160 215
---------
Total Amusement parks & arcades 215
---------
- --------------------------------------------------------------------------------
ARCHITECTURAL & STRUCTURAL METALS
MANUFACTURING--1.0%
- --------------------------------------------------------------------------------
Griffon* 9,310 201
---------
Total Architectural & structural metals
manufacturing 201
---------
- --------------------------------------------------------------------------------
ARCHITECTURAL, ENGINEERING &
RELATED SERVICES--1.0%
- --------------------------------------------------------------------------------
Washington Group International* 5,440 199
---------
Total Architectural, engineering &
related services 199
---------
- --------------------------------------------------------------------------------
BASIC CHEMICAL MANUFACTURING--1.5%
- --------------------------------------------------------------------------------
Church & Dwight 7,160 310
---------
Total Basic chemical manufacturing 310
---------
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--4.3%
- --------------------------------------------------------------------------------
Enterasys Networks* 44,020 111
Inforte* 20,090 201
Intergraph* 9,525 230
Lipman Electronic Engineering* 7,720 362
---------
Total Computer systems design &
related services 904
---------
- --------------------------------------------------------------------------------
CUT & SEW APPAREL MANUFACTURING--1.8%
- --------------------------------------------------------------------------------
Oxford Industries# 8,280 382
---------
Total Cut & sew apparel manufacturing 382
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
DEEP SEA, COASTAL & GREAT LAKES
WATER TRANSPORTATION--1.9%
- --------------------------------------------------------------------------------
Alexander & Baldwin 7,800 $ 258
OMI* 12,760 146
---------
Total Deep sea, coastal & great
lakes water transportation 404
---------
- --------------------------------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--9.2%
- --------------------------------------------------------------------------------
BankAtlantic Bancorp, Cl A 15,200 258
BSB Bancorp 5,360 207
FNB 11,470 253
People's Bank 10,970 510
Provident Bankshares 6,890 216
Sterling Financial* 6,560 242
Webster Financial 4,690 238
---------
Total Depository credit intermediation 1,924
---------
- --------------------------------------------------------------------------------
DRUGS & DRUGGISTS' SUNDRIES WHOLESALE--1.0%
- --------------------------------------------------------------------------------
D&K Healthcare Resources# 20,890 214
---------
Total Drugs & druggists'
sundries wholesale 214
---------
- --------------------------------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--0.6%
- --------------------------------------------------------------------------------
PolyMedica 4,620 124
---------
Total Electronic shopping &
mail-order houses 124
---------
- --------------------------------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--0.7%
- --------------------------------------------------------------------------------
Insight Enterprises* 7,300 141
---------
Total Electronics & appliance stores 141
---------
- --------------------------------------------------------------------------------
FABRIC MILLS--1.3%
- --------------------------------------------------------------------------------
Albany International, Cl A 9,930 267
---------
Total Fabric mills 267
---------
- --------------------------------------------------------------------------------
FULL-SERVICE RESTAURANTS--1.2%
- --------------------------------------------------------------------------------
Landry's Restaurants 8,620 257
---------
Total Full-service restaurants 257
---------
30 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER SMALL CAP VALUE OPPORTUNITIES FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
HEALTH & PERSONAL CARE STORES--1.4%
- --------------------------------------------------------------------------------
NBTY* 7,800 $ 290
---------
Total Health & personal care stores 290
---------
- --------------------------------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--0.6%
- --------------------------------------------------------------------------------
Imation 3,320 125
---------
Total Industrial machinery manufacturing 125
---------
- --------------------------------------------------------------------------------
INSURANCE CARRIERS--7.1%
- --------------------------------------------------------------------------------
Allmerica Financial* 4,960 171
American Financial Group 6,050 181
Ceres Group* 42,250 299
Conseco* 10,080 233
Delphi Financial Group, Cl A 4,765 200
IPC Holdings 4,690 185
Odyssey Re Holdings# 8,020 217
---------
Total Insurance carriers 1,486
---------
- --------------------------------------------------------------------------------
INVESTIGATION & SECURITY SERVICES--1.7%
- --------------------------------------------------------------------------------
Brink's 12,835 354
---------
Total Investigation & security services 354
---------
- --------------------------------------------------------------------------------
LIMITED-SERVICE EATING PLACES--1.5%
- --------------------------------------------------------------------------------
Lone Star Steakhouse & Saloon 11,030 322
---------
Total Limited-service eating places 322
---------
- --------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--1.9%
- --------------------------------------------------------------------------------
Endocare* 44,430 162
Hanger Orthopedic Group* 13,320 241
---------
Total Medical equipment &
supplies manufacturing 403
---------
- --------------------------------------------------------------------------------
METAL ORE MINING--3.4%
- --------------------------------------------------------------------------------
Apex Silver Mines*# 21,320 481
Golden Star Resources* 33,330 238
---------
Total Metal ore mining 719
---------
- --------------------------------------------------------------------------------
MINING (EXCEPT OIL & GAS)--1.2%
- --------------------------------------------------------------------------------
Hecla Mining* 29,240 246
---------
Total Mining (except oil & gas) 246
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
MISCELLANEOUS NONDURABLE
GOODS WHOLESALE--1.0%
- --------------------------------------------------------------------------------
Central Garden and Pet* 5,760 $ 207
---------
Total Miscellaneous nondurable
goods wholesale 207
---------
- --------------------------------------------------------------------------------
NATURAL GAS DISTRIBUTION--1.4%
- --------------------------------------------------------------------------------
AGL Resources 10,220 297
---------
Total Natural gas distribution 297
---------
- --------------------------------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/CONTROL
INSTRUMENTS MANUFACTURING--1.6%
- --------------------------------------------------------------------------------
Analogic 7,480 340
---------
Total Navigational/measuring/medical/
control instruments manufacturing 340
---------
- --------------------------------------------------------------------------------
NEWSPAPER/PERIODICAL/BOOK/
DATABASE PUBLISHERS--1.7%
- --------------------------------------------------------------------------------
R.H. Donnelley* 7,575 354
---------
Total Newspaper/periodical/book/
database publishers 354
---------
- --------------------------------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--1.3%
- --------------------------------------------------------------------------------
First Cash Financial Services* 8,010 269
---------
Total Nondepository credit intermediation 269
---------
- --------------------------------------------------------------------------------
NURSING CARE FACILITIES--0.5%
- --------------------------------------------------------------------------------
Kindred Healthcare* 2,110 106
---------
Total Nursing care facilities 106
---------
- --------------------------------------------------------------------------------
OFFICE SUPPLIES, STATIONERY & GIFT STORES--1.5%
- --------------------------------------------------------------------------------
School Specialty* 8,690 309
---------
Total Office supplies, stationery & gift stores 309
---------
- --------------------------------------------------------------------------------
OIL & GAS EXTRACTION--1.7%
- --------------------------------------------------------------------------------
Stone Energy* 7,040 348
---------
Total Oil & gas extraction 348
---------
TURNER FUNDS 2004 SEMIANNUAL REPORT 31
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER SMALL CAP VALUE OPPORTUNITIES FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--1.9%
- --------------------------------------------------------------------------------
Gilat Satellite Networks* 28,190 $ 250
Rayovac* 5,210 149
---------
Total Other electrical equipment &
component manufacturing 399
---------
- --------------------------------------------------------------------------------
OTHER FABRICATED METAL PRODUCT
MANUFACTURING--3.3%
- --------------------------------------------------------------------------------
Timken 19,550 454
Watts Industries, Cl A 9,680 227
---------
Total Other fabricated metal
product manufacturing 681
---------
- --------------------------------------------------------------------------------
OTHER FOOD MANUFACTURING--1.0%
- --------------------------------------------------------------------------------
Hain Celestial Group* 9,130 202
---------
Total Other food manufacturing 202
---------
- --------------------------------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--0.1%
- --------------------------------------------------------------------------------
Lincoln Electric Holdings 900 25
---------
Total Other general purpose
machinery manufacturing 25
---------
- --------------------------------------------------------------------------------
OTHER INVESTMENT POOLS & FUNDS--4.9%
- --------------------------------------------------------------------------------
Alexandria Real Estate Equities 3,450 217
Capital Automotive REIT 8,460 299
Pan Pacific Retail Properties 5,940 309
SL Green Realty 4,210 201
---------
Total Other investment pools & funds 1,026
---------
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--1.9%
- --------------------------------------------------------------------------------
Steinway Musical Instruments* 12,610 404
---------
Total Other miscellaneous manufacturing 404
---------
- --------------------------------------------------------------------------------
PAPER & PAPER PRODUCT WHOLESALE--2.6%
- --------------------------------------------------------------------------------
Boise Cascade 15,430 535
---------
Total Paper & paper product wholesale 535
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
PETROLEUM & COAL PRODUCTS MANUFACTURING--1.2%
- --------------------------------------------------------------------------------
Headwaters* 9,970 $ 255
---------
Total Petroleum & coal
products manufacturing 255
---------
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Caraco Pharm Labs* 10,440 106
---------
Total Pharmaceutical & medicine
manufacturing 106
---------
- --------------------------------------------------------------------------------
PIPELINE TRANSPORTATION OF NATURAL GAS--0.9%
- --------------------------------------------------------------------------------
Western Gas Resources 3,830 195
---------
Total Pipeline transportation of natural gas 195
---------
- --------------------------------------------------------------------------------
PLUMBING, HEATING & AIR CONDITIONING
CONTRACTOR--1.0%
- --------------------------------------------------------------------------------
Comfort Systems USA* 29,640 214
---------
Total Plumbing, heating &
air conditioning contractor 214
---------
- --------------------------------------------------------------------------------
PRINTING & RELATED SUPPORT ACTIVITIES--1.5%
- --------------------------------------------------------------------------------
Presstek* 28,730 313
---------
Total Printing & related support activities 313
---------
- --------------------------------------------------------------------------------
PROFESSIONAL, SCIENTIFIC &
TECHNICAL SERVICES--1.4%
- --------------------------------------------------------------------------------
Alliance Data Systems* 8,630 290
---------
Total Professional, scientific &
technical services 290
---------
- --------------------------------------------------------------------------------
PULP, PAPER & PAPERBOARD MILLS--1.6%
- --------------------------------------------------------------------------------
Temple-Inland 5,260 333
---------
Total Pulp, paper & paperboard mills 333
---------
- --------------------------------------------------------------------------------
RADIO & TELEVISION BROADCASTING--0.9%
- --------------------------------------------------------------------------------
Gray Television 13,440 196
---------
Total Radio & television broadcasting 196
---------
- --------------------------------------------------------------------------------
SECURITIES & COMMODITY EXCHANGES--1.3%
- --------------------------------------------------------------------------------
Chicago Mercantile Exchange# 2,730 264
---------
Total Securities & commodity exchanges 264
---------
32 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER SMALL CAP VALUE OPPORTUNITIES FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--1.0%
- --------------------------------------------------------------------------------
Piper Jaffray* 4,000 $ 217
---------
Total Security & commodity contracts
intermediation & brokerage 217
---------
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--1.9%
- --------------------------------------------------------------------------------
NAM TAI Electronics 7,640 194
Zilog* 16,245 205
---------
Total Semiconductor & other
electronic component manufacturing 399
---------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--0.6%
- --------------------------------------------------------------------------------
Borland Software* 13,170 120
---------
Total Software publishers 120
---------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS--1.3%
- --------------------------------------------------------------------------------
Alamosa Holdings*# 47,610 278
---------
Total Telecommunications 278
---------
- --------------------------------------------------------------------------------
TRAVEL ARRANGEMENT &
RESERVATION SERVICES--1.0%
- --------------------------------------------------------------------------------
Sunterra* 16,010 217
---------
Total Travel arrangement &
reservation services 217
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
TRUCK TRANSPORTATION--1.2%
- --------------------------------------------------------------------------------
Laidlaw International* 17,640 $ 257
---------
Total Truck transportation 257
---------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $16,498) 18,904
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--7.4%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 1,565,800 1,566
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $1,566) 1,566
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CASH EQUIVALENT--1.0%
- --------------------------------------------------------------------------------
Blackrock TempCash Fund,
Institutional Shares 201,786 202
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $202) 202
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--98.7%
(COST $18,266) $20,672
- --------------------------------------------------------------------------------
Percentages are based on net assets of $20,933,560.
* 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 $1,482,879.
Cl - Class
REIT - Real estate investment trust
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2004 SEMIANNUAL REPORT 33
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER FINANCIAL SERVICES FUND
March 31, 2004
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--97.4%
- --------------------------------------------------------------------------------
ACTIVITIES RELATED TO CREDIT INTERMEDIATION--2.3%
- --------------------------------------------------------------------------------
Euronet Worldwide*# 20,890 $ 397
---------
Total Activities related to credit
intermediation 397
---------
- --------------------------------------------------------------------------------
DATA PROCESSING SERVICES--1.6%
- --------------------------------------------------------------------------------
Global Payments# 5,860 264
---------
Total Data processing services 264
---------
- --------------------------------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--31.7%
- --------------------------------------------------------------------------------
Citigroup 16,940 876
Golden West Financial 4,840 542
National Commerce Financial 13,410 384
New York Community Bancorp 21,693 744
Northern Trust 12,330 574
Silicon Valley Bancshares*# 10,730 348
Sovereign Bancorp 23,410 501
UCBH Holdings 10,610 425
Wells Fargo 11,275 639
Zions Bancorporation 6,520 373
---------
Total Depository credit intermediation 5,406
---------
- --------------------------------------------------------------------------------
INFORMATION SERVICES--2.3%
- --------------------------------------------------------------------------------
eSpeed, Cl A* 18,640 391
---------
Total Information services 391
---------
- --------------------------------------------------------------------------------
INSURANCE CARRIERS--10.5%
- --------------------------------------------------------------------------------
Allstate 13,470 612
American International Group 10,534 752
Aspen Insurance Holdings* 16,350 421
---------
Total Insurance carriers 1,785
---------
- --------------------------------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--11.8%
- --------------------------------------------------------------------------------
American Express 13,200 684
CapitalSource*# 21,570 484
CIT Group 9,010 343
MBNA 18,130 501
---------
Total Nondepository credit intermediation 2,012
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--11.6%
- --------------------------------------------------------------------------------
Affiliated Managers Group*# 10,530 $ 575
Investors Financial Services# 8,670 358
SEI Investments 17,070 564
T. Rowe Price Group 9,050 487
---------
Total Other financial investment activities 1,984
---------
- --------------------------------------------------------------------------------
PROFESSIONAL, SCIENTIFIC &
TECHNICAL SERVICES--2.1%
- --------------------------------------------------------------------------------
Alliance Data Systems*# 10,890 365
---------
Total Professional, scientific &
technical services 365
---------
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--23.5%
- --------------------------------------------------------------------------------
Ameritrade Holding* 44,550 686
Charles Schwab 47,220 548
Goldman Sachs Group 7,430 775
Lehman Brothers Holdings 6,050 502
Merrill Lynch 11,940 711
Morgan Stanley 13,530 775
---------
Total Security & commodity contracts
intermediation & brokerage 3,997
---------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $13,751) 16,601
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--8.8%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 1,501,000 1,501
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $1,501) 1,501
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CASH EQUIVALENT--2.7%
- --------------------------------------------------------------------------------
Blackrock TempCash Fund,
Institutional Shares 463,953 464
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $464) 464
- --------------------------------------------------------------------------------
34 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER FINANCIAL SERVICES FUND
Value
(000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--108.9%
(COST $15,716) $18,566
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(8.9)%
- --------------------------------------------------------------------------------
Obligation to return securities
lending collateral (1,501)
Payable due to investment adviser (16)
Payable due to administrator (2)
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (1,519)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 1,165,796 outstanding shares
of beneficial interest 13,238
Accumulated net investment loss (18)
Accumulated net realized gain
on investments 977
Net unrealized appreciation
on investments 2,850
- --------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $17,047
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $14.62
- --------------------------------------------------------------------------------
* 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 $1,378,280.
