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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c/o The CT Corporation System
101 Federal Street
Boston, MA 02110
(Address of principal executive offices) (Zip code)
Michael P. Malloy
Drinker Biddle & Reath LLP
18th and Cherry Streets
Philadelphia, PA
(Name and address of agent for service)
Registrant's telephone number, including area
code: 610-251-0268
Date of fiscal year end: September 30, 2005
Date of reporting period: March 31, 2005
Item 1. Reports to Stockholders.
TURNER FUNDS
SEMIANNUAL REPORT
March 31, 2005 (unaudited)
GROWTH FUNDS
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Turner Large Cap Growth Fund
Turner Core Growth Fund
Turner Strategic Growth Fund
Turner Midcap Growth Fund
Turner Small Cap Growth Fund
Turner Micro Cap Growth Fund
CORE FUNDS
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Turner Small Cap Equity Fund
SECTOR/SPECIALTY FUNDS
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Turner Technology Fund
Turner Concentrated Growth Fund
Turner New Enterprise Fund
CONTENTS
2 Letter to Shareholders
5 Total returns of Turner Funds
7 Investment review:
Turner Large Cap Growth Fund
8 Investment review:
Turner Core Growth Fund
9 Investment review:
Turner Strategic Growth Fund
10 Investment review:
Turner Midcap Growth Fund
11 Investment review:
Turner Small Cap Growth Fund
12 Investment review:
Turner Micro Cap Growth Fund
13 Investment review:
Turner Small Cap Equity Fund
14 Investment review:
Turner Technology Fund
15 Investment review:
Turner Concentrated Growth Fund
16 Investment review:
Turner New Enterprise Fund
17 Financial Statements
64 Notes to Financial Statements
69 Board of Trustees Considerations in Approving the Advisory Agreement
70 Disclosure of Fund Expenses
TURNER FUNDS
As of March 31, 2005 the Turner Funds offered a series of ten mutual funds to
individual and institutional investors. Except for the Turner Core Growth Fund,
which is for institutional investors only and requires a $250,000 minimum
initial investment, the minimum initial investment in a Turner Fund for regular
accounts is $2,500 and $2,000 for individual retirement accounts.
Turner Investment Management, LLC, an affiliate of Turner Investment Partners,
Inc., serves as the investment adviser for the Small Cap Equity Fund. Turner
Investment Partners, Inc., based in Berwyn, Pennsylvania, serves as the
investment adviser for the remaining Funds. Turner Investment Partners, Inc.,
founded in 1990, invests more than $15 billion in equity portfolios on behalf of
individuals and institutions.
SHAREHOLDER SERVICES
Turner Funds shareholders receive annual and semiannual reports, quarterly
account statements and a quarterly newsletter. Shareholders who have questions
about their accounts may call a toll-free telephone number, 1-800-224-6312,
visit our website, www.turnerinvestments.com, or they may write to Turner Funds,
P.O. Box 219805, Kansas City, Missouri 64121-9805.
TURNER FUNDS 2005 SEMIANNUAL REPORT 1
LETTER TO SHAREHOLDERS
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TO OUR SHAREHOLDERS
How quickly investor sentiment can change. For proof, you need look no further
than the six-month period ended March 31, 2005, that's the subject of this
letter.
In the first three months of the period, from October through December 2004, the
stock market, as represented by the S&P 500 Index, soared more than 9%. Investor
sentiment was upbeat, fortified by corporate earnings reports that continued to
exceed Wall Street analysts' expectations, the resolution of the Bush-Kerry
presidential election, the stabilizing of oil prices, moderate increases in
interest rates, and generally favorable economic news.
Then, in the remaining three months of the period, from January through March
2005, investors suddenly turned as wary as woodchucks crossing a superhighway.
Profit-taking, oil prices soaring to a record $57.60, signs of slowing in the
domestic and global economies, and indications that the Federal Reserve was
prepared to raise interest rates more aggressively to keep inflation in check --
all conspired to unsettle investors and depress stocks. The S&P 500 Index fell
more than 2%.
IN ALL, STOCKS PERFORM WELL
In the wake of fluctuating investors' moods and stock prices, the ultimate
result was a highly respectable performance for the market for the entire
six-month period: the S&P 500 Index finished up 6.88% -- a return that, when
annualized, is above the long-term average. Smaller stocks and value stocks did
even better. The Russell Midcap Index gained 13.37%, the small-stock Russell
2000 Index climbed 8.00%, and the broad-based Russell 3000 Value Index was up
10.32%, beating its growth counterpart by 5.40 percentage points.
Our own 10 stock Funds -- our growth, sector/specialty, and core funds -- all
produced positive returns, for the six month period, the result of a combination
of strong performance in the first half of the period and losses in the second
half. That was more or less how we had expected them to perform, given the
market environment. Indeed, our Funds have tended to exhibit certain patterns.
Although past performance is no assurance of future results, when the market
goes up, our Funds generally tend to record market gains. When the market goes
down, our Funds generally tend to record market-like losses, or worse.
In fact, we think any success that our funds have achieved in attracting assets
over the years can be attributed at least partly to their performance. In the
mutual-fund business, some funds fail to produce results in line with
expectations because of their managers' inability to adhere to their investment
disciplines (in the same spirit as Mae West's observation that "I used to be
Snow White, but I drifted.") Our Funds have generally outperformed relative to
their benchmark during rising markets and, more importantly, do well over time
because we haven't drifted; we have remained true to our investment processes.
That's been especially true of our growth funds; when the stock market goes up
and growth stocks do well, shareholders typically look to our growth funds for
strong returns. Although we believe Turner Funds will perform well by not
drifting from our investment philosophy, market down turns do occur and they can
negatively impact Fund performance. We cannot guarantee that our disciplined
investment style will produce favorable Fund performance for our shareholders.
FUND PERFORMANCE
Reflecting the market's own strengths in the most recent six-month period, our
small and mid-cap funds generally produced the best gains. Six of our 10 funds
- -- the Turner Large Cap Growth Fund, the Turner Core Growth Fund, the Turner
Strategic Growth Fund, the Turner Midcap Growth Fund, the Turner Micro Cap
Growth Fund, and the Turner New Enterprise Fund -- outperformed their
benchmarks, for the six month period ended March 31, 2005.
Here are the specific returns for each of our Funds and their benchmarks in the
past six months:
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TOTAL RETURNS
Six-month period ended March 31, 2005
GROWTH FUNDS
TURNER LARGE CAP GROWTH FUND 4.01%
Russell Top 200 Growth Index 2.42
TURNER CORE GROWTH FUND 9.28
S&P 500 Index 6.88
Russell 1000 Growth Index 4.71
TURNER STRATEGIC GROWTH FUND 8.00
Russell Top 200 Growth Index 2.42
Russell 1000 Growth Index 4.71
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2 TURNER FUNDS 2005 SEMIANNUAL REPORT
March 31, 2005
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TURNER MIDCAP GROWTH FUND
CLASS I SHARES 13.43%
CLASS II SHARES 13.15
Russell Midcap Growth Index 12.04
TURNER SMALL CAP GROWTH FUND 4.17
Russell 2000 Growth Index 7.23
TURNER MICRO CAP GROWTH FUND 13.45
Russell 2000 Growth Index 7.23
CORE FUND
TURNER SMALL CAP EQUITY FUND
CLASS II SHARES 6.97
Russell 2000 Index 8.00
SECTOR/SPECIALTY FUNDS
TURNER TECHNOLOGY FUND 5.23
Pacific Stock Exchange
Technology 100 Index 6.75
Goldman Sachs Technology
Composite Index* 4.80
TURNER CONCENTRATED GROWTH FUND 5.15
S&P 500 Index 6.88
TURNER NEW ENTERPRISE FUND 11.50
Nasdaq Composite Index 5.73
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* The Turner Technology Fund uses the Goldman Sachs Technology Composite
Index for comparison purposes only. The Goldman Sachs technology industry
composite is a market-capitalization weighted index of 190 stocks
designated to measure the performance of companies in the technology
sector.
For an analysis of the six-month performance of each fund, see the
investment-review commentaries beginning on page 7.
As we have repeatedly emphasized, we think the best measure of a fund is how it
has performed over the longest possible time span -- ideally, over a full
bull-and-bear cycle or at the very least since inception. So we deem it of some
significance that eight of our 10 Funds have outperformed their indices since
inception; their track records range from more than three years (the Turner
Small Cap Equity Fund) to more than 11 years (the Turner Small Cap Growth Fund).
We can't guarantee, of course, outperformance. But what we can say is that our
Funds will continue to be managed strictly according to their investment
disciplines, which we think improves the chances that they will continue to
perform as expected in up and down markets.
MARKET'S SHORT-TERM PROSPECTS SEEM GOOD
Going forward, we think it's reasonable to expect stocks will maintain a
generally upward bias (with the inevitable setbacks along the way). In the short
term, we think a number of positive catalysts are in place for a rising stock
market in the remainder of 2005. Most importantly, we think corporate earnings
will be stronger than expected. If stocks are to rally, it's likely to depend
largely on how investors react to earnings reports.
So far the reports have been mainly favorable. About 67% of the S&P 500 Index
companies reported fourth-quarter earnings growth that exceeded Wall Street
analysts' estimates. (The historical average for positive earnings surprises has
been 59%.) We expect more of the same -- more upside surprises -- for
first-quarter earnings. Current estimates call for year-over-year earnings
growth of 7.8% by the S&P 500 Index companies in the first quarter. We think the
actual number may turn out to be far higher, in the range of 11-13%. (For all of
2005, the median Wall Street analysts' forecast for the S&P 500 Index companies'
earnings growth is 11.5%, I/B/E/S International reported.) And we think by
mid-year the Federal Reserve will likely have completed its tweaking of interest
rates upwards, which should help slow down the economy and thus ease investor
minds' about the threat of inflation, which should in turn set the stage for
stock prices in aggregate to advance.
Although there has been a good deal of hand-wringing about the prospect of
above-average valuations dampening the return potential of stocks, we think it's
telling that the differential between S&P 500 Index companies' earnings yield
and the BBB corporate bonds' yield is almost exactly the same at March 31 --
0.91 percentage points -- as it was at the bear-market low in October 2002.
What's more, the price-earnings-to-earnings-growth rate of growth stocks is
lower than that of value stocks (which means that growth is attractively priced
relative to value in terms of prospective earnings power).
WILL GROWTH FLOURISH?
In fact we continue to think that growth stocks, after lagging value so markedly
over the past five years, will sooner or later revert to the mean and improve
their relative performance. Last year was the fifth consecutive year that value
generally beat growth. We think it is unlikely that the underperformance of
growth stocks will persist, based on both probabilities and historical patterns.
During the past eight decades, growth or value stocks have at times built
substantial
TURNER FUNDS 2005 SEMIANNUAL REPORT 3
LETTER TO SHAREHOLDERS (continued)
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March 31, 2005
records of outperformance. But that performance premium has inevitably
disappeared, as the cold asset class thawed and the hot asset class fizzled. The
economist Herbert Stein, chairman of the Council of Economic Advisers under
Presidents Ford and Nixon, devised a principle he called Stein's Rule: "If
something can't go on forever, it won't." As we see it, the underperformance of
growth stocks can't go on forever, so it won't.
We also think that the underperformance of large-cap stocks, now in its sixth
year, won't go on forever. For one thing, large caps are relatively inexpensive
versus small caps. For another, we believe large companies' earnings may outpace
those of smaller firms.
For our part, we have invested our Funds in growth stocks (and in the case of
the Small Cap Equity Fund, in growth and value stocks) that we think have
especially good return potential: stocks of companies in the Internet, health
and wellness, brokerage, financial-transaction-processing, energy,
biotechnology, medical-products, software, data-security, semiconductor, and
wireless industries.
With our Funds positioned that way for the near term, I look forward to
reporting to you six months hence about how those investments did pan out. As
noted earlier, the market can be affected by quick changes in investor
sentiment, for better or worse. But our own investing sentiment is optimistic in
the near term. And in the long run we think it pays to be an optimist rather
than a pessimist about stocks, in light of their historical propensity to create
more wealth than any other asset class has.
In closing, we thank you for entrusting your money with us. As has been our
practice from the outset, your money in the Turner Funds is pooled with that of
our own portfolio managers. In December, Morningstar, the mutual-fund research
firm, noted with approval that "Turner portfolio managers invest heavily in
their funds." So our and your fortunes will remain entwined for as long as you
choose to invest in the Turner Funds. As always, we pledge to do our level best
to maximize the returns on your -- and our -- money.
/S/Signature
Bob Turner
CHAIRMAN AND CHIEF INVESTMENT OFFICER
TURNER INVESTMENT PARTNERS, ADVISER TO THE TURNER FUNDS
PAST PERFORMANCE IS NO ASSURANCE OF FUTURE RESULTS. THE VIEWS EXPRESSED ARE
THOSE OF TURNER INVESTMENT PARTNERS, INC., AS OF MARCH 31, 2005, AND ARE NOT
INTENDED AS A FORECAST OR INVESTMENT RECOMMENDATIONS. THE INDICES MENTIONED ARE
NOT AVAILABLE FOR INVESTMENT.
[Photo of Mr. Turner omitted]
BOB TURNER
4 TURNER FUNDS 2005 SEMIANNUAL REPORT
PERFORMANCE
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TOTAL RETURNS OF TURNER FUNDS
Through March 31, 2005
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
MOST RECENT MONTH-END PERFORMANCE INFORMATION.
Year (Annualized) Total
Six to One Three Five Ten Since Net Assets
Fund Name/Index Month Date Year Years Years Years inception ($mil)
GROWTH
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TURNER LARGE CAP GROWTH FUND 4.01 (5.28) (1.88) (0.40) N/A N/A (13.36) $63.96
Russell Top 200 Growth Index 2.42 (4.90) (1.08) (2.55) n/a n/a (12.05)
Russell 1000 Growth Index 4.71 (4.09) 1.16 (0.69) n/a n/a (10.78)
S&P 500 Index 6.88 (2.15) 6.69 2.75 n/a n/a (2.96)
INCEPTION DATE: 6/14/00
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TURNER CORE GROWTH FUND 9.28 (2.42) 5.11 2.50 N/A N/A (0.84) $5.38
S&P 500 Index 6.88 (2.15) 6.69 2.75 n/a n/a 0.45
Russell 1000 Growth Index 4.71 (4.09) 1.16 (0.69) n/a n/a (2.68)
INCEPTION DATE: 02/28/01
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TURNER STRATEGIC GROWTH FUND 8.00 (5.74) (0.19) 3.09 (12.89) N/A 6.44 $6.73
Russell Top 200 Growth Index 2.42 (4.90) (1.08) (2.55) (12.32) n/a 2.85
Russell 1000 Growth Index 4.71 (4.09) 1.16 (0.69) (11.28) n/a 3.52
S&P 500 Index 6.88 (2.15) 6.69 2.75 (3.16) n/a 6.73
INCEPTION DATE: 1/31/97
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TURNER MIDCAP GROWTH FUND --
CLASS I SHARES 13.43 (2.54) 4.84 4.16 (9.75) N/A 13.65 $932.54
CLASS II SHARES 13.15 (2.66) 4.37 3.65 (9.74)** N/A 13.43**
Russell Midcap Growth Index 12.04 (1.67) 8.31 6.19 (7.30) n/a 7.66
INCEPTION DATE: 10/1/96
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TURNER SMALL CAP GROWTH FUND(1) 4.17 (7.30) 0.32 4.72 (7.94) 13.59 13.78 $236.44
Russell 2000 Growth Index 7.23 (6.83) 0.87 4.01 (6.60) 5.80 5.41
INCEPTION DATE: 2/7/94
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TURNER MICRO CAP GROWTH FUND(1) 13.45 (1.34) 14.57 11.32 10.42 N/A 31.51 $437.02
Russell 2000 Growth Index 7.23 (6.83) 0.87 4.01 (6.60) n/a 0.66
INCEPTION DATE: 2/27/98
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CORE FUNDS
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TURNER SMALL CAP EQUITY FUND(1)
CLASS II SHARES 6.97 (2.30) 6.59 15.70 N/A N/A 17.44 $56.70
Russell 2000 Index 8.00 (5.34) 5.41 8.05 n/a n/a 9.19
INCEPTION DATE: 3/4/02
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** Class II Shares were offered beginning on September 24, 2001. Class II
Shares' performance for the periods prior to September 24, 2001 reflects
the performance of the Fund's Class I Shares. The performance of the Class
II Shares has been adjusted for the differences in fees between the
classes.
TURNER FUNDS 2005 SEMIANNUAL REPORT 5
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TOTAL RETURNS OF TURNER FUNDS (CONTINUED)
Through March 31, 2005
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
PLEASE CALL (800) 224-6312 OR VISIT OUR WEBSITE AT WWW.TURNERINVESTMENTS.COM FOR
MOST RECENT MONTH-END PERFORMANCE INFORMATION.
Year (Annualized) Total
Six to One Three Five Ten Since Net Assets
Fund Name/Index Month Date Year Years Years Years inception ($mil)
SPECIALTY
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TURNER TECHNOLOGY FUND(1)(2) 5.23 (11.92) (7.01) (2.75) (25.23) N/A (3.97) $13.71
Pacific Stock Exchange
Technology 100 Index 6.75 (6.85) 1.86 2.23 (8.76) n/a 3.60
Goldman Sachs Technology
Composite Index* 4.80 (8.70) (5.00) (2.27) (19.80) n/a (9.19)
INCEPTION DATE: 6/30/99
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TURNER CONCENTRATED
GROWTH FUND 5.15 (8.25) (10.26) (4.88) (20.76) N/A (2.32) $31.93
S&P 500 Index 6.88 (2.15) 6.69 2.75 (3.16) n/a (1.10)
NASDAQ 100 Index 5.15 (8.46) 3.42 0.91 (19.42) n/a (7.19)
INCEPTION DATE: 6/30/99
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TURNER NEW ENTERPRISE FUND 11.50 (9.84) (3.82) 5.11 N/A N/A (13.43) $8.85
NASDAQ Composite Index 5.73 (7.95) 0.82 3.20 n/a n/a (13.06)
INCEPTION DATE: 6/30/00
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* The Turner Technology Fund uses the Goldman Sachs Technology Composite
Index for comparison purposes only. The Goldman Sachs technology industry
composite is a market-capitalization weighted index of 190 stocks
designated to measure the performance of companies in the technology
sector.
Returns less than one year are cumulative.
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. 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. FORWARD
EARNINGS PROJECTIONS ARE NOT PREDICATORS OF STOCK PRICE OR INVESTMENT
PERFORMANCE, AND DO NOT REPRESENT PAST PERFORMANCE. THERE IS NO GUARANTEE THAT
THE FORWARD EARNINGS PROJECTIONS WILL ACCURATELY PREDICT THE ACTUAL EARNINGS
EXPERIENCE OF ANY OF THE COMPANIES INVOLVED, AND NO GUARANTEE THAT OWNING
SECURITIES OF COMPANIES RELATIVELY HIGH PRICE-TO-EARNINGS RATIOS WILL CAUSE THE
PORTFOLIO TO OUTPERFORM ITS BENCHMARK OR INDEX.
(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.
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 CAREFULLY BEFORE INVESTING. THIS AND
OTHER 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.
6 TURNER FUNDS 2005 SEMIANNUAL REPORT
INVESTMENT REVIEW
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TURNER LARGE CAP GROWTH FUND
(FORMERLY TURNER DISCIPLINED LARGE CAP GROWTH FUND)
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FUND PROFILE
MARCH 31, 2005
o Ticker symbol TSGEX
o CUSIP #87252R839
o Top 5 holdings
(1) Johnson & Johnson
(2) Pfizer
(3) Microsoft
(4) PepsiCo
(5) Intel
o % in 5 largest holdings 23.9%+
o Number of holdings 52
o Price/earnings ratio 20.0
o Weighted average market capitalization $90.60 billion
o % of holdings with positive earnings surprises 81.2%
o % of holdings with negative earnings surprises 17.0%
o Net assets $64 million
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VALUE GROWTH
INVESTMENT STYLE
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GROWTH OF A $10,000 INVESTMENT IN THE
TURNER LARGE CAP GROWTH FUND:
JUNE 14, 2000-MARCH 31, 2005*
[Line chart omitted -- plot points are as follows:]
6/14/00 Sep 00 Sep 01 Sep 02 Sep 03 Sep 04 Mar 05
Turner Large Cap Growth Fund $10,000 $9,810 $4,700 $3,500 $4,620 $4,835 $5,029
Russell Top 200 Growth Index $10,000 $9,546 $5,318 $4,053 $4,978 $5,273 $5,400
Russell 1000 Growth Index $10,000 $9,691 $5,268 $4,082 $5,140 $5,526 $5,786
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AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2005)
PAST PAST PAST SINCE
SIX MONTHS ONE YEAR THREE YEARS INCEPTION
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Turner Large Cap Growth Fund 4.01% (1.88)% (0.40)% (13.36)%
Russell Top 200 Growth Index 2.42% (1.08)% (2.55)% (12.05)%
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SECTOR WEIGHTINGS+:
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[Bar chart omitted -- plot points are as follows:]
25.5% Healthcare
22.4% Information Technology
18.4% Consumer Discretionary
11.4% Consumer Staples
10.4% Financials
3.6% Producer Durables
2.5% Materials & Processing
2.3% Cash Equivalents ++
1.9% Autos/Transportation
0.9% Utilities/Telecommunication Services
0.7% Energy
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MANAGERS DISCUSSION AND ANALYSIS
Good performance in financial-services and technology stocks helped the Turner
Large Cap Growth Fund to reap a 4.01% gain in the six-month period ended March
31. That return outperformed the Russell Top 200 Growth Index's 2.42% rise by
1.59 percentage points.
The Fund's financial-services and technology positions represented 33% of the
portfolio. Brokerage, financial-transaction-processing, semiconductor,
personal-computer, and software stocks did especially well. Altogether, seven of
the Fund's 10 sector positions outperformed the index sectors. Health-care
stocks, a 26% weighting, impaired results the most; biotechnology and
medical-instruments stocks performed below par.
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* 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 and table
do not reflect the deduction of taxes the shareholder will pay on Fund
distributions or the redemptions of Fund shares. The inception date of the
Turner Large Cap Growth Fund was June 14, 2000.
+ Percentages based on total investments.
++ Cash equivalents include a short-term investment held as collateral for
loaned securities. Please see Note 9 in Notes to Financial Statements for
more detailed information.
TURNER FUNDS 2005 SEMIANNUAL REPORT 7
INVESTMENT REVIEW
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TURNER CORE GROWTH FUND
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FUND PROFILE
MARCH 31, 2005
o Ticker symbol TTMEX
o CUSIP #900297847
o Top 5 holdings
(1) Citigroup
(2) General Electric
(3) PepsiCo
(4) Microsoft
(5) Johnson & Johnson
o % in 5 largest holdings 12.2%+
o Number of holdings 90
o Price/earnings ratio 18.9
o Weighted average market capitalization $65.23 billion
o % of holdings with positive earnings surprises 82.7%
o % of holdings with negative earnings surprises 14.5%
o Net assets $5 million
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VALUE GROWTH
INVESTMENT STYLE
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GROWTH OF A $10,000 INVESTMENT IN THE
TURNER CORE GROWTH FUND:
FEBRUARY 28, 2001-MARCH 31, 2005*
[Line chart omitted -- plot points are as follows:]
2/28/01 Sep 01 Sep 02 Sep 03 Sep 04 Mar 05
Turner Core Growth Fund $10,000 $8,181 $6,291 $8,041 $8,841 $9,661
S&P 500 Index $10,000 $8,459 $6,726 $8,366 $9,527 $10,182
Russell 1000 Growth Index $10,000 $7,787 $6,034 $7,598 $8,169 $8,553
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AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2005)
PAST PAST PAST SINCE
SIX MONTHS ONE YEAR THREE YEARS INCEPTION
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Turner Core Growth Fund 9.28% 5.11% 2.50% (0.84)%
S&P 500 Index 6.88% 6.69% 2.75% 0.45%
Russell 1000 Growth Index 4.71% 1.16% (0.69)% (2.68)%
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SECTOR WEIGHTINGS+:
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[Bar chart omitted -- plot points are as follows:]
19.8% Financials
17.2% Consumer Discretionary
13.6% Information Technology
12.8% Healthcare
8.4% Energy
7.6% Consumer Staples
6.5% Utilities/Telecommunication Services
4.8% Producer Durables
4.6% Materials & Processing
2.5% Autos/Transportation
2.2% Cash Equivalent
MANAGERS DISCUSSION AND ANALYSIS
Good stock selection powered the Turner Core Growth Fund to a 9.28% gain in the
six-month period ended March 31. As a result the Fund outperformed the S&P 500
Index's 6.88% rise by 2.40 percentage points and the Russell 1000 Growth Index's
4.71% return by 4.57 percentage points.
Nine of the Fund's 10 sector positions beat their index sectors.
Utilities/communication and energy stocks, which amounted to a 15% weighting,
enhanced the Fund's results the most. Winners here included natural-gas
distribution, wireless-carrier, oil-production, and oil-services stocks. A 5%
position in the producer-durables sector, mainly semiconductor-capital-equipment
shares, was the sole detractor from performance.
- --------------------------------------------------------------------------------
* 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 and table
do not reflect the deduction of taxes the shareholder will pay on Fund
distributions or the redemptions of Fund shares. On February 25, 2005, the
Constellation TIP Core Growth Fund reorganized into the Turner Core Growth
Fund. The inception date of the Turner Core Growth Fund was February 28,
2001.
+ Percentages based on total investments.
8 TURNER FUNDS 2005 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER STRATEGIC GROWTH FUND
(FORMERLY TURNER LARGE CAP GROWTH OPPORTUNITIES FUND)
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2005
o Ticker symbol TLCGX
o CUSIP #900297870
o Top 5 holdings
(1) Intel
(2) Dell
(3) Texas Instruments
(4) Yahoo!
(5) Google, Cl A
o % in 5 largest holdings 15.0%+
o Number of holdings 61
o Price/earnings ratio 22.9
o Weighted average market capitalization $36.28 billion
o % of holdings with positive earnings surprises 85.2%
o % of holdings with negative earnings surprises 11.7%
o Net assets $7 million
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- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE
TURNER STRATEGIC GROWTH FUND:
JANUARY 31, 1997-MARCH 31, 2005*
[Line chart omitted -- plot points are as follows:]
1/31/97 Sep 97 Sep 98 Sep 99 Sep 00 Sep 01
Turner Strategic Growth Fund $10,000 $12,280 $14,399 $20,587 $30,363 $14,055
Russell Top 200 Growth Index $10,000 $12,013 $14,166 $19,019 $22,233 $12,386
S&P 500 Index $10,000 $12,202 $13,307 $17,006 $19,264 $14,136
Russell 1000 Growth Index $10,000 $12,011 $13,344 $17,995 $22,211 $12,074
Sep 02 Sep 03 Sep 04 Mar 05
Turner Strategic Growth Fund $10,280 $14,585 $15,412 $16,645
Russell Top 200 Growth Index $9,439 $11,593 $12,281 $12,578
S&P 500 Index $11,240 $13,981 $15,920 $17,015
Russell 1000 Growth Index $9,356 $11,781 $12,666 $13,262
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (1) (PERIODS ENDING MARCH 31, 2005)
PAST PAST PAST PAST SINCE
SIX MONTHS ONE YEAR THREE YEARS FIVE YEARS INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------
Turner Strategic Growth Fund 8.00% (0.19)% 3.09% (12.89)% 6.44%
Russell 1000 Growth Index (2) 4.71% 1.16% (0.69)% (11.28)% 3.52%
Russell Top 200 Growth Index 2.42% (1.08)% (2.55)% (12.32)% 2.85%
- ------------------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
- --------------------------------------------------------------------------------
[Bar chart omitted -- plot points are as follows:]
27.5% Information Technology
24.1% Consumer Discretionary
19.7% Healthcare
10.4% Financials
6.0% Producer Durables
5.3% Materials & Processing
2.5% Energy
2.4% Utilities/Telecommunication Services
1.3% Cash Equivalents ++
0.8% Consumer Staples
MANAGERS DISCUSSION AND ANALYSIS
Consistently good stock picking enabled the Turner Strategic Growth Fund to post
an 8.00% gain in the six-month period ended March 31. The Fund outdistanced the
4.71% advance of its index, the Russell 1000 Growth Index, by 3.29 percentage
points and the 2.42% rise of the Russell Top 200 Growth Index by 5.58 percentage
points.
Eight of the Fund's nine sector investments returned more than their index
sectors did. The Fund held investments in the financial-services and
materials/processing sectors that added the most extra return; they constituted
16% of holdings. Banking, diversified-financial, and metals shares performed
especially well. Conversely, the Fund's health-care holdings, an 20% weighting,
recorded a loss and impaired performance. Biotechnology and medical-device
stocks detracted the most.
- --------------------------------------------------------------------------------
* 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 and table
do 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 Growth Fund was January 31, 1997.
(1) Returns prior to August 17, 2002, represent performance of the Mercury
Select Growth Fund, Class I.
(2) Effective January 31, 2005, the Russell 1000 Growth Index replaced the
Russell Top 200 Growth Index as one of the Fund's benchmarks to reflect the
change in the Fund's investment strategy.
+ Percentages based on total investments.
++ Cash equivalents include a short-term investment held as collateral for
loaned securities. Please see Note 9 in Notes to Financial Statements for
more detailed information.
