UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-7527
Turner Funds
(Exact name of registrant as specified in charter)
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1205 Westlakes Drive Suite 100
Berwyn, PA 19312
(Address of principal executive offices) (Zip code)
Turner Funds
P.O. Box 219805
Kansas City, MO 64121-9805
(Name and address of agent for service)
Registrant's telephone number, including area code: 1-800-224-6312
Date of fiscal year end: September 30, 2006
Date of reporting period: March 31, 2006
Item 1. Reports to Stockholders.
TURNER FUNDS SEMIANNUAL REPORT
March 31, 2006 (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
VALUE FUNDS
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Turner Large Cap Value Fund
[BLANK PAGE]
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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 Investment review:
Turner Large Cap Value Fund
18 Financial statements
72 Notes to financial statements
77 Board of Trustees considerations in approving
the Advisory Agreement
78 Disclosure of fund expenses
TURNER FUNDS
As of March 31, 2006 the Turner Funds offered a series of 11 mutual funds to
individual and institutional investors. Except for the Turner Core Growth Fund,
Class I Shares and the Turner Large Cap Value Fund, which require 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 Partners, Inc., based in Berwyn, Pennsylvania, serves as the
investment adviser for the Funds (other than the Turner Small Cap Equity Fund.)
Turner Investment Partners, Inc., founded in 1990, invests approximately $21
billion in equity portfolios on behalf of individuals and institutions. Turner
Investment Management LLC, an affiliate of Turner Investment Partners, Inc.,
serves as the investment adviser for the Turner Small Cap Equity Fund.
SHAREHOLDER SERVICES
Turner Funds shareholders receive annual and semiannual reports, quarterly
account statements and a quarterly newsletter. Shareholders who have questions
about their accounts may call a toll-free telephone number, 1-800-224-6312, may
visit our website, www.turnerinvestments.com, or may write to Turner Funds, P.O.
Box 219805, Kansas City, Missouri 64121-9805.
TURNER FUNDS 2006 SEMIANNUAL REPORT 1
LETTER TO SHAREHOLDERS
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TO OUR SHAREHOLDERS
The stock market generated what might be called a stealth rally in the six-month
period ended March 31, 2006. The stock market shrugged off a persistent
bearishness -- worries about high oil prices, rising interest rates, a potential
acceleration of inflation, and slowing corporate earnings -- to quietly,
unobtrusively earn an above-average gain.
The S&P 500 Index, for instance, advanced 6.38%, while small and mid-cap stocks
produced even more robust results: the small-cap Russell 2000 Index rose 15.23%,
and the Russell Midcap Index climbed 10.14%. According to some market pundits,
the past six-month period was supposed to be a time when large-cap stocks
outperformed their smaller counterparts. But the past six months have merely
extended small-cap stocks' streak of outperformance versus large caps to seven
years (the historical average has been about five years).
As the stock market advanced discreetly upward, the economy and corporate
profits continued to grow at a slower but possibly more sustainable pace, and
the core inflation rate remained tame. Profits, which drive stock prices in the
long run, grew at a double-digit clip, better than the 7% average that has been
the case since the 1980s. Indeed, if the stealth bull market can be attributed
to a single factor, it's the sustained, healthy growth in corporate earnings:
the companies in the S&P 500 Index have reported earnings increases of at least
10% for 16 consecutive quarters, a record. And Wall Street analysts expect those
companies to continue reporting double-digit earnings growth throughout 2006;
the consensus is for an increase of 12.0%.
THE WORRY OF WORRIES: INTEREST RATES
The biggest bearish worry, of course, was interest rates. Investors feared that
the Federal Reserve's continuing series of rate hikes, designed to keep
inflation in check, would unduly raise the cost of borrowing for consumers and
corporate America, stifle consumer spending, diminish profits, and end the bull
market begun in late 2002. In March the Fed increased its short-term rate by a
quarter-point, to 4.75% -- the 15th consecutive hike since June 2004, when it
began to raise rates from a 46-year low.
Like a broken record, market strategists have been predicting repeatedly since
early 2005 that the Fed was about to stop raising rates. And although escalating
rates have confounded those expectations and darkened investor sentiment, they
failed to trump earnings as the prime influence on the market.
Our own 11 Turner funds capitalized on the good earnings news for the period.
All of them recorded positive returns, nine of them outperformed their
benchmarks, and nine of them generated double-digit gains. And just as small and
mid-cap stocks performed best, our small and mid-cap funds gained the most.
OUR FUNDS PERFORM AS EXPECTED
In general, our funds performed in line with their historical patterns. When the
market goes up, as it did in the past six months, our funds, especially our
growth funds, tend to go up as well and outperform. When the market heads south,
our funds tend to produce market-like losses, with our core and value funds
tending to outperform then.
Here are the specific returns for each of our funds and their benchmarks in the
past six months:
(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
THE MOST RECENT MONTH-END PERFORMANCE INFORMATION.)
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TOTAL RETURNS
Six-month period ended March 31, 2006
GROWTH FUNDS
TURNER LARGE CAP GROWTH FUND (TSGEX) 6.55%
Russell Top 200 Growth Index 4.19
Russell 1000 Growth Index 6.16
TURNER CORE GROWTH FUND, CLASS I (TTMEX) 9.29
S&P 500 Index 6.38
Russell 1000 Growth Index 6.16
TURNER STRATEGIC GROWTH FUND (TLCGX) 13.01
Russell 1000 Growth Index 6.16
S&P 500 Index 6.38
TURNER MIDCAP GROWTH FUND,
CLASS I (TMGFX) 15.92
Russell Midcap Growth Index 11.32
TURNER SMALL CAP GROWTH FUND (TSCEX) 20.38
Russell 2000 Growth Index 16.20
TURNER MICRO CAP GROWTH FUND (TMCGX) 13.32
Russell 2000 Growth Index 16.20
SECTOR/SPECIALTY FUNDS
TURNER TECHNOLOGY FUND (TTECX) 23.82
Pacific Stock Exchange Technology
100 Index 7.04
Goldman Sachs Technology
Composite Index+ 7.44
TURNER CONCENTRATED GROWTH FUND
(TTOPX) 17.46
S&P 500 Index 6.38
NASDAQ 100 Index 6.62
TURNER NEW ENTERPRISE FUND (TBTBX) 23.89
NASDAQ Composite Index 9.27
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+ The Fund uses the Goldman Sachs Technology Composite Index for comparison
purposes only.
2 TURNER FUNDS 2006 SEMIANNUAL REPORT
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March 31, 2006
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CORE FUNDS
TURNER SMALL CAP EQUITY FUND (TSEIX) 15.63%
Russell 2000 Index 15.23
VALUE FUNDS
TURNER LARGE CAP VALUE FUND (TLVFX) 10.40*
Russell 1000 Value Index 11.67*
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* The return is for the period from the Fund's inception, on October 10,
2005, to March 31, 2006.
For an analysis of the performance of each fund, see the investment-review
commentaries beginning on page 7.
Although we are gratified that our funds generally delivered good short-term
performance, we also believe it's long-term performance that matters most. After
all, most of us have time horizons longer than six months for our stock
investments. Happily, in terms of long-term performance, of our 10 funds that
are older than six months, nine of them have outperformed their benchmarks since
inception. (Of course, past performance is no assurance of future results.)
WE INVEST IN OUR OWN FUNDS
We think the favorable performance of our funds over time can be attributed in
part to our portfolio managers being invested in the funds we manage; our own
cash is on the line, which, as Samuel Johnson observed about the expectation of
being hanged, concentrates the mind wonderfully. A cardinal value of our firm is
that we seek to put clients first, to align our interests with those of our
clients. And if there's a better way to do that than for us to put our money in
our funds, we don't know what it would be. What's more, our portfolio managers'
ownership of our funds helps address certain potential conflicts of interest, in
that we don't permit our portfolio managers to buy individual stocks for their
own private portfolios. If there's a stock that one of our portfolio managers is
dying to own, we want him to buy it for both our clients and himself via the
fund he manages. We think that has been the best, most fair way to manage our
funds, and you can be assured that this practice will remain a characteristic of
the way we manage our funds in the future.
As for what the future may hold expressly for the stock market, we think that
earnings may continue to exceed expectations, which in turn may help the market
to finish 2006 with a gain -- perhaps in a less stealthy manner than recently.
Our bottom-up fundamental analysis tells us that the recent strong earnings of
corporate America are no fluke and should persist. All in all, we see a
favorable backdrop for continued stock-market gains this year.
Interest rates are likely to remain the market's biggest bugaboo. Sooner or
later the Fed will end its interest rate increases, which are considered adverse
for stocks because they raise costs for both companies and consumers. As to when
the Fed will stop remains anyone's guess. The only thing we think is safe to say
is that the Fed is nearing the end of this tightening cycle, and that the end
may benefit stocks.
WILL LARGE CAPS FINALLY OUTPERFORM?
And like the market strategists who continue to forecast just one more rate hike
for the Fed, we continue to persist in the belief that large-cap stocks could
offer the best return potential in the near term.
For one thing, large caps have the slowing economy going for them: if the
economic expansion moderates, the market may favor companies that can produce
relatively consistent financial results, and large-cap companies have a more
diversified mix of products and services that makes for a more stable base of
revenue and profits. For another, large caps offer more attractive valuations.
We think large-cap GROWTH stocks are especially appealing: their issuers'
earnings have grown at double-digit rates since 2003, but their stock prices
have lagged, resulting in a contraction of their price/earnings ratios. In fact,
growth also looks cheap relative to value in small and mid-cap stocks, in our
judgment. And finally, after seven years of underperformance by large-cap
stocks, we think that a reversion to the mean is overdue -- that large caps are
primed to turn the tables and could outpace small stocks for an extended period.
At any rate, there's one thing to be said for a steadfast belief in the
near-term return potential of large-cap stocks: like the proverbial stopped
clock that's accurate twice a day, it will be proved correct eventually.
TURNER FUNDS 2006 SEMIANNUAL REPORT 3
LETTER TO SHAREHOLDERS (continued)
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In our growth funds we are emphasizing shares of issuers that have above-average
prospective earnings power as well as shares that tend to do well late in the
economic cycle. Our growth funds currently favor stocks in the Internet,
specialty-retailing, consumer-electronics, consulting, staffing-services,
brokerage, investment-exchange, coal, natural-gas-utility, managed-care,
biotechnology, semiconductor, telecommunications, and wireless industries.
In contrast, our value and core funds hold stocks that we think have either
undervalued assets or strong prospective earnings power. Our value and core
funds currently emphasize stocks in the wireless, homeland-security, energy,
infrastructure-construction, premium-retailing, airline, rail, metals,
natural-resource, software, and investment-management industries.
In closing, we want to reaffirm our commitment to continuing to do our best to
maximize the returns on your -- and our -- money, no matter whether the market
is rallying stealthily or overtly, is marking time, or is declining. We look
forward to reporting to you in six months about how well we in fact met that
commitment.
/S/BOB TURNER
Bob Turner
CHAIRMAN AND CHIEF INVESTMENT OFFICER
TURNER INVESTMENT PARTNERS, ADVISER TO THE TURNER FUNDS
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE VIEWS EXPRESSED ARE
THOSE OF TURNER INVESTMENT PARTNERS AS OF MARCH 31, 2006, AND ARE NOT INTENDED
AS A FORECAST OR INVESTMENT RECOMMENDATIONS. THE INDEXES MENTIONED ARE NOT
AVAILABLE FOR INVESTMENT.
[PHOTO OMITTED]
BOB TURNER
4 TURNER FUNDS 2006 SEMIANNUAL REPORT
PERFORMANCE
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TOTAL RETURNS OF TURNER FUNDS
Through March 31, 2006
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.
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 SEI INVESTMENTS DISTRIBUTION COMPANY, OAKS,
PA 19456. 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.