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 HEALTHCARE & BIOTECHNOLOGY FUND
March 31, 2004
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--97.3%
- --------------------------------------------------------------------------------
COMMUNITY CARE FACILITIES FOR THE ELDERLY--1.6%
- --------------------------------------------------------------------------------
NeighborCare* 12,820 $ 311
---------
Total Community care facilities
for the elderly 311
---------
- --------------------------------------------------------------------------------
DRUGS & DRUGGISTS' SUNDRIES WHOLESALE--5.6%
- --------------------------------------------------------------------------------
Endo Pharmaceuticals Holdings* 7,040 173
Henry Schein* 4,830 345
Medicis Pharmaceutical, Cl A 13,980 559
---------
Total Drugs & druggists'
sundries wholesale 1,077
---------
- --------------------------------------------------------------------------------
GENERAL MEDICAL & SURGICAL HOSPITALS--1.2%
- --------------------------------------------------------------------------------
Triad Hospitals* 7,210 222
---------
Total General medical &
surgical hospitals 222
---------
- --------------------------------------------------------------------------------
HEALTH & PERSONAL CARE STORES--1.4%
- --------------------------------------------------------------------------------
Omnicare 5,910 262
---------
Total Health & personal care stores 262
---------
- --------------------------------------------------------------------------------
INSURANCE CARRIERS--15.3%
- --------------------------------------------------------------------------------
Aetna 3,690 331
Anthem* 8,190 743
Pacificare Health Systems* 20,640 816
UnitedHealth Group 16,029 1,033
---------
Total Insurance carriers 2,923
---------
- --------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--10.4%
- --------------------------------------------------------------------------------
Boston Scientific* 10,760 456
C.R. Bard 4,960 484
Inamed* 4,710 251
Varian Medical Systems* 5,280 456
Zimmer Holdings* 4,640 342
---------
Total Medical equipment &
supplies manufacturing 1,989
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/CONTROL INSTRUMENTS MANUFACTURING--6.4%
- --------------------------------------------------------------------------------
Fisher Scientific International* 7,370 $ 406
Guidant 9,080 575
Varian* 5,850 235
---------
Total Navigational/measuring/medical/
control instruments manufacturing 1,216
---------
- --------------------------------------------------------------------------------
NURSING CARE FACILITIES--5.3%
- --------------------------------------------------------------------------------
Genesis HealthCare* 6,410 156
Kindred Healthcare* 9,890 497
Mariner Health Care* 20,720 353
---------
Total Nursing care facilities 1,006
---------
- --------------------------------------------------------------------------------
OFFICES OF PHYSICIANS--3.6%
- --------------------------------------------------------------------------------
Caremark Rx* 20,880 694
---------
Total Offices of physicians 694
---------
- --------------------------------------------------------------------------------
OTHER INVESTMENT POOLS & FUNDS--1.1%
- --------------------------------------------------------------------------------
Ventas 7,730 213
---------
Total Other investment pools & funds 213
---------
- --------------------------------------------------------------------------------
OUTPATIENT CARE CENTERS--3.4%
- --------------------------------------------------------------------------------
Select Medical 27,530 460
Sierra Health Services* 5,450 198
---------
Total Outpatient care centers 658
---------
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--34.2%
- --------------------------------------------------------------------------------
Abgenix* 13,030 173
Amgen* 5,200 302
Angitech Pharmaceuticals* 9,840 240
Digene* 7,190 247
Elan ADR* 15,520 320
Genzyme* 6,090 286
Gilead Sciences* 5,050 282
Impax Laboratories* 9,540 213
Invitrogen* 7,290 523
36 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER HEALTHCARE & BIOTECHNOLOGY FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
IVAX* 14,130 $ 322
KV Pharmaceutical, Cl A* 15,300 376
Onyx Pharmaceuticals* 5,260 213
OSI Pharmaceuticals* 14,140 543
Pfizer 33,260 1,166
Teva Pharmaceutical
Industries ADR 5,410 343
Watson Pharmaceuticals* 8,530 365
Wyeth 16,830 632
---------
Total Pharmaceutical & medicine
manufacturing 6,546
---------
- --------------------------------------------------------------------------------
SCIENTIFIC R&D SERVICES--7.8%
- --------------------------------------------------------------------------------
Biogen Idec* 9,040 503
Genentech* 4,140 438
Nektar Therapeutics* 18,260 394
NitroMed* 19,690 156
---------
Total Scientific r&d services 1,491
---------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $15,871) 18,608
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CASH EQUIVALENT--3.0%
- --------------------------------------------------------------------------------
Blackrock TempCash Fund,
Institutional Shares 571,979 572
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $572) 572
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.3%
(COST $16,443) 19,180
- --------------------------------------------------------------------------------
Value
(000)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(0.3)%
- --------------------------------------------------------------------------------
Payable due to investment adviser $ (16)
Payable due to administrator (2)
Payable to shareholder servicing agent (4)
Other assets and liabilities, net (42)
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (64)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------------------
Portfolio capital of Class II Shares
(unlimited authorization -- no par value)
based on 1,342,670 outstanding shares
of beneficial interest 15,147
Accumulated net investment loss (92)
Accumulated net realized gain
on investments 1,324
Net unrealized appreciation
on investments 2,737
- --------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $19,116
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS II SHARES $14.24
- --------------------------------------------------------------------------------
* Non-income producing security
ADR - American depository receipt
Cl - Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2004 SEMIANNUAL REPORT 37
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER TAX MANAGED U.S. EQUITY FUND
March 31, 2004
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--99.2%
- --------------------------------------------------------------------------------
ADVERTISING & RELATED SERVICES--0.8%
- --------------------------------------------------------------------------------
Time Warner* 2,870 $ 48
---------
Total Advertising & related services 48
---------
- --------------------------------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--1.7%
- --------------------------------------------------------------------------------
Caterpillar 650 51
Smith International* 860 46
---------
Total Agriculture, construction &
mining machinery manufacturing 97
---------
- --------------------------------------------------------------------------------
ALUMINA & ALUMINUM PRODUCTION &
PROCESSING--1.3%
- --------------------------------------------------------------------------------
Alcoa 2,220 77
---------
Total Alumina & aluminum
production & processing 77
---------
- --------------------------------------------------------------------------------
BEVERAGE MANUFACTURING--2.2%
- --------------------------------------------------------------------------------
Coca-Cola 620 31
PepsiCo 1,810 98
---------
Total Beverage manufacturing 129
---------
- --------------------------------------------------------------------------------
BUILDING MATERIAL & SUPPLIES DEALERS--0.9%
- --------------------------------------------------------------------------------
Home Depot 1,460 55
---------
Total Building material & supplies dealers 55
---------
- --------------------------------------------------------------------------------
CABLE NETWORKS & PROGRAM DISTRIBUTION--1.4%
- --------------------------------------------------------------------------------
Cablevision Systems, Cl A* 3,500 80
---------
Total Cable networks &
program distribution 80
---------
- --------------------------------------------------------------------------------
CLOTHING STORES--0.5%
- --------------------------------------------------------------------------------
Chico's FAS* 600 28
---------
Total Clothing stores 28
---------
- --------------------------------------------------------------------------------
COLLEGES, UNIVERSITIES &
PROFESSIONAL SCHOOLS--0.9%
- --------------------------------------------------------------------------------
Apollo Group, Cl A* 600 52
---------
Total Colleges, universities &
professional schools 52
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--4.1%
- --------------------------------------------------------------------------------
Cisco Systems* 5,770 $ 136
Motorola 3,730 66
Sony ADR 800 33
---------
Total Communications equipment
manufacturing 235
---------
- --------------------------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--3.0%
- --------------------------------------------------------------------------------
Dell* 2,470 83
EMC* 6,800 93
---------
Total Computer & peripheral
equipment manufacturing 176
---------
- --------------------------------------------------------------------------------
COURIERS--1.1%
- --------------------------------------------------------------------------------
United Parcel Service, Cl B 870 61
---------
Total Couriers 61
---------
- --------------------------------------------------------------------------------
DAIRY PRODUCT MANUFACTURING--0.7%
- --------------------------------------------------------------------------------
Dean Foods* 1,270 42
---------
Total Dairy product manufacturing 42
---------
- --------------------------------------------------------------------------------
DEPARTMENT STORES--3.7%
- --------------------------------------------------------------------------------
Target 1,100 50
Wal-Mart Stores 2,770 165
---------
Total Department stores 215
---------
- --------------------------------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--7.6%
- --------------------------------------------------------------------------------
Citigroup 4,290 222
Northern Trust 1,520 71
Wachovia 1,200 56
Wells Fargo 1,580 90
---------
Total Depository credit intermediation 439
---------
- --------------------------------------------------------------------------------
ELECTRIC POWER GENERATION, TRANSMISSION &
DISTRIBUTION--1.0%
- --------------------------------------------------------------------------------
AES* 3,160 27
TXU 1,000 29
---------
Total Electric power generation,
transmission & distribution 56
---------
38 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER TAX MANAGED U.S. EQUITY FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT MANUFACTURING--2.3%
- --------------------------------------------------------------------------------
General Electric 4,330 $ 132
---------
Total Electrical equipment manufacturing 132
---------
- --------------------------------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--0.9%
- --------------------------------------------------------------------------------
eBay* 780 54
---------
Total Electronic shopping &
mail-order houses 54
---------
- --------------------------------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--0.7%
- --------------------------------------------------------------------------------
CDW 610 41
---------
Total Electronics & appliance stores 41
---------
- --------------------------------------------------------------------------------
ENGINE, TURBINE & POWER TRANSMISSION
EQUIPMENT MANUFACTURING--0.6%
- --------------------------------------------------------------------------------
Cummins 570 33
---------
Total Engine, turbine & power
transmission equipment
manufacturing 33
---------
- --------------------------------------------------------------------------------
FOOTWEAR MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Nike, Cl B 400 31
---------
Total Footwear manufacturing 31
---------
- --------------------------------------------------------------------------------
FULL-SERVICE RESTAURANTS--0.5%
- --------------------------------------------------------------------------------
Cheesecake Factory* 600 28
---------
Total Full-service restaurants 28
---------
- --------------------------------------------------------------------------------
GRAIN & OILSEED MILLING--0.5%
- --------------------------------------------------------------------------------
Archer-Daniels-Midland 1,800 30
---------
Total Grain & oilseed milling 30
---------
- --------------------------------------------------------------------------------
GROCERY & RELATED PRODUCT WHOLESALERS--1.2%
- --------------------------------------------------------------------------------
Sysco 1,760 69
---------
Total Grocery & related
product wholesalers 69
---------
- --------------------------------------------------------------------------------
GROCERY STORES--0.6%
- --------------------------------------------------------------------------------
Whole Foods Market 440 33
---------
Total Grocery stores 33
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
HEALTH & PERSONAL CARE STORES--0.5%
- --------------------------------------------------------------------------------
Walgreen 900 $ 30
---------
Total Health & personal care stores 30
---------
- --------------------------------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--0.6%
- --------------------------------------------------------------------------------
Kla-Tencor* 710 36
---------
Total Industrial machinery manufacturing 36
---------
- --------------------------------------------------------------------------------
INFORMATION SERVICES--0.9%
- --------------------------------------------------------------------------------
Juniper Networks* 700 18
Yahoo!* 680 33
---------
Total Information services 51
---------
- --------------------------------------------------------------------------------
INSURANCE CARRIERS--5.5%
- --------------------------------------------------------------------------------
Allstate 1,050 48
American International Group 2,300 164
Anthem* 700 63
UnitedHealth Group 670 43
---------
Total Insurance carriers 318
---------
- --------------------------------------------------------------------------------
LIMITED-SERVICE EATING PLACES--0.6%
- --------------------------------------------------------------------------------
Starbucks* 990 37
---------
Total Limited-service eating places 37
---------
- --------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--2.6%
- --------------------------------------------------------------------------------
Boston Scientific* 1,700 72
St. Jude Medical* 690 50
Zimmer Holdings* 420 31
---------
Total Medical equipment &
supplies manufacturing 153
---------
- --------------------------------------------------------------------------------
MOTOR VEHICLE PARTS MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Autoliv 700 29
---------
Total Motor vehicle parts manufacturing 29
---------
- --------------------------------------------------------------------------------
NATURAL GAS DISTRIBUTION--1.0%
- --------------------------------------------------------------------------------
Williams 6,190 59
---------
Total Natural gas distribution 59
---------
TURNER FUNDS 2004 SEMIANNUAL REPORT 39
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER TAX MANAGED U.S. EQUITY FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/CONTROL INSTRUMENTS MANUFACTURING--1.4%
- --------------------------------------------------------------------------------
Danaher 400 $ 37
Guidant 700 45
---------
Total Navigational/measuring/medical/
control instruments manufacturing 82
---------
- --------------------------------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--4.0%
- --------------------------------------------------------------------------------
American Express 2,150 111
CIT Group 1,150 44
MBNA 2,670 74
---------
Total Nondepository credit intermediation 229
---------
- --------------------------------------------------------------------------------
OFFICES OF PHYSICIANS--0.7%
- --------------------------------------------------------------------------------
Caremark Rx* 1,300 43
---------
Total Offices of physicians 43
---------
- --------------------------------------------------------------------------------
OIL & GAS EXTRACTION--4.2%
- --------------------------------------------------------------------------------
Apache 1,424 62
Murphy Oil 1,130 71
Pioneer Natural Resources* 1,500 48
XTO Energy 2,375 60
---------
Total Oil & gas extraction 241
---------
- --------------------------------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--1.5%
- --------------------------------------------------------------------------------
Investors Financial Services 770 32
T. Rowe Price Group 970 52
---------
Total Other financial investment activities 84
---------
- --------------------------------------------------------------------------------
OTHER LEATHER & ALLIED PRODUCT
MANUFACTURING--0.6%
- --------------------------------------------------------------------------------
Coach* 800 33
---------
Total Other leather & allied
product manufacturing 33
---------
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--1.1%
- --------------------------------------------------------------------------------
3M 380 31
International Game Technology 660 30
---------
Total Other miscellaneous manufacturing 61
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--6.1%
- --------------------------------------------------------------------------------
Amgen* 1,570 $ 91
Forest Laboratories* 400 29
Invitrogen* 400 29
Pfizer 4,720 165
Watson Pharmaceuticals* 950 41
---------
Total Pharmaceutical &
medicine manufacturing 355
---------
- --------------------------------------------------------------------------------
PIPELINE TRANSPORTATION OF NATURAL GAS--1.1%
- --------------------------------------------------------------------------------
Kinder Morgan 490 31
Western Gas Resources 600 30
---------
Total Pipeline transportation
of natural gas 61
---------
- --------------------------------------------------------------------------------
PRIMARY METAL MANUFACTURING--1.1%
- --------------------------------------------------------------------------------
United States Steel 1,700 63
---------
Total Primary metal manufacturing 63
---------
- --------------------------------------------------------------------------------
PROFESSIONAL, SCIENTIFIC &
TECHNICAL SERVICES--0.8%
- --------------------------------------------------------------------------------
Alliance Data Systems* 1,400 47
---------
Total Professional, scientific &
technical services 47
---------
- --------------------------------------------------------------------------------
RAIL TRANSPORTATION--0.7%
- --------------------------------------------------------------------------------
Norfolk Southern 1,870 41
---------
Total Rail transportation 41
---------
- --------------------------------------------------------------------------------
SCIENTIFIC R&D SERVICES--0.9%
- --------------------------------------------------------------------------------
Genentech* 470 50
---------
Total Scientific r&d services 50
---------
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--5.2%
- --------------------------------------------------------------------------------
Charles Schwab 6,360 74
Goldman Sachs Group 890 93
Knight Trading Group* 1,600 20
Morgan Stanley 1,960 112
---------
Total Security & commodity contracts
intermediation & brokerage 299
---------
40 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER TAX MANAGED U.S. EQUITY FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--11.1%
- --------------------------------------------------------------------------------
Analog Devices 880 $ 42
Applied Materials* 3,420 73
Broadcom, Cl A* 1,100 43
Intel 4,020 110
Molex 700 21
National Semiconductor* 1,030 46
Nvidia* 1,300 35
Sanmina-SCI* 2,300 25
Silicon Laboratories* 800 42
Texas Instruments 1,810 53
Tyco International 4,060 116
Xilinx* 990 38
---------
Total Semiconductor & other electronic
component manufacturing 644
---------
- --------------------------------------------------------------------------------
SOAP, CLEANERS & TOILET PREPARATION
MANUFACTURING--2.6%
- --------------------------------------------------------------------------------
Avon Products 400 30
Procter & Gamble 1,140 120
---------
Total Soap, cleaners & toilet preparation
manufacturing 150
---------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--0.9%
- --------------------------------------------------------------------------------
SAP ADR 1,300 51
---------
Total Software publishers 51
---------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS--2.0%
- --------------------------------------------------------------------------------
America Movil ADR* 1,800 70
Vodafone Group ADR 1,820 43
---------
Total Telecommunications 113
---------
- --------------------------------------------------------------------------------
TRAVELER ACCOMMODATION--1.2%
- --------------------------------------------------------------------------------
MGM Mirage* 820 37
Starwood Hotels & Resorts Worldwide 800 33
---------
Total Traveler accommodation 70
---------
- --------------------------------------------------------------------------------
WASTE TREATMENT & DISPOSAL--0.6%
- --------------------------------------------------------------------------------
Allied Waste Industries* 2,560 34
---------
Total Waste treatment & disposal 34
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
WATER, SEWAGE & OTHER SYSTEMS--0.5%
- --------------------------------------------------------------------------------
Aqua America 1,450 $ 31
---------
Total Water, sewage & other systems 31
---------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $4,636) 5,736
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CASH EQUIVALENT--1.1%
- --------------------------------------------------------------------------------
Blackrock TempCash Fund,
Institutional Shares 64,460 64
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $64) 64
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.3%
(COST $4,700) 5,800
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(0.3)%
- --------------------------------------------------------------------------------
Payable due to investment adviser (1)
Payable due to administrator (1)
Payable to shareholder servicing agent (1)
Other assets and liabilities, net (16)
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (19)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------------------
Portfolio capital of Class II Shares
(unlimited authorization -- no par value)
based on 628,849 outstanding shares
of beneficial interest 6,866
Accumulated net investment loss (8)
Accumulated net realized loss
on investments (2,177)
Net unrealized appreciation
on investments 1,100
- --------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $5,781
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS II SHARES $9.19
- --------------------------------------------------------------------------------
* Non-income producing security
ADR - American depository receipt
Cl - Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2004 SEMIANNUAL REPORT 41
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER STRATEGIC VALUE AND HIGH INCOME FUND
March 31, 2004
Value
Shares (000)
- --------------------------------------------------------------------------------
EQUITY FUND--55.5%
- --------------------------------------------------------------------------------
Turner Small Cap Value
Opportunities Fund, Cl II 172,570 $ 2,754
- --------------------------------------------------------------------------------
TOTAL EQUITY FUND
(COST $2,409) 2,754
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FIXED INCOME FUND--44.5%
- --------------------------------------------------------------------------------
Turner High Yield Fund, Cl I 433,626 2,212
- --------------------------------------------------------------------------------
TOTAL FIXED INCOME FUND
(COST $2,208) 2,212
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.0%
(COST $4,617) 4,966
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(0.0)%
- --------------------------------------------------------------------------------
Receivable from investment adviser 3
Payable due to administrator (1)
Other assets and liabilities, net (3)
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (1)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 348,545 outstanding shares
of beneficial interest 4,351
Accumulated net realized gain
on investments 265
Net unrealized appreciation
on investments 349
- --------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $4,965
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $14.24
- --------------------------------------------------------------------------------
Cl - Class
The accompanying notes are an integral part of the financial statements.