TURNER FUNDS 2005 SEMIANNUAL REPORT 9
>
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER MIDCAP GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2005
o Ticker symbol TMGFX,
Class I Shares
o CUSIP #900297409,
Class I Shares
o Top 5 holdings
(1) Apple Computer
(2) WellPoint
(3) Marriott International, Cl A
(4) Coach
(5) C.R. Bard
o % in 5 largest holdings 9.1%+
o Number of holdings 120
o Price/earnings ratio 22.2
o Weighted average market capitalization $7.13 billion
o % of holdings with positive earnings surprises 86.1%
o % of holdings with negative earnings surprises 11.7%
o Net assets $933 million, Class I Shares
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- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE
TURNER MIDCAP GROWTH FUND, CLASS I SHARES:
OCTOBER 1, 1996-MARCH 31, 2005*
[Line chart omitted -- plot points are as follows:]
10/1/96 Sep 97 Sep 98 Sep 99 Sep 00
Turner Mid Cap Growth Fund, Class I $10,000 $14,377 $14,555 $26,792 $52,874
Russell Midcap Growth Index $10,000 $13,029 $11,808 $16,200 $25,979
Sep 01 Sep 02 Sep 03 Sep 04 Mar 05
Turner Mid Cap Growth Fund, Class I $21,678 $17,169 $24,346 $26,152 $29,665
Russell Midcap Growth Index $12,530 $10,588 $14,705 $16,717 $18,730
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2005)
PAST PAST PAST PAST SINCE
SIX MONTHS ONE YEAR THREE YEARS FIVE YEARS INCEPTION
- ----------------------------------------------------------------------------------------------------------------------------
Turner Midcap Growth Fund, Class I Shares 13.43% 4.84% 4.16% (9.75)% 13.65%
Turner Midcap Growth Fund, Class II Shares 13.15% 4.37% 3.65% (9.74)%** 13.43%**
Russell Midcap Growth Index 12.04% 8.31% 6.19% (7.30)% 7.66%
- ----------------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
- --------------------------------------------------------------------------------
[Bar chart omitted -- plot points are as follows:]
23.8% Consumer Discretionary
18.0% Information Technology
17.8% Healthcare
10.6% Financials
8.4% Producer Durables
4.6% Cash Equivalents ++
4.5% Energy
4.0% Materials & Processing
3.3% Utilities/Telecommunication Services
2.7% Consumer Staples
2.3% Autos/Transportation
MANAGERS DISCUSSION AND ANALYSIS
The Turner Midcap Growth Fund benefited from the strong performance of mid-cap
growth stocks in the six-month period ended March 31. The Russell Midcap Growth
Index advanced 12.04%, a return superior to that of large-cap growth and
small-cap growth indices. For its part, the Fund gained 13.43%, outperforming
its benchmark by 1.39 percentage points.
Good relative returns in the consumer-discretionary/services and technology
sectors, a 42% weighting, added the most value to the Fund's results. Internet,
gaming, hotel, restaurant, wireless, computer-services, personal-computer,
software, and semiconductor stocks were notable contributors. Altogether, seven
of 10 sector positions outperformed their corresponding index sectors.
Utilities/communication stocks, led by telecommunications holdings, were the
Fund's biggest gainer, up about 40%.
- --------------------------------------------------------------------------------
* 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 and table
do not reflect the deduction of taxes the shareholder will pay on Fund
distributions or the redemptions of Fund shares. The inception date of the
Turner Midcap Growth Fund (Class I Shares) was October 1, 1996.
** Class II Shares were offered beginning on September 24, 2001. Class II
Shares' performance for the periods prior to September 24, 2001 reflects
the performance of the Fund's Class I Shares. The performance of the Class
II Shares has been adjusted for the differences in fees between the
classes.
+ Percentages based on total investments.
++ Cash equivalents include a short-term investment held as collateral for
loaned securities. Please see Note 9 in Notes to Financial Statements for
more detailed information.
10 TURNER FUNDS 2005 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2005
o Ticker symbol TSCEX
o CUSIP #900297300
o Top 5 holdings
(1) Immucor
(2) Genesis HealthCare
(3) Resmed
(4) Sierra Health Services
(5) Scientific Games, Cl A
o % in 5 largest holdings 7.3%+
o Number of holdings 131
o Price/earnings ratio 21.7
o Weighted average market capitalization $1.19 billion
o % of holdings with positive earnings surprises 74.7%
o % of holdings with negative earnings surprises 23.2%
o Net assets $236 million
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- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE
TURNER SMALL CAP GROWTH FUND:
SEPTEMBER 30, 1994-MARCH 31, 2005*
[Line chart omitted -- plot points are as follows:]
9/30/94 Sep 95 Sep 96 Sep 97 Sep 98
Turner Small Cap Growth Fund $10,000 $15,347 $23,393 $27,286 $22,675
Russell 2000 Growth Index $10,000 $12,818 $14,434 $17,805 $13,384
Sep 99 Sep 00 Sep 01 Sep 02 Sep 03 Sep 04 Mar 05
Turner Small Cap Growth Fund $36,085 $56,317 $28,266 $22,793 $34,099 $38,525 $40,131
Russell 2000 Growth Index $17,751 $23,016 $13,213 $10,814 $15,325 $17,152 $18,392
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2005)
PAST PAST PAST PAST PAST SINCE
SIX MONTHS ONE YEAR THREE YEARS FIVE YEARS TEN YEARS INCEPTION
- ----------------------------------------------------------------------------------------------------------------------------
Turner Small Cap Growth Fund 4.17% 0.32% 4.72% (7.94)% 13.59% 13.78%
Russell 2000 Growth Index 7.23% 0.87% 4.01% (6.60)% 5.80% 5.41%
- ----------------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
- --------------------------------------------------------------------------------
[Bar chart omitted -- plot points are as follows:]
21.6% Consumer Discretionary
17.0% Healthcare
15.7% Information Technology
11.3% Cash ++
9.9% Financials
8.5% Product Durables
6.0% Materials & Processing
5.5% Energy
2.4% Autos/Transportation
1.1% Utilities/Telecommunication Services
1.0% Consumer Staples
- --------------------------------------------------------------------------------
MANAGERS DISCUSSION AND ANALYSIS
The Turner Small Cap Growth Fund was helped by strength in small-cap stocks
generally in the six-month period ended March 31. The Fund gained 4.17% but
underperformed the Russell 2000 Growth Index's 7.23% rise by 3.06 percentage
points.
Four of the Fund's 10 sector positions beat their index-sector counterparts. The
Fund's health-care and technology stocks, a 33% weighting, performed best in
relative terms, recording gains that represented substantial margins of
outperformance over their index counterparts. Winners included biotechnology,
medical-device, health-care-facility, medical-device, semiconductor, software,
and data-networking stocks. A 22% position in consumer-discretionary/services
and producer-durables stocks, particularly Internet, retailing, and
semiconductor-capital-equipment shares, were a drag on performance.
- --------------------------------------------------------------------------------
* 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 and table
do not reflect the deduction of taxes the shareholder will pay on Fund
distributions or the redemptions of Fund shares. The inception date of the
Turner Small Cap Growth Fund was February 7, 1994.
+ Percentages based on total investments.
++ Cash equivalents include a short-term investment held as collateral for
loaned securities. Please see Note 9 in Notes to Financial Statements for
more detailed information.
TURNER FUNDS 2005 SEMIANNUAL REPORT 11
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INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER MICRO CAP GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2005
o Ticker symbol TMCGX
o CUSIP #872524301
o Top 5 holdings
(1) United Therapeutics
(2) Comstock Resources
(3) ESCO Technologies
(4) Charles River Associates
(5) Intuitive Surgical
o % in 5 largest holdings 6.7%+
o Number of holdings 113
o Price/earnings ratio 18.0
o Weighted average market capitalization $0.72 billion
o % of holdings with positive earnings surprises 71.9%
o % of holdings with negative earnings surprises 26.5%
o Net assets $437 million
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- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE
TURNER MICRO CAP GROWTH FUND:
FEBRUARY 28, 1998-MARCH 31, 2005*
[Line chart omitted -- plot points are as follows:]
2/28/98 Sep 98 Sep 99 Sep 00 Sep 01 Sep 02 Sep 03 Sep 04 Mar 05
Turner Micro Cap Growth Fund $10,000 $9,882 $21,093 $48,308 $38,535 $38,489 $49,709 $61,410 $69,670
Russell 2000 Growth Index $10,000 $7,625 $10,113 $13,113 $7,528 $6,161 $8,731 $9,772 $10,479
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2005)
PAST PAST PAST PAST SINCE
SIX MONTHS ONE YEAR THREE YEARS FIVE YEARS INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------------
Turner Micro Cap Growth Fund 13.45% 14.57% 11.32% 10.42% 31.51%
Russell 2000 Growth Index 7.23% 0.87% 4.01% (6.60)% 0.66%
- ------------------------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
- --------------------------------------------------------------------------------
[Bar chart omitted -- plot points are as follows:]
32.1% Cash Equivalents ++
14.2% Consumer discretionary
13.1% Healthcare
7.9% Product durables
7.8% Financials
7.4% Information technology
6.4% Materials & processing
5.4% Energy 4.0% Autos/transportation
4.0% Autos/Transportation
0.9% Utilities/telecommunication services
0.8% Consumer staples
MANAGER DISCUSSION AND ANALYSIS
The six months ended March 31 were a good period of performance for small-cap
stocks. The Turner Micro Cap Growth Fund did even better, producing a 13.45%
gain that far outdistanced its benchmark, the Russell 2000 Growth Index. The
Fund's performance premium over the index's 7.23% return was 6.22 percentage
points.
The Fund's stock selection was good, with nine of 10 sector positions
outperforming their corresponding index sectors. Materials/processing,
consumer-discretionary/services, and health-care holdings, a 34% weighting in
aggregate, contributed the most to performance. Metals, metal-fabricating,
building, Internet, commercial-services, biotechnology,
specialty-pharmaceutical, and medical-systems stocks were especially strong. The
lone detractor from performance were the Fund's energy holdings, which
emphasized energy-services shares.
- --------------------------------------------------------------------------------
* 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 and table do not
reflect the deduction of taxes the shareholder will pay on Fund distributions
or the redemptions of Fund shares. The inception date of the Turner Micro Cap
Growth Fund was February 27, 1998.
+ Percentages based on total investments.
++ Cash equivalents include a short-term investment held as collateral for
loaned securities. Please see Note 9 in Notes to Financial Statements for
more detailed information.
12 TURNER FUNDS 2005 SEMIANNUAL REPORT
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INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER SMALL CAP EQUITY FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2005
o Ticker symbol TSEIX
o CUSIP #87252R714
o Top 5 holdings
(1) Laidlaw International
(2) Intergraph
(3) R.H. Donnelley
(4) NAM TAI Electronics
(5) Jarden
o % in 5 largest holdings 8.5%+
o Number of holdings 103
o Price/earnings ratio 17.4
o Weighted average market capitalization $1.40 billion
o Net assets $57 million
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- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE
TURNER SMALL CAP EQUITY FUND:
MARCH 4, 2002-MARCH 31, 2005*
[Line chart omitted -- plot points are as follows:]
3/4/02 Sep 02 Sep 03 Sep 04 Mar 05
Turner Small Cap Equity Fund $10,000 $9,299 $12,278 $15,317 $16,384
Russell 2000 Index $10,000 $7,485 $10,217 $12,134 $13,105
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2005)
PAST PAST PAST SINCE
SIX MONTHS ONE YEAR THREE YEARS INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------------
Turner Small Cap Equity Fund 6.97% 6.59% 15.70% 17.44%
Russell 2000 Index 8.00% 5.41% 8.05% 9.19%
- ------------------------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
- --------------------------------------------------------------------------------
[Bar chart omitted -- plot points are as follows:]
18.4% Consumer discretionary
17.8% Financials
13.3% Healthcare
12.2% Information technology
8.8% Materials & processing
7.9% Product durables
6.2% Energy
4.8% Utilities/telecommunication services
4.6% Autos/transportation
3.4% Cash Equivalents ++
2.6% Consumer staples
MANAGERS DISCUSSION AND ANALYSIS
The Turner Small Cap Equity Fund gained 6.97% in
the six-month period ended March 31. That return trailed the Russell 2000
Index's 8.00% advance by 1.03 percentage points.
The Fund is invested in both growth and value stocks, and its value holdings
generally produced the highest returns. Six of 10 sector positions beat their
corresponding index sectors. The greatest degree of outperformance was supplied
by health-care, utilities/communication, and technology stocks, which
represented 30% of the Fund. Utilities/communication and technology were
slightly overweighted. Consumer-staples stocks produced the highest absolute
return, 35%. An underweighted 27% position in materials/processing and
consumer-discretionary/services stocks hurt results the most.
- --------------------------------------------------------------------------------
* 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 and table do not
reflect the deduction of taxes the shareholder will pay on Fund distributions
or the redemptions of Fund shares. The inception date of the Turner Small Cap
Equity Fund was March 4, 2002.
+ Percentages based on total investments.
++ Cash equivalents include a short-term investment held as collateral for
loaned securities. Please see Note 9 in Notes to Financial Statements for
more detailed information.
TURNER FUNDS 2005 SEMIANNUAL REPORT 13
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INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER TECHNOLOGY FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2005
o Ticker symbol TTECX
o CUSIP #87252R870
o Top 5 holdings
(1) Apple Computer
(2) Oracle
(3) VeriSign
(4) Citrix Systems
(5) Intel
o % in 5 largest holdings 22.5%+
o Number of holdings 34
o Price/earnings ratio 27.7
o Weighted average market capitalization $22.55 billion
o % of holdings with positive earnings surprises 95.7%
o % of holdings with negative earnings surprises 4.3%
o Net assets $14 million
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- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE
TURNER TECHNOLOGY FUND:
JUNE 30, 1999-MARCH 31, 2005*
[Line chart omitted -- plot points are as follows:]
6/30/99 Sep 99 Sep 00 Sep 01 Sep 02 Sep 03 Sep 04 Mar 05
Turner Technology Fund $10,000 $14,060 $35,059 $6,619 $4,110 $7,202 $7,528 $7,922
Pacific Exchange Technology 100 Index $10,000 $10,467 $17,345 $8,652 $6,470 $10,372 $11,484 $12,259
Goldman Sachs Technology Composite Index $10,000 $10,523 $14,251 $4,972 $3,240 $5,378 $5,479 $5,742
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2005)
PAST PAST PAST PAST SINCE
SIX MONTHS ONE YEAR THREE YEARS FIVE YEARS INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------------
Turner Technology Fund 5.23% (7.01)% (2.75)% (25.23)% (3.97)%
Pacific Stock Exchange Technology 100 Index 6.75% 1.86% 2.23% (8.76)% 3.60%
Goldman Sachs Technology Composite Index** 4.80% (5.00)% (2.27)% (19.80)% (9.19)%
- ------------------------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[Bar chart omitted -- plot points are as follows:]
67.5% Information technology
14.1% Consumer discretionary
10.9% Product durables
5.5% Healthcare
2.0% Utilities/telecommunication services
MANAGERS DISCUSSION AND ANALYSIS
In the six-month period ended March 31, the Turner Technology Fund gained 5.23%.
The Fund outperformed the Goldman Sachs Technology Composite Index's 4.80%
return by 0.43 percentage points and underperformed the Pacific Stock Exchange
Technology 100 Index's 6.75% return by 1.52 percentage points.
The greatest degree of extra return was generated by semiconductor, Internet,
e-commerce, telecommunications, and software stocks. Semiconductor stocks in
particular were overweighted because they tend to perform well as the economic
cycle matures, and that's exactly how they performed. Telecommunications stocks
benefited from an improvement in the industry's profitability. Biotechnology and
medical-device shares lagged, hurt by bearish investor sentiment about the
health-care sector as a whole and some disappointing introductions of new drugs.
- --------------------------------------------------------------------------------
* 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 and table do not
reflect the deduction of taxes the shareholder will pay on Fund distributions
or the redemptions of Fund shares. The inception date of the Turner
Technology Fund was June 30, 1999.
** The Turner Technology Fund uses the Goldman Sachs Technology Composite Index
for comparison purposes only. The Goldman Sachs technology industry composite
is a market-capitalization weighted index of 190 stocks designated to measure
the performance of companies in the technology sector.
+ Percentages based on total investments.
14 TURNER FUNDS 2005 SEMIANNUAL REPORT
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INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER CONCENTRATED GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2005
o Ticker symbol TTOPX
o CUSIP #87252R862
o Top 5 holdings
(1) Yahoo!
(2) Intel
(3) Apple Computer
(4) Gilead Sciences
(5) Applied Materials
o % in 5 largest holdings 27.3%+
o Number of holdings 23
o Price/earnings ratio 24.0
o Weighted average market capitalization $57.24 billion
o % of holdings with positive earnings surprises 94.9%
o % of holdings with negative earnings surprises 5.1%
o Net assets $32 million
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- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE
TURNER CONCENTRATED GROWTH FUND:
JUNE 30, 1999-MARCH 31, 2005*
[Line chart omitted -- plot points are as follows:]
6/30/99 Sep 99 Sep 00 Sep 01 Sep 02 Sep 03 Sep 04 Mar 05
Turner Concentrated Growth Fund $10,000 $13,990 $27,782 $8,223 $5,754 $8,638 $8,310 $8,737
S&P 500 Index $10,000 $9,376 $10,622 $7,794 $6,197 $7,709 $8,778 $9,382
NASDAQ 100 Index $10,000 $10,485 $15,553 $5,092 $3,631 $5,696 $6,190 $6,508
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2005)
PAST PAST PAST PAST SINCE
SIX MONTHS ONE YEAR THREE YEARS FIVE YEARS INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------------
Turner Concentrated Growth Fund 5.15% (10.26)% (4.88)% (20.76)% (2.32)%
S&P 500 Index 6.88% 6.69% 2.75% (3.16)% (1.10)%
- ------------------------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
- --------------------------------------------------------------------------------
[Bar chart omitted -- plot points are as follows:]
38.7% Information technology
30.2% Consumer discretionary
11.0% Healthcare
5.0% Cash ++
4.8% Product durables
4.7% Financials
3.4% Materials & processing
2.2% Energy
MANAGERS DISCUSSION AND ANALYSIS
The Turner Concentrated Growth Fund produced a respectable result in absolute
terms for the six-month period ended March 31: a 5.15% gain. In relative terms,
however, the Fund underperformed the benchmark S&P 500 Index's 6.88% rise by
1.73 percentage points.
Most of the Fund's holdings were concentrated in four sectors, consumer
discretionary/services, health care, producer durables, and technology,
accounting for 85% of holdings. The health-care holdings in particular didn't
pan out; they lost money and were mainly responsible for the Fund's performance
shortfall. Biotechnology, drug, health-care-management, and medical-device
stocks fared worst. An 18% position in the financial-services and
producer-durables sectors, led by brokerage, financial-transaction-processing,
investment-management, and capital-equipment stocks, contributed the most to
results.
- --------------------------------------------------------------------------------
* 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 and table do not
reflect the deduction of taxes the shareholder will pay on Fund distributions
or the redemptions of Fund shares. The inception date of the Turner
Concentrated Growth Fund was June 30, 1999.
+ Percentages based on total investments.
++ Cash equivalents include a short-term investment held as collateral for
loaned securities. Please see Note 9 in Notes to Financial Statements for
more detailed information.
TURNER FUNDS 2005 SEMIANNUAL REPORT 15
>
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER NEW ENTERPRISE FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2005
o Ticker symbol TBTBX
o CUSIP #87252R797
o Top 5 holdings
(1) Apple Computer
(2) Google, Cl A
(3) Comverse Technology
(4) VeriSign
(5) Wynn Resorts
o % in 5 largest holdings 21.4%+
o Number of holdings 35
o Price/earnings ratio 30.0
o Weighted average market capitalization $9.00 billion
o % of holdings with positive earnings surprises 87.8%
o % of holdings with negative earnings surprises 12.2%
o Net assets $9 million
M L -----------------------------------
A A | |
R R | |
K G | |
E E | |
T | |
| |
C -----------------------------------
A | |
P | |
I | | X
T | |
A | |
L -----------------------------------
I | |
Z | |
A S | |
T M | |
I A | |
O L | |
N L -----------------------------------
VALUE GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE
TURNER NEW ENTERPRISE FUND:
JUNE 30, 2000-MARCH 31, 2005*
[Line chart omitted -- plot points are as follows:]
6/30/00 Sep 00 Sep 01 Sep 02 Sep 03 Sep 04 Mar 05
Turner New Enterprise Fund $10,000 $12,520 $3,290 $2,270 $4,340 $4,521 $5,040
NASDAQ Composite Index $10,000 $9,264 $3,792 $2,976 $4,556 $4,862 $5,140
- ------------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2005)
PAST PAST PAST SINCE
SIX MONTHS ONE YEAR THREE YEARS INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------------
Turner New Enterprise Fund 11.50% (3.82)% 5.11% (13.43)%
NASDAQ Composite Index 5.73% 0.82% 3.20% (13.06)%
- ------------------------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
- --------------------------------------------------------------------------------
[Bar chart omitted -- plot points are as follows:]
39.8% Information technology
26.0% Consumer discretionary
9.3% Product durables
7.6% Energy
6.1% Cash ++
5.2% Financials
4.7% Healthcare
1.3% Utilities/telecommunication services
MANAGERS DISCUSSION AND ANALYSIS
Gains in three major sectors -- technology, financial services, and consumer
discretionary/services -- powered the Turner New Enterprise Fund to a 11.50%
gain in the six- month period ended March 31. The Fund outperformed the NASDAQ
Composite Index's 5.73% result by 5.77 percentage points.
Stocks in the three sectors accounted for 71% of the Fund's holdings; the
technology holdings gained 14% (versus a 6% gain for the index sector), the
financial-services holdings rose 5% (compared with a 1% gain for the index
sector), and the consumer-discretionary/services holdings climbed 14% (versus 6%
for the index sector). Diminishing performance was an 5% position in health-care
stocks, which lost money. Biotechnology, health-services, and pharmaceutical
stocks were responsible for much of the loss.
- --------------------------------------------------------------------------------
* 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 and table do not
reflect the deduction of taxes the shareholder will pay on Fund distributions
or the redemptions of Fund shares. The inception date of the Turner New
Enterprise Fund was June 30, 2000.
+ Percentages based on total investments.
++ Cash equivalents include a short-term investment held as collateral for
loaned securities. Please see Note 9 in Notes to Financials for more detailed
information.
16 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER LARGE CAP GROWTH FUND
March 31, 2005
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--99.1%
- --------------------------------------------------------------------------------
ACCOUNTING/TAX PREPARATION/BOOKKEEPING/
PAYROLL SERVICES--1.7%
- --------------------------------------------------------------------------------
Paychex 33,480 $ 1,099
--------
Total Accounting/tax preparation/
bookkeeping/payroll services 1,099
--------
- --------------------------------------------------------------------------------
ALUMINA & ALUMINUM PRODUCTION &
PROCESSING--0.8%
- --------------------------------------------------------------------------------
Cia Vale do Rio Doce ADR 15,940 504
--------
Total Alumina & aluminum
production & processing 504
--------
- --------------------------------------------------------------------------------
BEVERAGE MANUFACTURING--5.0%
- --------------------------------------------------------------------------------
Diageo ADR 10,050 572
PepsiCo 49,230 2,611
--------
Total Beverage manufacturing 3,183
--------
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--1.6%
- --------------------------------------------------------------------------------
Qualcomm 28,040 1,028
--------
Total Communications equipment
manufacturing 1,028
--------
- --------------------------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--5.5%
- --------------------------------------------------------------------------------
Apple Computer* 18,080 753
Dell* 48,600 1,867
EMC* 73,880 910
--------
Total Computer & peripheral
equipment manufacturing 3,530
--------
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--2.0%
- --------------------------------------------------------------------------------
Automatic Data Processing 28,580 1,285
--------
Total Computer systems design &
related services 1,285
--------
- --------------------------------------------------------------------------------
DEPARTMENT STORES--2.0%
- --------------------------------------------------------------------------------
Wal-Mart Stores 25,020 1,254
--------
Total Department stores 1,254
--------
Value
Shares (000)
- --------------------------------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--1.4%
- --------------------------------------------------------------------------------
Citigroup 19,260 $ 866
--------
Total Depository credit
intermediation 866
--------
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT MANUFACTURING--2.4%
- --------------------------------------------------------------------------------
General Electric 42,590 1,536
--------
Total Electrical equipment
manufacturing 1,536
--------
- --------------------------------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--1.8%
- --------------------------------------------------------------------------------
eBay* 30,500 1,136
--------
Total Electronic shopping &
mail-order houses 1,136
--------
- --------------------------------------------------------------------------------
GENERAL MEDICAL & SURGICAL HOSPITALS--1.1%
- --------------------------------------------------------------------------------
HCA 13,300 712
--------
Total General medical &
surgical hospitals 712
--------
- --------------------------------------------------------------------------------
GRAIN & OILSEED MILLING--0.9%
- --------------------------------------------------------------------------------
Archer-Daniels-Midland 23,390 575
--------
Total Grain & oilseed milling 575
--------
- --------------------------------------------------------------------------------
GROCERY & RELATED PRODUCT WHOLESALERS--0.7%
- --------------------------------------------------------------------------------
Sysco 12,800 458
--------
Total Grocery & related
product wholesalers 458
--------
- --------------------------------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--1.4%
- --------------------------------------------------------------------------------
Kla-Tencor* 19,170 882
--------
Total Industrial machinery
manufacturing 882
--------
- --------------------------------------------------------------------------------
INFORMATION SERVICES--5.0%
- --------------------------------------------------------------------------------
Google, Cl A* 7,700 1,390
Yahoo!* 54,260 1,839
--------
Total Information services 3,229
--------
TURNER FUNDS 2005 SEMIANNUAL REPORT 17
>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER LARGE CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
INSURANCE CARRIERS--3.3%
- --------------------------------------------------------------------------------
Aetna 15,040 $ 1,127
WellPoint* 7,940 995
--------
Total Insurance carriers 2,122
--------
- --------------------------------------------------------------------------------
LIMITED-SERVICE EATING PLACES--2.6%
- --------------------------------------------------------------------------------
Starbucks* 13,780 712
Yum! Brands 18,800 974
--------
Total Limited-service eating places 1,686
--------
- --------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--2.7%
- --------------------------------------------------------------------------------
St. Jude Medical* 25,690 925
Zimmer Holdings* 9,970 776
--------
Total Medical equipment &
supplies manufacturing 1,701
--------
- --------------------------------------------------------------------------------
MINING SUPPORT ACTIVITIES--0.7%
- --------------------------------------------------------------------------------
Transocean* 8,280 426
--------
Total Mining support activities 426
--------
- --------------------------------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/CONTROL INSTRUMENTS MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
Danaher # 10,450 558
--------
Total Navigational/measuring/
medical/control instruments
manufacturing 558
--------
- --------------------------------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--3.0%
- --------------------------------------------------------------------------------
American Express 37,510 1,927
--------
Total Nondepository credit
intermediation 1,927
--------
- --------------------------------------------------------------------------------
OFFICES OF PHYSICIANS--2.1%
- --------------------------------------------------------------------------------
Caremark Rx* 34,430 1,370
--------
Total Offices of physicians 1,370
--------
- --------------------------------------------------------------------------------
OTHER LEATHER & ALLIED PRODUCT
MANUFACTURING--1.3%
- --------------------------------------------------------------------------------
Coach* 14,380 814
--------
Total Other leather & allied
product manufacturing 814
--------
Value
Shares (000)
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--0.8%
- --------------------------------------------------------------------------------
International Game Technology 20,470 $ 546
--------
Total Other miscellaneous
manufacturing 546
--------
- --------------------------------------------------------------------------------
OTHER TRANSPORTATION EQUIPMENT
MANUFACTURING--1.0%
- --------------------------------------------------------------------------------
Harley-Davidson 10,650 615
--------
Total Other transportation
equipment manufacturing 615
--------
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--16.6%
- --------------------------------------------------------------------------------
Amgen* 23,620 1,375
Gilead Sciences* 45,750 1,638
Johnson & Johnson 60,990 4,096
Pfizer 134,560 3,535
--------
Total Pharmaceutical & medicine
manufacturing 10,644
--------
- --------------------------------------------------------------------------------
RAIL TRANSPORTATION--0.9%
- --------------------------------------------------------------------------------
Burlington Northern Santa Fe 11,120 600
--------
Total Rail transportation 600
--------
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--2.4%
- --------------------------------------------------------------------------------
Goldman Sachs Group 14,060 1,546
--------
Total Security & commodity
contracts intermediation &
brokerage 1,546
--------
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC COMPONENT MANUFACTURING--13.1%
- --------------------------------------------------------------------------------
Applied Materials* 53,950 877
Intel 110,590 2,569
Marvell Technology Group* # 25,090 962
Texas Instruments 65,290 1,664
Tyco International 33,520 1,133
Xilinx 40,410 1,181
--------
Total Semiconductor & other
electronic component
manufacturing 8,386
--------
18 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER LARGE CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
SOAP, CLEANERS & TOILET PREPARATION
MANUFACTURING--5.0%
- --------------------------------------------------------------------------------
Colgate-Palmolive 12,660 $ 660
Procter & Gamble 47,470 2,516
---------
Total Soap, cleaners & toilet
preparation manufacturing 3,176
---------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--5.7%
- --------------------------------------------------------------------------------
Microsoft 111,820 2,703
Oracle* 73,770 920
---------
Total Software publishers 3,623
---------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS--1.0%
- --------------------------------------------------------------------------------
America Movil ADR, Ser L 11,980 618
---------
Total Telecommunications 618
---------
- --------------------------------------------------------------------------------
TRAVELER ACCOMMODATION--2.7%
- --------------------------------------------------------------------------------
Marriott International, Cl A 13,710 917
MGM Mirage* # 11,440 810
---------
Total Traveler accommodation 1,727
---------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $55,945) 63,362
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CASH EQUIVALENT--0.7%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares 467,545 468
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $468) 468
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--1.6%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio (1) 1,037,400 1,037
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD
AS COLLATERAL FOR LOANED SECURITIES
(COST $1,037) 1,037
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--101.4%
(COST $57,450) 64,867
- --------------------------------------------------------------------------------
Value
(000)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES-- (1.4)%
- --------------------------------------------------------------------------------
Obligation to return securities
lending collateral $ (1,037)
Payable for investment securities
purchased (991)
Payable due to investment adviser (11)
Payable due to administrator (8)
Other assets and liabilities, net 1,135
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (912)
================================================================================
NET ASSETS-- 100.0% $63,955
================================================================================
- --------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 12,751,742 outstanding shares
of beneficial interest $84,399
Undistributed net investment income 9
Accumulated net realized loss
on investments (27,870)
Net unrealized appreciation
on investments 7,417
- --------------------------------------------------------------------------------
NET ASSETS $63,955
================================================================================
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- CLASS I SHARES $5.02
================================================================================
* Non-income producing security
# Security fully or partially on loan at March 31, 2005 (see Note 9 in Notes
to Financial Statements). The total value of securities on loan at March 31,
2005, was $1,013,230.