Year (Annualized) Total
Six to One Three Five Ten Since Net Assets
Fund Name/Index Months Date Year Years Years Years inception ($mil)
GROWTH
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TURNER LARGE CAP GROWTH FUND 6.55% 3.98% 14.82% 15.47% 0.98% N/A (9.04)% $12.65
Russell Top 200 Growth Index 4.19 1.35 9.64 11.56 (0.39) n/a (8.65)
Russell 1000 Growth Index 6.16 3.09 13.14 14.80 1.66 n/a (7.05)
INCEPTION DATE: 6/14/00
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TURNER CORE GROWTH FUND --
CLASS I SHARES 9.29 5.87 23.66 21.87 5.66 N/A 3.56 $68.64
CLASS II SHARES 8.99 5.69 N/A N/A N/A N/A 12.60 1.53
S&P 500 Index 6.38 4.21 11.73 17.22 3.97 n/a 2.57
Russell 1000 Growth Index 6.16 3.09 13.14 14.80 1.66 n/a (0.48)
INCEPTION DATE: 02/28/01
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TURNER STRATEGIC GROWTH FUND 13.01 8.11 23.71 23.19 4.41 N/A 8.20 $11.53
Russell 1000 Growth Index 6.16 3.09 13.14 14.80 1.66 n/a 4.53
S&P 500 Index 6.38 4.21 11.73 17.22 3.97 n/a 7.26
INCEPTION DATE: 1/31/97
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TURNER MIDCAP GROWTH FUND(1) --
CLASS I SHARES 15.92 11.76 28.48 27.18 7.33 N/A 15.13 $1,208.46
CLASS II SHARES 15.60 11.64 27.85 26.54 N/A N/A 12.90 2.26
Russell Midcap Growth Index 11.32 7.61 22.68 25.75 9.00 n/a 9.15
INCEPTION DATE: 10/1/96
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TURNER FUNDS 2006 SEMIANNUAL REPORT 5
PERFORMANCE (continued)
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Year (Annualized) Total
Six to One Three Five Ten Since Net Assets
Fund Name/Index Months Date Year Years Years Years inception ($mil)
TURNER SMALL CAP GROWTH FUND(1) 20.38% 17.11% 33.71% 31.62% 10.42% 10.70% 15.31% $292.27
Russell 2000 Growth Index 16.20 14.36 27.84 28.14 8.59 5.51 7.09
INCEPTION DATE: 2/7/94
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TURNER MICRO CAP GROWTH FUND(1) 13.32 13.70 27.75 34.58 17.61 N/A 31.04 $618.97
Russell 2000 Growth Index 16.20 14.36 27.84 28.14 8.59 n/a 3.68
INCEPTION DATE: 2/27/98
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CORE
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TURNER SMALL CAP EQUITY FUND(1) --
CLASS II SHARES 15.63 15.20 24.71 30.21 N/A N/A 19.18 $81.36
Russell 2000 Index 15.23 13.94 25.85 29.53 n/a n/a 13.06
INCEPTION DATE: 3/4/02
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SECTOR/SPECIALTY
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TURNER TECHNOLOGY FUND(1)(2) 23.82 16.24 39.73 35.36 2.09 N/A 1.52 $15.54
Pacific Stock Exchange
Technology 100 Index 7.04 4.66 21.12 24.65 6.06 n/a 6.03
Goldman Sachs Technology
Composite Index* 7.44 4.42 16.70 19.33 (0.08) n/a (5.75)
INCEPTION DATE: 6/30/99
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TURNER CONCENTRATED
GROWTH FUND 17.46 10.32 36.27 26.09 2.15 N/A 2.62 $41.75
S&P 500 Index 6.38 4.21 11.73 17.22 3.97 n/a 0.70
NASDAQ 100 Index 6.62 3.68 15.40 19.08 1.84 n/a (4.15)
INCEPTION DATE: 6/30/99
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TURNER NEW ENTERPRISE FUND 23.89 16.72 44.05 39.58 10.58 N/A (5.42) $28.64
NASDAQ Composite Index 9.27 6.37 18.02 21.13 5.47 n/a (8.32)
INCEPTION DATE: 6/30/00
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VALUE
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TURNER LARGE CAP VALUE FUND N/A 5.88 N/A N/A N/A N/A 10.40 $0.55
Russell 1000 Value Index n/a 5.93 n/a n/a n/a n/a 11.67
INCEPTION DATE: 10/10/05
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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 of less than one year are cumulative and are not annualized.
6 TURNER FUNDS 2006 SEMIANNUAL REPORT
INVESTMENT REVIEW
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TURNER LARGE CAP GROWTH FUND
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FUND PROFILE
MARCH 31, 2006
o Ticker symbol TSGEX
o CUSIP #87252R839
o Top 5 holdings
(1) General Electric
(2) Procter & Gamble
(3) PepsiCo
(4) Cisco Systems
(5) Google, Cl A
o % in 5 largest holdings 20.5%+
o Number of holdings 52
o Price/earnings ratio 22.8
o Weighted average market capitalization $84.16 billion
o % of holdings with positive earnings surprises 77.1%
o % of holdings with negative earnings surprises 22.9%
o Net assets $13 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, 2006*
[Line chart omitted -- plot points are as follows:]
6/14/00 Sep 00 Sep 01 Sep 02 Sep 03 Sep 04 Sep 05 Mar 06
Turner Large Cap Growth Fund $10,000 $9,810 $4,700 $3,500 $4,620 $4,835 $5,419 $5,774
Russell Top 200 Growth Index $10,000 $9,546 $5,318 $4,053 $4,978 $5,273 $5,683 $5,921
Russell 1000 Growth Index $10,000 $9,691 $5,268 $4,082 $5,140 $5,526 $6,167 $6,548
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AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2006)
SIX ONE THREE FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
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Turner Large Cap Growth Fund 6.55% 14.82% 15.47% 0.98% (9.04)%
Russell Top 200 Growth Index 4.19% 9.64% 11.56% (0.39)% (8.65)%
Russell 1000 Growth Index 6.16% 13.14% 14.80% 1.66% (7.05)%
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SECTOR WEIGHTINGS+:
[Bar chart omitted -- plot points are as follows:]
29.4% Information Technology
17.3% Healthcare
11.4% Consumer Staples
10.7% Consumer Discretionary
10.7% Industrials
10.2% Cash Equivalents++
6.3% Financials
1.8% Materials & Processing
1.2% Telecommunication Services
1.0% Energy
MANAGERS DISCUSSION AND ANALYSIS
Good performance in most market sectors helped the Turner Large Cap Growth Fund
(TSGEX) to reap a 6.55% gain in the six-month period ended March 31. That return
outperformed the Russell Top 200 Growth Index's 4.19% rise by 2.36 percentage
points.
The Fund's information-technology and telecommunication-services positions,
representing 31% of the portfolio, added the most value to results.
Semiconductor, computer-equipment, wireless-network, and telecommunications
stocks did especially well. Altogether, seven of the Fund's nine sector
positions outperformed the index sectors. Industrials stocks, an 11% weighting,
impaired results the most; construction-equipment, aerospace, and
semiconductor-capital-equipment 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.
++ The Fund had an unusually large cash position at the end of the period as a
result of a significant shareholder redemption.
TURNER FUNDS 2006 SEMIANNUAL REPORT 7
INVESTMENT REVIEW
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TURNER CORE GROWTH FUND
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FUND PROFILE
MARCH 31, 2006
o Ticker symbol TTMEX
Class I Shares
o CUSIP #900297847
Class I Shares
o Top 5 holdings
(1) General Electric
(2) Procter & Gamble
(3) Google, Cl A
(4) American International Group
(5) PepsiCo
o % in 5 largest holdings 14.2%+
o Number of holdings 85
o Price/earnings ratio 21.6
o Weighted average market capitalization $61.95 billion
o % of holdings with positive earnings surprises 75.7%
o % of holdings with negative earnings surprises 22.4%
o Net assets $69 million, Class I Shares
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VALUE GROWTH
INVESTMENT STYLE
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GROWTH OF A $10,000 INVESTMENT IN THE
TURNER CORE GROWTH FUND, CLASS I SHARES:
FEBRUARY 28, 2001-MARCH 31, 2006*
[Line chart omitted -- plot points are as follows:]
2/28/01 Sep 01 Sep 02 Sep 03 Sep 04 Sep 05 Mar 06
Turner Core Growth Fund
Class I Shares $10,000 $8,181 $6,291 $8,041 $8,841 $10,931 $11,946
S&P 500 Index $10,000 $8,459 $6,726 $8,366 $9,527 $10,694 $11,376
Russell 1000 Growth Index $10,000 $7,787 $6,034 $7,598 $8,169 $9,116 $9,679
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AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2006)
SIX ONE THREE FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
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Turner Core Growth Fund, Class I Shares 9.29% 23.66% 21.87% 5.66% 3.56%
Turner Core Growth Fund, Class II Shares 8.99% n/a n/a n/a 12.60%**
S&P 500 Index 6.38% 11.73% 17.22% 3.97% 2.57%
Russell 1000 Growth Index 6.16% 13.14% 14.80% 1.66% (0.48)%
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SECTOR WEIGHTINGS+:
[Bar chart omitted -- plot points are as follows:]
20.0% Information Technology
19.9% Financials
12.6% Healthcare
10.2% Industrials
10.2% Energy
8.3% Consumer Discretionary
7.9% Consumer Staples
5.2% Telecommunication Services
2.7% Materials & Processing
1.9% Cash Equivalents
1.1% Utilities
MANAGERS DISCUSSION AND ANALYSIS
Good stock selection powered the Turner Core Growth Fund, Class I Shares (TTMEX)
to a 9.29% gain in the six-month period ended March 31. As a result the Fund
outperformed the S&P 500 Index's 6.38% return by 2.91 percentage points and the
Russell 1000 Growth Index's 6.16% return by 3.13 percentage points.
Eight of the Fund's 10 sector positions beat their index sectors. Financials and
information-technology stocks, which amounted to a 40% weighting, enhanced the
Fund's results the most. Winners here included brokerage, securities-exchange,
investment-management, insurance, semiconductor, computer-equipment, and
wireless-network stocks. A 29% position in the consumer-discretionary, energy,
and industrials sectors were the detractors from performance. Internet,
retailing, natural-gas distribution, exploration, and oil-services shares were
particularly weak.
- --------------------------------------------------------------------------------
* 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 (Class I Shares)
was February 28, 2001.
** Cumulative return, not annualized.
+ Percentages based on total investments.
8 TURNER FUNDS 2006 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER STRATEGIC GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2006
o Ticker symbol TLCGX
o CUSIP #900297870
o Top 5 holdings
(1) General Electric
(2) Google, Cl A
(3) Cisco Systems
(4) Qualcomm
(5) Gilead Sciences
o % in 5 largest holdings 15.7%+
o Number of holdings 68
o Price/earnings ratio 26.0
o Weighted average market capitalization $49.81 billion
o % of holdings with positive earnings surprises 70.4%
o % of holdings with negative earnings surprises 25.7%
o Net assets $12 million
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- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE
TURNER STRATEGIC GROWTH FUND:
JANUARY 31, 1997-MARCH 31, 2006*
[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
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 Sep 05 Mar 06
Turner Strategic Growth Fund $10,280 $14,585 $15,412 $18,220 $20,591
S&P 500 Index $11,240 $13,981 $15,920 $17,870 $19,011
Russell 1000 Growth Index $9,356 $11,781 $12,666 $14,135 $15,007
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (1) (PERIODS ENDING MARCH 31, 2006)
SIX ONE THREE FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
- ---------------------------------------------------------------------------------------------------------------------------
Turner Strategic Growth Fund 13.01% 23.71% 23.19% 4.41% 8.20%
Russell 1000 Growth Index 6.16% 13.14% 14.80% 1.66% 4.53%
S&P 500 Index 6.38% 11.73% 17.22% 3.97% 7.26%
- ---------------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[Bar chart omitted -- plot points are as follows:]
37.5% Information Technology
18.9% Healthcare
12.9% Consumer Discretionary
9.6% Industrials
6.0% Financials
4.9% Cash Equivalents/Short-Term Investments++
3.4% Telecommunication Services
2.6% Materials & Processing
2.4% Consumer Staples
1.8% Energy
MANAGERS DISCUSSION AND ANALYSIS
Consistently good stock picking enabled the Turner Strategic Growth Fund (TLCGX)
to post a 13.01% gain in the six-month period ended March 31. The Fund
outdistanced the 6.16% rise of the Russell 1000 Growth Index by 6.85 percentage
points and the 6.38% return of the S&P 500 Index by 6.63 percentage points.
Eight of the Fund's nine sector investments returned more than their index
sectors did. The Fund's investments in the information-technology, financials,
and consumer-staples sectors added the most extra return; they constituted 46%
of holdings. Semiconductor, wireless-network, brokerage, securities-exchange,
and agricultural-commodity shares performed especially well. Conversely, the
Fund's industrials holdings, a 10% weighting, impaired performance.
Construction-equipment, semiconductor-capital-equipment, aerospace, and
diversified industrial shares 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.
+ Percentages based on total investments.
++ Cash equivalents include short-term investments held as collateral for
securities lending activity. Please see Note 9 in Notes to Financial
Statements for more detailed information.
TURNER FUNDS 2006 SEMIANNUAL REPORT 9
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER MIDCAP GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2006
o Ticker symbol TMGFX,
Class I Shares
o CUSIP #900297409,
Class I Shares
o Top 5 holdings
(1) Advanced Micro Devices
(2) Broadcom, Cl A
(3) Starwood Hotels & Resorts Worldwide
(4) Coach
(5) NII Holdings
o % in 5 largest holdings 8.8%+
o Number of holdings 109
o Price/earnings ratio 25.4
o Weighted average market capitalization $7.76 billion
o % of holdings with positive earnings surprises 78.6%
o % of holdings with negative earnings surprises 18.7%
o Net assets $1 billion, 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, 2006*
[Line chart omitted -- plot points are as follows:]
10/1/96 Sep 97 Sep 98 Sep 99 Sep 00 Sep 01
Turner Mid Cap Growth Fund,
Class I Shares $10,000 $14,377 $14,555 $26,792 $52,874 $21,678
Russell Midcap Growth Index $10,000 $13,029 $11,808 $16,200 $25,979 $12,530
Sep 02 Sep 03 Sep 04 Sep 05 Mar 06
Turner Mid Cap Growth Fund, Class I $17,169 $24,346 $26,152 $32,881 $38,116
Russell Midcap Growth Index $10,588 $14,705 $16,717 $20,642 $22,977
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2006)
SIX ONE THREE FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
- ---------------------------------------------------------------------------------------------------------------------------
Turner Midcap Growth Fund, Class I Shares 15.92% 28.48% 27.18% 7.33% 15.13%
Turner Midcap Growth Fund, Class II Shares 15.60% 27.85% 26.54% n/a 12.90%
Russell Midcap Growth Index 11.32% 22.68% 25.75% 9.00% 9.15%
- ---------------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+
[Bar chart omitted -- plot points are as follows:]
22.5% Information Technology
15.3% Consumer Discretionary
14.5% Healthcare
11.4% Industrials
10.5% Cash Equivalents/Short-Term Investments++
9.6% Financials
9.4% Energy
2.3% Telecommunication Services
2.3% Consumer Staples
2.2% Materials & Processing
MANAGERS DISCUSSION AND ANALYSIS
The Turner Midcap Growth Fund (TMGFX) benefited from the strong performance of
mid-cap growth stocks in the six-month period ended March 31. The Russell Midcap
Growth Index advanced 11.32%, a return superior to that of large-cap growth and
small-cap growth indices. For its part, the Fund's Class I Shares gained 15.92%,
outperforming its benchmark by 4.60 percentage points.