42 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER CORE FIXED INCOME FUND
March 31, 2004
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
CORPORATE OBLIGATIONS--44.5%
- --------------------------------------------------------------------------------
COSMETICS & TOILETRIES--3.7%
- --------------------------------------------------------------------------------
Dial
7.000%, 08/15/06 $1,250 $ 1,382
---------
Total Cosmetics & toiletries 1,382
---------
- --------------------------------------------------------------------------------
DATA PROCESSING SERVICES--2.8%
- --------------------------------------------------------------------------------
First Data
4.700%, 11/01/06 1,000 1,063
---------
Total Data processing services 1,063
---------
- --------------------------------------------------------------------------------
ELECTRICAL PRODUCTS & SERVICES--11.6%
- --------------------------------------------------------------------------------
Carolina Power & Light
5.125%, 09/15/13 685 715
Emerson Electric
7.125%, 08/15/10 1,250 1,489
Public Service Company
of Colorado
4.375%, 10/01/08 1,000 1,046
Scana,
Ser B, MTN
5.810%, 10/23/08 1,000 1,098
---------
Total Electrical products & services 4,348
---------
- --------------------------------------------------------------------------------
FINANCIAL SERVICES--3.1%
- --------------------------------------------------------------------------------
Marsh & McLennan
7.125%, 06/15/09 1,000 1,171
---------
Total Financial services 1,171
---------
- --------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO--5.0%
- --------------------------------------------------------------------------------
Sysco
7.250%, 04/15/07 405 461
7.160%, 04/15/27 500 606
6.500%, 06/15/05 750 792
---------
Total Food, beverage & tobacco 1,859
---------
- --------------------------------------------------------------------------------
GAS/NATURAL GAS--7.9%
- --------------------------------------------------------------------------------
Air Products & Chemicals,
Ser E, MTN
7.340%, 06/15/26 250 304
ChevronTexaco
8.110%, 12/01/04 80 83
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
Keyspan
7.250%, 11/15/05 $1,000 $ 1,087
Natural Fuel Gas,
Ser D, MTN
6.303%, 05/27/08 1,350 1,506
---------
Total Gas/natural gas 2,980
---------
- --------------------------------------------------------------------------------
MANUFACTURING--2.0%
- --------------------------------------------------------------------------------
Thermo Electron
7.625%, 10/30/08 665 768
---------
Total Manufacturing 768
---------
- --------------------------------------------------------------------------------
PETROLEUM & FUEL PRODUCTS--2.9%
- --------------------------------------------------------------------------------
Pioneer Natural Resources
7.200%, 01/15/28 450 512
XTO Energy
7.500%, 04/15/12 475 565
---------
Total Petroleum & fuel products 1,077
---------
- --------------------------------------------------------------------------------
RETAIL--2.7%
- --------------------------------------------------------------------------------
Wal-Mart Stores
6.875%, 08/10/09 850 998
---------
Total Retail 998
---------
- --------------------------------------------------------------------------------
TRUCKING--2.8%
- --------------------------------------------------------------------------------
Roadway
8.250%, 12/01/08 925 1,068
---------
Total Trucking 1,068
---------
- --------------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS
(COST $15,450) 16,714
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS--36.0%
- --------------------------------------------------------------------------------
FHLMC CMO/REMIC
Ser 1546, Cl H
7.000%, 12/15/22 60 60
Ser 1561, Cl H
6.500%, 05/15/08 627 641
Ser 1994-17, Cl H
6.000%, 02/25/09 419 443
Ser 2522, Cl PB
4.750%, 11/15/14 1,000 1,011
TURNER FUNDS 2004 SEMIANNUAL REPORT 43
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER CORE FIXED INCOME FUND
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
FNMA
Pool #254759
4.500%, 06/01/18 $1,827 $ 1,852
Pool #369214
5.000%, 04/01/09 159 163
Pool #535301
6.500%, 04/01/15 164 175
Pool #694431
5.000%, 03/01/18 800 823
Pool #738783
7.000%, 02/01/25 1,379 1,470
FNMA CMO/REMIC
Ser 2003-41, Cl XT
4.500%, 07/25/15 1,500 1,542
GNMA
Pool #13125
8.000%, 10/15/06 5 5
Pool #187899
8.000%, 05/15/17 6 7
Pool #196477
10.000%, 04/15/10 26 30
Pool #202886
8.000%, 03/15/17 37 41
Pool #221235
8.500%, 07/15/17 19 22
Pool #331786
8.000%, 08/15/22 30 33
Pool #376400
6.500%, 02/15/24 186 198
Pool #439478
7.000%, 01/15/27 188 201
Pool #457921
5.500%, 12/15/28 271 280
Pool #462622
6.500%, 03/15/28 344 363
Pool #533974
6.500%, 05/15/32 186 197
Pool #553328
4.500%, 07/15/18 823 837
Pool #570400
6.500%, 09/15/31 410 433
Pool #604616
4.500%, 09/15/18 954 970
Face Amount Value
(000)/Shares (000)
- --------------------------------------------------------------------------------
Pool #781029
6.500%, 05/15/29 $ 115 $ 121
Pool #781096
6.500%, 12/15/28 528 558
Pool #781231
7.000%, 12/15/30 269 286
Pool #781276
6.500%, 04/15/31 426 451
Pool #781328
7.000%, 09/15/31 292 311
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED OBLIGATIONS
(COST $13,348) 13,524
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATIONS--9.1%
- --------------------------------------------------------------------------------
U.S. Treasury Bonds
7.500%, 11/15/16 1,500 1,978
7.250%, 05/15/16 700 904
6.375%, 08/15/27 450 546
- --------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $3,020) 3,428
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--6.4%
- --------------------------------------------------------------------------------
FNMA, MTN
6.920%, 03/19/07 555 629
SLMA (A)
6.160%, 10/03/22 5,065 1,779
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(COST $2,185) 2,408
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CASH EQUIVALENT--2.7%
- --------------------------------------------------------------------------------
Blackrock TempCash Fund,
Institutional Shares 1,021,447 1,021
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $1,021) 1,021
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--98.7%
(COST $35,024) 37,095
- --------------------------------------------------------------------------------
44 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER CORE FIXED INCOME FUND
Value
(000)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--1.3%
- --------------------------------------------------------------------------------
Payable due to investment adviser $ (12)
Payable due to administrator (4)
Other assets and liabilities, net 513
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET 497
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 3,603,506 outstanding shares
of beneficial interest 35,487
Distributions in excess
of net investment income (2)
Accumulated net realized gain
on investments 36
Net unrealized appreciation
on investments 2,071
- --------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $37,592
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $10.43
- --------------------------------------------------------------------------------
(A) Zero coupon bond -- the rate reported is the effective yield at time of
purchase.
Cl - Class
CMO - Collateralized mortgage obligation
FHLMC - Federal home loan mortgage corporation
FNMA - Federal national mortgage association
GNMA - Government national mortgage association
MTN - Medium term note
REMIC - Real estate mortgage investment conduit
Ser - Series
SLMA - Student loan marketing association
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2004 SEMIANNUAL REPORT 45
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER HIGH YIELD FUND
March 31, 2004
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
CORPORATE OBLIGATIONS--94.1%
- --------------------------------------------------------------------------------
AEROSPACE & DEFENSE--2.3%
- --------------------------------------------------------------------------------
Gencorp
9.500%, 08/15/13 $130 $ 142
Sequa
9.000%, 08/01/09 100 112
---------
Total Aerospace & defense 254
---------
- --------------------------------------------------------------------------------
APPAREL & TEXTILES--0.9%
- --------------------------------------------------------------------------------
Phillips Van-Heusen (A)
7.250%, 02/15/11 100 103
---------
Total Apparel & textiles 103
---------
- --------------------------------------------------------------------------------
AUTOMOTIVE & TRUCK PARTS--3.3%
- --------------------------------------------------------------------------------
HLI Operating
10.500%, 06/15/10 29 33
Sonic Automotive, Ser B
8.625%, 08/15/13 115 125
Tenneco Automotive, Ser B
10.250%, 07/15/13 180 207
---------
Total Automotive & truck parts 365
---------
- --------------------------------------------------------------------------------
BROADCASTING, NEWSPAPERS & ADVERTISING--7.6%
- --------------------------------------------------------------------------------
Charter Communications Holdings
10.750%, 10/01/09 130 114
Mail Well
9.625%, 03/15/12 140 154
Mediacom Broadband
11.000%, 07/15/13 150 161
Muzak
10.000%, 02/15/09 120 124
Vertis, Ser B
10.875%, 06/15/09 140 141
Von Hoffman
10.375%, 05/15/07 140 140
---------
Total Broadcasting,
newspapers & advertising 834
---------
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
BUILDING & CONSTRUCTION--5.6%
- --------------------------------------------------------------------------------
Juno Lighting
11.875%, 07/01/09 $100 $ 107
Norcraft (A)
9.000%, 11/01/11 45 48
Ply Gem Industries (A)
9.000%, 02/15/12 170 171
Tech Olympic
9.000%, 07/01/10 110 120
WCI Communities
10.625%, 02/15/11 150 169
---------
Total Building & construction 615
---------
- --------------------------------------------------------------------------------
CHEMICAL MANUFACTURING--4.7%
- --------------------------------------------------------------------------------
Hercules (A)
6.750%, 10/15/29 60 60
Koppers (A)
9.875%, 10/15/13 90 99
Kraton Polymers (A)
8.125%, 01/15/14 45 48
Nalco (A)
8.875%, 11/15/13 75 78
Nova Chemicals (A)
6.500%, 01/15/12 85 88
Rhodia (A)#
8.875%, 06/01/11 70 59
United Agri Products (A)
8.250%, 12/15/11 85 89
---------
Total Chemical manufacturing 521
---------
- --------------------------------------------------------------------------------
COMMERCIAL SERVICES--4.1%
- --------------------------------------------------------------------------------
Coinmach
9.000%, 02/01/10 100 106
Geo Group
8.250%, 07/15/13 150 158
Great Lakes Dredge & Dock (A)
7.750%, 12/15/13 15 15
46 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER HIGH YIELD FUND
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
IMCO Recycling
10.375%, 10/15/10 $ 65 $ 70
Service Corp International (A)
6.750%, 04/01/16 100 101
---------
Total Commercial services 450
---------
- --------------------------------------------------------------------------------
CONSUMER PRODUCTS--7.0%
- --------------------------------------------------------------------------------
American Achievement (A)
8.250%, 04/01/12 100 103
FTD (A)
7.750%, 02/15/14 125 125
Jacuzzi Brands
9.625%, 07/01/10 140 155
Rayovac
8.500%, 10/01/13 130 140
Town Sports International
9.625%, 04/15/11 180 190
W.H. Holdings (A)
9.500%, 04/01/11 60 63
---------
Total Consumer products 776
---------
- --------------------------------------------------------------------------------
CONTAINERS & PACKAGING--6.2%
- --------------------------------------------------------------------------------
Crown Euro Holdings
9.500%, 03/01/11 100 112
Owens-Brockway Glass Container
8.750%, 11/15/12 150 163
Portola Packaging (A)#
8.250%, 02/01/12 160 141
Solo Cup (A)
8.500%, 02/15/14 170 176
Tekni-Plex, Ser B
12.750%, 06/15/10 85 89
---------
Total Containers & packaging 681
---------
- --------------------------------------------------------------------------------
COSMETICS & TOILETRIES--0.9%
- --------------------------------------------------------------------------------
Chattem (A)
7.000%, 03/01/14 100 100
---------
Total Cosmetics & toiletries 100
---------
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
ELECTRICAL PRODUCTS & SERVICES--9.0%
- --------------------------------------------------------------------------------
AES
9.500%, 06/01/09 $150 $ 163
Calpine
8.750%, 07/15/07 50 39
CE Generation
7.416%, 12/15/18 102 108
General Cable (A)
9.500%, 11/15/10 90 99
Integrated Elecrical Services,
Ser B
9.375%, 02/01/09 91 95
NRG Energy (A)
8.000%, 12/15/13 130 134
PSE&G Energy Holdings
8.625%, 02/15/08 70 75
Sensus Metering Systems (A)
8.625%, 12/15/13 130 129
Solectron#
9.625%, 02/15/09 140 155
---------
Total Electrical products & services 997
---------
- --------------------------------------------------------------------------------
ENTERTAINMENT--4.5%
- --------------------------------------------------------------------------------
Argosy Gaming
9.000%, 09/01/11 100 113
Aztar
9.000%, 08/15/11 100 112
Intrawest
7.500%, 10/15/13 140 145
Premier Enterprise (A)
10.750%, 02/01/12 115 124
---------
Total Entertainment 494
---------
- --------------------------------------------------------------------------------
FINANCIAL SERVICES--1.0%
- --------------------------------------------------------------------------------
Western Financial
9.625%, 05/15/12 100 114
---------
Total Financial services 114
---------
TURNER FUNDS 2004 SEMIANNUAL REPORT 47
FINANCIAL STATEMENTS
STATEMENT OF NET ASSETS
TURNER HIGH YIELD FUND
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
FOOD, BEVERAGE & TOBACCO--2.5%
- --------------------------------------------------------------------------------
Friendly Ice Cream (A)#
8.375%, 06/15/12 $120 $ 123
Merisant (A)
9.500%, 07/15/13 150 148
---------
Total Food, beverage &
tobacco 271
---------
- --------------------------------------------------------------------------------
GAS/NATURAL GAS--2.0%
- --------------------------------------------------------------------------------
Amerigas Partners
8.875%, 05/20/11 100 111
Williams
8.625%, 06/01/10 100 110
---------
Total Gas/natural gas 221
---------
- --------------------------------------------------------------------------------
HOTELS & LODGING--2.5%
- --------------------------------------------------------------------------------
Courtyard By Marriott II,
Ser B
10.750%, 02/01/08 160 161
John Q. Hammons Hotels,
Ser B
8.875%, 05/15/12 100 111
---------
Total Hotels & lodging 272
---------
- --------------------------------------------------------------------------------
MANUFACTURING--3.8%
- --------------------------------------------------------------------------------
Euromax International (A)
8.500%, 08/15/11 90 95
J.B. Poindexter (A)
8.750%, 03/15/14 90 93
Norcross Safety Products,
Ser B (A)
9.875%, 08/15/11 100 109
Trinity Industries (A)
6.500%, 03/15/14 125 125
---------
Total Manufacturing 422
---------
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
MEDICAL PRODUCTS & SERVICES--2.8%
- --------------------------------------------------------------------------------
Bio-Rad Laboratories
7.500%, 08/15/13 $100 $ 110
Fisher Scientific International
8.125%, 05/01/12 90 100
Res-Care
10.625%, 11/15/08 90 96
---------
Total Medical products & services 306
---------
- --------------------------------------------------------------------------------
METALS--2.1%
- --------------------------------------------------------------------------------
Century Aluminum
11.750%, 04/15/08 125 140
Wolverine Tube
10.500%, 04/01/09 90 97
---------
Total Metals 237
---------
- --------------------------------------------------------------------------------
PETROLEUM & FUEL PRODUCTS--2.6%
- --------------------------------------------------------------------------------
Exco Resources (A)
7.250%, 01/15/11 125 129
Tom Brown
7.250%, 09/15/13 140 153
---------
Total Petroleum & fuel products 282
---------
- --------------------------------------------------------------------------------
REAL ESTATE--2.6%
- --------------------------------------------------------------------------------
CB Richard Ellis Service
11.250%, 06/15/11 110 124
LNR Property (A)
7.250%, 10/15/13 150 158
---------
Total Real estate 282
---------
- --------------------------------------------------------------------------------
RENTAL EQUIPMENT--2.9%
- --------------------------------------------------------------------------------
H&E Equipment
11.125%, 06/15/12 75 78
Nationsrent (A)
9.500%, 10/15/10 120 130
United Rentals (A)
7.750%, 11/15/13 120 117
---------
Total Rental equipment 325
---------
48 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER HIGH YIELD FUND
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
RETAIL--2.5%
- --------------------------------------------------------------------------------
General Nutrition Center (A)
8.500%, 12/01/10 $140 $ 147
Mother's Work
11.250%, 08/01/10 120 129
---------
Total Retail 276
---------
- --------------------------------------------------------------------------------
STEEL & STEEL PRODUCTS--1.6%
- --------------------------------------------------------------------------------
California Steel (A)
6.125%, 03/15/14 90 91
Oregon Steel Mills
10.000%, 07/15/09 80 80
---------
Total Steel & steel products 171
---------
- --------------------------------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS--5.6%
- --------------------------------------------------------------------------------
Centennial Communications
10.125%, 06/15/13 75 77
Inmarsat (A)
7.625%, 06/30/12 110 115
Nextel Communications
7.375%, 08/01/15 130 141
Nextel Partners#
11.000%, 03/15/10 50 55
Panamsat
8.500%, 02/01/12 100 105
Time Warner
9.750%, 07/15/08 135 125
---------
Total Telephones &
telecommunications 618
---------
- --------------------------------------------------------------------------------
TRANSPORTATION--2.3%
- --------------------------------------------------------------------------------
Bluewater Finance
10.250%, 02/15/12 100 104
Ship Finance International (A)
8.500%, 12/15/13 150 147
---------
Total Transportation 251
---------
Face Amount Value
(000)/Shares (000)
- --------------------------------------------------------------------------------
WASTE TREATMENT & DISPOSAL--1.2%
- --------------------------------------------------------------------------------
Allied Waste,
Ser B
8.500%, 12/01/08 $ 120 $ 134
---------
Total Waste treatment & disposal 134
---------
- --------------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS
(COST $10,335) 10,372
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
PREFERRED STOCK--0.9%
- --------------------------------------------------------------------------------
Pegasus Satellite PIK* 3 --
Sinclair Broadcast Group* 2,005 93
- --------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(COST $68) 93
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR LOANED SECURITIES--4.3%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio 478,490 479
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD
AS COLLATERAL FOR LOANED SECURITIES
(COST $479) 479
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT--4.0%
- --------------------------------------------------------------------------------
PNC Capital Markets (B)
0.980%, dated 03/31/04, to
be repurchased on 04/01/04,
repurchase price $436,012
(collateralized by U.S.