(1) A private placement security. Units are non-transferable but may be redeemed
at the NAV. The Fund lends securities in its 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 102% of the market value of the securities loaned. Cash collateral
received is invested pursuant to the terms of the Lending Agreement in the
Boston Global Investment Trust - Quality Portfolio, a pooled investment
fund. All such investments are made at the risk of the Fund, as such, the
Fund is liable for the investment losses. The Fund receives an annual fee
for its participation in the Lending Agreement based on projected lending
activity.
ADR - American Depositary Receipt
Cl - Class
Ser - Series
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2005 SEMIANNUAL REPORT 19
>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER CORE GROWTH FUND
March 31, 2005
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--97.9%
- --------------------------------------------------------------------------------
ACCOUNTING/TAX PREPARATION/BOOKKEEPING/
PAYROLL SERVICES--2.0%
- --------------------------------------------------------------------------------
Paychex 3,230 $ 106
---------
Total Accounting/tax preparation/
bookkeeping/payroll services 106
---------
- --------------------------------------------------------------------------------
AGENCIES & OTHER INSURANCE
RELATED ACTIVITIES--0.9%
- --------------------------------------------------------------------------------
Medco Health Solutions* 990 49
---------
Total Agencies & other insurance
related activities 49
---------
- --------------------------------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--0.8%
- --------------------------------------------------------------------------------
National-Oilwell* 940 44
---------
Total Agriculture, construction &
mining machinery manufacturing 44
---------
- --------------------------------------------------------------------------------
ALUMINA & ALUMINUM PRODUCTION &
PROCESSING--0.7%
- --------------------------------------------------------------------------------
Cia Vale do Rio Doce ADR 1,110 35
---------
Total Alumina & aluminum
production & processing 35
---------
- --------------------------------------------------------------------------------
BEER/WINE/DISTILLED ALCOHOLIC
BEVERAGE WHOLESALE--0.3%
- --------------------------------------------------------------------------------
Brown-Forman, Cl B 330 18
---------
Total Beer/wine/distilled alcoholic
beverage wholesale 18
---------
- --------------------------------------------------------------------------------
BEVERAGE MANUFACTURING--2.5%
- --------------------------------------------------------------------------------
PepsiCo 2,490 132
---------
Total Beverage manufacturing 132
---------
- --------------------------------------------------------------------------------
CABLE NETWORKS & PROGRAM DISTRIBUTION--1.0%
- --------------------------------------------------------------------------------
Comcast, Cl A* 1,580 53
---------
Total Cable networks &
program distribution 53
---------
- --------------------------------------------------------------------------------
CLOTHING STORES--0.7%
- --------------------------------------------------------------------------------
Chico's FAS* 1,260 36
---------
Total Clothing stores 36
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
COAL MINING--1.0%
- --------------------------------------------------------------------------------
Peabody Energy 1,200 $ 56
---------
Total Coal mining 56
---------
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--0.8%
- --------------------------------------------------------------------------------
Qualcomm 1,170 43
---------
Total Communications
equipment manufacturing 43
---------
- --------------------------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--3.2%
- --------------------------------------------------------------------------------
Apple Computer* 1,430 60
Dell* 1,640 63
EMC* 4,170 51
---------
Total Computer & peripheral
equipment manufacturing 174
---------
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS DESIGN & RELATED SERVICES--3.3%
- --------------------------------------------------------------------------------
Automatic Data Processing 1,780 80
Checkfree* 1,350 55
Cognizant Technology
Solutions, Cl A* 880 41
---------
Total Computer systems design &
related services 176
---------
- --------------------------------------------------------------------------------
DEPARTMENT STORES--1.2%
- --------------------------------------------------------------------------------
Wal-Mart Stores 1,330 67
---------
Total Department stores 67
---------
- --------------------------------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--5.9%
- --------------------------------------------------------------------------------
Bank of America 2,420 107
Citigroup 3,130 141
Northern Trust 1,660 72
---------
Total Depository credit
intermediation 320
---------
- --------------------------------------------------------------------------------
ELECTRIC POWER GENERATION,
TRANSMISSION & DISTRIBUTION--0.9%
- --------------------------------------------------------------------------------
AES* 3,080 50
---------
Total Electric power generation,
transmission & distribution 50
---------
20 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER CORE GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
ELECTRICAL EQUIPMENT MANUFACTURING--2.5%
- --------------------------------------------------------------------------------
General Electric 3,700 $ 133
---------
Total Electrical equipment
manufacturing 133
---------
- --------------------------------------------------------------------------------
ELECTRONIC SHOPPING &
MAIL-ORDER HOUSES--1.1%
- --------------------------------------------------------------------------------
eBay* 1,650 62
---------
Total Electronic shopping &
mail-order houses 62
---------
- --------------------------------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--0.7%
- --------------------------------------------------------------------------------
CDW 650 37
---------
Total Electronics & appliance stores 37
---------
- --------------------------------------------------------------------------------
EMPLOYMENT SERVICES--0.5%
- --------------------------------------------------------------------------------
Robert Half International 950 26
---------
Total Employment services 26
---------
- --------------------------------------------------------------------------------
GENERAL MEDICAL & SURGICAL HOSPITALS--0.6%
- --------------------------------------------------------------------------------
HCA 580 31
---------
Total General medical &
surgical hospitals 31
---------
- --------------------------------------------------------------------------------
GRAIN & OILSEED MILLING--0.7%
- --------------------------------------------------------------------------------
Archer-Daniels-Midland 1,520 37
---------
Total Grain & oilseed milling 37
---------
- --------------------------------------------------------------------------------
GROCERY & RELATED PRODUCT WHOLESALERS--0.8%
- --------------------------------------------------------------------------------
Sysco 1,160 42
---------
Total Grocery & related
product wholesalers 42
---------
- --------------------------------------------------------------------------------
GROCERY STORES--0.7%
- --------------------------------------------------------------------------------
Whole Foods Market 370 38
---------
Total Grocery stores 38
---------
- --------------------------------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--1.7%
- --------------------------------------------------------------------------------
Kla-Tencor* 1,150 53
Lam Research* 1,260 36
---------
Total Industrial machinery
manufacturing 89
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
INFORMATION SERVICES--3.9%
- --------------------------------------------------------------------------------
Google, Cl A* 510 $ 92
Yahoo!* 3,450 117
---------
Total Information services 209
---------
- --------------------------------------------------------------------------------
INSURANCE CARRIERS--2.5%
- --------------------------------------------------------------------------------
Aetna 480 36
Prudential Financial 970 56
WellPoint* 340 42
---------
Total Insurance carriers 134
---------
- --------------------------------------------------------------------------------
LIMITED-SERVICE EATING PLACES--1.6%
- --------------------------------------------------------------------------------
Starbucks* 830 43
Yum! Brands 870 45
---------
Total Limited-service eating places 88
---------
- --------------------------------------------------------------------------------
MANAGEMENT, SCIENTIFIC & TECHNICAL
CONSULTING SERVICES--1.4%
- --------------------------------------------------------------------------------
CH Robinson Worldwide 740 38
Monster Worldwide* 1,420 40
---------
Total Management, scientific &
technical consulting services 78
---------
- --------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--1.8%
- --------------------------------------------------------------------------------
C.R. Bard 340 23
St. Jude Medical* 1,300 47
Zimmer Holdings* 320 25
---------
Total Medical equipment &
supplies manufacturing 95
---------
- --------------------------------------------------------------------------------
MINING SUPPORT ACTIVITIES--1.9%
- --------------------------------------------------------------------------------
Noble* 1,350 76
Tidewater 620 24
---------
Total Mining support activities 100
---------
- --------------------------------------------------------------------------------
NATURAL GAS DISTRIBUTION--0.6%
- --------------------------------------------------------------------------------
Williams 1,750 33
---------
Total Natural gas distribution 33
---------
TURNER FUNDS 2005 SEMIANNUAL REPORT 21
>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER CORE GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/CONTROL INSTRUMENTS MANUFACTURING--1.7%
- --------------------------------------------------------------------------------
Danaher 1,010 $ 54
Fisher Scientific International* 710 40
----------
Total Navigational/measuring/medical/
control instruments manufacturing 94
----------
- --------------------------------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--1.0%
- --------------------------------------------------------------------------------
American Express 1,060 54
----------
Total Nondepository credit
intermediation 54
----------
- --------------------------------------------------------------------------------
OFFICES OF PHYSICIANS--0.9%
- --------------------------------------------------------------------------------
Caremark Rx* 1,290 51
----------
Total Offices of physicians 51
----------
- --------------------------------------------------------------------------------
OIL & GAS EXTRACTION--3.6%
- --------------------------------------------------------------------------------
Apache 674 41
Southwestern Energy* 800 46
Ultra Petroleum* 790 40
XTO Energy 2,006 66
----------
Total Oil & gas extraction 193
----------
- --------------------------------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--1.9%
- --------------------------------------------------------------------------------
T. Rowe Price Group 1,750 104
----------
Total Other financial
investment activities 104
----------
- --------------------------------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
Rockwell Automation 820 46
----------
Total Other general purpose
machinery manufacturing 46
----------
- --------------------------------------------------------------------------------
OTHER LEATHER & ALLIED PRODUCT
MANUFACTURING--0.7%
- --------------------------------------------------------------------------------
Coach* 650 37
----------
Total Other leather & allied
product manufacturing 37
----------
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--0.7%
- --------------------------------------------------------------------------------
International Game Technology 1,310 35
----------
Total Other miscellaneous
manufacturing 35
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
OTHER TRANSPORTATION EQUIPMENT
MANUFACTURING--0.7%
- --------------------------------------------------------------------------------
Harley-Davidson 630 $ 36
----------
Total Other transportation
equipment manufacturing 36
----------
- --------------------------------------------------------------------------------
PETROLEUM & COAL PRODUCTS
MANUFACTURING--1.8%
- --------------------------------------------------------------------------------
ConocoPhillips 600 65
Valero Energy 410 30
----------
Total Petroleum & coal products
manufacturing 95
----------
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--6.4%
- --------------------------------------------------------------------------------
Amgen* 620 36
Gilead Sciences* 1,960 70
Johnson & Johnson 1,830 123
Pfizer 4,330 114
----------
Total Pharmaceutical &
medicine manufacturing 343
----------
- --------------------------------------------------------------------------------
PIPELINE TRANSPORTATION
OF NATURAL GAS--1.8%
- --------------------------------------------------------------------------------
Kinder Morgan 630 48
Questar 820 48
----------
Total Pipeline transportation
of natural gas 96
----------
- --------------------------------------------------------------------------------
PRIMARY METAL MANUFACTURING--0.7%
- --------------------------------------------------------------------------------
United States Steel 780 40
----------
Total Primary metal manufacturing 40
----------
- --------------------------------------------------------------------------------
PROFESSIONAL, SCIENTIFIC &
TECHNICAL SERVICES--0.8%
- --------------------------------------------------------------------------------
Alliance Data Systems* 1,130 46
----------
Total Professional, scientific &
technical services 46
----------
- --------------------------------------------------------------------------------
RAIL TRANSPORTATION--0.7%
- --------------------------------------------------------------------------------
Burlington Northern Santa Fe 700 38
----------
Total Rail transportation 38
----------
22 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER CORE GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
RESIN, SYNTHETIC RUBBER, ARTIFICIAL & SYNTHETIC FIBERS MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
Lyondell Chemical 1,700 $ 47
---------
Total Resin, synthetic rubber,
artificial & synthetic fibers
manufacturing 47
---------
- --------------------------------------------------------------------------------
SCIENTIFIC R&D SERVICES--1.0%
- --------------------------------------------------------------------------------
Monsanto 860 56
---------
Total Scientific r&d services 56
---------
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--4.6%
- --------------------------------------------------------------------------------
Goldman Sachs Group 1,120 123
Morgan Stanley 2,130 122
---------
Total Security & commodity contracts
intermediation & brokerage 245
---------
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC COMPONENT MANUFACTURING--7.9%
- --------------------------------------------------------------------------------
Applied Materials* 4,330 70
Intel 3,990 93
Marvell Technology Group* 1,280 49
Texas Instruments 3,210 82
Tyco International 2,020 68
Xilinx 2,230 65
---------
Total Semiconductor & other
electronic component manufacturing 427
---------
- --------------------------------------------------------------------------------
SOAP, CLEANERS & TOILET PREPARATION
MANUFACTURING--2.7%
- --------------------------------------------------------------------------------
Colgate-Palmolive 780 41
Procter & Gamble 1,950 103
---------
Total Soap, cleaners & toilet
preparation manufacturing 144
---------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--4.2%
- --------------------------------------------------------------------------------
Microsoft 5,320 129
Oracle* 4,360 54
VeriSign* 1,530 44
---------
Total Software publishers 227
---------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS--2.0%
- --------------------------------------------------------------------------------
America Movil ADR, Ser L 1,610 83
NII Holdings* 380 22
---------
Total Telecommunications 105
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
TRAVELER ACCOMMODATION--2.1%
- --------------------------------------------------------------------------------
Marriott International, Cl A 890 $ 59
MGM Mirage* 790 56
---------
Total Traveler accommodation 115
---------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $4,562) 5,265
================================================================================
- --------------------------------------------------------------------------------
CASH EQUIVALENT--2.2%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares 119,321 119
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $119) 119
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.1%
(COST $4,681) 5,384
================================================================================
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES-- (0.1)%
- --------------------------------------------------------------------------------
Receivable from investment adviser 3
Payable for investment securities
purchased (18)
Payable for capital shares redeemed (3)
Payable due to administrator (1)
Other assets and liabilities, net 15
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (4)
================================================================================
- --------------------------------------------------------------------------------
NET ASSETS-- 100.0% $5,380
================================================================================
- --------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Portfolio capital of Class II Shares
(unlimited authorization -- no par value)
based on 557,075 outstanding shares
of beneficial interest $ 6,208
Accumulated net investment loss (4)
Accumulated net realized loss
on investments (1,527)
Net unrealized appreciation
on investments 703
- --------------------------------------------------------------------------------
NET ASSETS $5,380
================================================================================
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- CLASS II SHARES $9.66
================================================================================
* Non-income producing security
ADR - American Depositary Receipt
Cl - Class
Ser - Series
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2005 SEMIANNUAL REPORT 23
>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER STRATEGIC GROWTH FUND
March 31, 2005
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--99.0%
- --------------------------------------------------------------------------------
ACCOUNTING/TAX PREPARATION/BOOKKEEPING/
PAYROLL SERVICES--1.9%
- --------------------------------------------------------------------------------
Paychex 3,980 $ 131
---------
Total Accounting/tax preparation/
bookkeeping/payroll services 131
---------
- --------------------------------------------------------------------------------
BASIC CHEMICAL MANUFACTURING--1.7%
- --------------------------------------------------------------------------------
Dow Chemical 2,270 113
---------
Total Basic chemical manufacturing 113
---------
- --------------------------------------------------------------------------------
CLOTHING STORES--1.2%
- --------------------------------------------------------------------------------
Chico's FAS* 2,970 84
---------
Total Clothing stores 84
---------
- --------------------------------------------------------------------------------
COMMERCIAL/INDUSTRIAL EQUIPMENT
RENTAL & LEASING--1.4%
- --------------------------------------------------------------------------------
Comverse Technology* 3,650 92
---------
Total Commercial/industrial
equipment rental & leasing 92
---------
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--1.4%
- --------------------------------------------------------------------------------
Qualcomm 2,550 93
---------
Total Communications equipment
manufacturing 93
---------
- --------------------------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--6.8%
- --------------------------------------------------------------------------------
Apple Computer* 3,130 130
Dell* 4,860 187
EMC* 11,180 138
---------
Total Computer & peripheral
equipment manufacturing 455
---------
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--3.5%
- --------------------------------------------------------------------------------
Checkfree* 2,940 120
Cognizant Technology
Solutions, Cl A* 2,500 115
---------
Total Computer systems design &
related services 235
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
DEPARTMENT STORES--2.0%
- --------------------------------------------------------------------------------
Wal-Mart Stores 2,660 $ 133
---------
Total Department stores 133
---------
- --------------------------------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--2.2%
- --------------------------------------------------------------------------------
eBay* 4,040 151
---------
Total Electronic shopping &
mail-order houses 151
---------
- --------------------------------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--1.6%
- --------------------------------------------------------------------------------
CDW 1,950 111
---------
Total Electronics & appliance stores 111
---------
- --------------------------------------------------------------------------------
EMPLOYMENT SERVICES--1.4%
- --------------------------------------------------------------------------------
Robert Half International 3,600 97
---------
Total Employment services 97
---------
- --------------------------------------------------------------------------------
GENERAL MEDICAL & SURGICAL HOSPITALS--1.1%
- --------------------------------------------------------------------------------
HCA 1,330 71
---------
Total General medical &
surgical hospitals 71
---------
- --------------------------------------------------------------------------------
GROCERY STORES--0.8%
- --------------------------------------------------------------------------------
Whole Foods Market 500 51
---------
Total Grocery stores 51
---------
- --------------------------------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--1.2%
- --------------------------------------------------------------------------------
Kla-Tencor* 1,730 80
---------
Total Industrial machinery
manufacturing 80
---------
- --------------------------------------------------------------------------------
INFORMATION SERVICES--4.7%
- --------------------------------------------------------------------------------
Google, Cl A* 880 159
Yahoo!* 4,740 161
---------
Total Information services 320
---------
- --------------------------------------------------------------------------------
INSURANCE CARRIERS--2.0%
- --------------------------------------------------------------------------------
WellPoint* 1,060 133
---------
Total Insurance carriers 133
---------
24 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER STRATEGIC GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
LIMITED-SERVICE EATING PLACES--3.1%
- --------------------------------------------------------------------------------
Starbucks* 1,630 $ 84
Yum! Brands 2,360 122
----------
Total Limited-service eating places 206
----------
- --------------------------------------------------------------------------------
MANAGEMENT, SCIENTIFIC & TECHNICAL
CONSULTING SERVICES--1.2%
- --------------------------------------------------------------------------------
Monster Worldwide* 2,830 79
----------
Total Management, scientific &
technical consulting services 79
----------
- --------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--6.6%
- --------------------------------------------------------------------------------
C.R. Bard 1,520 103
Kinetic Concepts* 1,150 69
St. Jude Medical* 3,600 130
Zimmer Holdings* 1,800 140
----------
Total Medical equipment &
supplies manufacturing 442
----------
- --------------------------------------------------------------------------------
MINING SUPPORT ACTIVITIES--1.9%
- --------------------------------------------------------------------------------
Transocean* 2,490 128
----------
Total Mining support activities 128
----------
- --------------------------------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/
CONTROL INSTRUMENTS MANUFACTURING--3.0%
- --------------------------------------------------------------------------------
Danaher # 1,760 94
Fisher Scientific International* 1,880 107
----------
Total Navigational/measuring/medical/
control instruments manufacturing 201
----------
- --------------------------------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--1.6%
- --------------------------------------------------------------------------------
American Express 2,160 111
----------
Total Nondepository credit
intermediation 111
----------
- --------------------------------------------------------------------------------
OFFICES OF PHYSICIANS--1.9%
- --------------------------------------------------------------------------------
Caremark Rx* 3,260 130
----------
Total Offices of physicians 130
----------
- --------------------------------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--1.8%
- --------------------------------------------------------------------------------
T. Rowe Price Group 2,000 119
----------
Total Other financial
investment activities 119
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--1.0%
- --------------------------------------------------------------------------------
Rockwell Automation 1,190 $ 67
----------
Total Other general purpose
machinery manufacturing 67
----------
- --------------------------------------------------------------------------------
OTHER LEATHER & ALLIED PRODUCT
MANUFACTURING--1.8%
- --------------------------------------------------------------------------------
Coach* 2,110 119
----------
Total Other leather & allied
product manufacturing 119
----------
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
International Game Technology 2,300 61
----------
Total Other miscellaneous
manufacturing 61
----------
- --------------------------------------------------------------------------------
PETROLEUM & COAL PRODUCTS MANUFACTURING--0.6%
- --------------------------------------------------------------------------------
Valero Energy 600 44
----------
Total Petroleum & coal products
manufacturing 44
----------
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--6.6%
- --------------------------------------------------------------------------------
Amgen* 1,770 103
Gilead Sciences* 4,360 156
Sanofi-Aventis ADR 2,280 96
Sepracor* 1,600 92
----------
Total Pharmaceutical & medicine
manufacturing 447
----------
- --------------------------------------------------------------------------------
PROFESSIONAL, SCIENTIFIC & TECHNICAL SERVICES--1.3%
- --------------------------------------------------------------------------------
Alliance Data Systems* 2,260 91
----------
Total Professional, scientific &
technical services 91
----------
- --------------------------------------------------------------------------------
RADIO & TELEVISION BROADCASTING--1.2%
- --------------------------------------------------------------------------------
Sirius Satellite Radio* 13,920 78
----------
Total Radio & television broadcasting 78
----------
- --------------------------------------------------------------------------------
SCIENTIFIC R&D SERVICES--1.8%
- --------------------------------------------------------------------------------
Monsanto 1,850 119
----------
Total Scientific r&d services 119
----------
TURNER FUNDS 2005 SEMIANNUAL REPORT 25
>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER STRATEGIC GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--1.9%
- --------------------------------------------------------------------------------
Goldman Sachs Group 1,160 $ 128
---------
Total Security & commodity contracts
intermediation & brokerage 128
---------
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC COMPONENT MANUFACTURING--16.7%
- --------------------------------------------------------------------------------
Applied Materials* 6,750 110
ASML Holding, NY Shares* 3,430 57
Intel 14,490 337
Marvell Technology Group* 3,130 120
Nvidia* 2,900 69
Texas Instruments 6,600 168
Tyco International 3,720 126
Xilinx 4,650 136
---------
Total Semiconductor & other
electronic component manufacturing 1,123
---------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--5.0%
- --------------------------------------------------------------------------------
Cognos* 1,400 59
Mercury Interactive* 1,750 83
Oracle* 10,110 126
VeriSign* 2,300 66
---------
Total Software publishers 334
---------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS--2.4%
- --------------------------------------------------------------------------------
America Movil ADR, Ser L 1,870 97
NII Holdings* # 1,100 63
---------
Total Telecommunications 160
---------
- --------------------------------------------------------------------------------
TRAVELER ACCOMMODATION--1.8%
- --------------------------------------------------------------------------------
MGM Mirage* 1,730 123
---------
Total Traveler accommodation 123
---------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $6,029) 6,660
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CASH EQUIVALENT--0.4%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares 24,629 25
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $25) 25
- --------------------------------------------------------------------------------
Value
Shares (000)
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--0.9%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio (1) 61,700 $ 62
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD
AS COLLATERAL FOR LOANED SECURITIES
(COST $62) 62
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.3%
(COST $6,116) 6,747
================================================================================
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES-- (0.3)%
- --------------------------------------------------------------------------------
Payable for investment securities purchased (187)
Obligation to return securities
lending collateral (62)
Payable due to investment adviser (1)
Payable due to administrator (1)
Other assets and liabilities, net 232
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (19)
================================================================================
NET ASSETS $6,728
================================================================================
- --------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 630,427 outstanding shares
of beneficial interest $19,379
Accumulated net investment loss (24)
Accumulated net realized loss
on investments (13,258)
Net unrealized appreciation
on investments 631
- --------------------------------------------------------------------------------
NET ASSETS-- 100% $6,728
================================================================================
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- CLASS I SHARES $10.67
================================================================================
* Non-income producing security
# Security fully or partially on loan at March 31, 2005 (see Note 9 in Notes
to Financial Statements). The total value of securities on loan at March 31,
2005, was $59,978.
(1) A private placement security. Units are non-transferable but may be redeemed
at the NAV. The Fund lends securities in its 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 102% of the market value of the securities loaned. Cash collateral
received is invested pursuant to the terms of the Lending Agreement in the
Boston Global Investment Trust - Quality Portfolio, a pooled investment
fund. All such investments are made at the risk of the Fund, as such, the
Fund is liable for the investment losses. The Fund receives an annual fee
for its participation in the Lending Agreement based on projected lending
activity.
ADR - American Depositary Receipt
Cl - Class
Ser - Series
The accompanying notes are an integral part of the financial statements.