Good relative returns in the information-technology, financials, and
consumer-staples sectors, a 34% weighting, added the most value to the Fund's
results. Wireless-technology, semiconductor, digital-network,
investment-management, tax-processing, securities-exchange, and food-processing
stocks were notable contributors. Altogether, eight of nine sector positions
outperformed their corresponding index sectors. A 15% position in health-care
stocks, especially in the managed-care and hospital-management industries,
detracted most from the Fund's 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 Midcap Growth Fund (Class I Shares) was October 1, 1996.
+ Percentages based on total investments.
++ Cash equivalents include short-term investments held as collateral for
securities lending activity. Please see Note 9 in Notes to Financial
Statements for more detailed information.
10 TURNER FUNDS 2006 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2006
o Ticker symbol TSCEX
o CUSIP #900297300
o Top 5 holdings
(1) Psychiatric Solutions
(2) JLG Industries
(3) Rackable Systems
(4) F5 Networks
(5) WESCO International
o % in 5 largest holdings 7.2%+
o Number of holdings 127
o Price/earnings ratio 24.2
o Weighted average market capitalization $1.86 billion
o % of holdings with positive earnings surprises 84.1%
o % of holdings with negative earnings surprises 15.9%
o Net assets $292 million
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- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE
TURNER SMALL CAP GROWTH FUND:
SEPTEMBER 30, 1995-MARCH 31, 2006*
[Line chart omitted -- plot points are as follows:]
9/30/95 Sep 96 Sep 97 Sep 98 Sep 99 Sep 00 Sep 01
Turner Small Cap Growth Fund $10,000 $15,243 $17,779 $14,775 $23,512 $36,696 $18,418
Russell 2000 Growth Index $10,000 $11,261 $13,890 $10,441 $13,848 $17,956 $10,309
Sep 02 Sep 03 Sep 04 Sep 05 Mar 06
Turner Small Cap Growth Fund $14,852 $22,219 $25,103 $29,046 $34,966
Russell 2000 Growth Index $8,436 $11,956 $13,381 $15,786 $18,343
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2006)
SIX ONE THREE FIVE TEN SINCE
MONTHS YEAR YEARS YEARS YEARS INCEPTION
- ---------------------------------------------------------------------------------------------------------------------------
Turner Small Cap Growth Fund 20.38% 33.71% 31.62% 10.42% 10.70% 15.31%
Russell 2000 Growth Index 16.20% 27.84% 28.14% 8.59% 5.51% 7.09%
- ---------------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[Bar chart omitted -- plot points are as follows:]
23.8% Information Technology
17.0% Healthcare
14.2% Industrials
13.5% Cash Equivalents/Short-Term Investments++
10.5% Consumer Discretionary
7.1% Financials
6.9% Energy
3.4% Materials & Processing
1.9% Consumer Staples
1.7% Telecommunication Services
MANAGERS DISCUSSION AND ANALYSIS
The Turner Small Cap Growth Fund (TSCEX) capitalized fully on the strength in
small-cap stocks in the six-month period ended March 31. The Fund gained 20.38%,
beating the Russell 2000 Growth Index's 16.20% rise by 4.18 percentage points.
Five of the Fund's nine sector positions beat their index-sector counterparts.
The Fund's consumer-discretionary and financials stocks, an 18% weighting,
performed best in relative terms, recording gains that provided substantial
margins of outperformance over their index counterparts. Winners included
wireless-phone-distribution, gaming-technology, specialty-retailing,
investment-technology, investment-management, and securities-exchange stocks. A
17% position in health-care stocks, particularly biotechnology 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 short-term investments held as collateral for
securities lending activity. Please see Note 9 in Notes to Financial
Statements for more detailed information.
TURNER FUNDS 2006 SEMIANNUAL REPORT 11
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER MICRO CAP GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2006
o Ticker symbol TMCGX
o CUSIP #872524301
o Top 5 holdings
(1) Bucyrus International, Cl A
(2) ESCO Technologies
(3) Hansen Natural
(4) JLG Industries
(5) Myogen
o % in 5 largest holdings 8.4%+
o Number of holdings 116
o Price/earnings ratio 20.7
o Weighted average market capitalization $1.11 billion
o % of holdings with positive earnings surprises 75.0%
o % of holdings with negative earnings surprises 24.1%
o Net assets $619 million
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GROWTH OF A $10,000 INVESTMENT IN THE
TURNER MICRO CAP GROWTH FUND:
FEBRUARY 28, 1998-MARCH 31, 2006*
[Line chart omitted -- plot points are as follows:]
2/28/98 Sep 98 Sep 99 Sep 00 Sep 01
Turner Micro Cap Growth Fund $10,000 $9,882 $21,093 $48,308 $38,535
Russell 2000 Growth Index $10,000 $7,625 $10,113 $13,113 $7,528
Sep 02 Sep 03 Sep 04 Sep 05 Mar 06
Turner Micro Cap Growth Fund $38,489 $49,709 $61,410 $78,544 $89,006
Russell 2000 Growth Index $6,161 $8,731 $9,772 $11,528 $13,396
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2006)
SIX ONE THREE FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
- ---------------------------------------------------------------------------------------------------------------------------
Turner Micro Cap Growth Fund 13.32% 27.75% 34.58% 17.61% 31.04%
Russell 2000 Growth Index 16.20% 27.84% 28.14% 8.59% 3.68%
- ---------------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[Bar chart omitted -- plot points are as follows:]
29.7% Cash Equivalents/Short-Term Investments++
17.8% Industrials
12.7% Healthcare
11.0% Energy
10.0% Consumer Discretionary
9.0% Information Technology
4.1% Consumer Staples
4.0% Financials
1.2% Materials & Processing
0.3% Telecommunication Services
0.2% Utilities
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 (TMCGX) produced a good absolute
return, a 13.32% gain, but lagged its benchmark, the Russell 2000 Growth Index.
The Fund's performance shortfall versus the index's 16.20% return was 2.88
percentage points.
Four of the Fund's 10 sector positions outperformed their corresponding index
sectors. Consumer-staples and consumer-discretionary holdings, a 14% weighting
in aggregate, contributed the most to performance. Apparel, media,
gaming-equipment, food-processing, and food-retailing stocks were especially
strong. The primary detractors from performance were the Fund's
information-technology and financials holdings, a 13% weighting. Underperformers
here included data-security, telecommunications, semiconductor,
financial-technology, insurance, and investment-management stocks.
- --------------------------------------------------------------------------------
* 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 short-term investments held as collateral for
securities lending activity. Please see Note 9 in Notes to Financial
Statements for more detailed information.
12 TURNER FUNDS 2006 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER SMALL CAP EQUITY FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2006
o Ticker symbol TSEIX
o CUSIP #87252R714
o Top 5 holdings
(1) Walter Industries
(2) Texas Industries
(3) CommScope
(4) Waddell & Reed Financial, Cl A
(5) Domino's Pizza
o % in 5 largest holdings 7.9%+
o Number of holdings 102
o Price/earnings ratio 19.1
o Weighted average market capitalization $1.51 billion
o % of holdings with positive earnings surprises 73.9%
o % of holdings with negative earnings surprises 25.3%
o Net assets $81 million
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- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE
TURNER SMALL CAP EQUITY FUND:
MARCH 4, 2002-MARCH 31, 2006*
[Line chart omitted -- plot points are as follows:]
3/4/02 Sep 02 Sep 03 Sep 04 Sep 05 Mar 06
Turner Small Cap Equity Fund $10,000 $9,299 $12,278 $15,317 $17,671 $20,433
Russell 2000 Index $10,000 $7,485 $10,217 $12,134 $14,313 $16,492
- ------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2006)
SIX ONE THREE SINCE
MONTHS YEAR YEARS INCEPTION
- ------------------------------------------------------------------------------
Turner Small Cap Equity Fund 15.63% 24.71% 30.21% 19.18%
Russell 2000 Index 15.23% 25.85% 29.53% 13.06%
- ------------------------------------------------------------------------------
SECTOR WEIGHTINGS+
[Bar chart omitted -- plot points are as follows:]
19.8% Industrials
19.8% Information Technology
16.0% Financials
13.7% Consumer Discretionary
10.7% Healthcare
5.3% Energy
5.0% Cash Equivalents/Short-Term Investments++
4.4% Materials & Processing
2.1% Telecommunication Services
1.6% Utilities
1.6% Consumer Staples
MANAGERS DISCUSSION AND ANALYSIS
The Turner Small Cap Equity Fund (TSEIX) gained 15.63% in the six-month period
ended March 31. That return outpaced the Russell 2000 Index's 15.23% advance by
0.40 percentage point.
The Fund is invested in both growth and value stocks, and both growth and value
stocks contributed extra return. Six of the Fund's 10 sector positions beat
their corresponding index sectors. The greatest degree of outperformance was
supplied by financials and health-care stocks, which represented 27% of the
portfolio. Winners included securities-exchange, real-estate, and pharmaceutical
shares. Industrials stocks produced the highest absolute return. A 20% position
in information-technology stocks hurt results the most; Internet-related and
semiconductor holdings performed poorly.
- --------------------------------------------------------------------------------
* 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 short-term investments held as collateral for
securities lending activity. Please see Note 9 in Notes to Financial
Statements for more detailed information.
TURNER FUNDS 2006 SEMIANNUAL REPORT 13
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER TECHNOLOGY FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2006
o Ticker symbol TTECX
o CUSIP #87252R870
o Top 5 holdings
(1) F5 Networks
(2) Broadcom, Cl A
(3) Trident Microsystems
(4) Marvell Technology Group
(5) JDS Uniphase
o % in 5 largest holdings 22.3%+
o Number of holdings 35
o Price/earnings ratio 31.1
o Weighted average market capitalization $17.78 billion
o % of holdings with positive earnings surprises 81.2%
o % of holdings with negative earnings surprises 13.0%
o Net assets $16 million
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GROWTH OF A $10,000 INVESTMENT IN THE
TURNER TECHNOLOGY FUND:
JUNE 30, 1999-MARCH 31, 2006*
[Line chart omitted -- plot points are as follows:]
6/30/99 Sep 99 Sep 00 Sep 01 Sep 02
Turner Technology Fund $10,000 $14,060 $35,059 $6,619 $4,110
Pacific Stock Exchange Technology 100 Index $10,000 $10,467 $17,345 $8,652 $6,470
Goldman Sachs Technology Composite Index $10,000 $10,523 $14,251 $4,972 $3,240
Sep 03 Sep 04 Sep 05 Mar 06
Turner Technology Fund $7,202 $7,528 $8,939 $11,068
Pacific Stock Exchange Technology 100 Index $10,372 $11,484 $13,873 $14,850
Goldman Sachs Technology Composite Index $5,378 $5,479 $6,237 $6,701
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2006)
SIX ONE THREE FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
- ---------------------------------------------------------------------------------------------------------------------------
Turner Technology Fund 23.82% 39.73% 35.36% 2.09% 1.52%
Pacific Stock Exchange Technology 100 Index** 7.04% 21.12% 24.65% 6.06% 6.03%
Goldman Sachs Technology Composite Index*** 7.44% 16.70% 19.33% (0.08)% (5.75)%
- ---------------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[Bar chart omitted -- plot points are as follows:]
85.7% Information Technology
9.2% Healthcare
3.8% Telecommunications Services
1.2% Industrials
0.1% Cash Equivalents
MANAGERS DISCUSSION AND ANALYSIS
In the six-month period ended March 31, the Turner Technology Fund (TTECX)
gained 23.82%. The Fund outperformed the Pacific Stock Exchange Technology 100
Index's 7.04% gain by 16.78 percentage points and the Goldman Sachs Technology
Composite Index's 7.44% return by 16.38 percentage points.
The greatest degree of extra return was generated by semiconductor, Internet,
wireless-network, 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 and increased product demand. Semiconductor-capital-equipment,
biotechnology, and medical-device shares lagged, hurt by investor skepticism
about corporate America's capital-spending plans and the health-care sector's
profitability.
- --------------------------------------------------------------------------------
* 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 Pacific Stock Exchange Technology 100 Index is a widely-recognized,
price weighted index of the top 100 U.S. technology-oriented companies.