Government obligation,
total market value $440,000) 436 436
- --------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $436) 436
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CASH EQUIVALENT--0.0%
- --------------------------------------------------------------------------------
Blackrock TempCash Fund,
Institutional Shares 932 1
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $1) 1
- --------------------------------------------------------------------------------
TURNER FUNDS 2004 SEMIANNUAL REPORT 49
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER HIGH YIELD FUND
Value
(000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--103.3%
(COST $11,319) $11,381
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(3.3)%
- --------------------------------------------------------------------------------
Obligation to return securities
lending collateral (479)
Payable due to investment adviser (4)
Payable due to administrator (1)
Other assets and liabilities, net 124
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (360)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 2,161,254 outstanding shares
of beneficial interest 26,133
Undistributed net investment income 9
Accumulated net realized loss
on investments (15,183)
Net unrealized appreciation
on investments 62
- --------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $11,021
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES $5.10
- --------------------------------------------------------------------------------
* 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 $461,905.
(A) Security sold within the terms of a private placement memorandum, exempt
from registration under section 144A of the Securities Act of
1933, as amended, and may be sold only to dealers in the program or other
"accredited investors".
(B) Tri-party repurchase agreement
PIK - Payment-in-kind
Ser - Series
Amounts designated as "_" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
50 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER ULTRA SHORT DURATION FIXED INCOME FUND
March 31, 2004
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS--82.1%
- --------------------------------------------------------------------------------
FHLMC
Pool #184967
7.750%, 08/01/08 $ 64 $ 67
Pool #E64944
7.000%, 07/01/11 491 525
FHLMC CMO/REMIC
Ser 161, Cl F
9.500%, 06/15/06 6 6
Ser 1106, Cl E
7.500%, 07/15/06 6 6
Ser 1377, Cl F (A)
1.625%, 09/15/07 444 445
Ser 1515, Cl G
6.500%, 02/15/08 124 124
Ser 1544, Cl L (A)
2.220%, 07/15/08 256 258
Ser 1552, Cl HA
7.000%, 11/15/22 1,089 1,099
Ser 1608, Cl GA
9.000%, 06/15/21 31 31
Ser 1832, Cl E
6.500%, 07/15/10 3,764 3,840
Ser 2118, Cl QD
6.500%, 10/15/27 2,860 2,909
Ser 2303, Cl TD
6.500%, 05/15/30 4,297 4,369
Ser 2370, Cl GC
6.000%, 07/15/27 2,579 2,581
Ser 2382, Cl DA
5.500%, 10/15/30 7,362 7,638
Ser 2388, Cl LQ
6.000%, 04/15/27 126 126
Ser 2416, Cl PN
6.000%, 11/15/28 10,000 10,320
Ser 2439, Cl LT
5.750%, 06/15/25 2,059 2,067
Ser 2440, Cl OG
6.500%, 12/15/30 9,375 9,679
Ser 2441, Cl HC
6.500%, 09/15/28 2,229 2,236
Ser 2463, Cl PE
6.000%, 03/15/28 20,345 20,767
Ser 2488, Cl GC
6.000%, 09/15/28 249 251
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
Ser 2496, Cl PJ
5.000%, 07/15/12 $ 3,696 $ 3,727
Ser 2501, Cl MA
5.500%, 03/15/12 882 881
Ser 2502, Cl FP (A)
1.740%, 05/15/31 266 266
Ser 2517, Cl TL
4.500%, 04/15/26 4,498 4,517
Ser 2520, Cl BD
5.250%, 10/15/31 3,418 3,486
Ser 2527, Cl LT
3.870%, 12/15/28 8,533 8,585
Ser 2527, Cl LU
3.790%, 12/15/28 12,952 13,027
Ser 2537, Cl LA
4.250%, 05/15/30 5,165 5,210
Ser 2543, Cl TA
4.500%, 02/15/18 7,757 7,857
Ser 2545, Cl HA
5.000%, 04/15/18 8,775 8,890
Ser 2575, Cl LM
4.500%, 05/15/32 4,063 4,122
Ser 2586, Cl WA
4.000%, 12/15/32 7,879 7,947
Ser 2586, Cl XG
4.000%, 12/15/32 14,053 14,183
Ser 2590, Cl UL
3.750%, 03/15/32 5,046 5,076
Ser 2594, Cl YA
4.000%, 04/15/23 5,285 5,353
Ser 2615, Cl FC (A)
2.596%, 05/15/33 4,000 3,999
Ser 2641, Cl FB (A)
2.496%, 07/15/33 5,000 4,970
Ser 2649, Cl PJ
3.500%, 06/15/33 5,745 5,786
Ser 2650, Cl FX (A)
1.490%, 12/15/32 9,700 9,703
Ser 2750, Cl FG (A)
1.490%, 02/15/34 6,342 6,354
Ser 2752, Cl FJ (A)
1.440%, 01/15/18 5,794 5,800
Ser 2752, Cl FM (A)
1.440%, 12/15/30 4,975 4,974
Ser 2752, Cl FP (A)
2.490%, 02/15/34 5,000 4,998
TURNER FUNDS 2004 SEMIANNUAL REPORT 51
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER ULTRA SHORT DURATION FIXED INCOME FUND
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
Ser 2764, Cl FB (A)
1.450%, 03/15/31 $ 5,000 $ 5,003
Ser 2770, Cl FH (A)
1.520%, 03/15/34 5,000 5,003
FNMA
Pool #190054
7.000%, 10/01/13 805 855
Pool #704214
7.500%, 12/01/27 3,451 3,716
FNMA CMO/REMIC
Ser 1996-32, Cl PM
6.500%, 04/25/25 3,040 3,068
Ser 2001-28, Cl A
6.000%, 02/25/29 1,756 1,768
Ser 2001-4, Cl PB
7.000%, 04/25/20 11,059 11,322
Ser 2001-68, Cl A
6.000%, 07/25/29 2,751 2,772
Ser 2002-67, Cl AM
5.000%, 11/25/15 5,278 5,431
Ser 2002-70, Cl QL
4.500%, 12/25/17 3,983 3,992
Ser 2002-82, Cl PC
6.000%, 02/25/29 12,935 13,637
Ser 2002-9, Cl PB
6.000%, 11/25/14 1,006 1,019
Ser 2003-119, Cl PU
4.000%, 11/25/33 6,565 6,619
Ser 2003-33, Cl AM
4.250%, 05/25/33 2,876 2,910
Ser 2003-33, Cl AU
4.000%, 03/25/33 4,653 4,692
Ser 2003-33, Cl PC
4.500%, 03/25/27 3,000 3,039
Ser 2003-34, Cl AD
4.000%, 01/25/32 3,537 3,563
Ser 2003-34, Cl FX (A)
2.396%, 05/25/33 5,620 5,595
Ser 2003-46, Cl PA
4.000%, 06/25/10 10,072 10,212
Ser 2003-69, Cl NF (A)
2.596%, 07/25/33 4,493 4,480
Ser 2003-9, Cl WB
4.500%, 03/25/09 2,462 2,482
Ser 2003-95, Cl DB
6.000%, 10/25/33 4,799 4,835
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
GNMA ARM
Pool #8103 (A)
4.375%, 02/20/16 $ 91 $ 93
Pool #8287 (A)
4.625%, 11/20/17 101 104
Pool #8297 (A)
4.625%, 12/20/17 160 164
Pool #8321 (A)
4.375%, 02/20/18 397 407
Pool #8333 (A)
4.375%, 03/20/18 254 261
Pool #8345 (A)
4.375%, 04/20/18 138 141
Pool #8366 (A)
4.375%, 06/20/18 156 159
Pool #8404 (A)
4.750%, 09/20/18 9 10
Pool #8405 (A)
4.750%, 09/20/18 95 98
Pool #8462 (A)
4.375%, 02/20/19 15 15
Pool #8489 (A)
4.375%, 04/20/19 166 170
GNMA CMO/REMIC
Ser 2002-58, Cl FA (A)
1.390%, 02/17/30 447 448
Ser 2003-34, Cl PM
4.000%, 04/20/33 15,922 16,172
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED OBLIGATIONS
(COST $329,220) 333,310
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--2.3%
- --------------------------------------------------------------------------------
FHLMC, MTN (B)
2.125%, 06/16/10 2,500 2,501
FNMA (A)
1.370%, 02/24/06 2,950 2,950
SLMA
Ser 2003-A, Cl A2 (A)
1.550%, 09/16/20 3,700 3,762
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS
(COST $9,212) 9,213
- --------------------------------------------------------------------------------
52 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER ULTRA SHORT DURATION FIXED INCOME FUND
Face Amount Value
(000)/Shares (000)
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES--1.6%
- --------------------------------------------------------------------------------
AUTOMOTIVE--1.0%
- --------------------------------------------------------------------------------
Americredit Automobile Receivables Trust,
Ser 2000-D, Cl A4 (A)
1.310%, 09/12/07 $ 318 $ 318
Ser 2001-A, Cl A4 (A)
1.340%, 12/12/07 3,813 3,817
---------
Total Automotive 4,135
---------
- --------------------------------------------------------------------------------
CREDIT CARDS--0.5%
- --------------------------------------------------------------------------------
Saks Credit Card Master Trust,
Ser 2001-2, Cl A (A)
1.330%, 12/15/09 2,000 2,009
---------
Total Credit cards 2,009
---------
- --------------------------------------------------------------------------------
MORTGAGE RELATED--0.1%
- --------------------------------------------------------------------------------
Goldman Sachs Mortgage Securities II,
Ser 1998-C1, Cl A1
6.060%, 10/18/30 473 494
---------
Total Mortgage related 494
---------
- --------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(COST $6,615) 6,638
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT--15.4%
- --------------------------------------------------------------------------------
PNC Capital Markets (C)
0.980%, dated 03/31/04, to
be repurchased on 04/01/04,
repurchase price $62,681,706
(collateralized by U.S. Government
obligations, total market
value $62,800,000) 62,680 62,680
- --------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $62,680) 62,680
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CASH EQUIVALENT--0.0%
- --------------------------------------------------------------------------------
Blackrock FedFund,
Institutional Shares 817 1
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $1) 1
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--101.4%
(COST $407,728) 411,842
- --------------------------------------------------------------------------------
Value
(000)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(1.4)%
- --------------------------------------------------------------------------------
Payable due to investment adviser $ (46)
Payable due to administrator (48)
Payable due to trustees (4)
Payable due to shareholder servicing agent (2)
Other assets and liabilities, net (5,768)
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET (5,868)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 39,312,275 outstanding shares
of beneficial interest 402,584
Portfolio capital of Class II Shares
(unlimited authorization -- no par value)
based on 636,374 outstanding shares
of beneficial interest 6,453
Distributions in excess
of net investment income (154)
Accumulated net realized loss
on investments (7,023)
Net unrealized appreciation
on investments 4,114
- --------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $405,974
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES
($399,481,432 / 39,312,275 SHARES) $10.16
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS II SHARES
($6,492,957 / 636,374 SHARE) $10.20
- --------------------------------------------------------------------------------
(A) Variable rate security -- the rate reflected was the rate in effect on March
31, 2004.
(B) Delayed interest (step-bonds) -- the interest rate disclosed represents the
effective yield at time of purchase.