26 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MIDCAP GROWTH FUND
March 31, 2005
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--99.3%
- --------------------------------------------------------------------------------
ADVERTISING & RELATED SERVICES--0.4%
- --------------------------------------------------------------------------------
Getty Images* 46,400 $ 3,299
--------
Total Advertising & related services 3,299
--------
- --------------------------------------------------------------------------------
AEROSPACE PRODUCT & PARTS
MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Goodrich 124,010 4,748
--------
Total Aerospace product &
parts manufacturing 4,748
--------
- --------------------------------------------------------------------------------
AGENCIES & OTHER INSURANCE
RELATED ACTIVITIES--0.9%
- --------------------------------------------------------------------------------
Medco Health Solutions* 170,110 8,432
--------
Total Agencies & other insurance
related activities 8,432
--------
- --------------------------------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING MACHINERY MANUFACTURING--2.2%
- --------------------------------------------------------------------------------
Grant Prideco* 298,670 7,216
Joy Global # 134,120 4,702
National-Oilwell* 179,830 8,398
--------
Total Agriculture, construction &
mining machinery manufacturing 20,316
--------
- --------------------------------------------------------------------------------
BASIC CHEMICAL MANUFACTURING--0.6%
- --------------------------------------------------------------------------------
Praxair 112,850 5,401
--------
Total Basic chemical manufacturing 5,401
--------
- --------------------------------------------------------------------------------
BEVERAGE MANUFACTURING--0.7%
- --------------------------------------------------------------------------------
Constellation Brands, Cl A* 128,080 6,772
--------
Total Beverage manufacturing 6,772
--------
- --------------------------------------------------------------------------------
CLOTHING STORES--2.9%
- --------------------------------------------------------------------------------
Chico's FAS* 516,680 14,601
Nordstrom 92,320 5,113
Urban Outfitters* 162,520 7,796
--------
Total Clothing stores 27,510
--------
- --------------------------------------------------------------------------------
COAL MINING--0.5%
- --------------------------------------------------------------------------------
Peabody Energy 100,000 4,636
--------
Total Coal mining 4,636
--------
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMERCIAL & SERVICE INDUSTRY
MACHINERY MANUFACTURING--1.0%
- --------------------------------------------------------------------------------
Bausch & Lomb 131,490 $ 9,638
--------
Total Commercial & service
industry machinery manufacturing 9,638
--------
- --------------------------------------------------------------------------------
COMMERCIAL/INDUSTRIAL EQUIPMENT
RENTAL & LEASING--1.3%
- --------------------------------------------------------------------------------
Comverse Technology* 465,000 11,727
--------
Total Commercial/industrial
equipment rental & leasing 11,727
--------
- --------------------------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--3.0%
- --------------------------------------------------------------------------------
Apple Computer* 548,990 22,876
Integrated Device Technology* 447,390 5,382
--------
Total Computer & peripheral
equipment manufacturing 28,258
--------
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--3.8%
- --------------------------------------------------------------------------------
Avid Technology* 183,039 9,906
Checkfree* # 228,720 9,323
Cognizant Technology
Solutions, Cl A* # 267,650 12,365
Ixia* 209,980 3,736
--------
Total Computer systems design &
related services 35,330
--------
- --------------------------------------------------------------------------------
CUT & SEW APPAREL MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Warnaco Group* 177,270 4,262
--------
Total Cut & sew apparel
manufacturing 4,262
--------
- --------------------------------------------------------------------------------
CUTLERY & HANDTOOL MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Pentair 116,170 4,531
--------
Total Cutlery & handtool
manufacturing 4,531
--------
- --------------------------------------------------------------------------------
DATA PROCESSING SERVICES--0.9%
- --------------------------------------------------------------------------------
Global Payments # 125,470 8,092
--------
Total Data processing services 8,092
--------
TURNER FUNDS 2005 SEMIANNUAL REPORT 27
>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MIDCAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
DEPARTMENT STORES--0.6%
- --------------------------------------------------------------------------------
Dollar Tree Stores* 184,370 $ 5,297
--------
Total Department stores 5,297
--------
- --------------------------------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--3.5%
- --------------------------------------------------------------------------------
City National 79,800 5,572
Northern Trust 165,191 7,176
Silicon Valley Bancshares* # 153,390 6,758
Sovereign Bancorp 274,550 6,084
UCBH Holdings 181,720 7,251
--------
Total Depository credit intermediation 32,841
--------
- --------------------------------------------------------------------------------
ELECTRIC POWER GENERATION,
TRANSMISSION & DISTRIBUTION--0.9%
- --------------------------------------------------------------------------------
AES* 486,970 7,977
--------
Total Electric power generation,
transmission & distribution 7,977
--------
- --------------------------------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--0.5%
- --------------------------------------------------------------------------------
Overstock.com* # 114,950 4,942
--------
Total Electronic shopping &
mail-order houses 4,942
--------
- --------------------------------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--1.1%
- --------------------------------------------------------------------------------
CDW 188,070 10,660
--------
Total Electronics & appliance stores 10,660
--------
- --------------------------------------------------------------------------------
EMPLOYMENT SERVICES--1.0%
- --------------------------------------------------------------------------------
Robert Half International 345,710 9,320
--------
Total Employment services 9,320
--------
- --------------------------------------------------------------------------------
FOUNDRIES--0.6%
- --------------------------------------------------------------------------------
Precision Castparts 75,900 5,845
--------
Total Foundries 5,845
--------
- --------------------------------------------------------------------------------
FULL-SERVICE RESTAURANTS--0.6%
- --------------------------------------------------------------------------------
PF Chang's China Bistro* # 88,540 5,295
--------
Total Full-service restaurants 5,295
--------
- --------------------------------------------------------------------------------
GENERAL FREIGHT TRUCKING--0.9%
- --------------------------------------------------------------------------------
Yellow Roadway* 140,340 8,215
--------
Total General freight trucking 8,215
--------
Value
Shares (000)
- --------------------------------------------------------------------------------
GENERAL MEDICAL & SURGICAL HOSPITALS--0.9%
- --------------------------------------------------------------------------------
Community Health Systems* 221,210 $ 7,722
Triad Hospitals* 14,230 713
--------
Total General medical &
surgical hospitals 8,435
--------
- --------------------------------------------------------------------------------
GLASS & GLASS PRODUCT MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Owens-Illinois* 193,030 4,853
--------
Total Glass & glass product
manufacturing 4,853
--------
- --------------------------------------------------------------------------------
GROCERY STORES--0.8%
- --------------------------------------------------------------------------------
Whole Foods Market 70,110 7,160
--------
Total Grocery stores 7,160
--------
- --------------------------------------------------------------------------------
HOME FURNISHINGS STORES--2.0%
- --------------------------------------------------------------------------------
Bed Bath & Beyond* 310,070 11,330
Williams-Sonoma* 194,940 7,164
--------
Total Home furnishings stores 18,494
--------
- --------------------------------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--3.0%
- --------------------------------------------------------------------------------
Kla-Tencor* 265,880 12,233
Lam Research* 296,015 8,543
Novellus Systems* 261,730 6,996
--------
Total Industrial machinery
manufacturing 27,772
--------
- --------------------------------------------------------------------------------
INFORMATION SERVICES--0.7%
- --------------------------------------------------------------------------------
CNET Networks* # 712,490 6,726
--------
Total Information services 6,726
--------
- --------------------------------------------------------------------------------
INSURANCE CARRIERS--3.3%
- --------------------------------------------------------------------------------
Centene* 148,420 4,451
Pacificare Health Systems* 150,030 8,540
WellPoint* 144,890 18,162
--------
Total Insurance carriers 31,153
--------
- --------------------------------------------------------------------------------
INVESTIGATION & SECURITY SERVICES--0.7%
- --------------------------------------------------------------------------------
Cogent* # 253,351 6,379
--------
Total Investigation & security services 6,379
--------
- --------------------------------------------------------------------------------
LIMITED-SERVICE EATING PLACES--1.5%
- --------------------------------------------------------------------------------
Yum! Brands 276,010 14,300
--------
Total Limited-service eating places 14,300
--------
28 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MIDCAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
MANAGEMENT, SCIENTIFIC & TECHNICAL
CONSULTING SERVICES--1.1%
- --------------------------------------------------------------------------------
Monster Worldwide* # 371,045 $10,408
-------
Total Management, scientific &
technical consulting services 10,408
-------
- --------------------------------------------------------------------------------
MEDICAL & DIAGNOSTIC LABORATORIES--0.7%
- --------------------------------------------------------------------------------
Laboratory Corp. of
America Holdings* 143,310 6,908
-------
Total Medical & diagnostic
laboratories 6,908
-------
- --------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--5.7%
- --------------------------------------------------------------------------------
Advanced Medical Optics* # 151,520 5,487
Biomet 416,814 15,130
C.R. Bard 222,270 15,132
Cooper 96,410 7,028
Inamed* 96,375 6,735
Kinetic Concepts* 62,560 3,732
-------
Total Medical equipment &
supplies manufacturing 53,244
-------
- --------------------------------------------------------------------------------
MINING SUPPORT ACTIVITIES--1.7%
- --------------------------------------------------------------------------------
Diamond Offshore Drilling # 102,400 5,110
ENSCO International 152,024 5,725
Tidewater 120,800 4,694
-------
Total Mining support activities 15,529
-------
- --------------------------------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/
CONTROL INSTRUMENTS
MANUFACTURING--3.5%
- --------------------------------------------------------------------------------
Ametek 209,170 8,419
Fisher Scientific International* 224,070 12,754
Lumenis* 25 -
Roper Industries 178,390 11,685
-------
Total Navigational/measuring/
medical/control instruments
manufacturing 32,858
-------
- --------------------------------------------------------------------------------
NURSING CARE FACILITIES--0.6%
- --------------------------------------------------------------------------------
Manor Care 150,920 5,487
-------
Total Nursing care facilities 5,487
-------
Value
Shares (000)
- --------------------------------------------------------------------------------
OIL & GAS EXTRACTION--2.1%
- --------------------------------------------------------------------------------
Range Resources 327,600 $ 7,653
Ultra Petroleum* 95,060 4,829
XTO Energy 226,766 7,447
-------
Total Oil & gas extraction 19,929
-------
- --------------------------------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--0.4%
- --------------------------------------------------------------------------------
American Power Conversion 145,440 3,797
-------
Total Other electrical equipment &
component manufacturing 3,797
-------
- --------------------------------------------------------------------------------
OTHER FABRICATED METAL PRODUCT
MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
Fortune Brands 107,360 8,656
-------
Total Other fabricated metal
product manufacturing 8,656
-------
- --------------------------------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--2.9%
- --------------------------------------------------------------------------------
Affiliated Managers Group* # 136,920 8,493
SEI Investments 169,520 6,130
T. Rowe Price Group 205,420 12,198
-------
Total Other financial
investment activities 26,821
-------
- --------------------------------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
Rockwell Automation 139,640 7,909
-------
Total Other general purpose
machinery manufacturing 7,909
-------
- --------------------------------------------------------------------------------
OTHER INVESTMENT POOLS & FUNDS--0.6%
- --------------------------------------------------------------------------------
Host Marriott 359,820 5,959
-------
Total Other investment pools & funds 5,959
-------
- --------------------------------------------------------------------------------
OTHER LEATHER & ALLIED PRODUCT
MANUFACTURING--1.7%
- --------------------------------------------------------------------------------
Coach* 286,480 16,223
-------
Total Other leather & allied
product manufacturing 16,223
-------
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--1.1%
- --------------------------------------------------------------------------------
Scientific Games, Cl A* # 258,810 5,914
WMS Industries* # 156,550 4,408
-------
Total Other miscellaneous
manufacturing 10,322
-------
TURNER FUNDS 2005 SEMIANNUAL REPORT 29
>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MIDCAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
OTHER TRANSPORTATION EQUIPMENT
MANUFACTURING--0.3%
- --------------------------------------------------------------------------------
Polaris Industries 45,760 $ 3,214
--------
Total Other transportation
equipment manufacturing 3,214
--------
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--3.2%
- --------------------------------------------------------------------------------
Dade Behring Holdings* 93,200 5,492
Genzyme* 207,940 11,902
MGI Pharma* 167,430 4,231
Sepracor* # 148,050 8,500
--------
Total Pharmaceutical & medicine
manufacturing 30,125
--------
- --------------------------------------------------------------------------------
PIPELINE TRANSPORTATION OF NATURAL GAS--1.1%
- --------------------------------------------------------------------------------
Questar 166,520 9,866
--------
Total Pipeline transportation
of natural gas 9,866
--------
- --------------------------------------------------------------------------------
PRIMARY METAL MANUFACTURING--0.8%
- --------------------------------------------------------------------------------
Allegheny Technologies 303,440 7,316
--------
Total Primary metal
manufacturing 7,316
--------
- --------------------------------------------------------------------------------
PROFESSIONAL & COMMERCIAL
EQUIPMENT & SUPPLY WHOLESALE--0.8%
- --------------------------------------------------------------------------------
Patterson* 145,400 7,263
--------
Total Professional & commercial
equipment & supply wholesale 7,263
--------
- --------------------------------------------------------------------------------
PROFESSIONAL, SCIENTIFIC &
TECHNICAL SERVICES--1.0%
- --------------------------------------------------------------------------------
Alliance Data Systems* 240,300 9,708
--------
Total Professional, scientific &
technical services 9,708
--------
- --------------------------------------------------------------------------------
RADIO & TELEVISION BROADCASTING--0.5%
- --------------------------------------------------------------------------------
Sirius Satellite Radio* 906,730 5,096
--------
Total Radio & television
broadcasting 5,096
--------
Value
Shares (000)
- --------------------------------------------------------------------------------
RESIN, SYNTHETIC RUBBER, ARTIFICIAL &
SYNTHETIC FIBERS MANUFACTURING--0.8%
- --------------------------------------------------------------------------------
Lyondell Chemical # 279,150 $ 7,794
--------
Total Resin, synthetic rubber, artificial
& synthetic fibers manufacturing 7,794
--------
- --------------------------------------------------------------------------------
SCHEDULED AIR TRANSPORTATION--0.7%
- --------------------------------------------------------------------------------
Southwest Airlines 430,280 6,127
--------
Total Scheduled air transportation 6,127
--------
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--1.1%
- --------------------------------------------------------------------------------
Jefferies Group 101,237 3,815
Legg Mason 77,580 6,062
--------
Total Security & commodity contracts
intermediation & brokerage 9,877
--------
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC COMPONENT MANUFACTURING--6.0%
- --------------------------------------------------------------------------------
Altera* 741,130 14,660
Amkor Technology* 568,343 2,194
Benchmark Electronics* 182,410 5,806
Cymer* 292,640 7,834
Marvell Technology Group* 246,842 9,464
National Semiconductor # 407,640 8,401
PMC-Sierra* 837,624 7,371
--------
Total Semiconductor & other
electronic component
manufacturing 55,730
--------
- --------------------------------------------------------------------------------
SOAP, CLEANERS & TOILET PREPARATION
MANUFACTURING--0.8%
- --------------------------------------------------------------------------------
Clorox 118,090 7,439
--------
Total Soap, cleaners & toilet
preparation manufacturing 7,439
--------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--6.6%
- --------------------------------------------------------------------------------
Citrix Systems* 352,740 8,402
Cognos* 94,256 3,953
F5 Networks* 192,247 9,707
Macromedia* # 313,293 10,495
Mercury Interactive* 219,730 10,411
Openwave Systems* # 392,430 4,784
VeriSign* 483,850 13,886
--------
Total Software publishers 61,638
--------
30 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MIDCAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
SOUND RECORDING INDUSTRIES--0.7%
- --------------------------------------------------------------------------------
DreamWorks Animation
SKG, Cl A* 168,720 $ 6,868
--------
Total Sound recording industries 6,868
--------
- --------------------------------------------------------------------------------
SUGAR & CONFECTIONERY PRODUCT
MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Hershey Foods 82,000 4,958
--------
Total Sugar & confectionery
product manufacturing 4,958
--------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS--2.3%
- --------------------------------------------------------------------------------
Alamosa Holdings* 629,710 7,349
Amdocs* 240,990 6,844
NII Holdings* 124,240 7,144
--------
Total Telecommunications 21,337
--------
- --------------------------------------------------------------------------------
TRAVELER ACCOMMODATION--5.4%
- --------------------------------------------------------------------------------
Marriott International, Cl A 245,280 16,399
MGM Mirage* # 154,480 10,940
Starwood Hotels &
Resorts Worldwide 138,490 8,314
Station Casinos 116,500 7,870
Wynn Resorts* # 101,360 6,866
--------
Total Traveler accommodation 50,389
--------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $759,615) 927,411
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CASH EQUIVALENT--0.1%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares 761,305 761
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $761) 761
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--4.7%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio (1) 44,254,390 44,254
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $44,254) 44,254
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--104.1%
(COST $804,630) 972,426
- --------------------------------------------------------------------------------
Value
(000)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES-- (4.1)%
- --------------------------------------------------------------------------------
Obligation to return securities
lending collateral $ (44,254)
Payable for investment securities
purchased (9,401)
Payable for capital shares redeemed (991)
Payable due to investment adviser (607)
Payable due to administrator (121)
Other assets and liabilities, net 17,084
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (38,290)
================================================================================
NET ASSETS $934,136
================================================================================
- --------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 39,161,505 outstanding shares
of beneficial interest $1,330,092
Portfolio capital of Class II Shares
(unlimited authorization -- no par value)
based on 68,349 outstanding shares
of beneficial interest 1,416
Accumulated net investment loss (3,712)
Accumulated net realized loss
on investments (561,456)
Net unrealized appreciation
on investments 167,796
- --------------------------------------------------------------------------------
NET ASSETS $934,136
================================================================================
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS I SHARES
($932,535,503 div 39,161,505 SHARES) $23.81
================================================================================
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE--CLASS II SHARES
($1,600,372 div 68,349 SHARES) $23.41
================================================================================
* Non-income producing security
# Security fully or partially on loan at March 31, 2005 (see Note 9 in Notes
to Financial Statements). The total value of securities on loan at March 31,
2005, was $43,295,091.
(1) A private placement security. Units are non-transferable but may be redeemed
at the NAV. The Fund lends securities in its 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 102% of the market value of the securities loaned. Cash collateral
received is invested pursuant to the terms of the Lending Agreement in the
Boston Global Investment Trust - Quality Portfolio, a pooled investment
fund. All such investments are made at the risk of the Fund, as such, the
Fund is liable for the investment losses. The Fund receives an annual fee
for its participation in the Lending Agreement based on projected lending
activity.
Cl - Class
Amounts designated as "-" are $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2005 SEMIANNUAL REPORT 31
>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
March 31, 2005
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--99.3%
- --------------------------------------------------------------------------------
ACCOUNTING/TAX PREPARATION/
BOOKKEEPING/PAYROLL SERVICES--0.8%
- --------------------------------------------------------------------------------
Jackson Hewitt Tax Service 93,860 $ 1,963
--------
Total Accounting/tax preparation/
bookkeeping/payroll services 1,963
--------
- --------------------------------------------------------------------------------
ACTIVITIES RELATED TO CREDIT INTERMEDIATION--0.6%
- --------------------------------------------------------------------------------
Euronet Worldwide* 50,530 1,443
--------
Total Activities related to
credit intermediation 1,443
--------
- --------------------------------------------------------------------------------
ACTIVITIES RELATED TO REAL ESTATE--0.8%
- --------------------------------------------------------------------------------
CB Richard Ellis Group, Cl A* 56,370 1,972
--------
Total Activities related to real estate 1,972
--------
- --------------------------------------------------------------------------------
ADVERTISING & RELATED SERVICES--0.9%
- --------------------------------------------------------------------------------
aQuantive* 185,000 2,048
--------
Total Advertising & related services 2,048
--------
- --------------------------------------------------------------------------------
AEROSPACE PRODUCT & PARTS
MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
Hexcel* 129,150 2,003
--------
Total Aerospace product &
parts manufacturing 2,003
--------
- --------------------------------------------------------------------------------
AGRICULTURE, CONSTRUCTION &
MINING MACHINERY MANUFACTURING--2.5%
- --------------------------------------------------------------------------------
Bucyrus International, Cl A* 27,370 1,069
Hydril* 31,920 1,865
Joy Global # 84,285 2,955
--------
Total Agriculture, construction &
mining machinery manufacturing 5,889
--------
- --------------------------------------------------------------------------------
ALUMINA & ALUMINUM PRODUCTION &
PROCESSING--0.6%
- --------------------------------------------------------------------------------
Century Aluminum* # 47,850 1,448
--------
Total Alumina & aluminum
production & processing 1,448
--------
- --------------------------------------------------------------------------------
AUTOMOTIVE PARTS, ACCESSORIES & TIRE STORES--1.2%
- --------------------------------------------------------------------------------
CSK Auto* 70,670 1,247
MarineMax* 54,040 1,685
--------
Total Automotive parts,
accessories & tire stores 2,932
--------
Value
Shares (000)
- --------------------------------------------------------------------------------
BASIC CHEMICAL MANUFACTURING--1.1%
- --------------------------------------------------------------------------------
Georgia Gulf 28,220 $ 1,298
Great Lakes Chemical 39,240 1,260
--------
Total Basic chemical manufacturing 2,558
--------
- --------------------------------------------------------------------------------
BOILER, TANK & SHIPPING CONTAINER
MANUFACTURING--0.7%
- --------------------------------------------------------------------------------
Crown Holdings* 111,400 1,733
--------
Total Boiler, tank & shipping
container manufacturing 1,733
--------
- --------------------------------------------------------------------------------
CEMENT & CONCRETE PRODUCT
MANUFACTURING--0.8%
- --------------------------------------------------------------------------------
Eagle Materials # 22,070 1,786
--------
Total Cement & concrete
product manufacturing 1,786
--------
- --------------------------------------------------------------------------------
CLOTHING STORES--1.3%
- --------------------------------------------------------------------------------
Aeropostale* 52,820 1,730
Childrens Place* 26,150 1,248
--------
Total Clothing stores 2,978
--------
- --------------------------------------------------------------------------------
COAL MINING--0.9%
- --------------------------------------------------------------------------------
Alpha Natural Resources* 73,990 2,121
--------
Total Coal mining 2,121
--------
- --------------------------------------------------------------------------------
COMMERCIAL/INDUSTRIAL EQUIPMENT
RENTAL & LEASING--0.6%
- --------------------------------------------------------------------------------
NMS Communications* 309,170 1,326
--------
Total Commercial/industrial
equipment rental & leasing 1,326
--------
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--1.3%
- --------------------------------------------------------------------------------
Trimble Navigation* 87,700 2,965
--------
Total Communications equipment
manufacturing 2,965
--------
- --------------------------------------------------------------------------------
COMMUNITY CARE FACILITIES FOR THE ELDERLY--0.6%
- --------------------------------------------------------------------------------
Sunrise Senior Living* # 26,990 1,312
--------
Total Community care facilities
for the elderly 1,312
--------
- --------------------------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--1.3%
- --------------------------------------------------------------------------------
Integrated Device Technology* 250,560 3,014
--------
Total Computer & peripheral
equipment manufacturing 3,014
--------
32 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--3.9%
- --------------------------------------------------------------------------------
Atheros Communications* 140,620 $ 1,444
Ixia* 136,470 2,428
Micros Systems* 36,210 1,329
Open Solutions* 64,700 1,283
Witness Systems* 158,790 2,787
--------
Total Computer systems design &
related services 9,271
--------
- --------------------------------------------------------------------------------
DEEP SEA, COASTAL & GREAT LAKES
WATER TRANSPORTATION--0.5%
- --------------------------------------------------------------------------------
Hornbeck Offshore Services* 50,370 1,262
--------
Total Deep sea, coastal &
great lakes water transportation 1,262
--------
- --------------------------------------------------------------------------------
DEPARTMENT STORES--1.2%
- --------------------------------------------------------------------------------
Stein Mart* 124,880 2,810
--------
Total Department stores 2,810
--------
- --------------------------------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--2.5%
- --------------------------------------------------------------------------------
Boston Private Financial Holdings 67,210 1,596
East-West Bancorp 75,962 2,805
Wintrust Financial # 31,160 1,467
--------
Total Depository credit intermediation 5,868
--------
- --------------------------------------------------------------------------------
ELECTRIC POWER GENERATION,
TRANSMISSION & DISTRIBUTION--0.6%
- --------------------------------------------------------------------------------
InterOil* # 43,160 1,509
--------
Total Electric power generation,
transmission & distribution 1,509
--------
- --------------------------------------------------------------------------------
ELECTRICAL GOODS WHOLESALE--0.4%
- --------------------------------------------------------------------------------
WESCO International* 36,880 1,033
--------
Total Electrical goods wholesale 1,033
--------
- --------------------------------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--2.1%
- --------------------------------------------------------------------------------
Coldwater Creek* # 96,613 1,786
Overstock.com* # 40,900 1,758
Provide Commerce* # 48,820 1,410
--------
Total Electronic shopping &
mail-order houses 4,954
--------
- --------------------------------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--0.9%
- --------------------------------------------------------------------------------
Insight Enterprises* 126,650 2,224
--------
Total Electronics & appliance stores 2,224
--------
Value
Shares (000)
- --------------------------------------------------------------------------------
EMPLOYMENT SERVICES--0.8%
- --------------------------------------------------------------------------------
Labor Ready* 106,090 $ 1,979
--------
Total Employment services 1,979
--------
- --------------------------------------------------------------------------------
FULL-SERVICE RESTAURANTS--2.6%
- --------------------------------------------------------------------------------
Buffalo Wild Wings* 27,520 1,041
PF Chang's China Bistro* 49,020 2,931
Red Robin Gourmet Burgers* # 40,590 2,067
--------
Total Full-service restaurants 6,039
--------
- --------------------------------------------------------------------------------
GENERAL FREIGHT TRUCKING--0.9%
- --------------------------------------------------------------------------------
Landstar System* 61,700 2,021
--------
Total General freight trucking 2,021
--------
- --------------------------------------------------------------------------------
GENERAL MEDICAL & SURGICAL HOSPITALS--1.1%
- --------------------------------------------------------------------------------
American Healthways* # 81,400 2,688
--------
Total General medical &
surgical hospitals 2,688
--------
- --------------------------------------------------------------------------------
GROCERY & RELATED PRODUCT WHOLESALERS--0.5%
- --------------------------------------------------------------------------------
United Natural Foods* 43,512 1,246
--------
Total Grocery & related product wholesalers 1,246
--------
- --------------------------------------------------------------------------------
HARDWARE, & PLUMBING & HEATING
EQUIPMENT & SUPPLIES WHOLESALE--0.8%
- --------------------------------------------------------------------------------
Watsco 45,950 1,934
--------
Total Hardware, & plumbing &
heating equipment &
supplies wholesale 1,934
--------
- --------------------------------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--2.8%
- --------------------------------------------------------------------------------
Mattson Technology* 192,770 1,531
Tessera Technologies* 55,000 2,378
Varian Semiconductor
Equipment Associates* 71,070 2,701
--------
Total Industrial machinery
manufacturing 6,610
--------
- --------------------------------------------------------------------------------
INFORMATION SERVICES--3.2%
- --------------------------------------------------------------------------------
CNET Networks* 225,670 2,130
Infospace* 49,830 2,035
Internet Capital Group* # 237,180 1,665
iVillage* 302,364 1,841
--------
Total Information services 7,671
--------
TURNER FUNDS 2005 SEMIANNUAL REPORT 33
>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
INSURANCE CARRIERS--1.6%
- --------------------------------------------------------------------------------
Amerigroup* 49,340 $ 1,804
Platinum Underwriters Holdings # 63,070 1,873
--------
Total Insurance carriers 3,677
--------
- --------------------------------------------------------------------------------
INVESTIGATION & SECURITY SERVICES--0.4%
- --------------------------------------------------------------------------------
Identix* 188,340 951
--------
Total Investigation & security services 951
--------
- --------------------------------------------------------------------------------
LIMITED-SERVICE EATING PLACES--0.6%
- --------------------------------------------------------------------------------
Sonic* 42,280 1,412
--------
Total Limited-service eating places 1,412
--------
- --------------------------------------------------------------------------------
MANAGEMENT, SCIENTIFIC &
TECHNICAL CONSULTING SERVICES--4.3%
- --------------------------------------------------------------------------------
DiamondCluster International* 111,800 1,800
Korn/Ferry International* 106,540 2,027
Navigant Consulting* 108,200 2,946
Pacer International* 79,850 1,908
Resources Connection* # 66,940 1,401
--------
Total Management, scientific &
technical consulting services 10,082
--------
- --------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--3.3%
- --------------------------------------------------------------------------------
Advanced Medical Optics* # 78,230 2,833
Armor Holdings* 37,550 1,393
Resmed* # 63,570 3,585
--------
Total Medical equipment &
supplies manufacturing 7,811
--------
- --------------------------------------------------------------------------------
MINING SUPPORT ACTIVITIES--1.0%
- --------------------------------------------------------------------------------
Helmerich & Payne 34,260 1,360
Superior Energy Services* 63,360 1,090
--------
Total Mining support activities 2,450
--------
- --------------------------------------------------------------------------------
MOTION PICTURE & VIDEO INDUSTRIES--0.7%
- --------------------------------------------------------------------------------
Lions Gate Entertainment* # 147,520 1,630
--------
Total Motion picture &
video industries 1,630
--------
- --------------------------------------------------------------------------------
MOTOR VEHICLE BODY & TRAILER
MANUFACTURING--0.7%
- --------------------------------------------------------------------------------
Wabash National* 69,220 1,689
--------
Total Motor vehicle body &
trailer manufacturing 1,689
--------
Value
Shares (000)
- --------------------------------------------------------------------------------
NAVIGATIONAL/MEASURING/
MEDICAL/CONTROL INSTRUMENTS
MANUFACTURING--2.6%
- --------------------------------------------------------------------------------
Advanced Energy Industries* 160,220 $ 1,549
Syneron Medical* # 35,580 1,134
Teledyne Technologies* 40,390 1,264
Varian* # 58,640 2,222
--------
Total Navigational/measuring/
medical/control instruments
manufacturing 6,169
--------
- --------------------------------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--0.6%
- --------------------------------------------------------------------------------
Metris* 125,260 1,452
--------
Total Nondepository credit
intermediation 1,452
--------
- --------------------------------------------------------------------------------
NURSING CARE FACILITIES--3.0%
- --------------------------------------------------------------------------------
Genesis HealthCare* 105,985 4,546
Kindred Healthcare* 69,160 2,427
--------
Total Nursing care facilities 6,973
--------
- --------------------------------------------------------------------------------
OIL & GAS EXTRACTION--2.8%
- --------------------------------------------------------------------------------
Denbury Resources* 32,830 1,157
Energy Partners* 84,040 2,182
Plains Exploration & Production* 60,187 2,101
Southwestern Energy* 22,430 1,273
--------
Total Oil & gas extraction 6,713
--------
- --------------------------------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--0.7%
- --------------------------------------------------------------------------------
Artesyn Technologies* 186,220 1,622
--------
Total Other electrical equipment &
component manufacturing 1,622
--------
- --------------------------------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--1.0%
- --------------------------------------------------------------------------------
Affiliated Managers Group* 38,105 2,364
--------
Total Other financial
investment activities 2,364
--------
- --------------------------------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--1.4%
- --------------------------------------------------------------------------------
Actuant, Cl A* 46,910 2,107
JLG Industries 55,970 1,206
--------
Total Other general purpose
machinery manufacturing 3,313
--------
34 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
OTHER INVESTMENT POOLS & FUNDS--1.5%
- --------------------------------------------------------------------------------
Sunstone Hotel Investors 90,230 $ 1,935
Ventas 63,850 1,594
--------
Total Other investment
pools & funds 3,529
--------
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--2.8%
- --------------------------------------------------------------------------------
Scientific Games, Cl A* 137,488 3,142
Shuffle Master* # 69,545 2,014
WMS Industries* # 51,390 1,447
--------
Total Other miscellaneous
manufacturing 6,603
--------
- --------------------------------------------------------------------------------
OTHER PERSONAL SERVICES--0.6%
- --------------------------------------------------------------------------------
Coinstar* 61,560 1,305
--------
Total Other personal services 1,305
--------
- --------------------------------------------------------------------------------
OUTPATIENT CARE CENTERS--2.0%
- --------------------------------------------------------------------------------
Psychiatric Solutions* 29,800 1,371
Sierra Health Services* # 54,280 3,465
--------
Total Outpatient care centers 4,836
--------
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE MANUFACTURING--4.4%
- --------------------------------------------------------------------------------
Barrier Therapeutics* # 63,035 976
Immucor* # 154,072 4,652
MGI Pharma* 54,340 1,373
Serologicals* 60,260 1,473
United Therapeutics* 42,990 1,964
--------
Total Pharmaceutical & medicine
manufacturing 10,438
--------
- --------------------------------------------------------------------------------
PRIMARY METAL MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
Allegheny Technologies 84,560 2,039
--------
Total Primary metal manufacturing 2,039
--------
- --------------------------------------------------------------------------------
RADIO & TELEVISION BROADCASTING--0.3%
- --------------------------------------------------------------------------------
Cumulus Media, Cl A* 48,960 698
--------
Total Radio & television broadcasting 698
--------
- --------------------------------------------------------------------------------
RESIN, SYNTHETIC RUBBER, ARTIFICIAL &
SYNTHETIC FIBERS MANUFACTURING--0.4%
- --------------------------------------------------------------------------------
Wellman 66,780 966
--------
Total Resin, synthetic rubber,
artificial & synthetic fibers
manufacturing 966
--------
Value
Shares (000)
- --------------------------------------------------------------------------------
SCHEDULED AIR TRANSPORTATION--0.4%
- --------------------------------------------------------------------------------
Airtran Holdings* 90,790 $ 822
--------
Total Scheduled air transportation 822
--------
- --------------------------------------------------------------------------------
SCIENTIFIC R&D SERVICES--2.3%
- --------------------------------------------------------------------------------
CV Therapeutics* 93,910 1,912
Incyte* # 178,510 1,219
Medicines* # 52,750 1,195
Telik* 77,490 1,169
--------
Total Scientific r&d services 5,495
--------
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--1.9%
- --------------------------------------------------------------------------------
GFI Group* 37,650 1,010
Investment Technology Group* 88,660 1,552
Jefferies Group 48,700 1,835
--------
Total Security & commodity contracts
intermediation & brokerage 4,397
--------
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC COMPONENT MANUFACTURING--5.4%
- --------------------------------------------------------------------------------
Amkor Technology* 123,771 478
Benchmark Electronics* 51,400 1,636
ChipMOS Technologies* 43,990 277
Cymer* 80,850 2,164
Formfactor* 74,410 1,685
Microsemi* # 151,280 2,464
Semtech* # 93,240 1,666
Sigmatel* 30,670 1,148
Trident Microsystems* 68,190 1,206
--------
Total Semiconductor & other
electronic component
manufacturing 12,724
--------
- --------------------------------------------------------------------------------
SHOE STORES--0.8%
- --------------------------------------------------------------------------------
Genesco* # 70,000 1,989
--------
Total Shoe stores 1,989
--------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--5.3%
- --------------------------------------------------------------------------------
Advent Software* 86,910 1,580
Digi International* 82,560 1,133
F5 Networks* 55,790 2,817
Hyperion Solutions* 45,360 2,001
Openwave Systems* # 127,550 1,555
Radware* 43,730 1,026
Verint Systems* 70,790 2,473
--------
Total Software publishers 12,585
--------
TURNER FUNDS 2005 SEMIANNUAL REPORT 35
>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
SPECTATOR SPORTS--0.7%
- --------------------------------------------------------------------------------
Penn National Gaming* 55,760 $ 1,638
--------
Total Spectator sports 1,638
--------
- --------------------------------------------------------------------------------
SPORTING GOODS/HOBBY/
MUSICAL INSTRUMENT STORES--0.9%
- --------------------------------------------------------------------------------
Dick's Sporting Goods* # 60,700 2,229
--------
Total Sporting goods/hobby/
musical instrument stores 2,229
--------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS--2.3%
- --------------------------------------------------------------------------------
j2 Global Communications* 44,270 1,519
SBA Communications, Cl A* 274,720 2,517
Ubiquitel* 225,410 1,510
--------
Total Telecommunications 5,546
--------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $204,425) 234,757
================================================================================
- --------------------------------------------------------------------------------
CASH EQUIVALENT--0.6%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares 1,322,935 1,323
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $1,323) 1,323
================================================================================
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL FOR LOANED SECURITIES--12.1%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio (1) 28,645,120 28,645
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $28,645) 28,645
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--112.0%
(COST $234,393) 264,725
================================================================================
Value
(000)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES-- (12.0)%
- --------------------------------------------------------------------------------
Obligation to return securities
lending collateral $ (28,645)
Payable for investment securities
purchased (3,049)
Payable for capital shares redeemed (709)
Payable due to investment adviser (166)
Payable due to administrator (31)
Other assets and liabilities, net 4,319
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (28,281)
================================================================================
- --------------------------------------------------------------------------------
NET ASSETS-- 100.0% $236,444
================================================================================
- --------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 10,639,447 outstanding shares
of beneficial interest $349,645
Accumulated net investment loss (1,170)
Accumulated net realized loss
on investments (142,363)
Net unrealized appreciation
on investments 30,332
- --------------------------------------------------------------------------------
NET ASSETS $236,444
================================================================================
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- CLASS I SHARES $22.22
================================================================================
* Non-income producing security
# Security fully or partially on loan at March 31, 2005 (see Note 9 in Notes
to Financial Statements). The total value of securities on loan at March 31,
2005, was $27,468,544.