*** 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 2006 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER CONCENTRATED GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2006
o Ticker symbol TTOPX
o CUSIP #87252R862
o Top 5 holdings
(1) Google, Cl A
(2) Applied Materials
(3) eBay
(4) Qualcomm
(5) Starwood Hotels & Resorts Worldwide
o % in 5 largest holdings 25.8%+
o Number of holdings 27
o Price/earnings ratio 26.0
o Weighted average market capitalization $38.52 billion
o % of holdings with positive earnings surprises 70.2%
o % of holdings with negative earnings surprises 23.8%
o Net assets $42 million
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- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE
TURNER CONCENTRATED GROWTH FUND:
JUNE 30, 1999-MARCH 31, 2006*
[Line chart omitted -- plot points are as follows:]
6/30/99 Sep 99 Sep 00 Sep 01 Sep 02 Sep 03 Sep 04 Sep 05 Mar 06
Turner Concentrated Growth Fund $10,000 $13,990 $27,782 $8,223 $5,754 $8,638 $8,310 $10,137 $11,907
S&P 500 Index $10,000 $9,376 $10,622 $7,794 $6,197 $7,709 $8,778 $9,853 $10,482
NASDAQ 100 Index $10,000 $10,485 $15,553 $5,092 $3,631 $5,696 $6,190 $7,044 $7,511
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2006)
SIX ONE THREE FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
- ---------------------------------------------------------------------------------------------------------------------------
Turner Concentrated Growth Fund 17.46% 36.27% 26.09% 2.15% 2.62%
S&P 500 Index 6.38% 11.73% 17.22% 3.97% 0.70%
NASDAQ 100 Index** 6.62% 15.40% 19.08% 1.84% (4.15)%
- ---------------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[Bar chart omitted -- plot points are as follows:]
43.4% Information Technology
23.5% Consumer Discretionary
8.1% Industrials
7.7% Healthcare
6.4% Financials
5.7% Telecommunication Services
3.1% Materials & Processing
2.1% Cash Equivalents
MANAGERS DISCUSSION AND ANALYSIS
The Turner Concentrated Growth Fund (TTOPX) produced a strong absolute and
relative return for the six-month period ended March 31: a 17.46% gain that
outperformed the benchmark S&P 500 Index's 6.38% rise by 11.08 percentage
points.
Most of the Fund's holdings were concentrated in four sectors, consumer
discretionary, health care, industrials, and information-technology, accounting
for 83% of holdings. The information-technology and consumer-discretionary
holdings were particular standouts, outperforming their corresponding sectors by
wide margins. Wireless-network, semiconductor, gaming, consumer-electronics, and
hotel stocks fared best. A 6% position in the financials sector, especially
diversified financial and financial-transaction-processing 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 Concentrated Growth Fund was June 30, 1999.
** The NASDAQ 100 Index tracks NASDAQ's largest companies across major
industry groups, including computer hardware and software,
telecommunications, retail/wholesale and biotechnology.
+ Percentages based on total investments.
TURNER FUNDS 2006 SEMIANNUAL REPORT 15
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER NEW ENTERPRISE FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2006
o Ticker symbol TBTBX
o CUSIP #87252R797
o Top 5 holdings
(1) F5 Networks
(2) Google, Cl A
(3) Trident Microsystems
(4) Marvell Technology Group
(5) Silicon Laboratories
o % in 5 largest holdings 17.0%+
o Number of holdings 46
o Price/earnings ratio 33.1
o Weighted average market capitalization $13.94 billion
o % of holdings with positive earnings surprises 79.0%
o % of holdings with negative earnings surprises 15.7%
o Net assets $29 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, 2006*
[Line chart omitted -- plot points are as follows:]
6/30/00 Sep 00 Sep 01 Sep 02 Sep 03 Sep 04 Sep 05 Mar 06
Turner New Enterprise Fund $10,000 $12,520 $3,290 $2,270 $4,340 $4,521 $5,861 $7,261
NASDAQ Composite Index $10,000 $9,264 $3,792 $2,976 $4,556 $4,862 $5,552 $6,066
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2006)
SIX ONE THREE FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
- -----------------------------------------------------------------------------------------
Turner New Enterprise Fund 23.89% 44.05% 39.58% 10.58% (5.42)%
NASDAQ Composite Index 9.27% 18.02% 21.13% 5.47% (8.32)%
- -----------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[Bar chart omitted -- plot points are as follows:]
48.3% Information Technology
11.7% Cash Equivalents/Short-Term Investments++
10.1% Consumer Discretionary
8.6% Healthcare
6.5% Industrials
5.6% Financials
4.2% Energy
2.6% Consumer Staples
2.4% Telecommunication Services
MANAGERS DISCUSSION AND ANALYSIS
Gains in three sectors -- information-technology, financials, and energy --
drove the Turner New Enterprise Fund (TBTBX) to a 23.89% gain in the six months
ended March 31. The Fund outperformed the NASDAQ Composite Index's 9.27% result
by 14.62 percentage points.
Stocks in the three sectors accounted for 58% of the Fund's holdings; the
technology holdings gained 32% (versus an 11% gain for the index sector), the
financials holdings rose 26% (compared with an 8% gain for the index sector),
and the energy holdings climbed 29% (versus 14% for the index sector).
Diminishing performance was a 15% position in health-care and industrials
stocks, which lost money. Managed-care, biotechnology, and natural-resources
stocks were largely responsible for 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 short-term investments held as collateral for
securities lending activity. Please see Note 9 in Notes to Financials for
more detailed information.
16 TURNER FUNDS 2006 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER LARGE CAP VALUE FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2006
o Ticker symbol TLVFX
o CUSIP #900297821
o Top 5 holdings
(1) Exxon Mobil
(2) Citigroup
(3) Pfizer
(4) Bank of America
(5) JPMorgan Chase
o % in 5 largest holdings 18.3%+
o Number of holdings 90
o Price/earnings ratio 15.0
o Weighted average market capitalization $78.59 billion
o % of holdings with positive earnings surprises 75.4%
o % of holdings with negative earnings surprises 23.4%
o Net assets $0.5 million
M L -----------------------------------
A A | |
R R | |
K G | |
E E | | X
T | |
| |
C -----------------------------------
A | |
P | |
I | |
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 LARGE CAP VALUE FUND:
OCTOBER 10, 2005-MARCH 31, 2006*
[Line chart omitted -- plot points are as follows:]
10/10/05 Mar 06
Turner Large Cap Value Fund $10,000 $11,040
Russell 1000 Value Index $10,000 $11,167
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2006)
SINCE
INCEPTION
- -----------------------------------------------------
Turner Large Cap Value Fund 10.40%**
Russell 1000 Value Index 11.67%**
- -----------------------------------------------------
SECTOR WEIGHTINGS+:
[Bar chart omitted -- plot points are as follows:]
36.4% Financials
16.7% Energy
8.0% Consumer Discretionary
6.8% Industrials
6.8% Utilities
6.8% Healthcare
5.2% Information Technology
4.5% Consumer Staples
3.6% Telecommunication Services
3.3% Materials & Processing
1.9% Cash Equivalents
MANAGERS DISCUSSION AND ANALYSIS
In its first five and a half months, the Turner Large Cap Value Fund (TLVFX)
gained 10.40%. That return trailed the Russell 1000 Value Index's 11.67% gain by
1.27 percentage points.
The Fund is invested in large-cap value stocks that rank highly in a proprietary
quantitative model. Financials and consumer-discretionary stocks, a 44%
weighting, enhanced performance to the greatest degree. Seven of the Fund's 10
sector positions beat their corresponding index sectors. Hurting results the
most were health-care and telecommunication-services stocks, which represented
10% of the portfolio. Health-care stocks recorded the biggest loss, 6%.
- --------------------------------------------------------------------------------
* 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 Value Fund was October 10, 2005.
** Cumulative return, not annualized.
+ Percentages based on total investments.
TURNER FUNDS 2006 SEMIANNUAL REPORT 17
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER LARGE CAP GROWTH FUND
March 31, 2006
Value
Shares (000)
- ----------------------------------------------------------
COMMON STOCK--93.2%
- ----------------------------------------------------------
ADMINISTRATION OF HUMAN
RESOURCE PROGRAMS--1.2%
- ----------------------------------------------------------
Express Scripts* 1,720 $ 151
----------
Total Administration of human
resource programs 151
----------
- ----------------------------------------------------------
AEROSPACE PRODUCT & PARTS MANUFACTURING--3.1%
- ----------------------------------------------------------
Boeing 2,990 233
Textron 1,650 154
----------
Total Aerospace product &
parts manufacturing 387
----------
- ----------------------------------------------------------
BEVERAGE MANUFACTURING--3.7%
- ----------------------------------------------------------
PepsiCo 8,180 473
----------
Total Beverage manufacturing 473
----------
- ----------------------------------------------------------
CEMENT & CONCRETE PRODUCT
MANUFACTURING--0.9%
- ----------------------------------------------------------
Cemex ADR 1,800 117
----------
Total Cement & concrete
product manufacturing 117
----------
- ----------------------------------------------------------
CLOTHING STORES--0.7%
- ----------------------------------------------------------
Chico's FAS* 2,340 95
----------
Total Clothing stores 95
----------
- ----------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--5.4%
- ----------------------------------------------------------
Alcatel ADR* 7,500 115
Qualcomm 7,560 383
Sony ADR 4,120 190
----------
Total Communications
equipment manufacturing 688
----------
- ----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--4.6%
- ----------------------------------------------------------
Apple Computer* 4,820 302
Hewlett-Packard 8,400 277
----------
Total Computer & peripheral
equipment manufacturing 579
----------
Value
Shares (000)
- ----------------------------------------------------------
ELECTRICAL EQUIPMENT MANUFACTURING--5.7%
- ----------------------------------------------------------
General Electric 20,720 $ 721
----------
Total Electrical equipment
manufacturing 721
----------
- ----------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--2.4%
- ----------------------------------------------------------
eBay* 7,900 309
----------
Total Electronic shopping &
mail-order houses 309
----------
- ----------------------------------------------------------
GRAIN & OILSEED MILLING--1.9%
- ----------------------------------------------------------
Archer-Daniels-Midland 7,180 242
----------
Total Grain & oilseed milling 242
----------
- ----------------------------------------------------------
GROCERY STORES--1.3%
- ----------------------------------------------------------
Whole Foods Market 2,560 170
----------
Total Grocery stores 170
----------
- ----------------------------------------------------------
INFORMATION SERVICES--3.4%
- ----------------------------------------------------------
Google, Cl A* 1,110 433
----------
Total Information services 433
----------
- ----------------------------------------------------------
INSURANCE CARRIERS--4.0%
- ----------------------------------------------------------
American International Group 3,400 225
UnitedHealth Group 5,000 279
----------
Total Insurance carriers 504
----------
- ----------------------------------------------------------
LIMITED-SERVICE EATING PLACES--1.9%
- ----------------------------------------------------------
Starbucks* 6,310 237
----------
Total Limited-service eating places 237
----------
- ----------------------------------------------------------
MEDICAL EQUIPMENT &
SUPPLIES MANUFACTURING--0.7%
- ----------------------------------------------------------
Luxottica Group ADR 3,040 84
----------
Total Medical equipment &
supplies manufacturing 84
----------
- ----------------------------------------------------------
MINING SUPPORT ACTIVITIES--1.0%
- ----------------------------------------------------------
Halliburton 1,690 123
----------
Total Mining support activities 123
----------
18 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER LARGE CAP GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
MOTOR VEHICLE MANUFACTURING--0.9%
- ----------------------------------------------------------
Toyota Motor ADR 1,080 $ 118
----------
Total Motor vehicle manufacturing 118
----------
- ----------------------------------------------------------
OFFICES OF PHYSICIANS--1.5%
- ----------------------------------------------------------
Caremark Rx* 3,870 190
----------
Total Offices of physicians 190
----------
- ----------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--2.6%
- ----------------------------------------------------------
Corning* 12,220 329
----------
Total Other electrical equipment &
component manufacturing 329
----------
- ----------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--1.1%
- ----------------------------------------------------------
Mitsubishi UFJ Financial
Group ADR 9,300 141
----------
Total Other financial
investment activities 141
----------
- ----------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--1.4%
- ----------------------------------------------------------
Rockwell Automation 2,470 178
----------
Total Other general purpose
machinery manufacturing 178
----------
- ----------------------------------------------------------
OTHER LEATHER & ALLIED
PRODUCT MANUFACTURING--1.5%
- ----------------------------------------------------------
Coach* 5,360 185
----------
Total Other leather & allied
product manufacturing 185
----------
- ----------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--1.4%
- ----------------------------------------------------------
International Game Technology 4,870 171
----------
Total Other miscellaneous
manufacturing 171
----------
- ----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--9.7%
- ----------------------------------------------------------
Allergan 1,550 168
Genzyme* 2,130 143
Gilead Sciences* 5,470 341
Value
Shares (000)
- ----------------------------------------------------------
Novartis ADR 3,180 $ 176
Pfizer 9,000 224
Roche Holding ADR 2,280 170
----------
Total Pharmaceutical &
medicine manufacturing 1,222
----------
- ----------------------------------------------------------
RAIL TRANSPORTATION--1.0%
- ----------------------------------------------------------
Burlington Northern Santa Fe 1,490 124
----------
Total Rail transportation 124
----------
- ----------------------------------------------------------
SCIENTIFIC R&D SERVICES--4.4%
- ----------------------------------------------------------
Celgene* 3,200 141
Genentech* 3,440 291
Monsanto 1,400 119
----------
Total Scientific R&D services 551
----------
- ----------------------------------------------------------
SECURITIES & COMMODITY EXCHANGES--1.2%
- ----------------------------------------------------------
Chicago Mercantile
Exchange Holdings 340 152
----------
Total Securities &
commodity exchanges 152
----------
- ----------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--2.5%
- ----------------------------------------------------------
Charles Schwab 11,120 191
Merrill Lynch 1,560 123
----------
Total Security & commodity contracts
intermediation & brokerage 314
----------
- ----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--13.5%
- ----------------------------------------------------------
Advanced Micro Devices* 7,080 235
Applied Materials 17,940 314
Broadcom, Cl A* 5,880 254
Cisco Systems* 20,780 450
Marvell Technology Group* 4,220 228
Micron Technology* 15,790 233
----------
Total Semiconductor & other electronic
component manufacturing 1,714
----------
TURNER FUNDS 2006 SEMIANNUAL REPORT 19
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER LARGE CAP GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
SOAP, CLEANERS & TOILET PREPARATION
MANUFACTURING--4.8%
- ----------------------------------------------------------
Procter & Gamble 10,630 $ 612
----------
Total Soap, cleaners & toilet
preparation manufacturing 612
----------
- ----------------------------------------------------------
TELECOMMUNICATIONS--1.3%
- ----------------------------------------------------------
America Movil ADR, Ser L 4,630 159
----------
Total Telecommunications 159
----------
- ----------------------------------------------------------
TRAVELER ACCOMMODATION--2.5%
- ----------------------------------------------------------
Las Vegas Sands* 2,040 116
Starwood Hotels &
Resorts Worldwide 3,020 204
----------
Total Traveler accommodation 320
----------
- ----------------------------------------------------------
TOTAL COMMON STOCK
(COST $9,058) 11,793
==========================================================
- ----------------------------------------------------------
CASH EQUIVALENT--10.6%
- ----------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares, 4.65%** 1,343,852 1,344
- ----------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $1,344) 1,344
==========================================================
- ----------------------------------------------------------
TOTAL INVESTMENTS--103.8%
(COST $10,402) $13,137
==========================================================
Percentages are based on net assets of $12,651 (000).