(C) Tri-party repurchase agreement
ARM - Adjustable rate mortgage
Cl - Class
CMO - Collateralized mortgage obligation
FHLMC - Federal home loan mortgage corporation
FNMA - Federal national mortgage association
GNMA - Government national mortgage association
MTN - Medium term note
REMIC - Real estate mortgage investment conduit
Ser - Series
SLMA - Student loan marketing association
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2004 SEMIANNUAL REPORT 53
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SHORT DURATION FIXED INCOME FUND
March 31, 2004
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED OBLIGATIONS--72.2%
- --------------------------------------------------------------------------------
FHLMC
Pool #C66916
7.000%, 05/01/32 $ 814 $ 863
Pool #D94598
6.500%, 04/01/21 476 501
Pool #E97227
7.000%, 09/01/14 1,071 1,144
Pool #G10288
6.000%, 09/01/09 96 100
Pool #G10446
6.500%, 02/01/11 147 157
Pool #G30085
7.500%, 10/01/17 565 610
Pool #M90771
5.000%, 12/01/07 2,040 2,092
FHLMC CMO/REMIC
Ser 161, Cl F
9.500%, 06/15/06 153 153
Ser 1093, Cl F
7.500%, 06/15/06 42 42
Ser 1515, Cl G
6.500%, 02/15/08 272 274
Ser 1538, Cl J
6.500%, 06/15/08 160 173
Ser 2395, Cl GX
6.000%, 04/15/29 200 200
Ser 2416, Cl PN
6.000%, 11/15/28 10,000 10,320
Ser 2502, Cl CA
4.250%, 12/15/12 685 690
Ser 2502, Cl FP (A)
1.740%, 05/15/31 199 199
Ser 2509, Cl EA
4.000%, 12/15/12 2,152 2,172
Ser 2510, Cl TA
4.000%, 06/15/32 2,577 2,601
Ser 2515, Cl ED
5.000%, 03/15/17 5,774 5,956
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
Ser 2537, Cl LA
4.250%, 05/15/30 $5,113 $ 5,158
Ser 2541, Cl MC
6.000%, 01/15/29 3,461 3,605
Ser 2543, Cl YJ
4.500%, 03/15/32 4,125 4,186
Ser 2552, Cl NH
4.500%, 04/15/21 4,275 4,340
Ser 2566, Cl LM
4.500%, 04/15/32 2,993 3,036
Ser 2575, Cl QP
4.500%, 11/15/31 4,361 4,420
Ser 2581, Cl PW
3.000%, 04/15/16 3,000 3,003
Ser 2583, Cl ND
4.250%, 12/15/10 2,856 2,890
Ser 2586, Cl XG
4.000%, 12/15/32 3,513 3,546
Ser 2590, Cl QY
3.750%, 04/15/28 2,655 2,716
Ser 2590, Cl UL
3.750%, 03/15/32 6,340 6,377
Ser 2596, Cl QE
4.000%, 03/15/33 3,741 3,789
Ser 2649, Cl PJ
3.500%, 06/15/33 3,450 3,475
FNMA
Pool #190054
7.000%, 10/01/13 1,547 1,642
Pool #250477
6.000%, 01/01/11 80 84
Pool #303096
7.500%, 12/01/09 221 237
Pool #313429
7.000%, 03/01/12 609 651
Pool #323441
7.000%, 12/01/13 1,071 1,146
Pool #334593
7.000%, 05/01/24 37 39
Pool #535560
7.000%, 08/01/14 9,358 10,016
54 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SHORT DURATION FIXED INCOME FUND
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
Pool #6222
9.000%, 04/01/16 $ 80 $ 88
Pool #647567
6.000%, 06/01/17 1,036 1,092
Pool #704214
7.500%, 12/01/27 1,954 2,104
Pool #8245
8.000%, 12/01/08 127 136
FNMA CMO/REMIC
Ser 1991-133, Cl Z
8.000%, 09/25/06 317 331
Ser 1991-72, Cl G
8.000%, 07/25/06 35 37
Ser 1994-27, Cl PJ
6.500%, 06/25/23 689 716
Ser 1997-81, Cl PC
5.000%, 04/18/27 772 784
Ser 1999-15, Cl PC
6.000%, 09/25/18 127 132
Ser 2001-28, Cl A
6.000%, 02/25/29 842 848
Ser 2001-6, Cl AD
5.750%, 11/25/28 318 319
Ser 2001-68, Cl JL
5.500%, 05/25/23 7,000 7,199
Ser 2002-36, Cl HP
6.500%, 12/25/29 260 261
Ser 2002-60, Cl F1 (A)
1.490%, 06/25/32 2,147 2,150
Ser 2002-71, Cl AP
5.000%, 11/25/32 3,986 4,074
Ser 2002-72, Cl A
5.000%, 10/25/15 1,721 1,752
Ser 2003-119, Cl PU
4.000%, 11/25/33 2,814 2,837
Ser 2003-30, Cl MB
4.000%, 06/25/27 3,000 3,048
Ser 2003-33, Cl PC
4.500%, 03/25/27 7,000 7,090
Ser 2003-34, Cl GJ
4.000%, 02/25/33 8,481 8,485
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
Ser 2003-42, Cl CA
4.000%, 05/25/33 $3,075 $ 3,112
Ser 2003-7, Cl PA
4.500%, 03/25/20 1,911 1,945
GNMA
Pool #2707
5.500%, 01/20/14 26 28
Pool #2802
5.500%, 07/20/14 23 24
Pool #2843
5.500%, 11/20/14 425 445
Pool #344233
8.000%, 02/15/23 285 314
Pool #345123
8.000%, 12/15/23 447 493
Pool #351122
6.500%, 07/15/08 94 100
Pool #357343
6.500%, 10/15/08 45 48
Pool #462486
6.500%, 01/15/13 132 142
Pool #569337
6.500%, 04/15/22 153 163
Pool #578189
6.000%, 02/15/32 93 97
Pool #68224
8.000%, 06/15/12 213 232
Pool #780322
8.000%, 11/15/22 298 329
Pool #780327
8.000%, 11/15/17 140 154
Pool #814
8.000%, 08/20/17 318 347
Pool #8426 (A)
4.625%, 11/20/18 57 59
GNMA CMO/REMIC
Ser 2002-13, Cl A
6.000%, 10/16/30 1,490 1,522
Ser 2002-17, Cl A
6.000%, 08/20/25 19 19
TURNER FUNDS 2004 SEMIANNUAL REPORT 55
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SHORT DURATION FIXED INCOME FUND
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
Ser 2002-58, Cl FA (A)
1.390%, 02/17/30 $ 224 $ 224
Ser 2002-72, Cl AB
4.500%, 10/20/32 3,708 3,763
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED OBLIGATIONS
(COST $147,772) 149,646
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--7.0%
- --------------------------------------------------------------------------------
FHLMC
2.400%, 03/29/07 4,125 4,140
FHLMC, MTN
4.000%, 11/17/08 1,000 1,018
3.850%, 02/25/09 2,890 2,919
2.125%, 06/16/10 (B) 2,500 2,501
FNMA
2.625%, 01/19/07 2,000 2,006
1.370%, 02/24/06 2,000 2,000
- --------------------------------------------------------------------------------
TOTAL U.S. GOVERNMENT
AGENCY OBLIGATIONS
(COST $14,518) 14,584
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CORPORATE OBLIGATIONS--6.7%
- --------------------------------------------------------------------------------
CHEMICAL MANUFACTURING--1.5%
- --------------------------------------------------------------------------------
Dow Chemical
5.250%, 05/14/04 3,015 3,027
---------
Total Chemical manufacturing 3,027
---------
- --------------------------------------------------------------------------------
ELECTRICAL PRODUCTS & SERVICES--1.1%
- --------------------------------------------------------------------------------
Honeywell International
7.000%, 03/15/07 2,000 2,258
---------
Total Electrical
products & services 2,258
---------
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES--0.8%
- --------------------------------------------------------------------------------
Credit Suisse First Boston
4.625%, 01/15/08 $1,500 $ 1,589
---------
Total Financial services 1,589
---------
- --------------------------------------------------------------------------------
LEASING & RENTALS--1.4%
- --------------------------------------------------------------------------------
International Lease Financing
5.625%, 06/01/07 2,650 2,890
---------
Total Leasing & rentals 2,890
---------
- --------------------------------------------------------------------------------
PAINT, COATING & ADHESIVE
MANUFACTURING--0.1%
- --------------------------------------------------------------------------------
Sherwin-Williams
6.850%, 02/01/07 240 268
---------
Total Paint, coating &
adhesive manufacturing 268
---------
- --------------------------------------------------------------------------------
UTILITIES--1.8%
- --------------------------------------------------------------------------------
National Rural Utilities
6.000%, 05/15/06 3,500 3,783
---------
Total Utilities 3,783
---------
- --------------------------------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS
(COST $13,699) 13,815
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES--5.4%
- --------------------------------------------------------------------------------
AUTOMOTIVE--0.6%
- --------------------------------------------------------------------------------
Americredit Automobile
Receivables Trust,
Ser 2001-A, Cl A4 (A)
1.340%, 12/12/07 1,315 1,316
---------
Total Automotive 1,316
---------
- --------------------------------------------------------------------------------
CREDIT CARDS--2.0%
- --------------------------------------------------------------------------------
Citibank Credit Card Issuance Trust,
Ser 2001-A6, Cl A6
5.650%, 06/16/08 1,875 2,022
56 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SHORT DURATION FIXED INCOME FUND
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
Discover Card Master Trust I,
Ser 2000-9, Cl A
6.350%, 07/15/08 $ 150 $ 162
Saks Credit Card Master Trust,
Ser 2001-2, Cl A (A)
1.330%, 12/15/09 2,000 2,010
---------
Total Credit cards 4,194
---------
- --------------------------------------------------------------------------------
MORTGAGE RELATED--1.7%
- --------------------------------------------------------------------------------
Goldman Sachs
Mortgage Securities II,
Ser 1998-C1, Cl A1
6.060%, 10/18/30 507 529
Morgan Stanley Capital I,
Ser 1998-XL1, Cl A2
6.450%, 06/03/30 2,865 3,012
---------
Total Mortgage related 3,541
---------
- --------------------------------------------------------------------------------
OTHER--1.1%
- --------------------------------------------------------------------------------
PECO Energy Transition Trust,
Ser 1999-A, Cl A6
6.050%, 03/01/09 125 136
Ser 1999-A, Cl A7
6.130%, 03/01/09 1,875 2,102
---------
Total Other 2,238
---------
- --------------------------------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(COST $10,892) 11,289
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
U.S. TREASURY OBLIGATION--2.3%
- --------------------------------------------------------------------------------
U.S. Treasury Notes
4.000%, 02/15/14 4,600 4,660
- --------------------------------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATION
(COST $4,683) 4,660
- --------------------------------------------------------------------------------
Face Amount Value
(000) (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT--6.3%
- --------------------------------------------------------------------------------
PNC Capital Markets (C)
0.980%, dated 03/31/04, to
be repurchased on 04/01/04,
repurchase price $13,066,356
(collateralized by U.S.
Government obligation, total
market value $13,110,000) $13,066 $ 13,066
- --------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $13,066) 13,066
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--99.9%
(COST $204,630) 207,060
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--0.1%
- --------------------------------------------------------------------------------
Payable due to investment adviser (19)
Payable due to administrator (25)
Payable due to shareholder servicing agent (1)
Payable due to trustees (2)
Other assets and liabilities, net 318
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES, NET 271
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 20,137,537 outstanding shares
of beneficial interest 204,013
Portfolio capital of Class II Shares
(unlimited authorization -- no par value)
based on 302,261 outstanding shares
of beneficial interest 2,767
Distributions in excess of net
investment income (7)
Accumulated net realized loss
on investments (1,872)
Net unrealized appreciation
on investments 2,430
- --------------------------------------------------------------------------------
TOTAL NET ASSETS--100% $207,331
- --------------------------------------------------------------------------------
TURNER FUNDS 2004 SEMIANNUAL REPORT 57
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SHORT DURATION FIXED INCOME FUND
Value
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES
($204,275,519 / 20,137,537 SHARES) $10.14
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS II SHARES
($3,055,859 / 302,261 SHARES) $10.11
(A) The rate reflected was the rate in effect on March 31, 2004.
(B) Delayed interest (step-bonds) - the interest rate disclosed represents the
effective yield at time of purchase.
(C) Tri-party repurchase agreement
Cl - Class
CMO - Collateralized mortgage obligation
FHLMC - Federal home loan mortgage corporation
FNMA - Federal national mortgage association
GNMA - Government national mortgage association
MTN - Medium term note
REMIC - Real estate mortgage investment conduit
Ser - Series
The accompanying notes are an integral part of the financial statements.
58 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES (000)
Turner
Small Cap Value
Opportunities
Fund
- --------------------------------------------------------------------------------
03/31/04
- --------------------------------------------------------------------------------
Assets:
- --------------------------------------------------------------------------------
Investment securities at cost $18,266
================================================================================
Investment securities at value $20,672
Receivable for capital shares sold 1,469
Receivable for investment securities sold 750
Receivable for dividend and interest income 10
- --------------------------------------------------------------------------------
Total assets 22,901
================================================================================
Liabilities:
Obligation to return securities lending collateral 1,566
Payable for investment securities purchased 356
Payable for capital shares redeemed 22
Payable due to investment adviser 11
Payable due to distributor(1) 5
Payable due to administrator 3
Accrued expenses 4
- --------------------------------------------------------------------------------
Total liabilities 1,967
- --------------------------------------------------------------------------------
Total net assets $20,934
================================================================================
Net assets:
Portfolio capital, Class II Shares $17,181
Accumulated net investment loss (33)
Accumulated net realized gain on investments 1,380
Net unrealized appreciation on investments 2,406
- --------------------------------------------------------------------------------
Total net assets $20,934
- --------------------------------------------------------------------------------
Outstanding shares of beneficial interest:(2)
Class II Shares(3) 1,311,230
- --------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share, Class II Shares $ 15.96
================================================================================
(1) Attributable to Class II Shares only.
(2) Unlimited authorization -- no par value.
(3) Shares have not been rounded.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2004 SEMIANNUAL REPORT 59
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (000)
Turner
Small Cap Turner Turner
Turner Turner Turner Value Financial Healthcare &
Large Cap Core Value Small Cap Opportunities Services Biotechnology
Value Fund Fund Value Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
10/1/03 thru 10/1/03 thru 10/1/03 thru 10/1/03 thru 10/1/03 thru 10/1/03 thru
3/31/04 3/31/04 3/31/04 3/31/04 3/31/04 3/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 55 $ 400 $ 3,082 $ 100 $ 109 $ 53
Interest -- -- 6 -- -- --
Securities lending 1 3 173 1 1 1
Foreign taxes withheld (1) (3) -- (1) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 55 400 3,261 100 110 54
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 21 199 2,009 87 94 83
Administrator fees 4 38 331 13 12 12
Distribution fees(1) -- -- -- 23 -- --
Shareholder service fees(1) -- -- -- -- -- 21
Transfer agent fees 13 32 329 21 22 25
Printing fees 1 7 61 1 2 2
Professional fees 1 7 56 1 2 2
Custodian fees 3 5 31 13 4 4
Registration fees -- 4 36 -- 1 1
Trustees' fees -- 1 9 -- -- 1
Insurance and other fees 1 1 10 -- 1 --
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses 44 294 2,872 159 138 151
Less:
Investment advisory
fees waived (8) -- -- (26) (10) (5)
Reimbursements
from adviser -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 36 294 2,872 133 128 146
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment
income (loss) 19 106 389 (33) (18) (92)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from
securities sold 252 3,705 37,115 1,550 1,730 1,432
Net unrealized appreciation
(depreciation) of investment
securities 495 5,563 63,745 2,052 1,158 1,013
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain
on investments 747 9,268 100,860 3,602 2,888 2,445
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net
assets resulting
from operations $766 $9,374 $101,249 $3,569 $2,870 $2,353
====================================================================================================================================
Turner
Turner Strategic Value Turner Turner Ultra Turner
Tax Managed and High Core Fixed Turner Short Duration Short Duration
U.S. Equity Income Income High Yield Fixed Income Fixed Income
Fund Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
10/1/03 thru 10/1/03 thru 10/1/03 thru 10/1/03 thru 10/1/03 thru 10/1/03 thru
3/31/04 3/31/04 3/31/04 3/31/04 3/31/04 3/31/04
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 27 $110* $ 4 $ 4 $ 67 $ 25
Interest -- -- 950 465 5,006 3,057
Securities lending 1 -- 4 3 3 --
Foreign taxes withheld -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 28 110 958 472 5,076 3,082
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 22 3 90 33 540 286
Administrator fees 4 4 28 8 303 161
Distribution fees(1) -- -- -- -- -- --
Shareholder service fees(1) 7 -- -- -- 8 3
Transfer agent fees 19 17 31 14 282 160
Printing fees 1 -- 7 2 85 44
Professional fees 1 -- 6 1 78 41
Custodian fees 4 -- 5 4 30 19
Registration fees -- -- 4 1 47 25
Trustees' fees -- -- 1 -- 11 6
Insurance and other fees -- 1 5 2 14 8
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses 58 25 177 65 1,398 753
Less:
Investment advisory
fees waived (22) (3) (17) (15) (453) (252)
Reimbursements
from adviser -- (15) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 36 7 160 50 945 501
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment
income (loss) (8) 103 798 422 4,131 2,581
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from
securities sold 544 275* 448 625 (1) 457
Net unrealized appreciation
(depreciation) of investment
securities 223 327* (354) (505) 257 (88)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and
unrealized gain
on investments 767 602 94 120 256 369
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net
assets resulting
from operations $759 $705 $ 892 $ 542 $4,387 $2,950
====================================================================================================================================
(1) Attributable to Class II Shares only.
* Dividend income, net realized gain from securities sold and net unrealized
appreciation of investment securities are attributable to the underlying
investments in affiliated investment companies.
Amounts designated as "--" are either $0 or have been rounded to $0
The accompanying notes are an integral part of the financial statements.