(1) A private placement security. Units are non-transferable but may be redeemed
at the NAV. The Fund lends securities in its 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 102% of the market value of the securities loaned. Cash collateral
received is invested pursuant to the terms of the Lending Agreement in the
Boston Global Investment Trust - Quality Portfolio, a pooled investment
fund. All such investments are made at the risk of the Fund, as such, the
Fund is liable for the investment losses. The Fund receives an annual fee
for its participation in the Lending Agreement based on projected lending
activity.
Cl - Class
The accompanying notes are an integral part of the financial statements.
36 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
March 31, 2005
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--86.5%
- --------------------------------------------------------------------------------
ACTIVITIES RELATED TO CREDIT
INTERMEDIATION--0.4%
- --------------------------------------------------------------------------------
iPayment* # 45,180 $ 1,907
--------
Total Activities related to
credit intermediation 1,907
--------
- --------------------------------------------------------------------------------
AGENCIES & OTHER INSURANCE
RELATED ACTIVITIES--1.5%
- --------------------------------------------------------------------------------
HealthExtras* # 84,145 1,401
LabOne* # 145,280 5,009
--------
Total Agencies & other insurance
related activities 6,410
--------
- --------------------------------------------------------------------------------
AGRICULTURE, CONSTRUCTION &
MINING MACHINERY MANUFACTURING--0.8%
- --------------------------------------------------------------------------------
Bucyrus International, Cl A* 90,760 3,545
--------
Total Agriculture, construction &
mining machinery manufacturing 3,545
--------
- --------------------------------------------------------------------------------
ALUMINA & ALUMINUM PRODUCTION &
PROCESSING--1.5%
- --------------------------------------------------------------------------------
Aleris International* 92,470 2,307
Century Aluminum* # 145,370 4,399
--------
Total Alumina & aluminum
production & processing 6,706
--------
- --------------------------------------------------------------------------------
ARCHITECTURAL & STRUCTURAL METALS
MANUFACTURING--0.2%
- --------------------------------------------------------------------------------
RTI International Metals* 32,160 753
--------
Total Architectural & structural
metals manufacturing 753
--------
- --------------------------------------------------------------------------------
ARCHITECTURAL, ENGINEERING &
RELATED SERVICES--0.9%
- --------------------------------------------------------------------------------
MTC Technologies* # 123,520 4,014
--------
Total Architectural, engineering &
related services 4,014
--------
- --------------------------------------------------------------------------------
AUTOMOTIVE EQUIPMENT RENTAL & LEASING--1.0%
- --------------------------------------------------------------------------------
Dollar Thrifty Automotive
Group* # 136,480 4,474
--------
Total Automotive equipment
rental & leasing 4,474
--------
Value
Shares (000)
- --------------------------------------------------------------------------------
AUTOMOTIVE PARTS, ACCESSORIES &
TIRE STORES--0.9%
- --------------------------------------------------------------------------------
MarineMax* # 124,290 $ 3,875
--------
Total Automotive parts,
accessories & tire stores 3,875
--------
- --------------------------------------------------------------------------------
BASIC CHEMICAL MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Tetra Technologies* 79,750 2,268
--------
Total Basic chemical
manufacturing 2,268
--------
- --------------------------------------------------------------------------------
BEVERAGE MANUFACTURING--1.0%
- --------------------------------------------------------------------------------
Hansen Natural* # 74,810 4,494
--------
Total Beverage manufacturing 4,494
--------
- --------------------------------------------------------------------------------
CLOTHING STORES--0.3%
- --------------------------------------------------------------------------------
Orange 21* 169,150 1,099
--------
Total Clothing stores 1,099
--------
- --------------------------------------------------------------------------------
COAL MINING--0.9%
- --------------------------------------------------------------------------------
Penn Virginia # 83,180 3,818
--------
Total Coal mining 3,818
--------
- --------------------------------------------------------------------------------
COMMERCIAL/INDUSTRIAL
EQUIPMENT RENTAL &
LEASING--0.8%
- --------------------------------------------------------------------------------
Audiocodes* 291,040 3,277
--------
Total Commercial/industrial
equipment rental & leasing 3,277
--------
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--1.3%
- --------------------------------------------------------------------------------
Comtech Telecommunications* # 107,950 5,624
--------
Total Communications
equipment manufacturing 5,624
--------
- --------------------------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--1.0%
- --------------------------------------------------------------------------------
Metrologic Instruments* # 201,840 4,537
--------
Total Computer & peripheral
equipment manufacturing 4,537
--------
TURNER FUNDS 2005 SEMIANNUAL REPORT 37
>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS DESIGN & RELATED SERVICES--4.0%
- --------------------------------------------------------------------------------
Covansys* # 373,380 $ 5,569
Kanbay International* # 283,913 5,809
Lipman Electronic Engineering 120,950 3,476
Sapient* 360,460 2,648
--------
Total Computer systems design &
related services 17,502
--------
- --------------------------------------------------------------------------------
DEEP SEA, COASTAL & GREAT LAKES
WATER TRANSPORTATION--0.5%
- --------------------------------------------------------------------------------
Diana Shipping* # 129,750 2,146
--------
Total Deep sea, coastal &
great lakes water transportation 2,146
--------
- --------------------------------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--4.3%
- --------------------------------------------------------------------------------
Bankunited Financial, Cl A* # 100,530 2,700
Boston Private Financial
Holdings # 97,240 2,309
FirstFed Financial* # 62,850 3,206
Hanmi Financial 168,920 2,796
IBERIABANK 45,250 2,546
PFF Bancorp # 133,872 3,695
Preferred Bank 40,560 1,618
--------
Total Depository credit
intermediation 18,870
--------
- --------------------------------------------------------------------------------
ENGINE, TURBINE & POWER TRANSMISSION
EQUIPMENT MANUFACTURING--0.6%
- --------------------------------------------------------------------------------
EnPro Industries* 91,100 2,505
--------
Total Engine, turbine & power
transmission equipment manufacturing 2,505
--------
- --------------------------------------------------------------------------------
FOOTWEAR MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
Deckers Outdoor* # 110,120 3,936
--------
Total Footwear manufacturing 3,936
--------
- --------------------------------------------------------------------------------
FULL-SERVICE RESTAURANTS--0.6%
- --------------------------------------------------------------------------------
Dave & Buster's* # 143,940 2,692
--------
Total Full-service restaurants 2,692
--------
- --------------------------------------------------------------------------------
GAMBLING INDUSTRIES--1.0%
- --------------------------------------------------------------------------------
Isle of Capri Casinos* # 158,160 4,198
--------
Total Gambling industries 4,198
--------
Value
Shares (000)
- --------------------------------------------------------------------------------
GENERAL FREIGHT TRUCKING--0.6%
- --------------------------------------------------------------------------------
Universal Truckload Services* 128,740 $ 2,716
--------
Total General freight trucking 2,716
--------
- --------------------------------------------------------------------------------
HOME HEALTH CARE SERVICES--2.8%
- --------------------------------------------------------------------------------
Amedisys* 182,577 5,523
Intuitive Surgical* 147,439 6,704
--------
Total Home health care services 12,227
--------
- --------------------------------------------------------------------------------
HOUSEHOLD APPLIANCE MANUFACTURING--0.6%
- --------------------------------------------------------------------------------
Middleby 53,390 2,637
--------
Total Household appliance manufacturing 2,637
--------
- --------------------------------------------------------------------------------
INFORMATION SERVICES--0.4%
- --------------------------------------------------------------------------------
SupportSoft* 339,678 1,794
--------
Total Information services 1,794
--------
- --------------------------------------------------------------------------------
INSURANCE CARRIERS--4.2%
- --------------------------------------------------------------------------------
American Physicians Capital* # 71,490 2,450
FPIC Insurance Group* # 67,700 2,177
Triad Guaranty* 69,480 3,655
United Fire & Casualty 85,360 2,888
Universal American Financial* 262,010 4,533
WellCare Health Plans* 93,110 2,836
--------
Total Insurance carriers 18,539
--------
- --------------------------------------------------------------------------------
LIMITED-SERVICE EATING PLACES--0.5%
- --------------------------------------------------------------------------------
California Pizza Kitchen* 94,420 2,213
--------
Total Limited-service eating places 2,213
--------
- --------------------------------------------------------------------------------
MANAGEMENT, SCIENTIFIC & TECHNICAL
CONSULTING SERVICES--5.9%
- --------------------------------------------------------------------------------
Charles River Associates* # 136,180 6,720
DiamondCluster International* # 284,320 4,578
HUB Group, Cl A* 87,571 5,488
Huron Consulting Group* # 160,537 3,325
Navigant Consulting* # 201,420 5,485
--------
Total Management, scientific &
technical consulting services 25,596
--------
- --------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--0.4%
- --------------------------------------------------------------------------------
Arthrocare* # 62,610 1,784
--------
Total Medical equipment &
supplies manufacturing 1,784
--------
38 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
METAL ORE MINING--1.0%
- --------------------------------------------------------------------------------
Cleveland-Cliffs # 61,540 $ 4,484
--------
Total Metal ore mining 4,484
--------
- --------------------------------------------------------------------------------
MINING SUPPORT ACTIVITIES--1.5%
- --------------------------------------------------------------------------------
Oceaneering International* 91,910 3,447
Pioneer Drilling* # 215,640 2,969
--------
Total Mining support activities 6,416
--------
- --------------------------------------------------------------------------------
MISCELLANEOUS NONDURABLE
GOODS WHOLESALE--1.0%
- --------------------------------------------------------------------------------
Central Garden and Pet* 96,570 4,236
--------
Total Miscellaneous nondurable
goods wholesale 4,236
--------
- --------------------------------------------------------------------------------
MOTOR VEHICLE BODY & TRAILER
MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
Wabash National* 163,230 3,983
--------
Total Motor vehicle body &
trailer manufacturing 3,983
--------
- --------------------------------------------------------------------------------
MOTOR VEHICLE PARTS MANUFACTURING--1.6%
- --------------------------------------------------------------------------------
ESCO Technologies* # 84,810 6,814
--------
Total Motor vehicle parts
manufacturing 6,814
--------
- --------------------------------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/
CONTROL INSTRUMENTS MANUFACTURING--3.5%
- --------------------------------------------------------------------------------
American Science & Engineering* # 101,390 4,533
Biosite* # 70,380 3,662
Credence Systems* 251,690 1,991
EDO # 103,720 3,117
Faro Technologies* # 90,570 2,132
--------
Total Navigational/measuring/
medical/control instruments
manufacturing 15,435
--------
- --------------------------------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--1.6%
- --------------------------------------------------------------------------------
Cash America International 91,700 2,011
First Cash Financial Services* # 26,070 552
Metris* # 394,820 4,576
--------
Total Nondepository credit
intermediation 7,139
--------
Value
Shares (000)
- --------------------------------------------------------------------------------
NONFERROUS PRODUCTION & PROCESSING--0.7%
- --------------------------------------------------------------------------------
Intermagnetics General* # 131,460 $ 3,200
--------
Total Nonferrous production &
processing 3,200
--------
- --------------------------------------------------------------------------------
OFFICES OF PHYSICIANS--1.3%
- --------------------------------------------------------------------------------
Horizon Health* # 75,550 3,211
Symbion* # 120,722 2,580
--------
Total Offices of physicians 5,791
--------
- --------------------------------------------------------------------------------
OIL & GAS EXTRACTION--4.1%
- --------------------------------------------------------------------------------
Carrizo Oil & Gas* 117,180 1,991
Comstock Resources* 289,100 8,309
Energy Partners* 179,810 4,669
KCS Energy* 188,030 2,888
--------
Total Oil & gas extraction 17,857
--------
- --------------------------------------------------------------------------------
OTHER AMUSEMENT & RECREATION INDUSTRIES--0.5%
- --------------------------------------------------------------------------------
Great Wolf Resorts* 83,070 2,073
--------
Total Other amusement &
recreation industries 2,073
--------
- --------------------------------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--1.3%
- --------------------------------------------------------------------------------
Cascade 29,230 1,023
JLG Industries # 220,850 4,759
--------
Total Other general purpose
machinery manufacturing 5,782
--------
- --------------------------------------------------------------------------------
OTHER HEAVY CONSTRUCTION--0.9%
- --------------------------------------------------------------------------------
Foster Wheeler* # 233,300 4,059
--------
Total Other heavy construction 4,059
--------
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Shuffle Master* # 72,075 2,087
--------
Total Other miscellaneous
manufacturing 2,087
--------
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS STORE RETAILERS--0.6%
- --------------------------------------------------------------------------------
Brookstone* 162,320 2,633
--------
Total Other miscellaneous
store retailers 2,633
--------
TURNER FUNDS 2005 SEMIANNUAL REPORT 39
>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
OTHER MOTOR VEHICLE DEALERS--0.5%
- --------------------------------------------------------------------------------
Rush Enterprises, Cl A* 149,870 $ 2,350
--------
Total Other motor vehicle dealers 2,350
--------
- --------------------------------------------------------------------------------
OTHER WOOD PRODUCT MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Champion Enterprises* # 208,530 1,960
--------
Total Other wood product
manufacturing 1,960
--------
- --------------------------------------------------------------------------------
PESTICIDE, FERTILIZER & OTHER AGRICULTURE
CHEMICAL MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Terra Industries* # 275,430 2,137
--------
Total Pesticide, fertilizer & other
agriculture chemical manufacturing 2,137
--------
- --------------------------------------------------------------------------------
PETROLEUM & COAL PRODUCTS
MANUFACTURING--1.1%
- --------------------------------------------------------------------------------
ElkCorp # 128,050 4,925
--------
Total Petroleum & coal products
manufacturing 4,925
--------
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--5.3%
- --------------------------------------------------------------------------------
Able Laboratories* # 113,500 2,663
Bone Care International* 216,220 5,609
Cypress Bioscience* 236,180 2,159
First Horizon Pharmaceutical* # 151,290 2,554
SuperGen* # 273,780 1,330
United Therapeutics* # 190,450 8,702
--------
Total Pharmaceutical &
medicine manufacturing 23,017
--------
- --------------------------------------------------------------------------------
PLASTICS PRODUCT MANUFACTURING--1.5%
- --------------------------------------------------------------------------------
Jarden* # 143,015 6,562
--------
Total Plastics product manufacturing 6,562
--------
- --------------------------------------------------------------------------------
PLUMBING, HEATING & AC CONTRACTOR--1.1%
- --------------------------------------------------------------------------------
Chemed # 63,820 4,881
--------
Total Plumbing, heating &
ac contractor 4,881
--------
- --------------------------------------------------------------------------------
PROFESSIONAL & COMMERCIAL EQUIPMENT &
SUPPLY WHOLESALE--0.3%
- --------------------------------------------------------------------------------
Neoware Systems* # 124,817 1,302
--------
Total Professional & commercial
equipment & supply wholesale 1,302
--------
Value
Shares (000)
- --------------------------------------------------------------------------------
RAIL TRANSPORTATION--1.1%
- --------------------------------------------------------------------------------
Genesee & Wyoming, Cl A* 180,867 $ 4,686
--------
Total Rail transportation 4,686
--------
- --------------------------------------------------------------------------------
RAILROAD ROLLING STOCK
MANUFACTURING--0.7%
- --------------------------------------------------------------------------------
Greenbrier # 91,800 3,221
--------
Total Railroad rolling stock
manufacturing 3,221
--------
- --------------------------------------------------------------------------------
REMEDIATION & OTHER WASTE
MANAGEMENT SERVICES--0.4%
- --------------------------------------------------------------------------------
Metal Management # 68,260 1,753
--------
Total Remediation & other waste
management services 1,753
--------
- --------------------------------------------------------------------------------
RESIDENTIAL BUILDING CONSTRUCTION--0.9%
- --------------------------------------------------------------------------------
Walter Industries # 93,700 3,987
--------
Total Residential building construction 3,987
--------
- --------------------------------------------------------------------------------
SCIENTIFIC R&D SERVICES--2.8%
- --------------------------------------------------------------------------------
CV Therapeutics* 133,570 2,720
Encysive Pharmaceuticals* 426,745 4,361
Incyte* # 183,480 1,253
NitroMed* 225,360 3,901
--------
Total Scientific r&d services 12,235
--------
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Aeroflex* 253,190 2,362
--------
Total Semiconductor & other
electronic component manufacturing 2,362
--------
- --------------------------------------------------------------------------------
SHOE STORES--1.5%
- --------------------------------------------------------------------------------
Genesco* # 225,360 6,405
--------
Total Shoe stores 6,405
--------
- --------------------------------------------------------------------------------
SOCIAL ASSISTANCE--0.8%
- --------------------------------------------------------------------------------
Providence Service* 141,116 3,282
--------
Total Social assistance 3,282
--------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--1.2%
- --------------------------------------------------------------------------------
Ansys* 85,800 2,935
Progress Software* 91,980 2,412
--------
Total Software publishers 5,347
--------
40 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
STEEL PRODUCT MANUFACTURING
FROM PURCHASED STEEL--1.5%
- --------------------------------------------------------------------------------
NS Group* 209,550 $ 6,582
--------
Total Steel product manufacturing
from purchased steel 6,582
--------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS--1.2%
- --------------------------------------------------------------------------------
j2 Global Communications* # 36,810 1,263
Premiere Global Services* 369,950 4,188
--------
Total Telecommunications 5,451
--------
- --------------------------------------------------------------------------------
TRAVELER ACCOMMODATION--0.6%
- --------------------------------------------------------------------------------
MTR Gaming Group* 208,090 2,580
--------
Total Traveler accommodation 2,580
--------
- --------------------------------------------------------------------------------
WASTE COLLECTION--0.5%
- --------------------------------------------------------------------------------
Clean Harbors* 121,690 2,232
--------
Total Waste collection 2,232
--------
- --------------------------------------------------------------------------------
WASTE TREATMENT & DISPOSAL--0.5%
- --------------------------------------------------------------------------------
Casella Waste Systems, Cl A* # 165,829 2,194
--------
Total Waste treatment & disposal 2,194
--------
- --------------------------------------------------------------------------------
WATER, SEWAGE & OTHER SYSTEMS--0.2%
- --------------------------------------------------------------------------------
Artesian Resources, Cl A 28,197 735
--------
Total Water, sewage & other systems 735
--------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $285,787) 378,331
================================================================================
- --------------------------------------------------------------------------------
CASH EQUIVALENTS--11.8%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares 21,767,113 21,767
PNC Bank Money
Market Fund 29,600,340 29,600
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENTS
(COST $51,367) 51,367
================================================================================
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--29.1%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio (1) 127,189,750 127,190
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $127,190) 127,190
================================================================================
Value
(000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--127.4%
(COST $464,344) $556,888
================================================================================
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES-- (27.4)%
- --------------------------------------------------------------------------------
Obligation to return securities
lending collateral (127,190)
Payable for investment securities
purchased (5,678)
Payable for capital shares redeemed (122)
Payable due to investment adviser (359)
Payable due to administrator (56)
Other assets and liabilities, net 13,536
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (119,869)
================================================================================
NET ASSETS-- 100.0% $437,019
================================================================================
- --------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 8,727,274 outstanding shares
of beneficial interest $ 326,074
Accumulated net investment loss (1,925)
Accumulated net realized gain
on investments 20,326
Net unrealized appreciation
on investments 92,544
- --------------------------------------------------------------------------------
NET ASSETS $437,019
================================================================================
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- CLASS I SHARES $50.08
================================================================================
* Non-income producing security
# Security fully or partially on loan at March 31, 2005 (see Note 9 in Notes
to Financial Statements). The total value of securities on loan at March 31,
2005, was $122,631,652.
(1) A private placement security. Units are non-transferable but may be redeemed
at the NAV. The Fund lends securities in its 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 102% of the market value of the securities loaned. Cash collateral
received is invested pursuant to the terms of the Lending Agreement in the
Boston Global Investment Trust - Quality Portfolio, a pooled investment
fund. All such investments are made at the risk of the Fund, as such, the
Fund is liable for the investment losses. The Fund receives an annual fee
for its participation in the Lending Agreement based on projected lending
activity.