* Non-income producing security
** Rate shown is the 7-day effective yield as of March 31, 2006.
ADR -- American Depositary Receipt
Cl -- Class
Ser -- Series
The accompanying notes are an integral part of the financial statements.
20 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER CORE GROWTH FUND
March 31, 2006
Value
Shares (000)
- ----------------------------------------------------------
COMMON STOCK--97.7%
- ----------------------------------------------------------
ADMINISTRATION OF HUMAN
RESOURCE PROGRAMS--1.0%
- ----------------------------------------------------------
Express Scripts* 8,180 $ 719
----------
Total Administration of human
resource programs 719
----------
- ----------------------------------------------------------
AEROSPACE PRODUCT & PARTS
MANUFACTURING--2.1%
- ----------------------------------------------------------
Boeing 11,430 891
Textron 5,830 544
----------
Total Aerospace product &
parts manufacturing 1,435
----------
- ----------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--2.2%
- ----------------------------------------------------------
Joy Global 13,335 797
National Oilwell Varco* 11,180 717
----------
Total Agriculture, construction &
mining machinery manufacturing 1,514
----------
- ----------------------------------------------------------
BEVERAGE MANUFACTURING--2.5%
- ----------------------------------------------------------
Fomento Economico
Mexicano ADR 2,980 273
PepsiCo 25,780 1,490
----------
Total Beverage manufacturing 1,763
----------
- ----------------------------------------------------------
CEMENT & CONCRETE PRODUCT
MANUFACTURING--1.1%
- ----------------------------------------------------------
Cemex ADR 11,530 753
----------
Total Cement & concrete
product manufacturing 753
----------
- ----------------------------------------------------------
CLOTHING STORES--0.6%
- ----------------------------------------------------------
Chico's FAS* 10,170 413
----------
Total Clothing stores 413
----------
- ----------------------------------------------------------
COAL MINING--2.3%
- ----------------------------------------------------------
Consol Energy 7,860 583
Peabody Energy 20,830 1,050
----------
Total Coal mining 1,633
----------
Value
Shares (000)
- ----------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--2.8%
- ----------------------------------------------------------
Qualcomm 26,130 $ 1,322
Sony ADR 13,170 607
----------
Total Communications equipment
manufacturing 1,929
----------
- ----------------------------------------------------------
COMPUTER & PERIPHERAL
EQUIPMENT MANUFACTURING--2.3%
- ----------------------------------------------------------
Apple Computer* 15,370 964
Hewlett-Packard 19,800 651
----------
Total Computer & peripheral
equipment manufacturing 1,615
----------
- ----------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--0.7%
- ----------------------------------------------------------
Cerner* 9,890 469
----------
Total Computer systems design &
related services 469
----------
- ----------------------------------------------------------
DATA PROCESSING SERVICES--0.7%
- ----------------------------------------------------------
Global Payments 8,740 463
----------
Total Data processing services 463
----------
- ----------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--3.9%
- ----------------------------------------------------------
Kookmin Bank ADR 5,120 438
Mellon Financial 37,490 1,334
UBS 9,000 990
----------
Total Depository credit intermediation 2,762
----------
- ----------------------------------------------------------
DRUGS & DRUGGISTS' SUNDRIES WHOLESALE--0.5%
- ----------------------------------------------------------
AmerisourceBergen 7,860 379
----------
Total Drugs & druggists'
sundries wholesale 379
----------
- ----------------------------------------------------------
ELECTRICAL EQUIPMENT MANUFACTURING--4.1%
- ----------------------------------------------------------
General Electric 82,790 2,880
----------
Total Electrical equipment
manufacturing 2,880
----------
TURNER FUNDS 2006 SEMIANNUAL REPORT 21
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER CORE GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--1.8%
- ----------------------------------------------------------
eBay* 33,120 $ 1,294
----------
Total Electronic shopping &
mail-order houses 1,294
----------
- ----------------------------------------------------------
FOUNDRIES--0.6%
- ----------------------------------------------------------
Precision Castparts 7,480 444
----------
Total Foundries 444
----------
- ----------------------------------------------------------
GRAIN & OILSEED MILLING--1.4%
- ----------------------------------------------------------
Archer-Daniels-Midland 30,040 1,011
----------
Total Grain & oilseed milling 1,011
----------
- ----------------------------------------------------------
GROCERY STORES--1.0%
- ----------------------------------------------------------
Whole Foods Market 10,330 686
----------
Total Grocery stores 686
----------
- ----------------------------------------------------------
HOME HEALTH CARE SERVICES--0.6%
- ----------------------------------------------------------
Intuitive Surgical* 3,300 389
----------
Total Home health care services 389
----------
- ----------------------------------------------------------
INFORMATION SERVICES--2.8%
- ----------------------------------------------------------
Google, Cl A* 5,080 1,981
----------
Total Information services 1,981
----------
- ----------------------------------------------------------
INSURANCE CARRIERS--4.8%
- ----------------------------------------------------------
Aflac 15,060 680
American International Group 22,690 1,499
Humana* 5,940 313
WellPoint* 11,440 886
----------
Total Insurance carriers 3,378
----------
- ----------------------------------------------------------
LIMITED-SERVICE EATING PLACES--1.1%
- ----------------------------------------------------------
Starbucks* 20,540 773
----------
Total Limited-service eating places 773
----------
- ----------------------------------------------------------
MANAGEMENT, SCIENTIFIC &
TECHNICAL CONSULTING SERVICES--0.6%
- ----------------------------------------------------------
CH Robinson Worldwide 9,100 447
----------
Total Management, scientific &
technical consulting services 447
----------
Value
Shares (000)
- ----------------------------------------------------------
MINING SUPPORT ACTIVITIES--2.4%
- ----------------------------------------------------------
Halliburton 12,840 $ 938
Weatherford International* 15,940 729
----------
Total Mining support activities 1,667
----------
- ----------------------------------------------------------
MOTOR VEHICLE MANUFACTURING--1.0%
- ----------------------------------------------------------
Toyota Motor ADR 6,130 668
----------
Total Motor vehicle manufacturing 668
----------
- ----------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/
CONTROL INSTRUMENTS MANUFACTURING--0.8%
- ----------------------------------------------------------
Roper Industries 11,950 581
----------
Total Navigational/measuring/medical/
control instruments manufacturing 581
----------
- ----------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--1.2%
- ----------------------------------------------------------
American Express 16,270 855
----------
Total Nondepository credit intermediation 855
----------
- ----------------------------------------------------------
OFFICES OF PHYSICIANS--0.8%
- ----------------------------------------------------------
Caremark Rx* 11,150 548
----------
Total Offices of physicians 548
----------
- ----------------------------------------------------------
OIL & GAS EXTRACTION--1.7%
- ----------------------------------------------------------
Ultra Petroleum* 8,780 547
XTO Energy 15,266 665
----------
Total Oil & gas extraction 1,212
----------
- ----------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--1.1%
- ----------------------------------------------------------
Corning* 28,240 760
----------
Total Other electrical equipment &
component manufacturing 760
----------
- ----------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--3.3%
- ----------------------------------------------------------
Mitsubishi UFJ Financial
Group ADR 73,080 1,111
T. Rowe Price Group 15,110 1,182
----------
Total Other financial
investment activities 2,293
----------
22 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER CORE GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
OTHER LEATHER & ALLIED PRODUCT
MANUFACTURING--1.0%
- ----------------------------------------------------------
Coach* 20,130 $ 696
----------
Total Other leather & allied
product manufacturing 696
----------
- ----------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--2.0%
- ----------------------------------------------------------
International Game Technology 21,210 747
Scientific Games, Cl A* 18,070 635
----------
Total Other miscellaneous
manufacturing 1,382
----------
- ----------------------------------------------------------
OTHER NONMETALLIC MINERAL
PRODUCT MANUFACTURING--0.7%
- ----------------------------------------------------------
Cia Vale do Rio Doce ADR 10,340 502
----------
Total Other nonmetallic mineral
product manufacturing 502
----------
- ----------------------------------------------------------
PETROLEUM & COAL PRODUCTS
MANUFACTURING--1.8%
- ----------------------------------------------------------
Occidental Petroleum 5,240 486
Valero Energy 12,750 762
----------
Total Petroleum & coal
products manufacturing 1,248
----------
- ----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--5.4%
- ----------------------------------------------------------
Allergan 4,340 471
Genzyme* 9,450 635
Gilead Sciences* 17,070 1,062
Pfizer 26,620 664
Roche Holding ADR 8,500 631
Teva Pharmaceutical
Industries ADR 7,980 329
----------
Total Pharmaceutical &
medicine manufacturing 3,792
----------
- ----------------------------------------------------------
PIPELINE TRANSPORTATION OF NATURAL GAS--0.9%
- ----------------------------------------------------------
Kinder Morgan 7,170 660
----------
Total Pipeline transportation
of natural gas 660
----------
Value
Shares (000)
- ----------------------------------------------------------
RAIL TRANSPORTATION--0.8%
- ----------------------------------------------------------
Burlington Northern Santa Fe 6,720 $ 560
----------
Total Rail transportation 560
----------
- ----------------------------------------------------------
SCIENTIFIC R&D SERVICES--2.8%
- ----------------------------------------------------------
Celgene* 14,100 623
Genentech* 9,190 777
Monsanto 6,960 590
----------
Total Scientific R&D services 1,990
----------
- ----------------------------------------------------------
SECURITIES & COMMODITY EXCHANGES--2.4%
- ----------------------------------------------------------
Chicago Mercantile
Exchange Holdings 2,470 1,105
NASDAQ Stock Market* 15,050 603
----------
Total Securities &
commodity exchanges 1,708
----------
- ----------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--5.8%
- ----------------------------------------------------------
Charles Schwab 73,660 1,268
Legg Mason 7,720 968
Merrill Lynch 17,220 1,356
TD Ameritrade Holding 23,550 491
----------
Total Security & commodity contracts
intermediation & brokerage 4,083
----------
- ----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--8.2%
- ----------------------------------------------------------
Advanced Micro Devices* 25,610 849
Applied Materials 66,800 1,170
Broadcom, Cl A* 22,100 954
Cisco Systems* 61,010 1,322
Marvell Technology Group* 14,260 771
Micron Technology* 44,080 649
----------
Total Semiconductor & other electronic
component manufacturing 5,715
----------
- ----------------------------------------------------------
SOAP, CLEANERS & TOILET PREPARATION
MANUFACTURING--2.9%
- ----------------------------------------------------------
Procter & Gamble 35,780 2,062
----------
Total Soap, cleaners & toilet
preparation manufacturing 2,062
----------
TURNER FUNDS 2006 SEMIANNUAL REPORT 23
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER CORE GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
SOFTWARE PUBLISHERS--1.1%
- ----------------------------------------------------------
F5 Networks* 4,590 $ 333
Salesforce.com* 12,550 456
----------
Total Software publishers 789
----------
- ----------------------------------------------------------
TELECOMMUNICATIONS--5.2%
- ----------------------------------------------------------
America Movil ADR, Ser L 41,700 1,429
China Netcom Group ADR 12,980 459
NII Holdings* 24,010 1,416
Time Warner Telecom, Cl A* 18,610 334
----------
Total Telecommunications 3,638
----------
- ----------------------------------------------------------
TRAVELER ACCOMMODATION--1.8%
- ----------------------------------------------------------
Las Vegas Sands* 6,540 371
Starwood Hotels &
Resorts Worldwide 12,880 872
----------
Total Traveler accommodation 1,243
----------
- ----------------------------------------------------------
WATER, SEWAGE & OTHER SYSTEMS--1.1%
- ----------------------------------------------------------
Aqua America 27,496 765
----------
Total Water, sewage & other systems 765
----------
- ----------------------------------------------------------
TOTAL COMMON STOCK
(COST $60,029) 68,547
==========================================================
- ----------------------------------------------------------
CASH EQUIVALENT--1.9%
- ----------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares, 4.65%** 1,358,203 1,358
- ----------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $1,358) 1,358
==========================================================
- ----------------------------------------------------------
TOTAL INVESTMENTS--99.6%
(COST $61,387) 69,905
==========================================================
Value
(000)
- ----------------------------------------------------------
OTHER ASSETS AND LIABILITIES-- 0.4%
- ----------------------------------------------------------
Payable for investment securities purchased $ (1,703)
Payable due to investment adviser (11)
Payable for capital shares redeemed (4)
Payable due to administrator (3)
Other assets and liabilities, net 1,990
- ----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES 269
==========================================================
- ----------------------------------------------------------
NET ASSETS-- 100.0% $70,174
==========================================================
- ----------------------------------------------------------
NET ASSETS CONSIST OF:
- ----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- par value
$0.00001) based on 5,765,445
outstanding shares of beneficial interest $61,632
Portfolio capital of Class II Shares
(unlimited authorization -- par value
$0.00001) based on 129,143
outstanding shares of beneficial interest 1,485
Undistributed net investment income 161
Accumulated net realized loss
on investments (1,622)
Net unrealized appreciation
on investments 8,518
- ----------------------------------------------------------
NET ASSETS $70,174
==========================================================
- ----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS I SHARES
($68,639,117 / 5,765,445 SHARES) $11.91
==========================================================
- ----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS II SHARES
($1,534,776 / 129,143 SHARES) $11.88
==========================================================
* Non-income producing security
** Rate shown is the 7-day effective yield as of March 31, 2006.
ADR -- American Depositary Receipt
Cl -- Class
Ser -- Series
The accompanying notes are an integral part of the financial statements.