60 & 61 TURNER FUNDS 2004 SEMIANNUAL REPORT
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (000)
Turner Turner
Large Cap Core Value
Value 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) $ 19 $ 39 $ 106 $ 189
Net realized gain (loss) from securities sold 252 (265) 3,705 2,570
Net change in unrealized
appreciation of investments 495 1,138 5,563 6,105
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 766 912 9,374 8,864
- ---------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares (19) (39) (106) (189)
Class II Shares -- -- -- --
Realized capital gains
Class I Shares -- -- (1,697) --
Class II Shares -- -- -- --
Return of capital
Class I Shares -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (19) (39) (1,803) (189)
- ---------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 2,404 642 12,716 15,143
Proceeds from shares issued in lieu
of cash distributions 18 37 1,734 178
Cost of shares redeemed (1,067) (1,015) (9,883) (20,894)
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions 1,355 (336) 4,567 (5,573)
- ---------------------------------------------------------------------------------------------------------------------------------
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 1,355 (336) 4,567 (5,573)
- ---------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 2,102 537 12,138 3,102
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 4,792 4,255 46,673 43,571
- ---------------------------------------------------------------------------------------------------------------------------------
End of year/period $ 6,894 $ 4,792 $58,811 $ 46,673
=================================================================================================================================
Accumulated net investment loss/distributions
in excess of net investment income $ -- $ -- $ -- $ --
=================================================================================================================================
Shares issued and redeemed:
Class I Shares
Issued 222 71 793 1,199
Issued in lieu of cash distributions 2 4 114 14
Redeemed (100) (116) (621) (1,643)
- ---------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares 124 (41) 286 (430)
- ---------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- -- -- --
Issued in lieu of cash distributions -- -- -- --
Redeemed -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Increase in Class II Shares -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares 124 (41) 286 (430)
=================================================================================================================================
Turner Turner
Small Cap Small Cap Value
Value 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) $ 389 $ 352 $ (33) $ (4)
Net realized gain (loss) from securities sold 37,115 (43,910) 1,550 129
Net change in unrealized
appreciation of investments 63,745 126,137 2,052 420
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operation 101,249 82,579 3,569 545
- -------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares (653) (315) -- --
Class II Shares -- -- -- (1)
Realized capital gains
Class I Shares -- -- -- --
Class II Shares -- -- (224) --
Return of capital
Class I Shares -- (109) -- --
- -------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (653) (424) (224) (1)
- -------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 102,658 144,143 -- --
Proceeds from shares issued in lieu
of cash distributions 593 389 -- --
Cost of shares redeemed (82,865) (296,317) -- --
- -------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions 20,386 (151,785) -- --
- -------------------------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued -- -- 24,634 5,909
Proceeds from shares issued in
lieu of cash distributions -- -- 221 1
Cost of shares redeemed -- -- (13,006) (1,627)
- -------------------------------------------------------------------------------------------------------------------------
Increase in net assets from
Class II Shares transactions -- -- 11,849 4,283
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions 20,386 (151,785) 11,849 4,283
- -------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 120,982 (69,630) 15,194 4,827
- -------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 394,946 464,576 5,740 913
- -------------------------------------------------------------------------------------------------------------------------
End of year/period $515,928 $ 394,946 $ 20,934 $ 5,740
=========================================================================================================================
Accumulated net investment loss/distributions
in excess of net investment income $ (264) $ -- $ (33) $ --
=========================================================================================================================
Shares issued and redeemed:
Class I Shares
Issued 4,642 8,838 -- --
Issued in lieu of cash distributions 26 26 -- --
Redeemed (3,707) (18,889) -- --
- -------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares 961 (10,025) -- --
- -------------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- -- 1,690 500
Issued in lieu of cash distributions -- -- 16 --
Redeemed -- -- (846) (147)
- -------------------------------------------------------------------------------------------------------------------------
Increase in Class II Shares -- -- 860 353
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares 961 (10,025) 860 353
=========================================================================================================================
Turner
Turner Healthcare &
Financial Biotechnology
Services 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) $ (18) $ (29) $ (92) $ (136)
Net realized gain (loss) from securities sold 1,730 1,106 1,432 1,068
Net change in unrealized
appreciation of investments 1,158 3,052 1,013 1,770
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 2,870 4,129 2,353 2,702
- -------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares -- -- -- --
Class II Shares -- -- -- --
Realized capital gains
Class I Shares (1,753) (136) -- --
Class II Shares -- -- (14) --
Return of capital
Class I Shares -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (1,753) (136) (14) --
- -------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 973 3,947 -- --
Proceeds from shares issued in lieu
of cash distributions 1,671 129 -- --
Cost of shares redeemed (4,023) (2,909) -- --
- -------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions (1,379) 1,167 -- --
- -------------------------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued -- -- 5,851 6,326
Proceeds from shares issued in
lieu of cash distributions -- -- 14 --
Cost of shares redeemed -- -- (3,941) (3,463)
- -------------------------------------------------------------------------------------------------------------------------
Increase in net assets from
Class II Shares transactions -- -- 1,924 2,863
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions (1,379) 1,167 1,924 2,863
- -------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (262) 5,160 4,263 5,565
- -------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 17,309 12,149 14,853 9,288
- -------------------------------------------------------------------------------------------------------------------------
End of year/period $17,047 $17,309 $19,116 $14,853
=========================================================================================================================
Accumulated net investment loss/distributions
in excess of net investment income $ (18) $ -- $ (92) $ --
=========================================================================================================================
Shares issued and redeemed:
Class I Shares
Issued 67 305 -- --
Issued in lieu of cash distributions 123 12 -- --
Redeemed (297) (246) -- --
- -------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares (107) 71 -- --
- -------------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- -- 427 592
Issued in lieu of cash distributions -- -- 1 --
Redeemed -- -- (291) (331)
- -------------------------------------------------------------------------------------------------------------------------
Increase in Class II Shares -- -- 137 261
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares (107) 71 137 261
=========================================================================================================================
Amounts designated as "--" are either $0 or have been rounded to $0
The accompanying notes are an integral part of the financial statements.
62 & 63 TURNER FUNDS 2004 SEMIANNUAL REPORT
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (000)
Turner Turner
Tax Managed Strategic Value and
U.S. Equity High Income
Fund Fund
---------------------------------------------------------------
10/1/03 year 10/1/03 10/31/02(1)
thru ended thru thru
3/31/04 9/30/03 3/31/04 9/30/03
- -------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (8) $ (18) $ 103* $ 4*
Net realized gain (loss) from securities sold 544 91 275* (1)*
Net change in unrealized appreciation
(depreciation) of investments 223 1,212 327* 22*
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 759 1,285 705 25
- -------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares -- -- (103) (4)
Class II Shares -- -- -- --
Realized capital gains
Class I Shares -- -- (9) --
Class II Shares -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions -- -- (112) (4)
- -------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued -- -- 13,419 912
Proceeds from shares issued in
lieu of cash distributions -- -- 111 4
Cost of shares redeemed -- -- (9,601) (494)
- -------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions -- -- 3,929 422
- -------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued 322 1,071 -- --
Proceeds from shares issued in
lieu of cash distributions -- -- -- --
Cost of shares redeemed (828) (1,575) -- --
- -------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class II Shares transactions (506) (504) -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions (506) (504) 3,929 422
- -------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 253 781 4,522 443
- -------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 5,528 4,747 443 --
- -------------------------------------------------------------------------------------------------------------------------------
End of year/period $5,781 $ 5,528 $ 4,965 $ 443
===============================================================================================================================
Undistributed net investment income (accumulated
net investment loss/distributions in excess of net
investment income) $ (8) $ -- $ -- $ --
===============================================================================================================================
Shares issued and redeemed:
Class I Shares
Issued -- -- 979 75
Issued in lieu of cash distributions -- -- 8 --
Redeemed -- -- (673) (40)
- -------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares -- -- 314 35
- -------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued 36 157 -- --
Issued in lieu of cash distributions -- -- -- --
Redeemed (95) (223) -- --
- -------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class II Shares (59) (66) -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares (59) (66) 314 35
===============================================================================================================================
Turner Core Turner
Fixed Income High Yield
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) $ 798 $ 1,820 $ 422 $ 725
Net realized gain (loss) from securities sold 448 (236) 625 231
Net change in unrealized appreciation
(depreciation) of investments (354) (114) (505) 889
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 892 1,470 542 1,845
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares (838) (1,934) (414) (709)
Class II Shares -- -- -- --
Realized capital gains
Class I Shares -- (108) -- --
Class II Shares -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (838) (2,042) (414) (709)
- --------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 9,762 28,705 8,842 4,524
Proceeds from shares issued in
lieu of cash distributions 768 1,908 123 99
Cost of shares redeemed (16,383) (29,574) (7,480) (5,783)
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions (5,853) 1,039 1,485 (1,160)
- --------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued -- -- -- --
Proceeds from shares issued in
lieu of cash distributions -- -- -- --
Cost of shares redeemed -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class II Shares transactions -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions (5,853) 1,039 1,485 (1,160)
- --------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (5,799) 467 1,613 (24)
- --------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 43,391 42,924 9,408 9,432
- --------------------------------------------------------------------------------------------------------------------------------
End of year/period $ 37,592 $ 43,391 $11,021 $ 9,408
================================================================================================================================
Undistributed net investment income (accumulated
net investment loss/distributions in excess of net
investment income) $ (2) $ (2) $ 9 $ 1
================================================================================================================================
Shares issued and redeemed:
Class I Shares
Issued 948 2,758 1,723 960
Issued in lieu of cash distributions 75 183 24 21
Redeemed (1,592) (2,836) (1,459) (1,226)
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares (569) 105 288 (245)
- --------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- -- -- --
Issued in lieu of cash distributions -- -- -- --
Redeemed -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class II Shares -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares (569) 105 288 (245)
================================================================================================================================
Turner Ultra Turner
Short Duration Short Duration
Fixed Income Fixed Income
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) $ 4,131 $ 4,318 $ 2,581 $ 4,748
Net realized gain (loss) from securities sold (1) (232) 457 1,172
Net change in unrealized appreciation
(depreciation) of investments 257 2,667 (88) (128)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 4,387 6,753 2,950 5,792
- ----------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares (4,511) (10,253) (2,916) (6,947)
Class II Shares (59) (172) (27) (139)
Realized capital gains
Class I Shares -- (630) -- (1,892)
Class II Shares -- (12) -- (60)
- ----------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (4,570) (11,067) (2,943) (9,038)
- ----------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 80,107 432,951 23,910 148,936
Proceeds from shares issued in
lieu of cash distributions 4,357 10,488 2,877 8,702
Cost of shares redeemed (147,368) (446,668) (75,289) (165,718)
- ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions (62,904) (3,229) (48,502) (8,080)
- ----------------------------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued 1,957 19,631 5,041 5,134
Proceeds from shares issued in
lieu of cash distributions 49 149 26 194
Cost of shares redeemed (1,476) (22,615) (4,259) (11,350)
- ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class II Shares transactions 530 (2,835) 808 (6,022)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions (62,374) (6,064) (47,694) (14,102)
- ----------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (62,557) (10,378) (47,687) (17,348)
- ----------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 468,531 478,909 255,018 272,366
- ----------------------------------------------------------------------------------------------------------------------------
End of year/period $ 405,974 $ 468,531 $207,331 $ 255,018
============================================================================================================================
Undistributed net investment income (accumulated
net investment loss/distributions in excess of net
investment income) $ (154) $ (185) $ (7) $ (22)
============================================================================================================================
Shares issued and redeemed:
Class I Shares
Issued 7,884 42,479 2,366 14,645
Issued in lieu of cash distributions 429 1,031 285 857
Redeemed (14,503) (43,959) (7,448) (16,343)
- ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares (6,190) (449) (4,797) (841)
- ----------------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued 192 1,914 500 508
Issued in lieu of cash distributions 5 15 3 19
Redeemed (145) (2,210) (423) (1,124)
- ----------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class II Shares 52 (281) 80 (597)
- ----------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares (6,138) (730) (4,717) (1,438)
============================================================================================================================
* Dividend income, net realized gain (loss) from securities sold and net
unrealized appreciation of investments are attributable to the underlying
investments in affiliated investment companies.
(1) Commencement of operations.
Amounts designated as "--" are either $0 or have been rounded to $0
The accompanying notes are an integral part of the financial statements.
64 & 65 TURNER FUNDS 2004 SEMIANNUAL REPORT
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Realized and
Net asset Net unrealized Dividends Distributions
value, investment gains from net from Net asset
beginning income (losses) on investment capital value, end
of period (loss) investments income gains of period
- -----------------------------------------------------------------------------------------------------------------------------------
Turner Large Cap Value Fund -- Class I Shares
- -----------------------------------------------------------------------------------------------------------------------------------
2004* $ 9.56 0.03 1.48 (0.03) -- $11.04
2003 $ 7.86 0.08 1.70 (0.08) -- $ 9.56
2002 $ 9.89 0.10 (2.03) (0.10) -- $ 7.86
2001 (1) $12.44 0.11 (1.93) (0.11) (0.62) $ 9.89
2000 $11.43 0.08 2.06 (0.09) (1.04) $12.44
1999 $ 9.21 0.13 2.27 (0.13) (0.05) $11.43
- -----------------------------------------------------------------------------------------------------------------------------------
Turner Core Value Fund -- Class I Shares
- -----------------------------------------------------------------------------------------------------------------------------------
2004* $14.18 0.03 2.77 (0.03) (0.51) $16.44
2003 (2) $11.71 0.05 2.47 (0.05) -- $14.18
2002 $14.85 0.08 (0.61) (0.08) (2.53) $11.71
2001 (3) $14.23 0.05 0.59 (0.02) -- $14.85
2000 $15.92 0.05 1.79 (0.07) (3.46) $14.23
1999 $15.85 0.21 0.74 (0.21) (0.67) $15.92
- -----------------------------------------------------------------------------------------------------------------------------------
Turner Small Cap Value Fund -- Class I Shares
- -----------------------------------------------------------------------------------------------------------------------------------
2004* $19.23 0.02 4.78 (0.03) -- $24.00
2003 $15.20 0.01 4.04 (0.02)(4) -- $19.23
2002 $16.69 0.06 (1.50) (0.05) -- $15.20
2001(5) $16.36 0.10 1.67 (0.05) (1.39) $16.69
2000 $13.71 (0.02) 3.91 -- (1.24) $16.36
1999 $11.49 (0.01) 2.48 -- (0.25) $13.71
- -----------------------------------------------------------------------------------------------------------------------------------
Turner Small Cap Value Opportunities Fund -- Class II Shares
- -----------------------------------------------------------------------------------------------------------------------------------
2004* $12.72 (0.03) 3.48 -- (0.21) $15.96
2003 $ 9.27 (0.01) 3.47 (0.01) -- $12.72
2002 (6) $10.00 -- (0.73) -- -- $ 9.27
- -----------------------------------------------------------------------------------------------------------------------------------
Turner Financial Services Fund-- Class I Shares (7)
- -----------------------------------------------------------------------------------------------------------------------------------
2004* $13.60 (0.02) 2.41 -- (1.37) $14.62
2003 $10.11 (0.02) 3.62 -- (0.11) $13.60
2002 $16.67 (0.02) (1.12) -- (5.42) $10.11
2001 (8) $19.76 (0.13) (2.96) -- -- $16.67
2001 $17.19 (0.14) 3.30 -- (0.59) $19.76
2000 $18.01 (0.17) (0.65) -- -- $17.19
1999 $19.61 (0.10) (0.31) -- (1.19) $18.01
- -----------------------------------------------------------------------------------------------------------------------------------
Turner Healthcare & Biotechnology Fund -- Class II Shares
- -----------------------------------------------------------------------------------------------------------------------------------
2004* $12.31 (0.06) 2.00 -- (0.01) $14.24
2003 $ 9.83 (0.11) 2.59 -- -- $12.31
2002 $11.15 (0.10) (1.20) -- (0.02) $ 9.83
2001 (9) $10.00 (0.03) 1.18 -- -- $11.15
Ratio of net
Net Ratio of Ratio of total investment
assets end net expenses expenses income (loss) Portfolio
Total of period to average to average to average turnover
return (000) net assets++ net assets net assets++ rate+++
- -------------------------------------------------------------------------------------------------------------------------------
Turner Large Cap Value Fund -- Class I Shares
- -------------------------------------------------------------------------------------------------------------------------------
2004* 15.84%+ $ 6,894 1.25% 1.54% 0.66% 39.65%
2003 22.72% $ 4,792 1.15% 1.70% 0.89% 58.63%
2002 (19.66)% $ 4,255 0.95% 1.54% 1.06% 70.30%
2001 (1) (15.47)% $ 5,152 0.95% 3.56% 1.00% 121.20%
2000 19.84% $ 5,163 0.95% 3.98% 0.75% 153.58%
1999 26.17% $ 2,725 0.95% 4.13% 1.20% 92.26%
- -------------------------------------------------------------------------------------------------------------------------------
Turner Core Value Fund -- Class I Shares
- -------------------------------------------------------------------------------------------------------------------------------
2004* 20.02%+ $ 58,811 1.10% 1.10% 0.40% 28.45%
2003 (2) 21.61% $ 46,673 1.13% 1.13% 0.43% 66.61%
2002 (6.37)% $ 43,571 1.10% 1.13% 0.56% 103.36%
2001 (3) 4.50% $ 41,715 1.10% 1.16% 0.30% 128.18%
2000 13.67% $ 45,657 1.10% 1.11% 0.34% 90.15%
1999 6.13% $ 59,602 0.95% 0.95% 1.21% 98.85%
- -------------------------------------------------------------------------------------------------------------------------------
Turner Small Cap Value Fund -- Class I Shares
- -------------------------------------------------------------------------------------------------------------------------------
2004* 24.97%+ $ 515,928 1.21% 1.21% 0.16% 33.61%
2003 26.66% $ 394,946 1.27% 1.27% 0.08% 52.21%
2002 (8.69)% $ 464,576 1.26% 1.26% 0.31% 37.60%
2001(5) 12.15% $ 178,164 1.28% 1.28% 0.37% 120.40%
2000 29.59% $ 36,254 1.40% 1.47% (0.11)% 85.80%
1999 21.82% $ 16,494 1.40% 1.72% (0.10)% 79.93%
- -------------------------------------------------------------------------------------------------------------------------------
Turner Small Cap Value Opportunities Fund -- Class II Shares
- -------------------------------------------------------------------------------------------------------------------------------
2004* 27.36%+ $ 20,934 1.45% 1.73% (0.36)% 139.15%
2003 37.29% $ 5,740 1.40% 3.64% (0.26)% 245.12%
2002 (6) (7.30)%+ $ 913 1.45% 6.18% 0.08% 141.81%
- -------------------------------------------------------------------------------------------------------------------------------
Turner Financial Services Fund-- Class I Shares (7)
- -------------------------------------------------------------------------------------------------------------------------------
2004* 18.30%+ $ 17,047 1.47% 1.58% (0.22)% 51.89%
2003 35.95% $ 17,309 1.50% 1.82% (0.22)% 139.02%
2002 (12.48)% $ 12,149 1.40% 2.16% (0.40)% 170.97%
2001 (8) (15.64)%+ $ 15,554 2.29% 2.33% (1.19)% 51.65%
2001 18.20% $ 23,341 2.11% 2.11% (0.59)% 109.74%
2000 (4.55)% $ 25,892 2.14% 2.14% (0.91)% 180.47%
1999 (0.15)% $ 30,797 2.06% 2.06% (0.62)% 205.86%
- -------------------------------------------------------------------------------------------------------------------------------
Turner Healthcare & Biotechnology Fund -- Class II Shares
- -------------------------------------------------------------------------------------------------------------------------------
2004* 15.78%+ $ 19,116 1.75% 1.81% (1.11)% 91.84%
2003 25.23% $ 14,853 1.47% 1.63% (1.16)% 274.37%
2002 (11.66)% $ 9,288 1.87% 2.33% (1.44)% 202.30%
2001 (9) 11.50%+ $ 1,192 1.50% 13.70% (0.79)% 95.24%
* 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) On April 30, 2001, shareholders of the Clover Max Cap Value Fund approved a
change in the adviser from Clover Capital Management, Inc. to Turner Investment
Partners, Inc., with Clover Capital becoming the Fund's sub-adviser. In
connection with the change in adviser, the Fund changed its name to the Turner
Large Cap Value Fund effective May 1, 2001.