Cl - Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2005 SEMIANNUAL REPORT 41
>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP EQUITY FUND
March 31, 2005
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--96.0%
- --------------------------------------------------------------------------------
ACTIVITIES RELATED TO CREDIT INTERMEDIATION--1.1%
- --------------------------------------------------------------------------------
Euronet Worldwide* 20,970 $ 599
--------
Total Activities related to
credit intermediation 599
--------
- --------------------------------------------------------------------------------
AEROSPACE PRODUCT & PARTS
MANUFACTURING--0.8%
- --------------------------------------------------------------------------------
Curtiss-Wright 7,860 448
--------
Total Aerospace product &
parts manufacturing 448
--------
- --------------------------------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--2.5%
- --------------------------------------------------------------------------------
Bucyrus International, Cl A* 3,060 119
Joy Global 21,415 751
Lone Star Technologies* 14,193 560
--------
Total Agriculture, construction &
mining machinery manufacturing 1,430
--------
- --------------------------------------------------------------------------------
APPAREL, PIECE GOODS & NOTIONS WHOLESALE--1.1%
- --------------------------------------------------------------------------------
Men's Wearhouse* 14,590 616
--------
Total Apparel, piece goods &
notions wholesale 616
--------
- --------------------------------------------------------------------------------
ARCHITECTURAL, ENGINEERING &
RELATED SERVICES--1.5%
- --------------------------------------------------------------------------------
Washington Group International* 19,275 867
--------
Total Architectural, engineering &
related services 867
--------
- --------------------------------------------------------------------------------
AUTOMOTIVE PARTS, ACCESSORIES &
TIRE STORES--0.8%
- --------------------------------------------------------------------------------
CSK Auto* 27,070 478
--------
Total Automotive parts,
accessories & tire stores 478
--------
- --------------------------------------------------------------------------------
BASIC CHEMICAL MANUFACTURING--2.8%
- --------------------------------------------------------------------------------
FMC* 11,230 600
Georgia Gulf 5,890 271
Minerals Technologies 10,579 696
--------
Total Basic chemical manufacturing 1,567
--------
Value
Shares (000)
- --------------------------------------------------------------------------------
BUSINESS SUPPORT SERVICES--0.9%
- --------------------------------------------------------------------------------
TeleTech Holdings* 41,190 $ 532
--------
Total Business support services 532
--------
- --------------------------------------------------------------------------------
CEMENT & CONCRETE PRODUCT
MANUFACTURING--0.7%
- --------------------------------------------------------------------------------
Texas Industries 7,137 384
--------
Total Cement & concrete
product manufacturing 384
--------
- --------------------------------------------------------------------------------
COAL MINING--0.9%
- --------------------------------------------------------------------------------
Foundation Coal Holdings 21,980 517
--------
Total Coal mining 517
--------
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Extreme Networks* 52,500 309
--------
Total Communications equipment
manufacturing 309
--------
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--5.1%
- --------------------------------------------------------------------------------
Avid Technology* 10,370 561
Intergraph* 36,366 1,048
Micros Systems* 12,910 474
Titan* 43,340 787
--------
Total Computer systems design &
related services 2,870
--------
- --------------------------------------------------------------------------------
CUT & SEW APPAREL MANUFACTURING--0.9%
- --------------------------------------------------------------------------------
Quiksilver* 17,020 494
--------
Total Cut & sew apparel manufacturing 494
--------
- --------------------------------------------------------------------------------
DATA PROCESSING SERVICES--2.1%
- --------------------------------------------------------------------------------
eFunds* 26,130 583
Global Payments 9,520 614
--------
Total Data processing services 1,197
--------
- --------------------------------------------------------------------------------
DEEP SEA, COASTAL & GREAT LAKES
WATER TRANSPORTATION--1.6%
- --------------------------------------------------------------------------------
General Maritime* 9,430 457
OMI 22,766 436
--------
Total Deep sea, coastal & great lakes
water transportation 893
--------
42 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP EQUITY FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--4.1%
- --------------------------------------------------------------------------------
BankAtlantic Bancorp, Cl A 25,363 $ 441
Brookline Bancorp 24,212 361
Commercial Capital Bancorp 25,780 525
Hanmi Financial 19,700 326
Pacific Capital Bancorp 9,470 282
Provident Bankshares 11,270 371
--------
Total Depository credit intermediation 2,306
--------
- --------------------------------------------------------------------------------
FULL-SERVICE RESTAURANTS--2.2%
- --------------------------------------------------------------------------------
Rare Hospitality International* 20,270 626
Red Robin Gourmet Burgers* 12,310 627
--------
Total Full-service restaurants 1,253
--------
- --------------------------------------------------------------------------------
GENERAL FREIGHT TRUCKING--0.5%
- --------------------------------------------------------------------------------
Overnite 8,588 275
--------
Total General freight trucking 275
--------
- --------------------------------------------------------------------------------
GRAIN & OILSEED MILLING--1.0%
- --------------------------------------------------------------------------------
Ralcorp Holdings 12,346 585
--------
Total Grain & oilseed milling 585
--------
- --------------------------------------------------------------------------------
GROCERY STORES--1.0%
- --------------------------------------------------------------------------------
Pantry* 19,120 592
--------
Total Grocery stores 592
--------
- --------------------------------------------------------------------------------
HOME HEALTH CARE SERVICES--1.8%
- --------------------------------------------------------------------------------
Apria Healthcare Group* 23,030 739
Option Care 13,770 284
--------
Total Home health care services 1,023
--------
- --------------------------------------------------------------------------------
INFORMATION SERVICES--0.7%
- --------------------------------------------------------------------------------
Websense* 7,300 393
--------
Total Information services 393
--------
- --------------------------------------------------------------------------------
INSURANCE CARRIERS--4.2%
- --------------------------------------------------------------------------------
Allmerica Financial* 18,060 649
American Equity Investment
Life Holding 23,300 298
Ohio Casualty* 28,070 645
Philadelphia Consolidated Holding* 4,800 372
ProAssurance* 10,651 421
--------
Total Insurance carriers 2,385
--------
Value
Shares (000)
- --------------------------------------------------------------------------------
INVESTIGATION & SECURITY SERVICES--1.0%
- --------------------------------------------------------------------------------
Brink's 16,550 $ 573
--------
Total Investigation & security services 573
--------
- --------------------------------------------------------------------------------
LIMITED-SERVICE EATING PLACES--1.0%
- --------------------------------------------------------------------------------
Sonic* 16,430 549
--------
Total Limited-service eating places 549
--------
- --------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--0.8%
- --------------------------------------------------------------------------------
Invacare 10,610 474
--------
Total Medical equipment &
supplies manufacturing 474
--------
- --------------------------------------------------------------------------------
METALWORKING MACHINERY
MANUFACTURING--1.0%
- --------------------------------------------------------------------------------
Kennametal 11,580 550
--------
Total Metalworking machinery
manufacturing 550
--------
- --------------------------------------------------------------------------------
MINING SUPPORT ACTIVITIES--2.3%
- --------------------------------------------------------------------------------
Atwood Oceanics* 8,590 572
Cal Dive International* 16,453 745
--------
Total Mining support activities 1,317
--------
- --------------------------------------------------------------------------------
NATURAL GAS DISTRIBUTION--1.4%
- --------------------------------------------------------------------------------
Southern Union* 30,747 772
--------
Total Natural gas distribution 772
--------
- --------------------------------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/CONTROL INSTRUMENTS MANUFACTURING--0.7%
- --------------------------------------------------------------------------------
Analogic 9,276 401
--------
Total Navigational/measuring/medical/
control instruments manufacturing 401
--------
- --------------------------------------------------------------------------------
NEWSPAPER/PERIODICAL/BOOK/
DATABASE PUBLISHERS--1.7%
- --------------------------------------------------------------------------------
R.H. Donnelley* 16,722 971
--------
Total Newspaper/periodical/book/
database publishers 971
--------
TURNER FUNDS 2005 SEMIANNUAL REPORT 43
>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP EQUITY FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
NONFERROUS PRODUCTION & PROCESSING--1.1%
- --------------------------------------------------------------------------------
Olin 28,430 $ 634
--------
Total Nonferrous production &
processing 634
--------
- --------------------------------------------------------------------------------
NURSING CARE FACILITIES--1.8%
- --------------------------------------------------------------------------------
Genesis HealthCare* 8,970 385
Kindred Healthcare* 17,360 609
--------
Total Nursing care facilities 994
--------
- --------------------------------------------------------------------------------
OFFICE SUPPLIES, STATIONERY & GIFT STORES--1.2%
- --------------------------------------------------------------------------------
Adesa 28,740 671
--------
Total Office supplies,
stationery & gift stores 671
--------
- --------------------------------------------------------------------------------
OIL & GAS EXTRACTION--1.7%
- --------------------------------------------------------------------------------
Cimarex Energy* 15,200 593
Comstock Resources* 12,270 352
--------
Total Oil & gas extraction 945
--------
- --------------------------------------------------------------------------------
OTHER CROP FARMING--0.9%
- --------------------------------------------------------------------------------
Delta & Pine Land 19,770 534
--------
Total Other crop farming 534
--------
- --------------------------------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--1.1%
- --------------------------------------------------------------------------------
IDEX 15,292 617
--------
Total Other general purpose
machinery manufacturing 617
--------
- --------------------------------------------------------------------------------
OTHER INVESTMENT POOLS & FUNDS--5.8%
- --------------------------------------------------------------------------------
Alexandria Real Estate Equities 7,775 501
Apollo Investment 34,640 581
Capital Automotive REIT 20,409 676
Kilroy Realty 15,450 632
Maguire Properties 14,880 355
Reckson Associates Realty 17,310 532
--------
Total Other investment pools & funds 3,277
--------
- --------------------------------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--0.5%
- --------------------------------------------------------------------------------
Build-A-Bear Workshop* # 9,720 298
--------
Total Other miscellaneous
manufacturing 298
--------
Value
Shares (000)
- --------------------------------------------------------------------------------
OTHER TRANSIT & GROUND PASSENGER
TRANSPORTATION--1.9%
- --------------------------------------------------------------------------------
Laidlaw International* 51,072 $ 1,062
--------
Total Other transit & ground
passenger transportation 1,062
--------
- --------------------------------------------------------------------------------
OUTPATIENT CARE CENTERS--2.0%
- --------------------------------------------------------------------------------
Psychiatric Solutions* 11,280 519
Sierra Health Services* 9,250 590
--------
Total Outpatient care centers 1,109
--------
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--4.4%
- --------------------------------------------------------------------------------
Andrx* 30,400 689
Impax Laboratories* 34,910 559
Par Pharmaceutical* 12,690 424
Prestige Brands Holdings* 16,140 285
Serologicals* 21,170 517
--------
Total Pharmaceutical & medicine
manufacturing 2,474
--------
- --------------------------------------------------------------------------------
PLASTICS PRODUCT MANUFACTURING--1.6%
- --------------------------------------------------------------------------------
Jarden* 19,687 903
--------
Total Plastics product manufacturing 903
--------
- --------------------------------------------------------------------------------
PLUMBING, HEATING & AIR CONDITIONING
CONTRACTOR--1.2%
- --------------------------------------------------------------------------------
Chemed 8,980 687
--------
Total Plumbing, heating &
air conditioning contractor 687
--------
- --------------------------------------------------------------------------------
REMEDIATION & OTHER WASTE
MANAGEMENT SERVICES--0.9%
- --------------------------------------------------------------------------------
Metal Management 19,240 494
--------
Total Remediation & other waste
management services 494
--------
- --------------------------------------------------------------------------------
RESIDENTIAL BUILDING CONSTRUCTION--0.9%
- --------------------------------------------------------------------------------
WCI Communities* 16,670 501
--------
Total Residential building construction 501
--------
- --------------------------------------------------------------------------------
RUBBER PRODUCT MANUFACTURING--0.7%
- --------------------------------------------------------------------------------
Goodyear Tire & Rubber* 30,200 403
--------
Total Rubber product manufacturing 403
--------
44 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
STATEMENT OF NET ASSETS
TURNER SMALL CAP EQUITY FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
SCIENTIFIC R&D SERVICES--1.3%
- --------------------------------------------------------------------------------
Martek Biosciences* 9,070 $ 528
Orchid BioSciences* 18,120 213
--------
Total Scientific r&d services 741
--------
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--0.7%
- --------------------------------------------------------------------------------
Knight Trading Group, Cl A* 42,630 411
--------
Total Security & commodity
contracts intermediation &
brokerage 411
--------
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC COMPONENT MANUFACTURING--3.9%
- --------------------------------------------------------------------------------
DSP Group* 26,520 683
NAM TAI Electronics 34,116 907
Thomas & Betts* 19,990 646
--------
Total Semiconductor & other
electronic component
manufacturing 2,236
--------
- --------------------------------------------------------------------------------
SHIP & BOAT BUILDING--1.3%
- --------------------------------------------------------------------------------
McDermott International* 40,090 759
--------
Total Ship & boat building 759
--------
- --------------------------------------------------------------------------------
SOAP, CLEANERS & TOILET PREPARATION
MANUFACTURING--0.6%
- --------------------------------------------------------------------------------
Elizabeth Arden* 14,761 350
--------
Total Soap, cleaners & toilet
preparation manufacturing 350
--------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--2.5%
- --------------------------------------------------------------------------------
Hyperion Solutions* 9,550 421
THQ* 9,950 280
Transaction Systems Architects, Cl A* 30,440 705
--------
Total Software publishers 1,406
--------
- --------------------------------------------------------------------------------
SPORTING GOODS/HOBBY/
MUSICAL INSTRUMENT STORES--1.9%
- --------------------------------------------------------------------------------
Dick's Sporting Goods* 16,180 594
Guitar Center* 8,310 456
--------
Total Sporting goods/hobby/
musical instrument stores 1,050
--------
Value
Shares (000)
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS--4.8%
- --------------------------------------------------------------------------------
Alamosa Holdings* 71,345 $ 832
j2 Global Communications* 9,640 331
Leap Wireless International* 27,600 719
Spectrasite* 7,370 427
Ubiquitel* 62,650 420
--------
Total Telecommunications 2,729
--------
- --------------------------------------------------------------------------------
TRAVEL ARRANGEMENT &
RESERVATION SERVICES--0.6%
- --------------------------------------------------------------------------------
Priceline.com Incorporated* 13,820 348
--------
Total Travel arrangement &
reservation services 348
--------
- --------------------------------------------------------------------------------
TRAVELER ACCOMMODATION--2.0%
- --------------------------------------------------------------------------------
Choice Hotels International 11,050 685
Gaylord Entertainment* 11,810 477
--------
Total Traveler accommodation 1,162
--------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $50,447) 54,415
================================================================================
- --------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANY--1.5%
- --------------------------------------------------------------------------------
iShares Russell 2000 Index Fund 6,990 854
- --------------------------------------------------------------------------------
TOTAL REGISTERED INVESTMENT COMPANY
(COST $853) 854
================================================================================
- --------------------------------------------------------------------------------
CASH EQUIVALENT--2.9%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares 1,663,123 1,663
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $1,663) 1,663
================================================================================
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--0.5%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio (1) 297,600 298
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $298) 298
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.9%
(COST $53,261) 57,230
================================================================================
TURNER FUNDS 2005 SEMIANNUAL REPORT 45
>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP EQUITY FUND
Value
(000)
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES-- (0.9)%
- --------------------------------------------------------------------------------
Payable for investment securities
purchased $ (2,371)
Obligation to return securities
lending collateral (298)
Payable due to investment adviser (38)
Payable due to distributor (12)
Payable due to administrator (7)
Other assets and liabilities, net 2,191
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (535)
================================================================================
NET ASSETS-- 100.0% $56,695
================================================================================
- --------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Portfolio capital of Class II Shares
(unlimited authorization -- no par value)
based on 3,807,694 outstanding shares
of beneficial interest $53,278
Accumulated net investment loss (164)
Accumulated net realized loss
on investments (388)
Net unrealized appreciation
on investments 3,969
- --------------------------------------------------------------------------------
NET ASSETS $56,695
================================================================================
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- CLASS II SHARES $14.89
================================================================================
* Non-income producing security
# Security fully or partially on loan at March 31, 2005 (see Note 9 in Notes
to Financial Statements). The total value of securities on loan at March 31,
2005, was $294,240.
(1) A private placement security. Units are non-transferable but may be redeemed
at the NAV. The Fund lends securities in its 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 102% of the market value of the securities loaned. Cash collateral
received is invested pursuant to the terms of the Lending Agreement in the
Boston Global Investment Trust - Quality Portfolio, a pooled investment
fund. All such investments are made at the risk of the Fund, as such, the
Fund is liable for the investment losses. The Fund receives an annual fee
for its participation in the Lending Agreement based on projected lending
activity.
Cl - Class
REIT - Real Estate Investment Trust
The accompanying notes are an integral part of the financial statements.
46 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER TECHNOLOGY FUND
March 31, 2005
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--101.0%+
- --------------------------------------------------------------------------------
COMMERCIAL/INDUSTRIAL EQUIPMENT
RENTAL & LEASING--3.7%
- --------------------------------------------------------------------------------
Comverse Technology* 20,220 $ 510
---------
Total Commercial/industrial
equipment rental & leasing 510
---------
- --------------------------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--14.3%
- --------------------------------------------------------------------------------
Apple Computer* 21,120 880
Dell* 11,460 440
EMC* 28,720 354
Integrated Device Technology* 24,170 291
---------
Total Computer & peripheral
equipment manufacturing 1,965
---------
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--3.9%
- --------------------------------------------------------------------------------
Cognizant Technology
Solutions, Cl A* 6,220 287
Witness Systems* 13,850 243
---------
Total Computer systems design &
related services 530
---------
- --------------------------------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--3.0%
- --------------------------------------------------------------------------------
CDW 7,130 404
---------
Total Electronics & appliance stores 404
---------
- --------------------------------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--5.7%
- --------------------------------------------------------------------------------
Kla-Tencor* 8,470 390
Lam Research* 13,760 397
---------
Total Industrial machinery
manufacturing 787
---------
- --------------------------------------------------------------------------------
INFORMATION SERVICES--9.4%
- --------------------------------------------------------------------------------
CNET Networks* 32,630 308
Google, Cl A* 1,450 262
Internet Capital Group* 43,240 303
Yahoo!* 12,060 409
---------
Total Information services 1,282
---------
Value
Shares (000)
- --------------------------------------------------------------------------------
INVESTIGATION & SECURITY SERVICES--2.6%
- --------------------------------------------------------------------------------
Cogent* 13,870 $ 349
---------
Total Investigation &
security services 349
---------
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--5.5%
- --------------------------------------------------------------------------------
Gilead Sciences* 14,180 508
Sepracor* 4,300 247
---------
Total Pharmaceutical &
medicine manufacturing 755
---------
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC COMPONENT MANUFACTURING--27.0%
- --------------------------------------------------------------------------------
Altera* 13,710 271
Applied Materials* 26,200 426
Benchmark Electronics* 12,990 414
Cymer* 11,270 302
Intel 22,620 526
Marvell Technology Group* 12,130 465
PMC-Sierra* 45,340 399
Texas Instruments 18,770 478
Xilinx 14,350 419
---------
Total Semiconductor & other
electronic component manufacturing 3,700
---------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--21.4%
- --------------------------------------------------------------------------------
Citrix Systems* 23,030 548
F5 Networks* 10,240 517
Macromedia* 13,540 454
Mercury Interactive* 5,370 254
Oracle* 48,320 603
VeriSign* 19,610 563
---------
Total Software publishers 2,939
---------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS--4.5%
- --------------------------------------------------------------------------------
Alamosa Holdings* 23,750 277
Amdocs* 11,950 340
---------
Total Telecommunications 617
---------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $11,949) 13,838
================================================================================
TURNER FUNDS 2005 SEMIANNUAL REPORT 47
>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER TECHNOLOGY FUND
Value
(000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--101.0%
(COST $11,949) $13,838
================================================================================
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES-- (1.0)%
- --------------------------------------------------------------------------------
Payable for capital shares redeemed (42)
Payable due to investment adviser (7)
Payable due to administrator (2)
Other assets and liabilities, net (80)
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (131)
================================================================================
- --------------------------------------------------------------------------------
NET ASSETS-- 100.0% $13,707
================================================================================
- --------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 2,348,337 outstanding shares
of beneficial interest $142,814
Accumulated net investment loss (99)
Accumulated net realized loss
on investments (130,897)
Net unrealized appreciation
on investments 1,889
- --------------------------------------------------------------------------------
NET ASSETS $13,707
================================================================================
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- CLASS I SHARES $5.84
================================================================================
* Non-income producing security
+ Narrow industries are utilized for compliance purposes, whereas broad sectors
are utilized for reporting.
Cl - Class
The accompanying notes are an integral part of the financial statements.
48 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER CONCENTRATED GROWTH FUND
March 31, 2005
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--100.0%+
- --------------------------------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--3.1%
- --------------------------------------------------------------------------------
Qualcomm 27,010 $ 990
--------
Total Communications equipment
manufacturing 990
--------
- --------------------------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--10.6%
- --------------------------------------------------------------------------------
Apple Computer* 43,350 1,806
EMC* 126,960 1,564
--------
Total Computer & peripheral
equipment manufacturing 3,370
--------
- --------------------------------------------------------------------------------
DEPARTMENT STORES--5.0%
- --------------------------------------------------------------------------------
Wal-Mart Stores 31,670 1,587
--------
Total Department stores 1,587
--------
- --------------------------------------------------------------------------------
INFORMATION SERVICES--10.7%
- --------------------------------------------------------------------------------
Google, Cl A* 7,440 1,343
Yahoo!* 61,250 2,076
--------
Total Information services 3,419
--------
- --------------------------------------------------------------------------------
MANAGEMENT, SCIENTIFIC & TECHNICAL
CONSULTING SERVICES--3.7%
- --------------------------------------------------------------------------------
Monster Worldwide* # 42,230 1,185
--------
Total Management, scientific &
technical consulting services 1,185
--------
- --------------------------------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--2.7%
- --------------------------------------------------------------------------------
Kinetic Concepts* 14,690 876
--------
Total Medical equipment &
supplies manufacturing 876
--------
- --------------------------------------------------------------------------------
MINING SUPPORT ACTIVITIES--2.4%
- --------------------------------------------------------------------------------
Transocean* 14,590 751
--------
Total Mining support activities 751
--------
- --------------------------------------------------------------------------------
OFFICES OF PHYSICIANS--3.2%
- --------------------------------------------------------------------------------
Caremark Rx* 25,940 1,032
--------
Total Offices of physicians 1,032
--------
Value
Shares (000)
- --------------------------------------------------------------------------------
OTHER LEATHER & ALLIED PRODUCT
MANUFACTURING--4.1%
- --------------------------------------------------------------------------------
Coach* 23,140 $ 1,310
--------
Total Other leather & allied
product manufacturing 1,310
--------
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--5.6%
- --------------------------------------------------------------------------------
Gilead Sciences* 49,970 1,789
--------
Total Pharmaceutical &
medicine manufacturing 1,789
--------
- --------------------------------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--4.9%
- --------------------------------------------------------------------------------
Morgan Stanley 27,490 1,574
--------
Total Security & commodity
contracts intermediation &
brokerage 1,574
--------
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--26.4%
- --------------------------------------------------------------------------------
Applied Materials* 99,970 1,624
Intel 80,630 1,873
Nvidia* 39,860 947
Texas Instruments 53,420 1,362
Tyco International 33,760 1,141
Xilinx # 51,210 1,497
--------
Total Semiconductor & other
electronic component
manufacturing 8,444
--------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--12.8%
- --------------------------------------------------------------------------------
Microsoft 59,590 1,441
Oracle* 120,610 1,505
VeriSign* # 39,660 1,138
--------
Total Software publishers 4,084
--------
- --------------------------------------------------------------------------------
TRAVELER ACCOMMODATION--4.8%
- --------------------------------------------------------------------------------
MGM Mirage* 21,430 1,518
--------
Total Traveler accommodation 1,518
--------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $31,207) 31,929
================================================================================
TURNER FUNDS 2005 SEMIANNUAL REPORT 49
>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER CONCENTRATED GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--5.3%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio (1) 1,675,500 $ 1,676
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $1,676) 1,676
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--105.3%
(COST $32,883) 33,605
================================================================================
- --------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES-- (5.3)%
- --------------------------------------------------------------------------------
Obligation to return securities
lending collateral (1,676)
Payable to Custodian (709)
Payable to capital shares redeemed (77)
Payable due to investment adviser (14)
Payable due to administrator (4)
Other assets and liabilities, net 803
- --------------------------------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (1,677)
================================================================================
- --------------------------------------------------------------------------------
NET ASSETS-- 100.0% $31,928
================================================================================
- --------------------------------------------------------------------------------
NET ASSETS CONSIST OF:
- --------------------------------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- no par value)
based on 5,215,714 outstanding shares
of beneficial interest $189,947
Accumulated net investment loss (123)
Accumulated net realized loss
on investments (158,618)
Net unrealized appreciation
on investments 722
- --------------------------------------------------------------------------------
NET ASSETS $31,928
================================================================================
- --------------------------------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- CLASS I SHARES $6.12
================================================================================
* Non-income producing security
# Security fully or partially on loan at March 31, 2005 (see Note 9 in Notes
to Financial Statements). The total value of securities on loan at March 31,
2005, was $1,609,516.
+ Narrow industries are utilized for compliance purposes, whereas broad
sectors are utilized for reporting.
(1) A private placement security. Units are non-transferable but may be redeemed
at the NAV. The Fund lends securities in its 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 102% of the market value of the securities loaned. Cash collateral
received is invested pursuant to the terms of the Lending Agreement in the
Boston Global Investment Trust - Quality Portfolio, a pooled investment
fund. All such investments are made at the risk of the Fund, as such, the
Fund is liable for the investment losses. The Fund receives an annual fee
for its participation in the Lending Agreement based on projected lending
activity.
Cl - Class
The accompanying notes are an integral part of the financial statements.
50 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER NEW ENTERPRISE FUND
March 31, 2005
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--98.9%
- --------------------------------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--3.0%
- --------------------------------------------------------------------------------
National-Oilwell* 5,590 $ 261
--------
Total Agriculture, construction &
mining machinery manufacturing 261
--------
- --------------------------------------------------------------------------------
COMMERCIAL/INDUSTRIAL EQUIPMENT
RENTAL & LEASING--5.5%
- --------------------------------------------------------------------------------
Comverse Technology* 15,780 398
NMS Communications* 21,340 92
--------
Total Commercial/industrial
equipment rental & leasing 490
--------
- --------------------------------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--5.1%
- --------------------------------------------------------------------------------
Apple Computer* 10,920 455
--------
Total Computer & peripheral
equipment manufacturing 455
--------
- --------------------------------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--7.1%
- --------------------------------------------------------------------------------
Ixia* 18,520 329
Witness Systems* 17,260 303
--------
Total Computer systems design &
related services 632
--------
- --------------------------------------------------------------------------------
DATA PROCESSING SERVICES--2.8%
- --------------------------------------------------------------------------------
Global Payments 3,870 250
--------
Total Data processing services 250
--------
- --------------------------------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--2.4%
- --------------------------------------------------------------------------------
Lam Research* 7,210 208
--------
Total Industrial machinery
manufacturing 208
--------
- --------------------------------------------------------------------------------
INFORMATION SERVICES--13.2%
- --------------------------------------------------------------------------------
CNET Networks* # 19,830 187
Google, Cl A* 2,270 410
Internet Capital Group* # 39,400 277
Yahoo!* 8,670 294
--------
Total Information services 1,168
--------
Value
Shares (000)
- --------------------------------------------------------------------------------
INVESTIGATION & SECURITY SERVICES--2.4%
- --------------------------------------------------------------------------------
Cogent* 8,340 $ 210
--------
Total Investigation & security services 210
--------
- --------------------------------------------------------------------------------
MANAGEMENT, SCIENTIFIC &
TECHNICAL CONSULTING SERVICES--3.3%
- --------------------------------------------------------------------------------
Monster Worldwide* 10,310 289
--------
Total Management, scientific &
technical consulting services 289
--------
- --------------------------------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/
CONTROL INSTRUMENTS MANUFACTURING--7.6%
- --------------------------------------------------------------------------------
Advanced Energy Industries* 20,420 197
Fisher Scientific International* 3,970 226
Roper Industries 3,750 246
--------
Total Navigational/measuring/
medical/control instruments
manufacturing 669
--------
- --------------------------------------------------------------------------------
OIL & GAS EXTRACTION--5.0%
- --------------------------------------------------------------------------------
Range Resources 12,430 290
Ultra Petroleum* 3,010 153
--------
Total Oil & gas extraction 443
--------
- --------------------------------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--2.6%
- --------------------------------------------------------------------------------
SEI Investments 6,480 234
--------
Total Other financial
investment activities 234
--------
- --------------------------------------------------------------------------------
OTHER LEATHER & ALLIED PRODUCT
MANUFACTURING--3.2%
- --------------------------------------------------------------------------------
Coach* 5,040 286
--------
Total Other leather & allied
product manufacturing 286
--------
- --------------------------------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--2.4%
- --------------------------------------------------------------------------------
Sepracor* 3,630 208
--------
Total Pharmaceutical &
medicine manufacturing 208
--------
TURNER FUNDS 2005 SEMIANNUAL REPORT 51
>
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER NEW ENTERPRISE FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC COMPONENT MANUFACTURING--8.9%
- --------------------------------------------------------------------------------
Altera* 6,320 $ 125
Amkor Technology* # 24,110 93
Cymer* 8,220 220
Marvell Technology Group* 6,670 256
PMC-Sierra* 10,630 93
--------
Total Semiconductor & other
electronic component
manufacturing 787
--------
- --------------------------------------------------------------------------------
SOFTWARE PUBLISHERS--14.0%
- --------------------------------------------------------------------------------
F5 Networks* 5,370 271
Macromedia* 9,960 333
Mercury Interactive* # 5,250 249
VeriSign* 13,580 390
--------
Total Software publishers 1,243
--------
- --------------------------------------------------------------------------------
SOUND RECORDING INDUSTRIES--2.6%
- --------------------------------------------------------------------------------
DreamWorks Animation SKG, Cl A* 5,540 226
--------
Total Sound recording industries 226
--------
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS--4.0%
- --------------------------------------------------------------------------------
Alamosa Holdings* 10,710 125
Amdocs* 8,070 229
--------
Total Telecommunications 354
--------
- --------------------------------------------------------------------------------
TRAVELER ACCOMMODATION--3.8%
- --------------------------------------------------------------------------------
Wynn Resorts* 4,990 338
--------
Total Traveler accommodation 338
--------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $7,289) 8,751
================================================================================
Value
Shares (000)
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--6.4%
- --------------------------------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio (1) 569,000 $ 569
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $569) 569
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--105.3%
(COST $7,858) $9,320
================================================================================
Percentages are based on net assets of $8,849,805.
* Non-income producing security
# Security fully or partially on loan at March 31, 2005 (see Note 9 in Notes
to Financial Statements). The total value of securities on loan at March 31,
2005, was $525,826.
(1) A private placement security. Units are non-transferable buy may be redeemed
at the NAV. The Fund lends securities in its 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 102% of the market value of the securities loaned. Cash collateral
received is invested pursuant to the terms of the Lending Agreement in the
Boston Global Investment Trust - Quality Portfolio, a pooled investment
fund. All such investments are made at the risk of the Fund, as such, the
Fund is liable for the investment losses. The Fund receives an annual fee
for its participation in the Lending Agreement based on projected lending
activity.
Cl - Class
The accompanying notes are an integral part of the financial statements.
52 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES (000)
Turner
New Enterprise
Fund
----------------------------
3/31/05
- ------------------------------------------------------------------------------------------------------------------------------------
Assets:
- ------------------------------------------------------------------------------------------------------------------------------------
Investment securities, at cost $ 7,858
====================================================================================================================================
Investment securities, at value $ 9,320
Receivable for investment securities sold 934
Receivable for capital shares sold 5
Receivable for dividend and interest income 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 10,260
====================================================================================================================================
Liabilities:
Payable to custodian 826
Obligation to return securities lending collateral 569
Payable due to investment adviser 3
Payable due to administrator 1
Accrued expenses 11
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,410
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets $ 8,850
====================================================================================================================================
Net assets:
Portfolio capital, Class I Shares $17,127
Accumulated net investment loss (67)
Accumulated net realized loss on investments (9,672)
Net unrealized appreciation on investments 1,462
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets $ 8,850
====================================================================================================================================
Outstanding shares of beneficial interest: (1)
Class I Shares (2) 1,756,438
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share, Class I Shares $5.04
====================================================================================================================================
(1) Unlimited authorization-- no par value.
(2) Shares have not been rounded.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2005 SEMIANNUAL REPORT 53
>
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (000)
Turner Turner
Turner Core Strategic Turner
Large Cap Growth Growth Midcap
Growth Fund Fund (1) Fund Growth Fund
--------------------------------------------------------------------------------------
10/1/04 thru 10/1/04 thru 10/1/04 thru 10/1/04 thru
3/31/05 3/31/05 3/31/05 3/31/05
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 256 $ 25 $ 15 $ 1,772
Interest 7 1 1 18
Securities lending 1 -- 1 147
Foreign taxes withheld -- -- -- (5)
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 264 26 17 1,932
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 195 20 25 3,536
Administrator fees 49 4 5 707
Distribution fees (2) -- -- -- 2
Shareholder service fees (2) -- 5 -- 2
Transfer agent fees 56 18 16 919
Custodian fees 18 4 9 133
Professional fees 6 2 1 134
Printing fees 5 1 1 108
Trustees' fees 3 -- -- 36
Registration fees 2 -- -- 20
Insurance and other fees 4 -- -- 47
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses 338 54 57 5,644
Less:
Investment advisory fee waiver (94) (20) (16) --
Reimbursement from adviser -- (4) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 244 30 41 5,644
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 20 (4) (24) (3,712)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from
securities sold 3,095 485 146 51,939
Net unrealized appreciation
(depreciation) of
investment securities (394) (12) 267 68,483
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments 2,701 473 413 120,422
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $2,721 $469 $389 $116,710
====================================================================================================================================
(1) Effective February 25, 2005, the Constellation Funds reorganized the
Constellation TIP Tax Managed U.S. Equity Fund with and into a newly-created
series of the Turner Funds, called the Turner Core Growth Fund. For
additional information see Note 1 in Notes to Financial Statements.
(2) Attributable to Class II Shares only.
Amounts designated as "--" are either $0 or have been rounded to $0
The accompanying notes are an integral part of the financial statements.
54 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
Turner Turner Turner Turner
Small Cap Micro Cap Small Cap Technology
Growth Fund Growth Fund Equity Fund Fund
--------------------------------------------------------------------------------------
10/1/04 thru 10/1/04 thru 10/1/04 thru 10/1/04 thru
3/31/05 3/31/05 3/31/05 3/31/05
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 265 $ 473 $ 98 $ 2
Interest 47 344 18 2
Securities lending 83 128 -- 5
Foreign taxes withheld -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 395 945 116 9
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 1,251 2,049 180 66
Administrator fees 188 307 30 12
Distribution fees (2) -- -- 50 --
Shareholder service fees (2) -- -- -- --
Transfer agent fees 214 355 39 35
Custodian fees 32 39 34 4
Professional fees 38 53 5 3
Printing fees 29 49 5 2
Trustees' fees 10 16 1 1
Registration fees 5 8 1 1
Insurance and other fees 13 20 2 1
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses 1,780 2,896 347 125
Less:
Investment advisory fee waiver (215) (27) (67) (17)
Reimbursement from adviser -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses 1,565 2,869 280 108
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (1,170) (1,924) (164) (99)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from
securities sold 11,128 30,109 80 (240)
Net unrealized appreciation
(depreciation) of
investment securities 694 21,999 1,858 1,358
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments 11,822 52,108 1,938 1,118
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $10,652 $50,184 $1,774 $1,019
====================================================================================================================================
Turner
Concentrated Turner
Growth New Enterprise
Fund Fund
------------------------------------------
10/1/04 thru 10/1/04 thru
3/31/05 3/31/05
- ----------------------------------------------------------------------------------------
Investment Income:
Dividend $ 62 $ 7
Interest 4 2
Securities lending 12 5
Foreign taxes withheld -- --
- ----------------------------------------------------------------------------------------
Total Investment Income 78 14
- ----------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 154 64
Administrator fees 28 10
Distribution fees (2) -- --
Shareholder service fees (2) -- --
Transfer agent fees 37 24
Custodian fees 11 4
Professional fees 6 2
Printing fees 4 2
Trustees' fees 2 1
Registration fees 1 --
Insurance and other fees 2 1
- ----------------------------------------------------------------------------------------
Total expenses 245 108
Less:
Investment advisory fee waiver (44) (27)
Reimbursement from adviser -- --
- ----------------------------------------------------------------------------------------
Net expenses 201 81
- ----------------------------------------------------------------------------------------
Net investment income (loss) (123) (67)
- ----------------------------------------------------------------------------------------
Net realized gain (loss) from
securities sold 2,337 929
Net unrealized appreciation
(depreciation) of
investment securities 253 524
- ----------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments 2,590 1,453
- ----------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $2,467 $1,386
========================================================================================
TURNER FUNDS 2005 SEMIANNUAL REPORT 55
>
FINANCIAL STATEMENTS
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (000)
Turner Large Cap Growth Fund Turner Core Growth Fund (1)
--------------------------------------------------------------------------
10/1/04 thru year ended 10/1/04 thru year ended
3/31/05 9/30/04 3/31/05 9/30/04
- ------------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ 20 $ 110 $ (4) $ (15)
Net realized gain from securities sold 3,095 3,472 485 709
Net change in unrealized
appreciation (depreciation)
of investments (394) (298) (12) (162)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 2,721 3,284 469 532
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares (53) (87) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (53) (87) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 13,387 50,271 -- --
Proceeds from shares issued in lieu
of cash distributions 53 87 -- --
Cost of shares redeemed (20,144) (64,980) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions (6,704) (14,622) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued -- -- 426 341
Cost of shares redeemed -- -- (595) (1,321)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class II
Shares transactions -- -- (169) (980)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions (6,704) (14,622) (169) (980)
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (4,036) (11,425) 300 (448)
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 67,991 79,416 5,080 5,528
- ------------------------------------------------------------------------------------------------------------------------------------
End of year/period $63,955 $ 67,991 $5,380 $5,080
====================================================================================================================================
Undistributed net investment income
(accumulated net investment loss) $ 9 $ 42 $ (4) --
====================================================================================================================================
Shares issued and redeemed:
Class I Shares
Issued 2,652 10,119 -- --
Issued in lieu of cash distributions 10 17 -- --
Redeemed (3,978) (13,274) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares (1,316) (3,138) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- -- 43 39
Redeemed -- -- (61) (152)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decreased) in Class II Shares -- -- (18) (113)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares (1,316) (3,138) (18) (113)
====================================================================================================================================
(1) Effective February 25, 2005, the Constellation Funds reorganized the
Constellation TIP Tax Managed U.S. Equity Fund with and into a newly-created
series of the Turner Funds, called the Turner Core Growth Fund. For
additional information see Note 1 in Notes to Financial Statements.