24 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER STRATEGIC GROWTH FUND
March 31, 2006
Value
Shares (000)
- ----------------------------------------------------------
COMMON STOCK--98.0%
- ----------------------------------------------------------
ACTIVITIES RELATED TO REAL ESTATE--1.0%
- ----------------------------------------------------------
CB Richard Ellis Group, Cl A* 1,400 $ 113
----------
Total Activities related to real estate 113
----------
- ----------------------------------------------------------
ADMINISTRATION OF HUMAN
RESOURCE PROGRAMS--1.2%
- ----------------------------------------------------------
Express Scripts* 1,550 136
----------
Total Administration of human
resource programs 136
----------
- ----------------------------------------------------------
AEROSPACE PRODUCT & PARTS
MANUFACTURING--2.7%
- ----------------------------------------------------------
Boeing 2,020 158
Textron 1,640 153
----------
Total Aerospace product &
parts manufacturing 311
----------
- ----------------------------------------------------------
AGRICULTURE, CONSTRUCTION &
MINING MACHINERY MANUFACTURING--1.3%
- ----------------------------------------------------------
Joy Global 2,615 156
----------
Total Agriculture, construction &
mining machinery manufacturing 156
----------
- ----------------------------------------------------------
CEMENT & CONCRETE PRODUCT
MANUFACTURING--1.3%
- ----------------------------------------------------------
Cemex ADR 2,320 151
----------
Total Cement & concrete
product manufacturing 151
----------
- ----------------------------------------------------------
CLOTHING STORES--0.7%
- ----------------------------------------------------------
Chico's FAS* 2,100 85
----------
Total Clothing stores 85
----------
- ----------------------------------------------------------
COAL MINING--0.9%
- ----------------------------------------------------------
Peabody Energy 1,960 99
----------
Total Coal mining 99
----------
- ----------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--5.0%
- ----------------------------------------------------------
Alcatel ADR* 5,400 83
Qualcomm 6,360 322
Sony ADR 3,660 169
----------
Total Communications equipment
manufacturing 574
----------
Value
Shares (000)
- ----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--3.9%
- ----------------------------------------------------------
Apple Computer* 3,780 $ 237
Hewlett-Packard 6,310 208
----------
Total Computer & peripheral
equipment manufacturing 445
----------
- ----------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--1.4%
- ----------------------------------------------------------
Cerner* # 3,470 165
----------
Total Computer systems design &
related services 165
----------
- ----------------------------------------------------------
DATA PROCESSING SERVICES--1.0%
- ----------------------------------------------------------
Global Payments 2,220 118
----------
Total Data processing services 118
----------
- ----------------------------------------------------------
DRUGS & DRUGGISTS' SUNDRIES WHOLESALE--0.7%
- ----------------------------------------------------------
AmerisourceBergen 1,740 84
----------
Total Drugs & druggists'
sundries wholesale 84
----------
- ----------------------------------------------------------
ELECTRICAL EQUIPMENT MANUFACTURING--4.0%
- ----------------------------------------------------------
General Electric 13,400 466
----------
Total Electrical equipment
manufacturing 466
----------
- ----------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--2.2%
- ----------------------------------------------------------
eBay* 6,370 249
----------
Total Electronic shopping &
mail-order houses 249
----------
- ----------------------------------------------------------
GRAIN & OILSEED MILLING--1.3%
- ----------------------------------------------------------
Archer-Daniels-Midland 4,570 154
----------
Total Grain & oilseed milling 154
----------
- ----------------------------------------------------------
GROCERY STORES--1.2%
- ----------------------------------------------------------
Whole Foods Market 2,030 135
----------
Total Grocery stores 135
----------
- ----------------------------------------------------------
HOME HEALTH CARE SERVICES--1.3%
- ----------------------------------------------------------
Intuitive Surgical* 1,290 152
----------
Total Home health care services 152
----------
TURNER FUNDS 2006 SEMIANNUAL REPORT 25
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER STRATEGIC GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--2.3%
- ----------------------------------------------------------
Kla-Tencor 2,230 $ 108
Novellus Systems* 6,400 153
----------
Total Industrial machinery manufacturing 261
----------
- ----------------------------------------------------------
INFORMATION SERVICES--4.0%
- ----------------------------------------------------------
Google, Cl A* 1,190 464
----------
Total Information services 464
----------
- ----------------------------------------------------------
INSURANCE CARRIERS--2.2%
- ----------------------------------------------------------
UnitedHealth Group 4,570 255
----------
Total Insurance carriers 255
----------
- ----------------------------------------------------------
LIMITED-SERVICE EATING PLACES--1.4%
- ----------------------------------------------------------
Starbucks* 4,450 168
----------
Total Limited-service eating places 168
----------
- ----------------------------------------------------------
MANAGEMENT, SCIENTIFIC & TECHNICAL
CONSULTING SERVICES--0.7%
- ----------------------------------------------------------
CH Robinson Worldwide 1,700 83
----------
Total Management, scientific &
technical consulting services 83
----------
- ----------------------------------------------------------
MOTOR VEHICLE MANUFACTURING--1.3%
- ----------------------------------------------------------
Toyota Motor ADR 1,360 148
----------
Total Motor vehicle manufacturing 148
----------
- ----------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/CONTROL
INSTRUMENTS MANUFACTURING--0.7%
- ----------------------------------------------------------
DaVita* 1,320 80
----------
Total Navigational/measuring/medical/
control instruments manufacturing 80
----------
- ----------------------------------------------------------
OFFICES OF PHYSICIANS--1.3%
- ----------------------------------------------------------
Caremark Rx* 3,010 148
----------
Total Offices of physicians 148
----------
- ----------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--2.0%
- ----------------------------------------------------------
Corning* 8,600 231
----------
Total Other electrical equipment &
component manufacturing 231
----------
Value
Shares (000)
- ----------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--1.3%
- ----------------------------------------------------------
Mitsubishi UFJ Financial
Group ADR 9,700 $ 148
----------
Total Other financial
investment activities 148
----------
- ----------------------------------------------------------
OTHER GENERAL PURPOSE
MACHINERY MANUFACTURING--1.1%
- ----------------------------------------------------------
Rockwell Automation 1,810 130
----------
Total Other general purpose
machinery manufacturing 130
----------
- ----------------------------------------------------------
OTHER LEATHER & ALLIED PRODUCT
MANUFACTURING--1.5%
- ----------------------------------------------------------
Coach* 4,900 169
----------
Total Other leather & allied
product manufacturing 169
----------
- ----------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--2.3%
- ----------------------------------------------------------
International Game Technology 4,040 142
Scientific Games, Cl A* 3,590 126
----------
Total Other miscellaneous
manufacturing 268
----------
- ----------------------------------------------------------
PETROLEUM & COAL PRODUCTS
MANUFACTURING--1.0%
- ----------------------------------------------------------
Valero Energy 1,920 115
----------
Total Petroleum & coal products
manufacturing 115
----------
- ----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--7.5%
- ----------------------------------------------------------
Allergan 1,440 156
Genzyme* 3,330 224
Gilead Sciences* 4,350 271
Shire ADR 2,580 120
Teva Pharmaceutical Industries ADR 2,320 95
----------
Total Pharmaceutical & medicine
manufacturing 866
----------
- ----------------------------------------------------------
SCIENTIFIC R&D SERVICES--4.5%
- ----------------------------------------------------------
Celgene* 3,880 171
Genentech* 2,270 192
Monsanto 1,860 158
----------
Total Scientific R&D services 521
----------
26 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER STRATEGIC GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
SECURITIES & COMMODITY EXCHANGES--2.5%
- ----------------------------------------------------------
Chicago Mercantile
Exchange Holdings 350 $ 157
NASDAQ Stock Market* 3,300 132
----------
Total Securities & commodity exchanges 289
----------
- ----------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--1.4%
- ----------------------------------------------------------
Charles Schwab 9,210 159
----------
Total Security & commodity contracts
intermediation & brokerage 159
----------
- ----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--14.1%
- ----------------------------------------------------------
Advanced Micro Devices* 6,930 230
Applied Materials 14,000 245
Broadcom, Cl A* 5,615 242
Cisco Systems* 15,950 346
JDS Uniphase* 27,130 113
Marvell Technology Group* 4,390 238
Micron Technology* 14,260 210
----------
Total Semiconductor & other electronic
component manufacturing 1,624
----------
- ----------------------------------------------------------
SOFTWARE PUBLISHERS--5.8%
- ----------------------------------------------------------
Akamai Technologies* 7,290 240
F5 Networks* 1,620 117
Red Hat* 5,310 149
Salesforce.com* 4,390 159
----------
Total Software publishers 665
----------
- ----------------------------------------------------------
SPORTING GOODS/HOBBY/MUSICAL
INSTRUMENT STORES--0.9%
- ----------------------------------------------------------
GameStop, Cl A* # 2,170 102
----------
Total Sporting goods/hobby/
musical instrument stores 102
----------
- ----------------------------------------------------------
TELECOMMUNICATIONS--3.5%
- ----------------------------------------------------------
America Movil ADR, Ser L 4,220 145
Crown Castle International* 4,010 114
NII Holdings* 2,380 140
----------
Total Telecommunications 399
----------
Value
Shares (000)
- ----------------------------------------------------------
TRAVELER ACCOMMODATION--3.6%
- ----------------------------------------------------------
Las Vegas Sands* 2,000 $ 113
Starwood Hotels &
Resorts Worldwide 2,470 167
Station Casinos 1,760 140
----------
Total Traveler accommodation 420
----------
- ----------------------------------------------------------
TOTAL COMMON STOCK
(COST $9,442) 11,306
==========================================================
- ----------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--2.4%
- ----------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio (1) 272,000 272
- ----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $272) 272
==========================================================
- ----------------------------------------------------------
CASH EQUIVALENT--2.6%
- ----------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares, 4.65%** 306,349 306
- ----------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $306) 306
==========================================================
- ----------------------------------------------------------
TOTAL INVESTMENTS--103.0%
(COST $10,020) 11,884
==========================================================
- ----------------------------------------------------------
OTHER ASSETS AND LIABILITIES--(3.0)%
- ----------------------------------------------------------
Payable for investment securities purchased (346)
Obligation to return securities
lending collateral (272)
Payable due to investment adviser (4)
Payable due to administrator (1)
Other assets and liabilities, net 272
- ----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (351)
==========================================================
- ----------------------------------------------------------
NET ASSETS--100.0% $11,533
==========================================================
TURNER FUNDS 2006 SEMIANNUAL REPORT 27
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER STRATEGIC GROWTH FUND
Value
(000)
- ----------------------------------------------------------
NET ASSETS CONSIST OF:
- ----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- par value
$0.00001) based on 873,436
outstanding shares of beneficial interest $ 22,438
Accumulated net investment loss (24)
Accumulated net realized loss
on investments (12,745)
Net unrealized appreciation
on investments 1,864
- ----------------------------------------------------------
NET ASSETS $11,533
==========================================================
- ----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- CLASS I SHARES $13.20
==========================================================
* Non-income producing security
** Rate shown is the 7-day effective yield as of March 31, 2006.
# Security fully or partially on loan at March 31, 2006 (see Note 9 in Notes
to Financial Statements). The total value of securities on loan at March
31, 2006, was $264,976.
(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.