(2) Effective April 15, 2003, the Board of Trustees of Turner Funds approved a
resolution to change the name of the Turner Midcap Value Fund to the Turner Core
Value Fund and to change its principal investment strategy to a "core" approach.
(3) On April 30, 2001, shareholders of the Clover Equity Value Fund approved a
change in the adviser from Clover Capital Management, Inc. to Turner Investment
Partners, Inc., with Clover Capital becoming the Fund's sub-adviser. In
connection with the change in adviser, the Fund changed its name to the Turner
Midcap Value Fund effective May 1, 2001.
(4) Includes return of capital of $0.004.
(5) On April 30, 2001, shareholders of the Clover Small Cap Value Fund approved
a change in the adviser from Clover Capital Management, Inc. to Turner
Investment Partners, Inc., with Clover Capital becoming the Fund's sub-adviser.
In connection with the change in adviser, the Fund changed its name to the
Turner Small Cap Value Fund effective May 1, 2001.
(6) Commenced operations on March 4, 2002. All ratios for the period have been
annualized.
(7) On November 12, 2001, the Titan Financial Services Fund (the "Titan Fund")
exchanged all of its assets and liabilities for shares of the Turner Financial
Services Fund. The Titan Fund is the accounting survivor in this transaction,
and as a result, the accounting history and operating results for the periods
prior to November 12, 2001 have been carried forward in these financial
highlights.
(8) For the six month period ended October 31, 2001. All ratios for the period
have been annualized. The Titan Fund changed its fiscal year end from April 30
to October 31.
(9) Commenced operations on February 28, 2001. 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.
66 & 67 TURNER FUNDS 2004 SEMIANNUAL REPORT
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Realized and
Net asset Net unrealized Dividends Distributions
value, investment gains from net from Net asset
beginning income (losses) on investment capital value, end
of period (loss) investments income gains of period
- --------------------------------------------------------------------------------------------------------------------------
Turner Tax Managed U.S. Equity Fund-- Class II Shares
- --------------------------------------------------------------------------------------------------------------------------
2004* $ 8.04 (0.01) 1.16 -- -- $ 9.19
2003 $ 6.29 (0.03) 1.78 -- -- $ 8.04
2002 $ 8.18 (0.03) (1.86) -- -- $ 6.29
2001 (1) $10.00 -- (1.82) -- -- $ 8.18
- --------------------------------------------------------------------------------------------------------------------------
Turner Strategic Value and High Income Fund-- Class I Shares (2)
- --------------------------------------------------------------------------------------------------------------------------
2004* $12.58 0.25 1.76 (0.25) (0.10) $14.24
2003 (3) $10.00 0.25 2.58 (0.25) -- $12.58
- --------------------------------------------------------------------------------------------------------------------------
Turner Core Fixed Income Fund -- Class I Shares
- --------------------------------------------------------------------------------------------------------------------------
2004* $10.40 0.22 0.03 (0.22) -- $10.43
2003 $10.55 0.45 (0.10) (0.47) (0.03) $10.40
2002 $10.20 0.52 0.35 (0.52) -- $10.55
2001 (4) $ 9.62 0.54 0.58 (0.54) -- $10.20
2000 $ 9.50 0.54 0.12 (0.54) -- $ 9.62
1999 $10.41 0.53 (0.71) (0.53) (0.20) $ 9.50
- --------------------------------------------------------------------------------------------------------------------------
Turner High Yield Fund -- Class I Shares
- --------------------------------------------------------------------------------------------------------------------------
2004* $ 5.02 0.18 0.08 (0.18) -- $ 5.10
2003 $ 4.45 0.37 0.56 (0.36) -- $ 5.02
2002 (5) $ 5.49 0.64 (1.04) (0.64) -- $ 4.45
2001 $ 8.10 0.78 (2.61) (0.78) -- $ 5.49
2000 $ 8.82 0.79 (0.72) (0.79) -- $ 8.10
1999 (6) $ 8.91 0.83 (0.09) (0.83) -- $ 8.82
- --------------------------------------------------------------------------------------------------------------------------
Turner Ultra Short Duration Fixed Income Fund -- Class I Shares
- --------------------------------------------------------------------------------------------------------------------------
2004* $10.17 0.10(7) -- (0.11) -- $10.16
2003 $10.23 0.08(7) 0.06 (0.19) (0.01) $10.17
2002 $10.22 0.25 0.05 (0.29) -- $10.23
2001 $10.05 0.54 0.15 (0.52) -- $10.22
2000 $10.05 0.61 0.01 (0.62) -- $10.05
1999 (8) $10.09 0.54 (0.02) (0.56) -- $10.05
- --------------------------------------------------------------------------------------------------------------------------
Turner Ultra Short Duration Fixed Income Fund -- Class II Shares
- --------------------------------------------------------------------------------------------------------------------------
2004* $10.21 0.08(7) 0.01 (0.10) -- $10.20
2003 $10.27 0.05(7) 0.07 (0.17) (0.01) $10.21
2002 $10.26 0.25 0.02 (0.26) -- $10.27
2001 $10.09 0.50 0.17 (0.50) -- $10.26
2000 $10.10 0.57 0.02 (0.60) -- $10.09
1999 (8) $10.11 0.47 0.02 (0.50) -- $10.10
Ratio of net
Ratio of Ratio of total investment
Net assets net expenses expenses income (loss) Portfolio
Total end of to average to average to average turnover
return period (000) net assets++ net assets net assets++ rate+++
- ----------------------------------------------------------------------------------------------------------------------------------
Turner Tax Managed U.S. Equity Fund-- Class II Shares
- ----------------------------------------------------------------------------------------------------------------------------------
2004* 14.30%+ $ 5,781 1.25% 2.00% (0.29)% 57.16%
2003 27.82% $ 5,528 1.25% 2.14% (0.34)% 187.08%
2002 (23.11)% $ 4,747 1.25% 1.91% (0.33)% 313.38%
2001 (1) (18.20)%+ $ 6,949 1.25% 5.35% (0.20)% 91.38%
- ----------------------------------------------------------------------------------------------------------------------------------
Turner Strategic Value and High Income Fund-- Class I Shares (2)
- ----------------------------------------------------------------------------------------------------------------------------------
2004* 16.06%+ $ 4,965 0.25% 0.84% 3.36% 173.30%
2003 (3) 28.57%+ $ 443 0.25% 21.93% 3.27% 396.69%
- ----------------------------------------------------------------------------------------------------------------------------------
Turner Core Fixed Income Fund -- Class I Shares
- ----------------------------------------------------------------------------------------------------------------------------------
2004* 2.42%+ $ 37,592 0.80% 0.88% 4.00% 16.62%
2003 3.37% $ 43,391 0.78% 0.87% 4.25% 45.87%
2002 8.85% $ 42,924 0.75% 0.87% 5.03% 49.30%
2001 (4) 11.99% $ 34,074 0.75% 1.01% 5.50% 34.05%
2000 7.21% $ 31,486 0.75% 1.02% 5.72% 42.40%
1999 (1.78)% $ 32,729 0.75% 0.97% 5.40% 28.47%
- ----------------------------------------------------------------------------------------------------------------------------------
Turner High Yield Fund -- Class I Shares
- ----------------------------------------------------------------------------------------------------------------------------------
2004* 5.13%+ $ 11,021 0.83% 1.09% 6.99% 117.77%
2003 21.61% $ 9,408 0.76% 1.16% 7.71% 241.14%
2002 (5) (8.05)% $ 9,432 0.68% 1.47% 12.78% 171.13%
2001 (23.66)% $ 13,977 0.68% 1.38% 11.18% 85.80%
2000 0.56% $ 32,560 0.68% 1.04% 8.94% 76.00%
1999 (6) 8.65% $ 41,922 0.68% 1.14% 9.11% 96.98%
- ----------------------------------------------------------------------------------------------------------------------------------
Turner Ultra Short Duration Fixed Income Fund -- Class I Shares
- ----------------------------------------------------------------------------------------------------------------------------------
2004* 0.97%+ $ 399,481 0.43% 0.64% 1.91% 39.60%
2003 1.40% $ 462,567 0.41% 0.62% 0.78% 222.09%
2002 2.95% $ 470,021 0.36% 0.60% 2.27% 71.47%
2001 7.09% $ 93,531 0.36% 0.87% 5.09% 118.53%
2000 6.34% $ 30,365 0.36% 1.25% 6.15% 140.55%
1999 (8) 5.34% $ 3,207 0.00% 6.53% 5.50% 154.33%
- ----------------------------------------------------------------------------------------------------------------------------------
Turner Ultra Short Duration Fixed Income Fund -- Class II Shares
- ----------------------------------------------------------------------------------------------------------------------------------
2004* 0.85%+ $ 6,493 0.68% 0.89% 1.66% 39.60%
2003 1.15% $ 5,964 0.66% 0.87% 0.51% 222.09%
2002 2.69% $ 8,888 0.61% 0.85% 2.11% 71.47%
2001 6.82% $ 6,106 0.61% 1.10% 5.19% 118.53%
2000 6.00% $ 8,934 0.61% 1.48% 5.72% 140.55%
1999 (8) 5.00% $ 3,155 0.23% 6.76% 5.13% 154.33%
* 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 February 28, 2001. All ratios for the period have
been annualized.
(2) The Turner Strategic Value and High Income Fund and its shareholders
indirectly bear a pro rata share of the expenses of the underlying Turner Funds.
The expense ratios do not include such expenses. Recognition of net investment
income is affected by the timing of the declaration of dividends by the Turner
Funds in which the Turner Strategic Value and High Income Fund invest.
(3) Commenced operations on October 31, 2002. All ratios for the period have
been annualized.
(4) On April 30, 2001, shareholders of the Clover Fixed Income Fund approved a
change in the adviser from Clover Capital Management, Inc. to Turner Investment
Partners, Inc., with Clover Capital becoming the Fund's sub-adviser. In
connection with the change in adviser the Fund changed its name to the Turner
Core Fixed Income Fund effective May 1, 2001.
(5) The information set forth in this table for the periods prior to May 1,
2002, is the financial data of the Penn Capital Strategic High Yield Bond Fund.
Effective May 1, 2002, Turner Investment Partners, Inc. became the Fund's
adviser.
(6) On January 25, 1999, shareholders of the Alpha Select Penn Capital Strategic
High Yield Bond Fund approved a tax-free reorganization under which all assets
and liabilities of the Fund were transferred to the Penn Capital Strategic High
Yield Bond Fund.
(7) Based on average shares outstanding.
(8) On May 24, 1999 shareholders of the Alpha Select Turner Short Duration
Government Funds-One Year Portfolio (the "Fund") approved a tax-free
reorganization under which all assets and liabilities of the Fund were
transferred to the TIP Turner Short Duration Government Funds-One Year
Portfolio.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
68 & 69 TURNER FUNDS 2004 SEMIANNUAL REPORT
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 income investments income gains of period
- -----------------------------------------------------------------------------------------------------------------------------
Turner Short Duration Fixed Income Fund -- Class I Shares
- -----------------------------------------------------------------------------------------------------------------------------
2004* $10.14 0.13 -- (0.13) -- $10.14
2003 $10.24 0.17(1) 0.05 (0.25) (0.07) $10.14
2002 $10.16 0.35 0.12 (0.39) -- $10.24
2001 $ 9.82 0.57 0.32 (0.55) -- $10.16
2000 $ 9.84 0.58 (0.01) (0.59) -- $ 9.82
1999 (2) $10.25 0.55 (0.27) (0.55) (0.14) $ 9.84
- -----------------------------------------------------------------------------------------------------------------------------
Turner Short Duration Fixed Income Fund -- Class II Shares
- -----------------------------------------------------------------------------------------------------------------------------
2004* $10.10 0.11 0.02 (0.12) -- $10.11
2003 $10.21 0.14(3) 0.04 (0.22) (0.07) $10.10
2002 $10.12 0.32 0.13 (0.36) -- $10.21
2001 $ 9.78 0.54 0.33 (0.53) -- $10.12
2000 $ 9.80 0.58 (0.02) (0.58) -- $ 9.78
1999 (3) $ 9.95 0.68 (0.13) (0.70) -- $ 9.80
Ratio of net
Ratio of Ratio of total investment
Net assets net expenses expenses income Portfolio
Total end of to average to average to average turnover
return period (000) net assets++ net assets net assets++ rate
- --------------------------------------------------------------------------------------------------------------------------------
Turner Short Duration Fixed Income Fund -- Class I Shares
- --------------------------------------------------------------------------------------------------------------------------------
2004* 1.30%+ $204,275 0.44% 0.65% 2.26% 62.07%
2003 2.15% $252,772 0.41% 0.62% 1.65% 200.20%
2002 4.69% $264,010 0.36% 0.60% 3.27% 177.71%
2001 9.35% $ 68,405 0.36% 0.72% 5.65% 103.92%
2000 6.00% $ 42,092 0.36% 0.74% 5.94% 136.01%
1999 (2) 2.89% $ 38,687 0.24% 1.31% 6.21% 257.98%
- --------------------------------------------------------------------------------------------------------------------------------
Turner Short Duration Fixed Income Fund -- Class II Shares
- --------------------------------------------------------------------------------------------------------------------------------
2004* 1.27%+ $ 3,056 0.69% 0.90% 2.01% 62.07%
2003 1.79% $ 2,246 0.66% 0.87% 1.41% 200.20%
2002 4.53% $ 8,356 0.61% 0.85% 3.21% 177.71%
2001 9.10% $ 8,130 0.61% 0.96% 5.40% 103.92%
2000 5.92% $ 6,479 0.61% 0.95% 5.90% 136.01%
1999 (3) 5.64%+ $ 87 0.48% 0.95% 5.71% 257.98%
* 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 waivers and reimbursements.
(1) Based on average shares outstanding.
(2) On January 25, 1999 shareholders of the Alpha Select Turner Short Duration
Government Funds-Three Year Portfolio (the "Fund") approved a tax-free
reorganization under which all assets and liabilities of the Fund were
transferred to the TIPTurner Short Duration Government Funds-Three Year
Portfolio.
(3) Commenced operations on April 28, 1999. All ratios for the period have been
annualized.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
70 & 71 TURNER FUNDS 2004 SEMIANNUAL REPORT
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 Large Cap Value Fund (the "Large Cap Value
Fund"), the Turner Core Value Fund (the "Core Value Fund"), the Turner Small Cap
Value Fund (the "Small Cap Value Fund"), the Turner Small Cap Value
Opportunities Fund (the "Small Cap Value Opportunities Fund"), the Turner
Financial Services Fund (the "Financial Services Fund"), the Turner Healthcare &
Biotechnology Fund (the "Healthcare & Biotechnology Fund"), the Turner Tax
Managed U.S. Equity Fund (the "Tax Managed U.S. Equity Fund"), the Turner
Strategic Value and High Income Fund (the "Strategic Value and High Income
Fund"), the Turner Core Fixed Income Fund (the "Core Fixed Income Fund"), the
Turner High Yield Fund (the "High Yield Fund"), the Turner Ultra Short Duration
Fixed Income Fund (the "Ultra Short Duration Fixed Income Fund"), and the Turner
Short Duration Fixed Income Fund (the "Short Duration Fixed Income Fund"), each
a "Fund" and collectively the "Funds". 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 Financial Services Fund, the Healthcare & Biotechnology Fund
and the Tax Managed U.S. Equity 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.
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 last 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.
The assets of the Strategic Value and High Income Fund consist of investments
in underlying affiliated investment companies, which are valued at their
respective daily net asset values.
SECURITY TRANSACTIONS AND RELATED INCOME--Security transactions are accounted
for on the date the security is purchased or sold (trade date). Dividend
income is recognized on the ex-dividend date, and interest income is
recognized on the accrual basis subject to the recognition of certain gains
and losses on mortgage- and asset-backed securities. Costs used in
determining realized gains and losses on the sales of investment securities
are those of the specific securities sold during the respective holding
period.
Securities purchased on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date. Such securities are included in
the portfolio and are subject to market fluctuations during this period. On
the date of the commitment to purchase or sell, the Funds designate specific
assets with a current value at least equal to the amount of the commitment to
be used for settling the commitment.