Amounts designated as "--" are either $0 or have been rounded to $0
The accompanying notes are an integral part of the financial statements.
56 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
Turner Strategic Growth Fund
---------------------------------------------
10/1/04 thru year ended
3/31/05 9/30/04
- ------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (24) $ (33)
Net realized gain from securities sold 146 211
Net change in unrealized
appreciation (depreciation)
of investments 267 (12)
- ------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 389 166
- ------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares -- --
- ------------------------------------------------------------------------------------------------------
Total dividends and distributions -- --
- ------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 3,856 2,372
Proceeds from shares issued in lieu
of cash distributions -- --
Cost of shares redeemed (1,947) (1,659)
- ------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions 1,909 713
- ------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued -- --
Cost of shares redeemed -- --
- ------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class II
Shares transactions -- --
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions 1,909 713
- ------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 2,298 879
- ------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 4,430 3,551
- ------------------------------------------------------------------------------------------------------
End of year/period $6,728 $4,430
======================================================================================================
Undistributed net investment income
(accumulated net investment loss) $ (24) --
======================================================================================================
Shares issued and redeemed:
Class I Shares
Issued 361 235
Issued in lieu of cash distributions -- --
Redeemed (179) (167)
- ------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares 182 68
- ------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- --
Redeemed -- --
- ------------------------------------------------------------------------------------------------------
Increase (decreased) in Class II Shares -- --
- ------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares 182 68
======================================================================================================
Turner Midcap Growth Fund Turner Small Cap Growth Fund
---------------------------------------------------------------------------
10/1/04 thru year ended 10/1/04 thru year ended
3/31/05 9/30/04 3/31/05 9/30/04
- ------------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (3,712) $ (7,574) $ (1,170) $ (2,148)
Net realized gain from securities sold 51,939 78,392 11,128 29,912
Net change in unrealized
appreciation (depreciation)
of investments 68,483 (22,549) 694 (3,548)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 116,710 48,269 10,652 24,216
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 151,574 433,824 37,067 134,231
Proceeds from shares issued in lieu
of cash distributions -- -- -- --
Cost of shares redeemed (193,468) (398,027) (48,488) (114,025)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions (41,894) 35,797 (11,421) 20,206
- ------------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued 259 1,285 -- --
Cost of shares redeemed (233) (268) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class II
Shares transactions 26 1,017 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions (41,868) 36,814 (11,421) 20,206
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 74,842 85,083 (769) 44,422
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 859,294 774,211 237,213 192,791
- ------------------------------------------------------------------------------------------------------------------------------------
End of year/period $ 934,136 $ 859,294 $236,444 $237,213
====================================================================================================================================
Undistributed net investment income
(accumulated net investment loss) $ (3,712) -- $ (1,170) --
====================================================================================================================================
Shares issued and redeemed:
Class I Shares
Issued 6,564 19,641 1,637 6,279
Issued in lieu of cash distributions -- -- -- --
Redeemed (8,274) (18,363) (2,121) (5,366)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares (1,710) 1,278 (484) 913
- ------------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued 11 58 -- --
Redeemed (10) (13) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decreased) in Class II Shares 1 45 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares (1,709) 1,323 (484) 913
====================================================================================================================================
TURNER FUNDS 2005 SEMIANNUAL REPORT 57
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (000)
Turner Micro Cap Growth Fund Turner Small Cap Equity Fund
--------------------------------------------------------------------------------
10/1/04 thru year ended 10/1/04 thru year ended
3/31/05 9/30/04 3/31/05 9/30/04
- ------------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment loss $ (1,924) $ (2,886) $ (164) $ (52)
Net realized gain (loss) from securities sold 30,109 46,458 80 3,270 (1)
Net change in unrealized appreciation
(depreciation) of investments 21,999 17,638 1,858 708
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 50,184 61,210 1,774 3,926
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Realized capital gains
Class I Shares (48,588) (6,514) -- --
Class II Shares -- -- -- (1,316)
Return of capital
Class II Shares -- -- -- (51)
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (48,588) (6,514) -- (1,367)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 69,613 135,004 -- --
Proceeds from shares issued in lieu
of cash distributions 47,598 6,268 -- --
Cost of shares redeemed (48,480) (83,116) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions 68,731 58,156 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued -- -- 27,059 54,757
Proceeds from shares issued in lieu
of cash distributions -- -- -- 1,362
Cost of shares redeemed -- -- (1,309) (42,064) (2)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from
Class II Shares transactions -- -- 25,750 14,055
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
capital share transactions 68,731 58,156 25,750 14,055
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 70,327 112,852 27,524 16,614
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 366,692 253,840 29,171 12,557
- ------------------------------------------------------------------------------------------------------------------------------------
End of year/period $437,019 $366,692 $56,695 $29,171
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulated net investment loss $ (1,925) $ (1) $ (164) --
- ------------------------------------------------------------------------------------------------------------------------------------
Shares issued and redeemed:
Class I Shares
Issued 1,383 2,824 -- --
Issued in lieu of cash distributions 982 137 -- --
Redeemed (970) (1,764) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares 1,395 1,197 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- -- 1,800 4,083
Issued in lieu of cash distributions -- -- -- 106
Redeemed -- -- (88) (3,116)(2)
- ------------------------------------------------------------------------------------------------------------------------------------
Increase in Class II Shares -- -- 1,712 1,073
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares 1,395 1,197 1,712 1,073
- ------------------------------------------------------------------------------------------------------------------------------------
(1) Includes realized gain of $3,104,328 due to in-kind redemption (see Note 10
in Notes to Financial Statements).
(2) Includes redemptions as a result of in-kind transfers of securities (see
Note 10 in Notes to Financial Statements).
Amounts designated as "--" are either $0 or have been rounded to $0
The accompanying notes are an integral part of the financial statements.
58 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
Turner Technology Fund Turner Concentrated Growth Fund
---------------------------------------- --------------------------------------
10/1/04 thru year ended 10/1/04 thru year ended
3/31/05 9/30/04 3/31/05 9/30/04
- -----------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment loss $ (99) $ (309) $ (123) $ (475)
Net realized gain (loss) from securities sold (240) 2,395 2,337 (396)
Net change in unrealized appreciation
(depreciation) of investments 1,358 (1,105) 253 (545)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 1,019 981 2,467 (1,416)
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Realized capital gains
Class I Shares -- -- -- --
Class II Shares -- -- -- --
Return of capital
Class II Shares -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 1,284 5,588 5,073 15,356
Proceeds from shares issued in lieu
of cash distributions -- -- -- --
Cost of shares redeemed (4,626) (10,235) (14,721) (21,835)
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions (3,342) (4,647) (9,648) (6,479)
- -----------------------------------------------------------------------------------------------------------------------------------
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 (3,342) (4,647) (9,648) (6,479)
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (2,323) (3,666) (7,181) (7,895)
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 16,030 19,696 39,109 47,004
- -----------------------------------------------------------------------------------------------------------------------------------
End of year/period $13,707 $ 16,030 $ 31,928 $ 39,109
- -----------------------------------------------------------------------------------------------------------------------------------
Accumulated net investment loss $ (99) -- $ (123) --
- -----------------------------------------------------------------------------------------------------------------------------------
Shares issued and redeemed:
Class I Shares
Issued 209 896 797 2,338
Issued in lieu of cash distributions -- -- -- --
Redeemed (750) (1,714) (2,298) (3,394)
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares (541) (818) (1,501) (1,056)
- -----------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- -- -- --
Issued in lieu of cash distributions -- -- -- --
Redeemed -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in Class II Shares -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares (541) (818) (1,501) (1,056)
- -----------------------------------------------------------------------------------------------------------------------------------
Turner New Enterprise Fund
---------------------------------------
10/1/04 thru year ended
3/31/05 9/30/04
- -------------------------------------------------------------------------------------------
Investment activities:
Net investment loss $ (67) $ (150)
Net realized gain (loss) from securities sold 929 (1,382)
Net change in unrealized appreciation
(depreciation) of investments 524 224
- -------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
resulting from operations 1,386 (1,308)
- -------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Realized capital gains
Class I Shares -- --
Class II Shares -- --
Return of capital
Class II Shares -- --
- -------------------------------------------------------------------------------------------
Total dividends and distributions -- --
- -------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 6,322 25,236
Proceeds from shares issued in lieu
of cash distributions -- --
Cost of shares redeemed (9,663) (26,591)
- -------------------------------------------------------------------------------------------
Increase (decrease) in net assets from
Class I Shares transactions (3,341) (1,355)
- -------------------------------------------------------------------------------------------
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 (3,341) (1,355)
- -------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (1,955) (2,663)
- -------------------------------------------------------------------------------------------
Net assets:
Beginning of year/period 10,805 13,468
- -------------------------------------------------------------------------------------------
End of year/period $ 8,850 $ 10,805
- -------------------------------------------------------------------------------------------
Accumulated net investment loss $ (67) --
- -------------------------------------------------------------------------------------------
Shares issued and redeemed:
Class I Shares
Issued 1,218 4,681
Issued in lieu of cash distributions -- --
Redeemed (1,852) (5,392)
- -------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares (634) (711)
- -------------------------------------------------------------------------------------------
Class II Shares
Issued -- --
Issued in lieu of cash distributions -- --
Redeemed -- --
- -------------------------------------------------------------------------------------------
Increase in Class II Shares -- --
- -------------------------------------------------------------------------------------------
Net increase (decrease) in shares (634) (711)
- -------------------------------------------------------------------------------------------
TURNER FUNDS 2005 SEMIANNUAL REPORT 59
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Realized and
Net asset Net unrealized Dividends Distributions
value, investment gains Total from net from
beginning Income (losses) on from investment capital Total
of period (Loss) investments operations income gains distributions
- ------------------------------------------------------------------------------------------------------------------------------------
Turner Large Cap Growth Fund -- Class I Shares
- ----------------------------------------------
2005* $ 4.83 -- (5) 0.19 0.19 --** -- --
2004 $ 4.62 -- 0.21 0.21 --** -- --
2003 $ 3.50 -- 1.12 1.12 --** -- --
2002 $ 4.70 -- (1.20) (1.20) -- -- --
2001 $ 9.81 -- (5.11) (5.11) -- -- --
2000 (1) $10.00 -- (0.19) (0.19) -- -- --
- --------------------------------------------
Turner Core Growth Fund-- Class II Shares(2)
- --------------------------------------------
2005* $ 8.84 (0.01) 0.83 0.82 -- -- --
2004 $ 8.04 (0.03) 0.83 0.80 -- -- --
2003 $ 6.29 (0.03) 1.78 1.75 -- -- --
2002 $ 8.18 (0.03) (1.86) (1.89) -- -- --
2001(3) $10.00 -- (1.82) (1.82) -- -- --
- ------------------------------------------------
Turner Strategic Growth Fund-- Class I Shares(4)
- ------------------------------------------------
2005* $ 9.88 (0.04) 0.83 0.79 -- -- --
2004 $ 9.35 (0.07) 0.60 0.53 -- -- --
2003 $ 6.59 (0.06) 2.82 2.76 -- -- --
2002 $ 9.01 (0.08) (2.34) (2.42) -- -- --
2001 $26.20 (0.10)(5) (11.63) (11.73) -- (5.46) (5.46)
2000 $18.90 (0.16) 8.94 8.78 -- (1.48) (1.48)
- -------------------------------------------
Turner Midcap Growth Fund -- Class I Shares
- -------------------------------------------
2005* $20.99 (0.09) (5) 2.91 2.82 -- -- --
2004 $19.54 (0.18) (5) 1.63 1.45 -- -- --
2003 $13.78 (0.14) (5) 5.90 5.76 -- -- --
2002 $17.40 (0.14) (3.48) (3.62) -- -- --
2001 $46.52 (0.16) (25.89) (26.05) -- (3.07) (3.07)
2000 $25.53 (0.10) 23.79 23.69 -- (2.70) (2.70)
- --------------------------------------------
Turner Midcap Growth Fund -- Class II Shares
- --------------------------------------------
2005* $20.69 (0.15) (5) 2.87 2.72 -- -- --
2004 $19.36 (0.28) (5) 1.61 1.33 -- -- --
2003 $13.72 (0.23) (5) 5.87 5.64 -- -- --
2002 $17.41 (0.22) (5) (3.47) 3.69 -- -- --
2001 (7) $17.30 -- 0.11 0.11 -- -- --
- ----------------------------------------------
Turner Small Cap Growth Fund -- Class I Shares
- ----------------------------------------------
2005* $21.33 (0.11) 1.00 0.89 -- -- --
2004 $18.88 (0.19) 2.64 2.45 -- -- --
2003 $12.62 (0.12) 6.38 6.26 -- -- --
2002 $15.65 (0.20) (2.83) (3.03) -- -- --
2001 $44.79 (0.04) (18.63) (18.67) -- (10.47) (10.47)
2000 $34.20 (0.12) 17.89 17.77 -- (7.18) (7.18)
* For the six-month period ended March 31, 2005. All ratios for the period
have been annualized.
** Amount represents less than $0.01 per share.
+ Returns are for the period indicated and have not been annualized.
++ Inclusive of directed brokerage arrangements, waivers and reimbursements.
+++ Excludes effect of in-kind transfers and mergers.
(1) Commenced operations on June 14, 2000. All ratios for the period have been
annualized.
(2) Effective February 25, 2005, the Constellation Funds reorganized the
Constellation TIP Tax Managed U.S. Equity Fund with and into a newly-created
series of the Turner Funds, called the Turner Core Growth Fund. Prior to the
reorganization, the Constellation TIP Tax Managed U.S. Equity Fund changed
its name to the Constellation TIP Core Growth Fund. It also changed the
Fund's non-fundamental investment objective from seeking long-term capital
appreciation while attempting to minimize the impact of taxes on the returns
earned by shareholders to seeking long-term capital appreciation. For
additional information see Note 1 in Notes to Financial Statements.
60 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
Net Ratio of Ratio of total
Net asset assets end net expenses expenses
value, end Total of period to average to average
of period return (000) net assets++ net assets
- -----------------------------------------------------------------------------------------------------------------
Turner Large Cap Growth Fund -- Class I Shares
- ----------------------------------------------
2005* $ 5.02 4.01%+ $ 63,955 0.75% 1.04%
2004 $ 4.83 4.64% $ 67,991 0.75% 0.94%
2003 $ 4.62 32.01% $ 79,416 0.75% 0.97%
2002 $ 3.50 (25.53)% $ 59,971 0.65% 0.90%
2001 $ 4.70 (52.09)% $ 53,048 0.74% 1.03%
2000 (1) $ 9.81 (1.90)%+ $ 4,656 0.75% 3.35%
- --------------------------------------------
Turner Core Growth Fund-- Class II Shares(2)
- --------------------------------------------
2005* $ 9.66 9.28%+ $ 5,380 1.13% 2.03%
2004 $ 8.84 9.95% $ 5,080 1.25% 1.97%
2003 $ 8.04 27.82% $ 5,528 1.25% 2.14%
2002 $ 6.29 (23.11)% $ 4,747 1.25% 1.91%
2001(3) $ 8.18 (18.20)%+ $ 6,949 1.25% 5.35%
- ------------------------------------------------
Turner Strategic Growth Fund-- Class I Shares(4)
- ------------------------------------------------
2005* $10.67 8.00%+ $ 6,728 1.25% 1.74%
2004 $ 9.88 5.67% $ 4,430 1.25% 1.83%
2003 $ 9.35 41.88% $ 3,551 1.25% 1.53%
2002 $ 6.59 (26.86)% $ 4,847 1.26%(6) 5.98%(6)
2001 $ 9.01 (53.71)% $ 9,776 1.25%(6) 3.49%(6)
2000 $26.20 47.49% $ 41,555 0.84%(6) 1.37%(6)
- -------------------------------------------
Turner Midcap Growth Fund -- Class I Shares
- -------------------------------------------
2005* $23.81 13.43%+ $ 932,536 1.19% 1.19%
2004 $20.99 7.42% $ 857,899 1.16% 1.16%
2003 $19.54 41.80% $ 773,788 1.15% 1.18%
2002 $13.78 (20.80)% $ 561,244 1.05% 1.16%
2001 $17.40 (59.00)% $ 595,761 1.04% 1.12%
2000 $46.52 97.35% $1,203,756 1.03% 1.07%
- --------------------------------------------
Turner Midcap Growth Fund -- Class II Shares
- --------------------------------------------
2005* $23.41 13.15%+ $ 1,600 1.70% 1.70%
2004 $20.69 6.87% $ 1,395 1.66% 1.66%
2003 $19.36 41.11% $ 423 1.65% 1.68%
2002 $13.72 (21.19)% $ 102 1.55% 1.66%
2001 (7) $17.41 0.64%+ $ 7 1.54% 1.95%
- ----------------------------------------------
Turner Small Cap Growth Fund -- Class I Shares
- ----------------------------------------------
2005* $22.22 4.17%+ $ 236,444 1.25% 1.42%
2004 $21.33 12.98% $ 237,213 1.25% 1.41%
2003 $18.88 49.60% $ 192,791 1.25% 1.41%
2002 $12.62 (19.36)% $ 144,181 1.25% 1.40%
2001 $15.65 (49.81)% $ 241,876 1.25% 1.40%
2000 $44.79 56.07% $ 528,928 1.25% 1.27%
Ratio of net
investment
income (loss) Portfolio
to average turnover
net assets++ rate+++
- ----------------------------------------------
Turner Large Cap Growth Fund -- Class I Shares
- ----------------------------------------------
2005* 0.06% 81.45%
2004 0.11% 165.94%
2003 0.03% 201.35%
2002 -- % 272.99%
2001 (0.14)% 376.49%
2000 (1) (0.14)% 128.14%
- --------------------------------------------
Turner Core Growth Fund-- Class II Shares(2)
- --------------------------------------------
2005* (0.16)% 97.99%
2004 (0.27)% 104.00%
2003 (0.34)% 187.00%
2002 (0.33)% 313.00%
2001(3) (0.20)% 91.00%
- ------------------------------------------------
Turner Strategic Growth Fund-- Class I Shares(4)
- ------------------------------------------------
2005* (0.74)% 105.04%
2004 (0.70)% 262.01%
2003 (0.77)% 282.15%
2002 (0.71)% 391.98%
2001 (0.69)% 400.04%
2000 (0.71)% 131.19%
- -------------------------------------------
Turner Midcap Growth Fund -- Class I Shares
- -------------------------------------------
2005* (0.79)% 66.76%
2004 (0.84)% 167.17%
2003 (0.87)% 208.80%
2002 (0.81)% 259.62%
2001 (0.77)% 335.57%
2000 (0.68)% 306.97%
- --------------------------------------------
Turner Midcap Growth Fund -- Class II Shares
- --------------------------------------------
2005* (1.29)% 66.76%
2004 (1.35)% 167.17%
2003 (1.36)% 208.80%
2002 (1.25)% 259.62%
2001 (7) (1.04)% 335.57%
- ----------------------------------------------
Turner Small Cap Growth Fund -- Class I Shares
- ----------------------------------------------
2005* (0.93)% 71.61%
2004 (0.95)% 151.02%
2003 (0.79)% 187.95%
2002 (0.99)% 188.34%
2001 (0.96)% 176.11%
2000 (0.93)% 203.01%
(3) Commenced operations on February 28, 2001. All ratios for the period have
been annualized.
(4) The information set forth in this table for the periods prior to August 17,
2002, is the financial data of the Mercury Select Growth Fund, Class I
Shares. From the period June 19, 2000, to August 17, 2002 the Mercury Select
Growth Fund operated as a "feeder" fund that seeks to achieve its investment
objective by investing all of its assets in the "master" portfolio, a mutual
fund that has the same investment objective as the Fund. All investments are
made at the master level. This stucture is sometimes called a
"master/feeder" structure. Prior to June 19, 2000, the Fund operated as a
stand-alone investment company called the Turner Large Cap Growth Equity
Fund.
(5) Based on average shares outstanding.
(6) Expense ratios include the Mercury Select Growth Fund's, Class I Shares
portion of the master's allocated expenses.
(7) Commenced operations on September 24, 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.
TURNER FUNDS 2005 SEMIANNUAL REPORT 61
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Realized and
Net asset unrealized Dividends Distributions
value, Net gains Total from net from Return
beginning investment (losses) on from investment capital of
of period loss investments operations income gains Capital
- ------------------------------------------------------------------------------------------------------------------------------------
Turner Micro Cap Growth Fund -- Class I Shares
- ----------------------------------------------
2005* $50.02 (0.13) 6.64 6.51 -- (6.45) --
2004 $41.38 (0.39) 10.04 9.65 -- (1.01) --
2003 $32.04 (0.25) 9.59 9.34 -- -- --
2002 $32.08 (0.33) 0.29 (1) (0.04) -- -- --
2001 $45.92 (0.12) (9.02) (9.14) -- (4.70) --
2000 $21.09 (0.18) 26.52 26.34 -- (1.51) --
- -----------------------------------------------
Turner Small Cap Equity Fund -- Class II Shares
- -----------------------------------------------
2005* $13.92 (0.06) (5) 1.03 0.97 -- -- --
2004 $12.27 (0.02) 2.95 2.93 -- (1.23) (0.05)
2003 $ 9.30 (0.02) 3.00 2.98 (0.01) -- --
2002 (2) $10.00 -- (0.70) (0.70) -- -- --
- ----------------------------------------
Turner Technology Fund -- Class I Shares
- ----------------------------------------
2005* $ 5.55 (0.04) 0.33 0.29 -- -- --
2004 $ 5.31 (0.10) 0.34 0.24 -- -- --
2003 $ 3.03 (0.04) 2.32 2.28 -- -- --
2002 $ 4.88 (0.06) (1.79) (1.85) -- -- --
2001 $32.69 (0.15) (23.42) (23.57) -- (4.24) --
2000 $14.06 (0.16) 20.33 20.17 -- (1.54) --
- ------------------------------------------------
Turner Concentrated Growth Fund-- Class I Shares
- ------------------------------------------------
2005* $ 5.82 (0.02) 0.32 0.30 -- -- --
2004 $ 6.05 (0.07) (0.16) (0.23) -- -- --
2003 $ 4.03 (0.04) 2.06 2.02 -- -- --
2002 $ 5.76 .-- (1.73) (1.73) -- -- --
2001 $24.74 (0.09) (14.96) (15.05) -- (3.93) --
2000 $13.99 (0.11) 13.06 12.95 -- (2.20) --
- --------------------------------------------
Turner New Enterprise Fund -- Class I Shares
- --------------------------------------------
2005* $ 4.52 (0.03) (5) 0.55 0.52 -- -- --
2004 $ 4.34 (0.06) 0.24 (1) 0.18 -- -- --
2003 $ 2.27 (0.02) 2.09 2.07 -- -- --
2002 $ 3.29 (0.04) (0.98) (1.02) -- -- --
2001 (3) $12.52 (0.03) (9.20) (9.17) -- -- --
2000 (4) $10.00 (0.01) 2.53 2.52 -- -- --
* For the six-month period ended March 31, 2005. 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) The amount shown for a share outstanding throughout the period does not
accord with the aggregate net losses on investments for the period because
of the sales and repurchases of fund shares in relation to fluctuating
market value of the investments of the Fund.
(2) Commenced operations on March 4, 2002. All ratios for the period have been
annualized.
(3) On May 18, 2001, the Board of Trustees of Turner Funds approved resolutions
to change the name of the B2B E-Commerce Fund to the Turner New Enterprise
Fund and to change a non-fundamental investment policy of the Fund to be
consistent with the Turner New Enterprise Fund's investment objectives.
(4) Commenced operations on June 30, 2000. All ratios for the period have been
annualized.
(5) Based on average shares outstanding.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
62 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
Net Ratio of Ratio of total
Net asset assets end net expenses expenses
Total value, end Total of period to average to average
distributions of period return (000) net assets++ net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Turner Micro Cap Growth Fund -- Class I Shares
- ----------------------------------------------
2005* (6.45) $50.08 13.45%+ $437,019 1.40% 1.41%
2004 (1.01) $50.02 23.54% $366,692 1.40% 1.42%
2003 -- $41.38 29.15% $253,840 1.40% 1.44%
2002 -- $32.04 (0.12)% $178,130 1.31% 1.42%
2001 (4.70) $32.08 (20.23)% $160,010 1.25% 1.40%
2000 (1.51) $45.92 129.02% $187,107 1.25% 1.35%
- -----------------------------------------------
Turner Small Cap Equity Fund -- Class II Shares
- -----------------------------------------------
2005* -- $14.89 6.97%+ $ 56,695 1.39% 1.72%
2004 (1.28) $13.92 24.75% $ 29,171 1.35% 1.94%
2003 (0.01) $12.27 32.04% $ 12,557 1.32% 2.05%
2002 (2) -- $ 9.30 (7.00)%+ $ 7,260 1.35% 3.02%
- ----------------------------------------
Turner Technology Fund -- Class I Shares
- ----------------------------------------
2005* -- $ 5.84 5.23%+ $ 13,707 1.29% 1.50%
2004 -- $ 5.55 4.52% $ 16,030 1.65% 1.80%
2003 -- $ 5.31 75.25% $ 19,696 1.13% 1.49%
2002 -- $ 3.03 (37.91)% $ 11,662 0.88% 1.43%
2001 (4.24) $ 4.88 (81.12)% $ 25,147 1.21% 1.58%
2000 (1.54) $32.69 149.35% $169,353 1.35% 1.67%
- ------------------------------------------------
Turner Concentrated Growth Fund-- Class I Shares
- ------------------------------------------------
2005* -- $ 6.12 5.15%+ $ 31,928 1.07% 1.30%
2004 -- $ 5.82 (3.80)% $ 39,109 1.42% 1.57%
2003 -- $ 6.05 50.12% $ 47,004 1.23% 1.60%
2002 -- $ 4.03 (30.03)% $ 29,182 0.30% 1.17%
2001 (3.93) $ 5.76 (70.40)% $ 56,803 1.05% 1.32%
2000 (2.20) $24.74 98.58% $246,621 1.26% 1.62%
- --------------------------------------------
Turner New Enterprise Fund -- Class I Shares
- --------------------------------------------
2005* -- $ 5.04 11.50%+ $ 8,850 1.19% 1.59%
2004 -- $ 4.52 4.15% $ 10,805 1.18% 1.51%
2003 -- $ 4.34 91.19% $ 13,468 1.16% 1.99%
2002 -- $ 2.27 (31.00)% $ 3,198 0.98% 2.04%
2001 (3) -- $ 3.29 (73.72)% $ 6,144 1.28% 3.13%
2000 (4) -- $12.52 25.20%+ $ 13,750 1.35% 2.87%
Ratio of net
investment
loss Portfolio
to average turnover
net assets++ rate+++
- --------------------------------------------------
Turner Micro Cap Growth Fund -- Class I Shares
- ----------------------------------------------
2005* (0.94)% 38.67%
2004 (0.85)% 122.45%
2003 (0.81)% 147.77%
2002 (0.88)% 88.89%
2001 (0.50)% 121.96%
2000 (0.79)% 179.08%
- -----------------------------------------------
Turner Small Cap Equity Fund -- Class II Shares
- -----------------------------------------------
2005* (0.81)% 88.99%
2004 (0.25)% 221.99%
2003 (0.26)% 287.39%
2002 (2) (0.07)% 86.94%
- ----------------------------------------
Turner Technology Fund -- Class I Shares
- ----------------------------------------
2005* (1.19)% 65.54%
2004 (1.50)% 331.52%
2003 (0.97)% 523.75%
2002 (0.84)% 734.40%
2001 (1.10)% 727.24%
2000 (1.10)% 1,340.92%
- ------------------------------------------------
Turner Concentrated Growth Fund-- Class I Shares
- ------------------------------------------------
2005* (0.65)% 177.92%
2004 (0.99)% 498.78%
2003 (0.90)% 762.18%
2002 (0.03)% 1,182.61%
2001 (0.76)% 1,117.77%
2000 (0.90)% 1,590.94%
- --------------------------------------------
Turner New Enterprise Fund -- Class I Shares
- --------------------------------------------
2005* (1.38)% 115.61%
2004 (0.83)% 382.08%
2003 (0.95)% 451.37%
2002 (0.92)% 754.09%
2001 (3) (1.04)% 758.98%
2000 (4) (0.83)% 83.02%
TURNER FUNDS 2005 SEMIANNUAL REPORT 63
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
March 31, 2005
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 ten active portfolios. The financial statements included
herein are those of the Turner Large Cap Growth Fund (the "Large Cap Growth
Fund" (formerly the Turner Disciplined Large Cap Growth Fund)), the Turner Core
Growth Fund (the "Core Growth Fund"), the Turner Strategic Growth Fund (the
"Strategic Growth Fund" (formerly the Turner Large Cap Growth Opportunities
Fund)), the Turner Midcap Growth Fund (the "Midcap Growth Fund"), the Turner
Small Cap Growth Fund (the "Small Cap Growth Fund"), the Turner Micro Cap Growth
Fund (the "Micro Cap Growth Fund"), the Turner Small Cap Equity Fund, (the
"Small Cap Equity Fund"), the Turner Technology Fund (the "Technology Fund"),
the Turner Concentrated Growth Fund (the "Concentrated Growth Fund") and the
Turner New Enterprise Fund (the "New Enterprise Fund"), each a "Fund" and
collectively the "Funds."