28 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MIDCAP GROWTH FUND
March 31, 2006
Value
Shares (000)
- ----------------------------------------------------------
COMMON STOCK--97.2%
- ----------------------------------------------------------
ACTIVITIES RELATED TO REAL ESTATE--0.9%
- ----------------------------------------------------------
CB Richard Ellis Group, Cl A* 141,740 $ 11,438
----------
Total Activities related to real estate 11,438
----------
- ----------------------------------------------------------
ADMINISTRATION OF HUMAN
RESOURCE PROGRAMS--1.0%
- ----------------------------------------------------------
Express Scripts* 132,438 11,641
----------
Total Administration of human
resource programs 11,641
----------
- ----------------------------------------------------------
ADVERTISING & RELATED SERVICES--1.3%
- ----------------------------------------------------------
aQuantive* 327,930 7,720
Getty Images* # 108,740 8,142
----------
Total Advertising & related services 15,862
----------
- ----------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--4.0%
- ----------------------------------------------------------
Cooper Cameron* 196,180 8,648
Grant Prideco* 211,870 9,076
Joy Global 300,345 17,952
National Oilwell Varco* 196,180 12,579
----------
Total Agriculture, construction &
mining machinery manufacturing 48,255
----------
- ----------------------------------------------------------
AUDIO & VIDEO EQUIPMENT MANUFACTURING--1.1%
- ----------------------------------------------------------
Harman International Industries 117,990 13,112
----------
Total Audio & video equipment
manufacturing 13,112
----------
- ----------------------------------------------------------
BEVERAGE MANUFACTURING--1.2%
- ----------------------------------------------------------
Hansen Natural* # 111,810 14,094
----------
Total Beverage manufacturing 14,094
----------
- ----------------------------------------------------------
BOILER, TANK & SHIPPING CONTAINER
MANUFACTURING--0.5%
- ----------------------------------------------------------
Ball 132,180 5,793
----------
Total Boiler, tank & shipping
container manufacturing 5,793
----------
Value
Shares (000)
- ----------------------------------------------------------
BUSINESS SUPPORT SERVICES--0.9%
- ----------------------------------------------------------
Moody's 157,030 $ 11,221
----------
Total Business support services 11,221
----------
- ----------------------------------------------------------
CEMENT & CONCRETE PRODUCT
MANUFACTURING--0.7%
- ----------------------------------------------------------
Florida Rock Industries # 142,510 8,012
----------
Total Cement & concrete
product manufacturing 8,012
----------
- ----------------------------------------------------------
CLOTHING STORES--2.3%
- ----------------------------------------------------------
Chico's FAS* 269,440 10,950
Nordstrom # 294,720 11,547
Urban Outfitters* 243,247 5,970
----------
Total Clothing stores 28,467
----------
- ----------------------------------------------------------
COAL MINING--1.9%
- ----------------------------------------------------------
Arch Coal 155,880 11,838
Peabody Energy 233,960 11,794
----------
Total Coal mining 23,632
----------
- ----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--0.8%
- ----------------------------------------------------------
Network Appliance* # 263,200 9,483
----------
Total Computer & peripheral
equipment manufacturing 9,483
----------
- ----------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--1.6%
- ----------------------------------------------------------
Cerner* # 260,810 12,376
Redback Networks* # 299,097 6,487
----------
Total Computer systems design &
related services 18,863
----------
- ----------------------------------------------------------
DATA PROCESSING SERVICES--1.1%
- ----------------------------------------------------------
Fidelity National
Information Services 189,420 7,681
Global Payments 117,160 6,211
----------
Total Data processing services 13,892
----------
TURNER FUNDS 2006 SEMIANNUAL REPORT 29
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MIDCAP GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--1.4%
- ----------------------------------------------------------
Colonial BancGroup 198,590 $ 4,965
Mellon Financial 342,340 12,187
----------
Total Depository credit intermediation 17,152
----------
- ----------------------------------------------------------
ELECTRICAL GOODS WHOLESALE--1.4%
- ----------------------------------------------------------
WESCO International* 252,670 17,184
----------
Total Electrical goods wholesale 17,184
----------
- ----------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--0.9%
- ----------------------------------------------------------
Nutri/System* # 241,830 11,492
----------
Total Electronic shopping &
mail-order houses 11,492
----------
- ----------------------------------------------------------
ELECTRONICS & APPLIANCE STORES--0.6%
- ----------------------------------------------------------
Circuit City Stores 285,920 6,999
----------
Total Electronics & appliance stores 6,999
----------
- ----------------------------------------------------------
EMPLOYMENT SERVICES--1.4%
- ----------------------------------------------------------
Manpower 181,520 10,379
MPS Group* 394,230 6,032
----------
Total Employment services 16,411
----------
- ----------------------------------------------------------
FOUNDRIES--1.2%
- ----------------------------------------------------------
Precision Castparts 240,470 14,284
----------
Total Foundries 14,284
----------
- ----------------------------------------------------------
FREIGHT TRANSPORTATION ARRANGEMENT--0.7%
- ----------------------------------------------------------
UTI Worldwide 255,960 8,088
----------
Total Freight transportation
arrangement 8,088
----------
- ----------------------------------------------------------
GENERAL FREIGHT TRUCKING--0.6%
- ----------------------------------------------------------
Landstar System 177,130 7,815
----------
Total General freight trucking 7,815
----------
- ----------------------------------------------------------
GROCERY STORES--1.3%
- ----------------------------------------------------------
Whole Foods Market 231,910 15,408
----------
Total Grocery stores 15,408
----------
Value
Shares (000)
- ----------------------------------------------------------
HEALTH & PERSONAL CARE STORES--0.6%
- ----------------------------------------------------------
Omnicare 143,360 $ 7,883
----------
Total Health & personal care stores 7,883
----------
- ----------------------------------------------------------
HOME FURNISHINGS STORES--0.9%
- ----------------------------------------------------------
Williams-Sonoma* 260,500 11,045
----------
Total Home furnishings stores 11,045
----------
- ----------------------------------------------------------
HOME HEALTH CARE SERVICES--0.8%
- ----------------------------------------------------------
Intuitive Surgical* 77,800 9,180
----------
Total Home health care services 9,180
----------
- ----------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--2.2%
- ----------------------------------------------------------
Kla-Tencor # 298,340 14,428
Novellus Systems* 219,051 5,257
Varian Semiconductor
Equipment Associates* # 270,150 7,586
----------
Total Industrial machinery
manufacturing 27,271
----------
- ----------------------------------------------------------
INFORMATION SERVICES--0.7%
- ----------------------------------------------------------
CNET Networks* 601,160 8,543
----------
Total Information services 8,543
----------
- ----------------------------------------------------------
INSURANCE CARRIERS--1.4%
- ----------------------------------------------------------
HCC Insurance Holdings # 258,870 9,009
Humana* 153,230 8,067
----------
Total Insurance carriers 17,076
----------
- ----------------------------------------------------------
MANAGEMENT, SCIENTIFIC &
TECHNICAL CONSULTING SERVICES--2.8%
- ----------------------------------------------------------
CH Robinson Worldwide 298,182 14,638
Monster Worldwide* 387,625 19,327
----------
Total Management, scientific &
technical consulting services 33,965
----------
- ----------------------------------------------------------
MEDICAL & DIAGNOSTIC LABORATORIES--1.2%
- ----------------------------------------------------------
Quest Diagnostics 293,780 15,071
----------
Total Medical & diagnostic
laboratories 15,071
----------
30 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MIDCAP GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--1.3%
- ----------------------------------------------------------
Resmed* # 198,560 $ 8,733
Varian Medical Systems* 120,110 6,745
----------
Total Medical equipment &
supplies manufacturing 15,478
----------
- ----------------------------------------------------------
MINING SUPPORT ACTIVITIES--1.3%
- ----------------------------------------------------------
Diamond Offshore Drilling 104,470 9,350
Helix Energy Solutions Group* # 166,704 6,318
----------
Total Mining support activities 15,668
----------
- ----------------------------------------------------------
MOTOR VEHICLE MANUFACTURING--0.9%
- ----------------------------------------------------------
Oshkosh Truck 169,890 10,574
----------
Total Motor vehicle manufacturing 10,574
----------
- ----------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/
CONTROL INSTRUMENTS MANUFACTURING--5.4%
- ----------------------------------------------------------
Agilent Technologies* 482,470 18,117
Ametek 209,620 9,424
DaVita* # 202,360 12,184
Itron* 97,225 5,819
Roper Industries 251,250 12,218
Thermo Electron* 193,090 7,162
----------
Total Navigational/measuring/medical/
control instruments manufacturing 64,924
----------
- ----------------------------------------------------------
NONMETALLIC MINERAL MINING & QUARRYING--0.5%
- ----------------------------------------------------------
Martin Marietta Materials 56,430 6,040
----------
Total Nonmetallic mineral
mining & quarrying 6,040
----------
- ----------------------------------------------------------
OIL & GAS EXTRACTION--3.5%
- ----------------------------------------------------------
CNX Gas* 108,140 2,812
Denbury Resources* 204,390 6,473
Range Resources 595,655 16,267
Southwestern Energy* 262,960 8,465
Ultra Petroleum* 133,110 8,294
----------
Total Oil & gas extraction 42,311
----------
Value
Shares (000)
- ----------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--2.4%
- ----------------------------------------------------------
Affiliated Managers Group* # 118,900 $ 12,676
T. Rowe Price Group 206,740 16,169
----------
Total Other financial
investment activities 28,845
----------
- ----------------------------------------------------------
OTHER LEATHER & ALLIED PRODUCT
MANUFACTURING--1.8%
- ----------------------------------------------------------
Coach* 644,060 22,272
----------
Total Other leather &
allied product manufacturing 22,272
----------
- ----------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--2.1%
- ----------------------------------------------------------
International Game Technology 425,550 14,988
Scientific Games, Cl A* 311,600 10,946
----------
Total Other miscellaneous
manufacturing 25,934
----------
- ----------------------------------------------------------
PAPER & PAPER PRODUCT WHOLESALE--0.4%
- ----------------------------------------------------------
VistaPrint* 159,670 4,766
----------
Total Paper & paper product wholesale 4,766
----------
- ----------------------------------------------------------
PETROLEUM & COAL PRODUCTS
MANUFACTURING--0.9%
- ----------------------------------------------------------
Sunoco # 148,490 11,518
----------
Total Petroleum & coal
products manufacturing 11,518
----------
- ----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--4.4%
- ----------------------------------------------------------
Allergan 134,140 14,554
Barr Pharmaceuticals* 143,290 9,024
Cephalon* 111,150 6,697
Dade Behring Holdings 55,779 1,992
Forest Laboratories* 241,000 10,756
Shire ADR 208,782 9,706
----------
Total Pharmaceutical &
medicine manufacturing 52,729
----------
- ----------------------------------------------------------
RADIO & TELEVISION BROADCASTING--1.0%
- ----------------------------------------------------------
XM Satellite Radio
Holdings, Cl A* 534,502 11,903
----------
Total Radio & television broadcasting 11,903
----------
TURNER FUNDS 2006 SEMIANNUAL REPORT 31
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MIDCAP GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
SCIENTIFIC R&D SERVICES--3.2%
- ----------------------------------------------------------
Biogen Idec* 119,574 $ 5,632
Celgene* 355,194 15,707
PDL BioPharma* 287,220 9,421
Pharmaceutical Product
Development 231,860 8,024
----------
Total Scientific R&D services 38,784
----------
- ----------------------------------------------------------
SECURITIES & COMMODITY EXCHANGES--2.1%
- ----------------------------------------------------------
Chicago Mercantile
Exchange Holdings # 37,840 16,934
NASDAQ Stock Market* 220,660 8,835
----------
Total Securities & commodity exchanges 25,769
----------
- ----------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--1.9%
- ----------------------------------------------------------
Legg Mason 108,070 13,544
TD Ameritrade Holding 457,349 9,545
----------
Total Security & commodity contracts
intermediation & brokerage 23,089
----------
- ----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--10.3%
- ----------------------------------------------------------
Advanced Micro Devices* 738,930 24,503
ASML Holding, NY Shares* 458,050 9,331
Broadcom, Cl A* 566,595 24,454
JDS Uniphase* # 3,207,580 13,376
Micron Technology* 819,800 12,067
PMC - Sierra* 647,190 7,954
Silicon Laboratories* 235,690 12,951
Sirf Technology Holdings* 151,215 5,355
Trident Microsystems* 513,252 14,915
----------
Total Semiconductor & other electronic
component manufacturing 124,906
----------
- ----------------------------------------------------------
SHIP & BOAT BUILDING--0.7%
- ----------------------------------------------------------
McDermott International* 151,280 8,237
----------
Total Ship & boat building 8,237
----------
Value
Shares (000)
- ----------------------------------------------------------
SOFTWARE PUBLISHERS--5.6%
- ----------------------------------------------------------
Akamai Technologies* # 519,635 $ 17,091
F5 Networks* # 243,637 17,661
Openwave Systems* # 720,120 15,540
Red Hat* 408,530 11,431
Salesforce.com* # 168,210 6,111
----------
Total Software publishers 67,834
----------
- ----------------------------------------------------------
SPORTING GOODS/HOBBY/
MUSICAL INSTRUMENT STORES--0.7%
- ----------------------------------------------------------
GameStop, Cl A* # 172,250 8,120
----------
Total Sporting goods/hobby/
musical instrument stores 8,120
----------
- ----------------------------------------------------------
STEEL PRODUCT MANUFACTURING FROM
PURCHASED STEEL--0.8%
- ----------------------------------------------------------
Allegheny Technologies 155,520 9,515
----------
Total Steel product manufacturing
from purchased steel 9,515
----------
- ----------------------------------------------------------
TELECOMMUNICATIONS--2.5%
- ----------------------------------------------------------
Crown Castle International* 279,880 7,935
NII Holdings* 369,280 21,776
----------
Total Telecommunications 29,711
----------
- ----------------------------------------------------------
TRAVELER ACCOMMODATION--4.1%
- ----------------------------------------------------------
Starwood Hotels &
Resorts Worldwide 332,750 22,537
Station Casinos 230,210 18,272
Wynn Resorts* 107,911 8,293
----------
Total Traveler accommodation 49,102
----------
- ----------------------------------------------------------
TOTAL COMMON STOCK
(COST $877,366) 1,176,661
==========================================================
- ----------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--7.8%
- ----------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio (1) 94,265,766 94,266
- ----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $94,266) 94,266
==========================================================
32 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MIDCAP GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
CASH EQUIVALENT--3.6%
- ----------------------------------------------------------
BlackRock TempCash
Fund, Institutional
Shares, 4.65%** 43,497,561 $ 43,498
- ----------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $43,498) 43,498
==========================================================
- ----------------------------------------------------------
TOTAL INVESTMENTS--108.6%
(COST $1,015,130) 1,314,425
- ----------------------------------------------------------
- ----------------------------------------------------------
OTHER ASSETS AND LIABILITIES-- (8.6)%
- ----------------------------------------------------------
Obligation to return securities
lending collateral (94,266)
Payable for investment
securities purchased (19,837)
Payable for capital shares redeemed (903)
Payable due to investment adviser (742)
Payable due to administrator (145)
Other assets and liabilities, net 12,185
- ----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (103,708)
==========================================================
- ----------------------------------------------------------
NET ASSETS-- 100.0% $1,210,717
==========================================================
- ----------------------------------------------------------
NET ASSETS CONSIST OF:
- ----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- par value
$0.00001) based on 39,499,851
outstanding shares of
beneficial interest $ 1,345,904
Portfolio capital of Class II Shares
(unlimited authorization-- par
value $0.00001) based on 75,418
outstanding shares of beneficial interest 1,601
Undistributed net investment income 812
Accumulated net realized loss
on investments (436,895)
Net unrealized appreciation
on investments 299,295
- ----------------------------------------------------------
NET ASSETS $1,210,717
==========================================================
Value
(000)
- ----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS I SHARES
($1,208,459,405 / 39,499,851 SHARES) $30.59
==========================================================
- ----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE -- CLASS II SHARES
($2,257,456 / 75,418 SHARES) $29.93
==========================================================
* Non-income producing security
** Rate shown is the 7-day effective yield as of March 31, 2006.
# Security fully or partially on loan at March 31, 2006 (see Note 9 in Notes
to Financial Statements). The total value of securities on loan at March
31, 2006, was $91,162,162.