Certain Funds may enter into options on futures contracts for the purpose of
managing exposure to changing interest rates and securities prices. When a
Fund 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
72 TURNER FUNDS 2004 SEMIANNUAL REPORT
Unaudited)
- --------------------------------------------------------------------------------
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.
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. In addition to the Funds' direct expenses, shareholders of the
Strategic Value and High Income Fund also bear a proportionate share of the
underlying funds' expenses.
CLASSES--Class specific expenses are borne by that class. Income, non-class
specific expenses and realized/unrealized gains and losses are allocated to
the respective classes on the basis of the relative daily net assets.
DIVIDENDS AND DISTRIBUTIONS--The Small Cap Value Opportunities, Financial
Services, Healthcare & Biotechnology and Tax Managed U.S. Equity Funds
declare and distribute net investment income, if any, annually, as a dividend
to shareholders. The Large Cap Value, Core Value, Small Cap Value and
Strategic Value and High Income Funds declare and distribute net investment
income, if any, quarterly, as a dividend to shareholders. The Core Fixed
Income, High Yield, Ultra Short Duration Fixed Income and Short Duration
Fixed Income Funds declare net investment income daily and distribute it
monthly, as a dividend to shareholders. Any net realized capital gains on
sales of securities for all Funds are distributed to shareholders at least
annually.
3. TRANSACTIONS WITH AFFILIATES:
Certain officers of the Trust are also officers of Turner Investment Partners,
Inc. ("Turner") and SEI Investments Global Funds Services ("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 Large Cap Value, Small Cap Value, Small Cap Value Opportunities, Healthcare
& Biotechnology, Tax Managed U.S. Equity, High Yield, Ultra Short Duration Fixed
Income and Short Duration Fixed Income Funds have adopted a Distribution and
Shareholder Service Plan for their Class II Shares (the "Class II Plan"). Under
the Class II Plan, a Plan adopted pursuant to Rule 12b-1 under the Investment
Company Act of 1940, 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.
TURNER FUNDS 2004 SEMIANNUAL REPORT 73
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 Value
Opportunities Fund. Clover Capital Management, Inc. serves as investment
sub-adviser to the Large Cap Value, Core Value, Small Cap Value and Core Fixed
Income Funds.
For its services, Turner and Turner Investment Management, LLC receive annual
fees, which are calculated daily and paid 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
----- ------
Large Cap Value Fund 0.74 1.25
Core Value Fund 0.74 1.25
Small Cap Value Fund 0.85 1.40
Small Cap Value Opportunities Fund 0.95 1.45
Tax Managed U.S. Equity Fund 0.75 1.25
Strategic Value and High Income Fund 0.10 0.25
Core Fixed Income Fund 0.45 0.80
High Yield Fund 0.55 0.90(1)
Ultra Short Duration Fixed
Income Fund 0.25 0.49(2)(3)
Short Duration Fixed Income Fund 0.25 0.49(2)(3)
(1) EFFECTIVE FEBRUARY 1, 2004, THE BOARD AGREED TO INCREASE THE CONTRACTUAL
TOTAL EXPENSE CAP FROM 080% TO 0.90%.
(2) REPRESENTS MAXIMUM EXPENSE RATIO FOR CLASS I SHARES WHERE FUNDS OFFER BOTH
CLASS I SHARES AND CLASS II SHARES.
(3) EFFECTIVE FEBRUARY 1, 2004, THE BOARD AGREED TO INCREASE THE CONTRACTUAL
TOTAL EXPENSE CAP FROM 0.41% TO 0.49%.
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
------ ---------- ------------- --------
Financial Services Fund 1.00 +/-0.25 +/-3.00 0.40
Healthcare &
Biotechnology Fund 1.00 +/-0.25 +/-3.00 0.75
(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
------ ---------- -------
Financial Services Fund $88,069 $ 5,820 $ 93,889
Healthcare &
Biotechnology Fund 83,522 (92) 83,430
6. INVESTMENT TRANSACTIONS:
The cost of security purchases and the proceeds from security sales and
maturities, other than short-term investments, for the six-months ended March
31, 2004, were as follows (000):
SALES
AND
PURCHASES MATURITIES
FUND (000) (000)
- -------- ------------- -----------
Large Cap Value Fund $ 3,399 $ 2,203
Core Value Fund 14,820 16,117
Small Cap Value Fund 166,493 153,516
Small Cap Value
Opportunities Fund 32,237 22,213
Financial Services Fund 8,823 12,236
Healthcare & Biotechnology Fund 16,820 14,893
Tax Managed U.S. Equity Fund 3,254 3,715
Strategic Value and
High Income Fund 13,516 9,569
High Yield Fund 14,742 12,992
SALES AND
PURCHASES (000) MATURITIES (000)
FUND GOV'T OTHER GOV'T OTHER
- ------ --------- -------- -------- --------
Core Fixed Income Fund $ 3,415 $2,931 $ 8,812 $ 2,846
Ultra Short Duration
Fixed Income Fund 103,068 3,770 107,410 3,003
Short Duration Fixed
Income Fund 103,569 8,709 132,012 15,191
74 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
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
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 (unless otherwise noted) were as
follows (000):
ORDINARY LONG-TERM RETURN OF
INCOME CAPITAL GAIN CAPITAL TOTAL
-------------- ------------------ ---------------- ------------------
Large Cap Value Fund
2003 $ 39 $ -- $ -- $ 39
2002 55 -- -- 55
Core Value Fund
2003 189 -- -- 189
2002 1,674 5,803 -- 7,477
Small Cap Value Fund
2003 315 -- 109 424
2002 1,431 -- -- 1,431
Small Cap Value Opportunities Fund
2003 1 -- -- 1
2002 -- -- -- --
Financial Services Fund
2003 -- 136 -- 136
2002(1) 17 5,044 -- 5,061
2001(2) -- -- -- --
Healthcare & Biotechnology Fund
2003 -- -- -- --
2002 11 -- -- 11
Strategic Value and High Income Fund
2003(3) 4 -- -- 4
Core Fixed Income Fund
2003 1,934 108 -- 2,042
2002 1,895 -- -- 1,895
High Yield Fund
2003 709 -- -- 709
2002 1,563 -- -- 1,563
Ultra Short Duration Fixed Income Fund
2003 10,584 483 -- 11,067
2002 5,936 -- -- 5,936
Short Duration Fixed Income Fund
2003 8,475 563 -- 9,038
2002 4,945 -- -- 4,945
(1) FROM THE PERIOD NOVEMBER 1, 2001 THROUGH SEPTEMBER 30, 2002.
(2) FROM THE PERIOD MAY 1, 2001 THROUGH OCTOBER 31, 2001. THE TITAN FINANCIAL
SERVICES FUND CHANGED ITS FISCAL YEAR END FROM APRIL 30 TO OCTOBER 31.
(3) COMMENCED OPERATIONS ON OCTOBER 31, 2002.
TURNER FUNDS 2004 SEMIANNUAL REPORT 75
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
As of September 30, 2003, the components of distributable earnings (accumulated
losses) on a tax basis were as follows (000):
TOTAL
DISTRIBUTABLE
UNDISTRIBUTED UNDISTRIBUTED CAPITAL POST- OTHER EARNINGS
ORDINARY LONG-TERM LOSS OCTOBER UNREALIZED TEMPORARY (ACCUMULATED
INCOME CAPITAL GAIN CARRYFORWARD LOSSES APPRECIATION DIFFERENCES LOSSES)
------------- ------------ ------------ -------- ------------ ----------- -------------
Large Cap Value Fund $ 7 $ -- $ (673) $ (236) $ 63 $ (7) $ (846)
Core Value Fund 16 1,166 -- -- 5,979 (16) 7,145
Small Cap Value Fund -- -- (53,641) (12,658) 24,105 -- (42,194)
Small Cap Value Opportunities Fund 65 -- -- -- 343 -- 408
Financial Services Fund 1,039 93 -- -- 1,560 -- 2,692
Healthcare & Biotechnology Fund -- -- (94) -- 1,724 -- 1,630
Tax Managed U.S. Equity Fund -- -- (2,689) -- 845 -- (1,844)
Strategic Value and High Income Fund 7 -- -- -- 16 (2) 21
Core Fixed Income Fund 147 -- (6) (360) 2,418 (148) 2,051
High Yield Fund 42 -- (15,805) -- 565 (42) (15,240)
Ultra Short Duration Fixed
Income Fund 541 -- -- (5,825) 3,130 (726) (2,880)
Short Duration Fixed Income Fund 497 -- -- (1,176) 1,741 (518) 544
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,
--------------------------------------------------------------------------------------
2007 2008 2009 2010 2011 TOTAL
---- ---- ---- ---- ---- -----
Large Cap Value Fund $ -- $ -- $ 65 $ 320 $ 288 $ 673
Small Cap Value Fund -- -- -- 2,255 51,386 53,641
Healthcare & Biotechnology Fund -- -- -- -- 94 94
Tax Managed U.S. Equity Fund -- -- -- 870 1,819 2,689
Core Fixed Income Fund -- -- -- -- 6 6
High Yield Fund 1,140 2,916 2,590 4,590 4,569 15,805
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
- ------- --------- ------------ ------------ ------------
Large Cap Value Fund $ 6,348 $ 779 $ (228) $ 551
Core Value Fund 50,556 12,506 (712) 11,794
Small Cap Value Fund 464,180 106,401 (18,498) 87,903
Small Cap Value Opportunities Fund 18,344 2,536 (208) 2,328
Financial Services Fund 15,794 2,849 (77) 2,772
Healthcare & Biotechnology Fund 16,464 3,042 (326) 2,716
Tax Managed U.S. Equity Fund 4,726 1,112 (38) 1,074
Strategic Value and High Income Fund 4,619 354 (7) 347
Core Fixed Income Fund 35,024 2,108 (37) 2,071
High Yield Fund 11,319 203 (141) 62
Ultra Short Duration Fixed Income Fund 407,728 4,189 (75) 4,114
Short Duration Fixed Income Fund 204,630 2,491 (61) 2,430
76 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
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.
TURNER FUNDS 2004 SEMIANNUAL REPORT 77
TRUSTEES AND OFFICERS OF THE TRUST
- --------------------------------------------------------------------------------
NUMBER OF
POSITION TERM OF OFFICE PORTFOLIOS IN OTHER
HELD WITH AND LENGTH PRINCIPAL OCCUPATION(S) COMPLEX OVERSEEN DIRECTORSHIPS
NAME, ADDRESS, AND AGE THE FUND OF TIME SERVED DURING PAST 5 YEARS BY TRUSTEE HELD
- ------------------------------------------------------------------------------------------------------------------------------------
INTERESTED TRUSTEE*
- ------------------------------------------------------------------------------------------------------------------------------------
Robert E. Turner Trustee Trustee Chairman and Chief 21 ACP Funds, Bradley
1205 Westlakes Drive since 1996 Investment Officer University,
Suite 100 of Turner since Episcopal Academy,
Berwyn, PA 19312 1990. Westlakes
(47) Institutional
Portfolios
- ------------------------------------------------------------------------------------------------------------------------------------
*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 since Treasurer, Thomas 21 Alpha Select
13 Fountain Court 1996 Jefferson University Funds
Cherry Hill, NJ 08034 Health Care Pension
(45) Fund since 1995, and
Assistant Treasurer,
1988-1995.
- ------------------------------------------------------------------------------------------------------------------------------------
Janet F. Sansone Trustee Trustee since Self-employed. 21 N/A
1023 North Pitt Street 1997 Consultant since
Alexandria, VA 22314-1525 1999. Senior Vice
(58) President of Human
Resources of
Frontier Corporation
(telecommunications
company),
(1993-1999).
- ------------------------------------------------------------------------------------------------------------------------------------
Dr. John T. Wholihan Trustee Trustee since Professor and Dean, 21 TDK Mediactive
1 LMU Boulevard Los 1996 Loyola Marymount
Angeles, CA University, since
90045-8395 (65) 1984. Director, TDK
Mediactive.
- ------------------------------------------------------------------------------------------------------------------------------------
EXECUTIVE OFFICERS
- ------------------------------------------------------------------------------------------------------------------------------------
Thomas R. Trala Jr. President President since Chief Operating N/A N/A
1205 Westlakes Drive 2004 Officer of Turner
Suite 100 since 2004 and Chief
Berwyn, PA 19312 Financial Officer
(37) since 1995.
- ------------------------------------------------------------------------------------------------------------------------------------
Brian M. Ferko Vice President Vice President TID Vice President, N/A N/A
1205 Westlakes Drive & Assistant & Assistant Director of Mutual
Suite 100 Secretary Secretary Fund Administration
Berwyn, PA 19312 since 2000 and Operations for
(32) the Turner Funds
since 1997.
Relationship
Manager, SEI
Investments
(1995-1997).
- ------------------------------------------------------------------------------------------------------------------------------------
Peter Golden Controller and Controller Director of Fund N/A N/A
SEI Investments, Chief Financial and Chief Accounting of SEI
One Freedom Officer Financial Investments since
Valley Drive Officer June 2001.
Oaks, PA 19456 since 2001 Previously, Vice
(39) President of Fund
Administration, J.P.
Morgan Chase & Co.,
March 2000 to April
2001; Vice
President, Fund and
Pension Accounting,
Chase Manhattan
Bank, June 1997 to
March 2000.
- ------------------------------------------------------------------------------------------------------------------------------------
Lydia A. Gavalis Vice President Vice President Vice President and N/A N/A
SEI Investments, and Assistant and Assistant Assistant Secretary
One Freedom Secretary Secretary of SEI Investments
Valley Drive since 1999 since 1998.
Oaks, PA 19456 Assistant General
(39) Counsel and Director
of Arbitration,
Philadelphia Stock
Exchange, 1989-1998.
- ------------------------------------------------------------------------------------------------------------------------------------
78 TURNER FUNDS 2004 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
NUMBER OF
POSITION TERM OF OFFICE PORTFOLIOS IN OTHER
HELD WITH AND LENGTH PRINCIPAL OCCUPATION(S) COMPLEX OVERSEEN DIRECTORSHIPS
NAME, ADDRESS, AND AGE THE FUND OF TIME SERVED DURING PAST 5 YEARS BY TRUSTEE HELD
- ------------------------------------------------------------------------------------------------------------------------------------
EXECUTIVE OFFICERS (CONTINUED)
- ------------------------------------------------------------------------------------------------------------------------------------
William E. Zitelli, Jr. Vice President Vice President Vice President and N/A N/A
SEI Investments, and Assistant and Assistant Assistant Secretary
One Freedom Secretary Secretary of SEI Investments
Valley Drive since 2000 since August 2000.
Oaks, PA 19456 Vice President,
(35) Merrill Lynch & Co.
Asset Management
Group (1998-2000).
Associate at Pepper
Hamilton LLP
(1997-1998).
Associate at Reboul,
MacMurray, Hewitt,
Maynard & Kristol
(1994-1997).
- ------------------------------------------------------------------------------------------------------------------------------------
Timothy D. Barto Vice President Vice President Vice President and N/A N/A
SEI Investments, and Assistant and Assistant Assistant Secretary
One Freedom Secretary Secretary of SEI Investments
Valley Drive since 2000 since December 1999.
Oaks, PA 19456 Associate at Dechert
(35) Price & Rhoads
(1997-1999).
Associate at
Richter, Miller &
Finn (1994-1997).
- ------------------------------------------------------------------------------------------------------------------------------------
Christine M. McCullough Vice President Vice President Vice President and N/A N/A
SEI Investments, and Assistant and Assistant Assistant Secretary
One Freedom Secretary Secretary of SEI Investments
Valley Drive since 2000 since December 1999.
Oaks, PA 19456 Associate at White
(42) and Williams LLP
(1991-1999).
Associate at
Montgomery,
McCracken, Walker &
Rhoads (1990-1991).
- ------------------------------------------------------------------------------------------------------------------------------------
Brian McNally Vice President Vice President Deputy General N/A N/A
1205 Westlakes Drive and since 2002 and Counsel for Turner
Suite 100 Secretary Secretary since 2002.
Berwyn, PA 19312 since 2004 Previously Assistant
(45) General Counsel with
Bank of America
(September 1997-
July 2002).
- ------------------------------------------------------------------------------------------------------------------------------------
TURNER FUNDS 2004 SEMIANNUAL REPORT 79
NOTES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TURNER FUNDS
TURNER FUNDS TRUSTEES
ALFRED C. SALVATO
Treasurer
Thomas Jefferson University Health Care Pension Fund
JANET F. SANSONE
Consultant
ROBERT E. TURNER
Chairman and Chief Investment Officer
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 Value Opportunities Fund
only), to Clover Capital Management, Inc. (with respect to the Large Cap Value,
Core Value, Small Cap Value and Core Fixed Income Funds only), and to Turner
Investment Partners, Inc. (with respect to each other Fund). TIM, Clover Capital
Management, Inc. 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
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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
The Constellation 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 (866) 242-5742. READ THE PROSPECTUS CAREFULLY BEFORE
INVESTING.
CON-SA-001-0100
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.
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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.