Each Fund is registered as a diversified portfolio of the Trust with the
exception of the Large Cap Growth Fund, the Strategic Growth Fund and the
Concentrated Growth Fund, each of which are non-diversified.
The Funds are registered to offer different classes of shares: Class I Shares,
Class II Shares, or both. The assets of each Fund are segregated, and a
shareholder's interest is limited to the Fund in which shares are held. The
Funds' prospectus provides a description of each Fund's investment objectives,
policies, and strategies along with information on the classes of shares
currently being offered.
Effective February 25, 2005, the Board of Trustees (the "Board") of the
Constellation Funds voted to approve a proposal to reorganize the Constellation
TIP Tax Managed U.S. Equity Fund with and into a newly-created series of the
Turner Funds, called the Turner Core Growth Fund. Prior to the reorganization,
the Constellation TIP Tax Managed U.S. Equity Fund changed its name to the
Constellation TIP Core Growth Fund. It also changed the Fund's non-fundamental
investment objective from seeking long-term capital appreciation while
attempting to minimize the impact of taxes on the returns earned by shareholders
to seeking long-term capital appreciation. Each shareholder received a number of
shares of the Turner Core Growth Fund equal in dollar value and in the number of
shares of the Constellation TIP Tax Managed U.S. Equity Fund.
The Turner Core Growth Fund's Statement of Operations and Statements of Changes
include activity of the Constellation TIP Tax Managed U.S. Equity Fund prior to
the reorganization on February 25, 2005.
As of March 31, 2005, the Turner International Opportunities Fund and the Turner
International Discovery Fund are also registered as diversified portfolios of
the Trust, but have not yet commenced operations.
The Micro Cap Growth and Small Cap Growth Funds were closed to new investors on
March 7, 2000 and July 31, 2004, respectively.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of the significant accounting policies followed by
the Funds.
USE OF ESTIMATES--The preparation of financial statements in conformity with
U.S. generally accepted accounting principles 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--Securities listed on a securities exchange, market or
automated quotation system for which quotations are readily available (except
for securities traded on NASDAQ) are valued at the last quoted sale price on
the primary exchange or market (foreign or domestic) on which they are
traded, or, if there is no such reported sale, at the most recent quoted bid
price. For securities traded on NASDAQ, the NASDAQ Official Closing Price
will be used. Prices for most securities held in the Funds are provided daily
by recognized independent pricing agents.If a security price cannot be
obtained from an independent, third-party pricing agent, the Funds seek to
obtain a bid price from at least one independent broker.
Securities for which market prices are not "readily available" are valued in
accordance with Fair Value Procedures established by the Board. The Funds'
Fair Value Procedures are implemented through a Fair Value Committee (the
"Committee") designated by the Board. Some of the more common reasons that
may necessitate that a security be valued using Fair Value Procedures
include: the security's trading has been halted or suspended; the security
has been delisted from a national exchange; the security's primary trading
market is temporarily closed at a time when under normal conditions it would
be open; or the security's primary pricing source is not able or willing to
provide a price. When a security is valued in accordance with the Fair Value
Procedures, the Committee will determine the value after taking into
consideration relevant information reasonably available to the Committee.
SECURITY TRANSACTIONS AND RELATED INCOME--Security transactions are accounted
for on the date the security is purchased or sold (trade date). Dividend
income is recognized on the ex-dividend date. Costs used in
64 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
determining realized gains and losses on the sales of investment securities
are those of the specific securities sold during the respective holding
period.
REPURCHASE AGREEMENTS--Securities pledged as collateral for repurchase
agreements are held by the custodian bank until the respective agreements
mature. Provisions of the repurchase agreements ensure that the market value
of the collateral, including accrued interest thereon, is not less than 100%.
In the event of default of the counterparty and the value of the collateral
declines or if the counterparty enters an insolvency proceeding, realization
of the collateral by the Funds may be delayed or limited.
EXPENSES--Expenses that are specifically attributed to one of the Funds are
charged to that Fund. Certain other expenses of the Funds are prorated among
the Funds on the basis of relative daily net assets. Other common expenses of
the Trust are allocated among the Funds on the basis of relative daily net
assets.
CLASSES--Class specific expenses are borne by that class. Income, non-class
specific expenses and realized/unrealized gains and losses are allocated to
the respective classes on the basis of the relative daily net assets.
DIVIDENDS AND DISTRIBUTIONS--The Funds declare and distribute net investment
income, if any, annually, as a dividend to shareholders. Any net realized
capital gains on sales of securities for all Funds are distributed to
shareholders at least annually.
3. TRANSACTIONS WITH AFFILIATES:
Certain officers and trustees 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. With the exception of the
Trust's Chief Compliance Officer, such officers are paid no fees by the Trust
for serving as officers and trustees of the Trust.
Constellation Investment Distribution Company, Inc. (the "Distributor") provides
distribution services and shareholder servicing to the Funds under separate
Distribution and Shareholder Servicing Agreements.
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
and 0.12% of the aggregate average daily net assets of the Trust over $2
billion. Under a separate Sub-Administration Agreement between Turner and SEI,
SEI provides sub-administrative services to the Trust. For the six-months ended
March 31, 2005, SEI was paid $380,325 by Turner.
The Large Cap Growth, Core Growth, Strategic Growth, Midcap Growth, Small Cap
Equity and Concentrated Growth Funds have adopted a Distribution and Shareholder
Service Plan for their Class II Shares (the "Class II Plan"). Under the Class II
Plan, a Plan adopted pursuant to Rule 12b-1 under the Investment Company Act of
1940, as amended, the Distributor is entitled to receive aggregate fees not
exceeding 0.75% of each Fund's Class II Shares' average daily net assets in
return for providing a broad range of distribution services. Currently, the
Distributor receives aggregate fees of 0.25% of each Fund's Class II Shares'
average daily net assets. In addition, under the Class II Plan, the Distributor
is entitled to receive aggregate fees not exceeding 0.25% of each Fund's Class
II Shares' average daily net assets in return for providing a broad range of
shareholder services.
DST Systems, Inc. serves as the transfer agent and dividend disbursing agent for
the Funds under a transfer agency agreement with the Trust. The following Funds
reimbursed Turner for amounts paid to third parties that provide sub-transfer
agency and other administrative services to the Funds during the six-month
period ended March 31, 2005:
AMOUNT
------------
Large Cap Growth Fund $ 34,143
Core Growth Fund 5,831
Strategic Growth Fund 2,471
MidCap Growth Fund 751,487
Small Cap Growth Fund 174,631
Micro Cap Growth Fund 298,009
Small Cap Equity Fund 22,748
Technology Fund 9,509
Concentrated Growth Fund 13,147
New Enterprise Fund 9,414
5. INVESTMENT ADVISORY AGREEMENT:
The Trust and Turner are parties to an Investment Advisory Agreement dated April
28, 1996 under which Turner receives a fee, that is calculated daily and paid
monthly, based on the average daily net assets of certain Funds. Pursuant to an
Advisory Agreement dated February 28, 2002, Turner Investment Management, LLC,
an affiliate of Turner serves as the investment adviser for the Small Cap Equity
Fund.
For its services, Turner and Turner Investment Management, LLC receive annual
fees, which are calculated daily and paid 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 ter-
TURNER FUNDS 2005 SEMIANNUAL REPORT 65
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
minated at any time. Accordingly, the advisory fee and expense caps for certain
Funds are as follows:
TOTAL
ADVISORY EXPENSE
FEES CAP
----- ------
Large Cap Growth Fund 0.60% 0.75%
Core Growth Fund 0.75 0.59
Strategic Growth Fund 0.75 1.25
Midcap Growth Fund 0.75 1.25(1)
Small Cap Growth Fund 1.00 1.25
Micro Cap Growth Fund 1.00 1.40
Small Cap Equity Fund(2) 0.95 1.45
(1) REPRESENTS MAXIMUM EXPENSE RATIO FOR CLASS I SHARES WHERE FUNDS OFFER BOTH
CLASS I SHARES AND CLASS II SHARES.
(2) TURNER MANAGEMENT, LLCHAD CONTRACTUALLY AGREED TO REDUCE THE ADVISORY FEE BY
0.10% FROM 0.95% TO 0.85% AND TO KEEP "OTHER" EXPENSES FROM EXCEEDING 0.25%
THROUGH JANUARY 31, 2005. EFFECTIVE FEBRUARY 1, 2005 THIS WAIVER WAS
DISCONTINUED.
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.
Effective April 1, 2005, the Fund's base fee (1.10% for all Funds) is accrued
daily and paid monthly, based on the Fund's average net assets during the
current month. Prior to April 1, 2005, the Fund's advisory fee was accrued daily
based on the lowest advisory fee rate (0.70% for all Funds) and adjusted at
month end for relative performance.
The performance adjustment is calculated and paid monthly by comparing the
Fund's performance to that of the Fund's performance benchmark over the current
month plus the previous 11 months (the "performance period"). The annual
performance adjustment rate is multiplied by the average net assets of the Fund
over the entire performance period, which is then multiplied by a fraction, the
numerator of which is the number of days in the month and the denominator of
which is 365 (366 in leap years). The resulting amount is then added to (in the
case of overperformance) or subtracted from (in the case of underperformance)
the Fund's base fee.
In cases where the advisory fee is comprised of a base fee and a performance
adjustment, Turner has voluntarily agreed to waive all or a portion of their
fees and to reimburse expenses in order to keep such Fund's "other expenses"
(excluding distribution fees) from exceeding a specified percentage of the
average daily net assets of the Fund on an annualized basis. Accordingly, the
base advisory fee, annual adjustment rate, over/under performance relative to
the benchmark threshold, and other expense cap are as follows:
BASE ANNUAL OTHER
ADVISORY ADJUSTMENT BENCHMARK EXPENSES
FEE RATE THRESHOLD(1) CAP
------ ------- ----------- --------
Technology Fund 1.10% +/-0.40% +/-2.00% 0.50%
Concentrated Growth Fund 1.10 +/-0.40 +/-2.50 0.25
New Enterprise Fund 1.10 +/-0.40 +/-2.50 0.25
(1) SEE THE FUND'S PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION FOR MORE
INFORMATION REGARDING THE FUNDS' PERFORMANCE BENCHMARK.
During the six-month period ended March 31, 2005, the Funds' advisory fees were
adjusted in accordance with the policy described above:
BASE NET ADVISORY
ADVISORY PERFORMANCE FEE BEFORE
FEE ADJUSTMENT WAIVERS
------- ---------- --------
Technology Fund $ 91,455 $(25,333) $ 66,122
Concentrated Growth Fund 207,453 (53,406) 154,047
New Enterprise Fund 74,913 (10,795) 64,118
6. INVESTMENT TRANSACTIONS:
The cost of security purchases and the proceeds from security sales, other than
short-term investments, for the six-month period ended March 31, 2005, were as
follows (000):
PURCHASES SALES
----------- ----------
Large Cap Growth Fund $ 52,600 $ 57,858
Core Growth Fund 5,216 5,519
Strategic Growth Fund 8,507 6,676
Midcap Growth Fund 629,491 686,786
Small Cap Growth Fund 175,600 177,082
Micro Cap Growth Fund 143,952 159,224
Small Cap Equity Fund 60,277 34,552
Technology Fund 10,694 13,740
Concentrated Growth Fund 65,692 75,492
New Enterprise Fund 14,867 18,545
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, if any, 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.
66 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
(Unaudited)
- --------------------------------------------------------------------------------
The tax character of dividends and distributions declared during the years ended
September 30, 2004 and September 30, 2003 were as follows (000):
ORDINARY LONG-TERM RETURN OF
INCOME CAPITAL GAIN CAPITAL TOTAL
-------- ------------ -------- -----
Large Cap Growth Fund
2004 $ 87 $ -- $ -- $ 87
2003 3 -- -- 3
Micro Cap Growth Fund
2004 330 6,184 -- 6,514
2003 -- -- -- --
Small Cap Equity Fund
2004 1,006 310 51 1,367
2003 6 -- -- 6
As of September 30, 2004, the components of distributable earnings (accumulated
losses) on a tax basis were as follows (000):
TOTAL
DISTRIBUTABLE
UNDISTRIBUTED UNDISTRIBUTED CAPITAL POST- EARNINGS
ORDINARY LONG-TERM LOSS OCTOBER UNREALIZED (ACCUMULATED
INCOME CAPITAL GAIN CARRYFORWARD LOSSES APPRECIATION LOSSES)
------------- ------------ ------------ ------- ------------ -------------
Large Cap Growth Fund $ 41 $ -- $ (30,532) $ -- $ 7,379 $ (23,112)
Core Growth Fund -- -- (1,996) -- 699 (1,297)
Strategic Growth Fund -- -- (13,390) -- 350 (13,040)
Midcap Growth Fund -- -- (611,073) -- 96,991 (514,082)
Small Cap Growth Fund -- -- (153,296) -- 29,443 (123,853)
Micro Cap Growth Fund 3,460 35,481 -- -- 70,408 109,349
Small Cap Equity Fund -- -- -- (200) 1,843 1,643
Technology Fund -- -- (130,561) -- 435 (130,126)
Concentrated Growth Fund -- -- (157,347) (3,566) 427 (160,486)
New Enterprise Fund -- -- (8,383) (2,194) 914 (9,663)
Post-October losses represent losses realized on investment transactions from
November 1, 2003 through September 30, 2004 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, 2004, the Funds had capital loss carryforwards available to
offset future realized capital gains through the indicated expiration dates
(000):
EXPIRING SEPTEMBER 30,
-----------------------------------------------------------------------------
2009 2010 2011 TOTAL
---------------- ------------------ ------------------ ------------------
Large Cap Growth Fund $ -- $ 15,394 $ 15,138 $ 30,532
Core Growth Fund -- 179 1,817 1,996
Strategic Growth Fund 1,852 8,526 3,012 13,390
Midcap Growth Fund -- 481,574 129,499 611,073
Small Cap Growth Fund -- 127,301 25,995 153,296
Technology Fund 13,991 108,584 7,986 130,561
Concentrated Growth Fund 11,968 132,529 12,850 157,347
New Enterprise Fund 815 7,183 385 8,383
During the year ended September 30, 2004, the Large Cap Growth Fund, Core Growth
Fund, Strategic Growth Fund, Midcap Growth Fund, Small Cap Growth Fund,
Technology Fund, Concentrated Growth Fund, and New Enterprise Fund utilized
capital loss carryforwards of $3,360,681, $691,319, $175,954, $79,483,450,
$29,946,092, $2,490,308, $2,985,261, and $835,882, respectively, to offset
capital gains.
TURNER FUNDS 2005 SEMIANNUAL REPORT 67
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
At March 31, 2005, 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 Growth Fund $ 57,784 $ 8,675 $ (1,592) $ 7,083
Core Growth Fund 4,696 798 (110) 688
Strategic Growth Fund 6,147 807 (207) 600
Midcap Growth Fund 805,243 183,189 (16,006) 167,183
Small Cap Growth Fund 234,479 39,724 (9,478) 30,246
Micro Cap Growth Fund 464,477 99,919 (7,508) 92,411
Small Cap Equity Fund 53,506 4,841 (1,117) 3,724
Technology Fund 12,045 2,216 (423) 1,793
Concentrated Growth Fund 32,895 1,678 (968) 710
New Enterprise Fund 7,910 1,592 (182) 1,410
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 102% of the
market value of the securities loaned. Cash collateral received is invested
pursuant to the terms of the Lending Agreement in the Boston Global Investment
Trust -- Quality Portfolio, a pooled investment fund. All such investments are
made at the risk of the Funds and, as such, the Funds are liable for investment
losses. The Funds receive an annual fee for their participation in the Lending
Agreement based on projected lending activity.
In the event of bankruptcy of the borrower, realization/retention of the
collateral may be subject to legal proceedings.
10. IN-KIND TRANSFER OF SECURITIES:
On June 24, 2004, the shareholders of the Small Cap Equity Fund redeemed
2,313,555 shares of beneficial interest in exchange for portfolio assets. The
securities were transferred at their current value of $28,634,186 on the date of
the transaction with a gain of $3,104,328.
11. SUBSEQUENT EVENT:
On May 1, 2005, the Turner Small Cap Equity Fund was closed to new investors.
68 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
BOARD OF TRUSTEES CONSIDERATIONS IN APPROVING
THE ADVISORY AGREEMENT (Unaudited)
- --------------------------------------------------------------------------------
On November 19, 2004, the Board of Trustees had met to decide whether to approve
the investment advisory agreement (the "Advisory Agreement") with respect to the
Core Growth Fund. In preparation for the meeting, the Board requested and
reviewed a wide variety of information from Turner Investment Partners, Inc.
(the "Adviser"), including, among other things: (1) the performance of the
Constellation TIP Tax Managed U.S. Equity Fund (which was proposed to be
reorganized into the newly formed Core Growth Fund) (the "Predecessor Fund")
over 1, 3, 6 and 9 months and one, two, three and five year periods ended
September 30, 2004 compared to the Predecessor Fund's benchmarks; (2) the
contractual and actual compensation proposed to be paid under the Advisory
Agreement as compared to the compensation paid to relevant peer groups; and (3)
the proposed expense ratio of the Fund, with expense waivers, as compared to
expense ratios for relevant peer groups. At the meeting, representatives from
the Adviser presented additional oral and written information to the Trustees to
help them evaluate the Adviser's fees and other aspects of their Advisory
Agreement. The Trustees discussed the written materials that they received
before the meeting and the Adviser's oral presentation and other information
that the Trustees received at the meeting, and deliberated on the approval of
the Adviser's Advisory Agreement in light of this information. In their
deliberations, the Trustees did not identify any single piece of information
that was all-important or controlling.
Based on the Board's deliberations and its evaluation of the information
described above, the Trustees, including all of the non-interested Trustees,
unanimously: (a) concluded that the compensation payable to the Adviser pursuant
to the Advisory Agreement with respect to the Core Growth Fund was fair and
equitable; and (b) agreed to approve the Advisory Agreement for the Core Growth
Fund.
On February 18, 2005, the Board held a meeting to decide whether to renew the
Advisory Agreements for the upcoming year. In preparation for the meeting, the
Board requested and reviewed a wide variety of information from the Adviser and
Turner Investment Management LLC (each an "Adviser" and together the
"Advisers").
The materials described, among other things: (1) the nature, extent and quality
of the services provided by the Adviser; (2) the performance of the Funds over
1, 3, 6 and 9 months and one, two, three and five year periods ended December
31, 2004 compared to the Funds' benchmarks and versus each Fund's respective
peer group for the one- and three-year periods ended September 30, 2004; (3) the
contractual and actual compensation to be paid under the Advisory Agreements as
compared to the compensation paid to relevant peer groups, and the contractual
advisory fees versus internal ly determined peer groups; (4) the expense ratios
of the Funds, with expense waivers, as compared to expense ratios for relevant
peer groups; (5) the qualifications of the Adviser's personnel, portfolio
management capabilities and investment methodologies; (6) the Adviser's
operations, compliance program and policies; (7) the financial condition of the
Adviser; (8) the cost of services to be provided by the Adviser and the
Adviser's profitability from each Fund for the year ended September 30, 2004;
(9) "fall-out" benefits to the Adviser and its affiliates from the relationship
with the Funds; and (10) the extent to which economies of scale are relevant
given the Funds' current asset size and current asset growth potential. At the
meeting, representatives from the Advisers presented additional oral and written
information to the Trustees to help them evaluate the Advisers' fees and other
aspects of their Advisory Agreements. Other Fund service providers also provided
the Board with additional information at the meeting. The Trustees discussed the
written materials that they received before the meeting and the Advisers' oral
presentation and any other information that the Trustees received at the
meeting, and deliberated on the approval of the Advisers' Advisory Agreements in
light of this information. In its deliberations, the Trustees did not identify
any single piece of information that was all-important or controlling.
The independent Trustees, in executive session, reached the following
conclusions, among others, regarding the Advisers and the Advisory Agreements:
the performance of the Funds was generally competitive (in some cases
performance was higher than the median and in others it was lower); the gross
and net advisory fees were generally competitive (in some cases they were above
the median and in other cases they were below the median); and the gross and net
total expense ratios of the Funds were generally competitive (while in some
cases the gross total expense ratio was higher than the median, the net total
expense ratios of all of the Funds were below their respective medians). The
independent Trustees also concluded that: they were satisfied with the quality
of services provided by the Adviser in advising the Funds; the profits earned by
the Adviser seemed reasonable in light of the nature, extent and quality of the
services provided to each Fund; and that each Fund was not large enough to
attain significant economies of scale.
Based on the Board's deliberations and its evaluation of the information
described above, the Trustees, including all of the non-interested Trustees,
unanimously: (a) concluded that terms of the Advisers' Advisory Agreements were
fair and reasonable; (b) concluded that the Advisers' fees are reasonable in
light of the services that they provide to the Funds; and (c) agreed to renew
the Advisory Agreements for another year.
TURNER FUNDS 2005 SEMIANNUAL REPORT 69
DISCLOSURE OF FUND EXPENSES (Unaudited)
- --------------------------------------------------------------------------------
All mutual funds have operating expenses. As a shareholder of a mutual fund,
your investment is affected by these ongoing costs, which include (among others)
costs for portfolio management, distribution (12b-1) and/or shareholder services
and other expenses. It is important for you to understand the impact of these
costs on your investment returns. Operating expenses such as these are deducted
from the Fund's gross income and directly reduce your final investment return.
These expenses are expressed as a percentage of the Fund's average net assets;
this percentage is known as the Fund's expense ratio.
The following examples use the expense ratio and are intended to help you
understand the ongoing costs (in dollars) of investing in your Fund and to
compare these costs with those of other mutual funds. The examples are based on
an investment of $1,000 made at the beginning of the period shown and held for
the entire period.
The table below illustrates your Fund's costs in two ways:
o ACTUAL FUND RETURN. This section helps you to estimate the actual expenses
after fee waivers that your Fund incurred over the period. The "Expenses Paid
During Period" column shows the actual dollar expense cost incurred by a $1,000
investment in the Fund, and the "Ending Account Value" number is derived from
deducting that expense cost from the Fund's gross investment return.
You can use this information, together with the actual amount you invested in
the Fund, to estimate the expenses you paid over that period. Simply divide your
actual account value by $1,000 to arrive at a ratio (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply that ratio by the number
shown for your Fund under "Expenses Paid During Period".
o HYPOTHETICAL 5% RETURN. This section helps you compare your Fund's costs with
those of other mutual funds. It provides information about hypothetical account
values and expenses based on a Fund's actual expense ratio (column 3) and an
assumed rate of return of 5% per year before expenses, which is not the Fund's
actual return. This section is useful in making comparisons because the
Securities and Exchange Commission requires all mutual funds to make this 5%
calculation. You can assess your Fund's comparative cost by comparing the
hypothetical result for your Fund in the "Expense Paid During Period" column
with those that appear in the same charts in the shareholder reports for other
mutual funds.
NOTE: Because the return is set at 5% for comparison purposes -- NOT your Fund's
actual return -- the hypothetical account values and expenses may not be used to
estimate your actual ending account balance or expenses you paid for the period.
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/01/04 3/31/05 RATIOS PERIOD*
- --------------------------------------------------------------------------------
Turner Large Cap Growth Fund
- --------------------------------------------------------------------------------
Actual Fund Return $1,000.00 $1,040.10 0.75% $3.81
Hypothetical Fund
Return 1,000.00 1,021.19 0.75 3.78
- --------------------------------------------------------------------------------
Turner Core Growth Fund
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,092.80 1.13 5.90
Hypothetical Fund
Return 1,000.00 1,019.30 1.13 5.69
- --------------------------------------------------------------------------------
Turner Strategic Growth Fund
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,080.00 1.25 6.48
Hypothetical Fund
Return 1,000.00 1,018.70 1.25 6.29
- --------------------------------------------------------------------------------
Turner Midcap Growth Fund Class I Shares
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,134.30 1.19 6.33
Hypothetical Fund
Return 1,000.00 1,019.00 1.19 5.99
- --------------------------------------------------------------------------------
Turner Midcap Growth Fund Class II Shares
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,131.50 1.70 9.03
Hypothetical Fund
Return 1,000.00 1,016.45 1.70 8.55
- --------------------------------------------------------------------------------
Turner Small Cap Growth Fund
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,041.70 1.25 6.36
Hypothetical Fund
Return 1,000.00 1,018.70 1.25 6.29
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/01/04 3/31/05 RATIOS PERIOD*
- --------------------------------------------------------------------------------
Turner Micro Cap Growth Fund
- --------------------------------------------------------------------------------
Actual Fund Return $1,000.00 $1,134.50 1.40% $7.45
Hypothetical Fund
Return 1,000.00 1,017.95 1.40 7.04
- --------------------------------------------------------------------------------
Turner Small Cap Equity Fund
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,069.70 1.39 7.17
Hypothetical Fund
Return 1,000.00 1,018.00 1.39 6.99
- --------------------------------------------------------------------------------
Turner Technology Fund
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,052.30 1.29 6.60
Hypothetical Fund
Return 1,000.00 1,018.50 1.29 6.49
- --------------------------------------------------------------------------------
Turner Concentrated Growth Fund
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,051.50 1.07 5.47
Hypothetical Fund
Return 1,000.00 1,019.60 1.07 5.39
- --------------------------------------------------------------------------------
Turner New Enterprise Fund
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,115.00 1.19 6.27
Hypothetical Fund
Return 1,000.00 1,019.00 1.19 5.99
- --------------------------------------------------------------------------------
*Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 182/365 (to reflect the
one-half year period from 10/1/04 - 3/31/05)
70 TURNER FUNDS 2005 SEMIANNUAL REPORT
>
THIS PAGE WAS INTENTIONALLY LEFT BLANK
TURNER FUNDS 2005 SEMIANNUAL REPORT 71
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 REGISTERED PUBLIC ACCOUNTING FIRM
KPMG 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 Fund's Forms N-Q are available on the Commission's website at
http://www.sec.gov, and may be reviewed and copied at the Commission's Public
Reference Room in Washington, DC. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
The Board of Trustees of the Turner Funds has delegated responsibility for
decisions regarding proxy voting for securities held by each Fund to Turner
Investment Management, LLC ("TIM") (with respect to the Small Cap Equity Fund
only) and to Turner Investment Partners, Inc. (with respect to each other Fund).
TIM and Turner Investment Partners, Inc., will vote such proxies in accordance
with their respective proxy policies and procedures, which are included in
Appendix B to the SAI. The Board of Trustees will periodically review each
Fund's proxy voting record.
A description of the policies and procedures that the Funds use to determine how
to vote proxies relating to portfolio securities, as well as information
relating to how the Fund voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30, is available (i) via the Funds'
website, www.turnerinvestments.com and (ii) on the Commission's website at
http://www.sec.gov.
>
[TURNER FUNDS LOGO OMITTED]
TURNER FUNDS
P.O. Box 219805
Kansas City, MO 64121-9805
Telephone: 1-800-224-6312
Email:# mutualfunds@turnerinvestments.com
Web Site: www.turnerinvestments.com
TUR-SA-002-0400
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 management investment companies.
Item 6. Schedule of Investments.
Schedule of Investments is included as part of the Report to Shareholders filed
under Item 1.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable to open-end management investment companies.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable to open-end management investment companies.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable to open-end management investment companies.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no material changes to the procedures by which shareholders may
recommend nominees to the Registrant's Board of Trustees.
Item 11. 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 changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940
(17 CFR 270. 30a-3(d)) that occurred during the second fiscal quarter of the
period covered by this report that materially affected, or is reasonably likely
to materially affect, the registrants internal control over financial reporting.
Items 12. 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.
(a)(3) Not applicable.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment
Company Act of 1940, as amended (17 CFR 270.30a-2(b)) also accompany this filing
as an Exhibit.
- --------------------------------------------------------------------------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Turner Funds
By (Signature and Title)* /s/ Thomas R. Trala, Jr.
---------------------------------------
Thomas R. Trala, Jr., President and CEO
Date 5/25/05
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 and CEO
Date 5/25/05
By (Signature and Title)* /s/ Peter J. Golden
---------------------------------------
Peter J. Golden, Controller and CFO
Date 5/25/05
* Print the name and title of each signing officer under his or her signature.