(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
NY -- New York
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2006 SEMIANNUAL REPORT 33
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
March 31, 2006
Value
Shares (000)
- ----------------------------------------------------------
COMMON STOCK--97.0%
- ----------------------------------------------------------
ACCOUNTING/TAX PREPARATION/BOOKKEEPING/
PAYROLL SERVICES--0.8%
- ----------------------------------------------------------
Jackson Hewitt Tax Service 70,030 $ 2,212
----------
Total Accounting/tax preparation/
bookkeeping/payroll services 2,212
----------
- ----------------------------------------------------------
ACTIVITIES RELATED TO CREDIT INTERMEDIATION--1.1%
- ----------------------------------------------------------
Euronet Worldwide* # 49,820 1,885
Heartland Payment Systems* # 53,350 1,322
----------
Total Activities related to
credit intermediation 3,207
----------
- ----------------------------------------------------------
ACTIVITIES RELATED TO REAL ESTATE--0.7%
- ----------------------------------------------------------
Jones Lang LaSalle* 27,419 2,099
----------
Total Activities related to real estate 2,099
----------
- ----------------------------------------------------------
ADVERTISING & RELATED SERVICES--0.9%
- ----------------------------------------------------------
aQuantive* 107,600 2,533
----------
Total Advertising & related services 2,533
----------
- ----------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--1.8%
- ----------------------------------------------------------
Bucyrus International, Cl A 60,315 2,907
Oil States International* # 60,600 2,233
----------
Total Agriculture, construction &
mining machinery manufacturing 5,140
----------
- ----------------------------------------------------------
ALUMINA & ALUMINUM
PRODUCTION & PROCESSING--0.8%
- ----------------------------------------------------------
Aleris International* 47,930 2,304
----------
Total Alumina & aluminum
production & processing 2,304
----------
- ----------------------------------------------------------
ARCHITECTURAL, ENGINEERING &
RELATED SERVICES--0.6%
- ----------------------------------------------------------
Washington Group International* 28,550 1,639
----------
Total Architectural, engineering &
related services 1,639
----------
Value
Shares (000)
- ----------------------------------------------------------
BEVERAGE MANUFACTURING--0.8%
- ----------------------------------------------------------
Hansen Natural* # 17,570 $ 2,215
----------
Total Beverage manufacturing 2,215
----------
- ----------------------------------------------------------
CEMENT & CONCRETE PRODUCT
MANUFACTURING--0.8%
- ----------------------------------------------------------
Eagle Materials # 38,630 2,463
----------
Total Cement & concrete
product manufacturing 2,463
----------
- ----------------------------------------------------------
CLOTHING STORES--1.9%
- ----------------------------------------------------------
Carter's* 34,320 2,316
Gymboree* 119,360 3,108
----------
Total Clothing stores 5,424
----------
- ----------------------------------------------------------
COAL MINING--0.6%
- ----------------------------------------------------------
Foundation Coal Holdings 45,700 1,880
----------
Total Coal mining 1,880
----------
- ----------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--0.7%
- ----------------------------------------------------------
Powerwave Technologies* 149,090 2,011
----------
Total Communications
equipment manufacturing 2,011
----------
- ----------------------------------------------------------
COMMUNITY CARE FACILITIES FOR THE ELDERLY--1.2%
- ----------------------------------------------------------
Sunrise Senior Living* # 93,100 3,628
----------
Total Community care facilities
for the elderly 3,628
----------
- ----------------------------------------------------------
COMPUTER & PERIPHERAL
EQUIPMENT MANUFACTURING--2.9%
- ----------------------------------------------------------
Electronics for Imaging* # 48,630 1,360
Integrated Device Technology* 153,120 2,275
Rackable Systems* # 89,790 4,746
----------
Total Computer & peripheral
equipment manufacturing 8,381
----------
34 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--5.3%
- ----------------------------------------------------------
Digital Insight* 59,740 $ 2,174
Digitas* 127,780 1,840
Foundry Networks* 195,870 3,557
Micros Systems* # 45,100 2,078
Redback Networks* 150,190 3,258
Witness Systems* # 100,230 2,546
----------
Total Computer systems design &
related services 15,453
----------
- ----------------------------------------------------------
DATA PROCESSING SERVICES--1.2%
- ----------------------------------------------------------
Global Cash Access* 95,070 1,665
MoneyGram International 56,500 1,736
----------
Total Data processing services 3,401
----------
- ----------------------------------------------------------
DEEP SEA, COASTAL & GREAT LAKES
WATER TRANSPORTATION--1.5%
- ----------------------------------------------------------
American Commercial Lines* 45,740 2,159
Hornbeck Offshore Services* 57,860 2,087
----------
Total Deep sea, coastal &
great lakes water transportation 4,246
----------
- ----------------------------------------------------------
DEPARTMENT STORES--0.6%
- ----------------------------------------------------------
Citi Trends* 40,695 1,618
----------
Total Department stores 1,618
----------
- ----------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--2.3%
- ----------------------------------------------------------
Boston Private Financial Holdings 65,280 2,206
East West Bancorp 73,772 2,844
Wintrust Financial # 30,260 1,760
----------
Total Depository credit intermediation 6,810
----------
- ----------------------------------------------------------
DRUGS & DRUGGISTS' SUNDRIES WHOLESALE--0.7%
- ----------------------------------------------------------
Medicis Pharmaceutical, Cl A 64,370 2,098
----------
Total Drugs & druggists'
sundries wholesale 2,098
----------
Value
Shares (000)
- ----------------------------------------------------------
ELECTRIC LIGHTING EQUIPMENT
MANUFACTURING--0.7%
- ----------------------------------------------------------
Acuity Brands 51,620 $ 2,065
----------
Total Electric lighting equipment
manufacturing 2,065
----------
- ----------------------------------------------------------
ELECTRICAL GOODS WHOLESALE--1.5%
- ----------------------------------------------------------
WESCO International* 62,940 4,281
----------
Total Electrical goods wholesale 4,281
----------
- ----------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--2.3%
- ----------------------------------------------------------
Coldwater Creek* # 94,051 2,614
Nutri/System* 56,860 2,702
PolyMedica 34,270 1,452
----------
Total Electronic shopping &
mail-order houses 6,768
----------
- ----------------------------------------------------------
EMPLOYMENT SERVICES--1.3%
- ----------------------------------------------------------
Heidrick & Struggles International* # 52,210 1,894
MPS Group* 131,120 2,006
----------
Total Employment services 3,900
----------
- ----------------------------------------------------------
FOOTWEAR MANUFACTURING--0.3%
- ----------------------------------------------------------
CROCS* # 39,970 1,005
----------
Total Footwear manufacturing 1,005
----------
- ----------------------------------------------------------
FULL-SERVICE RESTAURANTS--1.6%
- ----------------------------------------------------------
McCormick & Schmick's
Seafood Restaurants* 71,580 1,823
Ruby Tuesday # 84,720 2,718
----------
Total Full-service restaurants 4,541
----------
- ----------------------------------------------------------
GAMBLING INDUSTRIES--0.6%
- ----------------------------------------------------------
Isle of Capri Casinos* # 53,570 1,783
----------
Total Gambling industries 1,783
----------
- ----------------------------------------------------------
GENERAL MEDICAL & SURGICAL HOSPITALS--0.9%
- ----------------------------------------------------------
Healthways* # 52,450 2,672
----------
Total General medical &
surgical hospitals 2,672
----------
TURNER FUNDS 2006 SEMIANNUAL REPORT 35
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
HARDWARE, & PLUMBING & HEATING EQUIPMENT &
SUPPLIES WHOLESALE--0.6%
- ----------------------------------------------------------
Watsco # 23,680 $ 1,682
----------
Total Hardware, & plumbing & heating
equipment & supplies wholesale 1,682
----------
- ----------------------------------------------------------
HOME HEALTH CARE SERVICES--1.3%
- ----------------------------------------------------------
Intuitive Surgical* # 33,350 3,935
----------
Total Home health care services 3,935
----------
- ----------------------------------------------------------
HVAC & COMMERCIAL REFRIGERATION
EQUIPMENT MANUFACTURING--1.5%
- ----------------------------------------------------------
Lennox International 45,300 1,353
Manitowoc 32,160 2,931
----------
Total Hvac & commercial refrigeration
equipment manufacturing 4,284
----------
- ----------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--1.4%
- ----------------------------------------------------------
Cymer* 46,750 2,124
Varian Semiconductor
Equipment Associates* 74,250 2,085
----------
Total Industrial machinery
manufacturing 4,209
----------
- ----------------------------------------------------------
INFORMATION SERVICES--1.6%
- ----------------------------------------------------------
24/7 Real Media* 170,670 1,785
CNET Networks* 82,270 1,169
Homestore* 249,380 1,636
----------
Total Information services 4,590
----------
- ----------------------------------------------------------
INSURANCE CARRIERS--1.9%
- ----------------------------------------------------------
Argonaut Group* 54,324 1,931
Covanta Holding* 81,590 1,360
WellCare Health Plans* 51,670 2,348
----------
Total Insurance carriers 5,639
----------
- ----------------------------------------------------------
LAWN & GARDEN EQUIPMENT &
SUPPLIES STORES--0.8%
- ----------------------------------------------------------
Tractor Supply* 35,490 2,354
----------
Total Lawn & garden equipment &
supplies stores 2,354
----------
Value
Shares (000)
- ----------------------------------------------------------
MANAGEMENT, SCIENTIFIC & TECHNICAL
CONSULTING SERVICES--1.2%
- ----------------------------------------------------------
Navigant Consulting* 65,230 $ 1,392
Pacer International 61,590 2,013
----------
Total Management, scientific &
technical consulting services 3,405
----------
- ----------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--1.0%
- ----------------------------------------------------------
ev3* 50,970 903
Kyphon* # 57,890 2,153
----------
Total Medical equipment &
supplies manufacturing 3,056
----------
- ----------------------------------------------------------
METAL ORE MINING--0.5%
- ----------------------------------------------------------
Cleveland-Cliffs 15,390 1,341
----------
Total Metal ore mining 1,341
----------
- ----------------------------------------------------------
MINING SUPPORT ACTIVITIES--1.3%
- ----------------------------------------------------------
Basic Energy Services* 60,240 1,795
Superior Energy Services* 78,230 2,096
----------
Total Mining support activities 3,891
----------
- ----------------------------------------------------------
MISCELLANEOUS NONDURABLE
GOODS WHOLESALE--0.6%
- ----------------------------------------------------------
Central Garden and Pet* 35,600 1,892
----------
Total Miscellaneous nondurable
goods wholesale 1,892
----------
- ----------------------------------------------------------
NATURAL GAS TRANSMISSION AND DISTRIBUTION--0.5%
- ----------------------------------------------------------
Crosstex Energy 19,230 1,489
----------
Total Natural gas transmission
and distribution 1,489
----------
- ----------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/
CONTROL INSTRUMENTS MANUFACTURING--0.7%
- ----------------------------------------------------------
Itron* 35,890 2,148
----------
Total Navigational/measuring/medical/
control instruments manufacturing 2,148
----------
36 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
NONFERROUS PRODUCTION & PROCESSING--0.9%
- ----------------------------------------------------------
Titanium Metals* 56,530 $ 2,745
----------
Total Nonferrous production &
processing 2,745
----------
- ----------------------------------------------------------
OIL & GAS EXTRACTION--2.1%
- ----------------------------------------------------------
Parallel Petroleum* 127,160 2,346
St. Mary Land & Exploration 48,900 1,997
Warren Resources* 115,980 1,728
----------
Total Oil & gas extraction 6,071
----------
- ----------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--0.5%
- ----------------------------------------------------------
Calamos Asset Management, Cl A 42,960 1,607
----------
Total Other financial
investment activities 1,607
----------
- ----------------------------------------------------------
OTHER FOOD MANUFACTURING--0.5%
- ----------------------------------------------------------
Hain Celestial Group* 50,480 1,322
----------
Total Other food manufacturing 1,322
----------
- ----------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--3.4%
- ----------------------------------------------------------
Actuant, Cl A 24,620 1,507
Dril-Quip* 24,540 1,739
Gardner Denver* # 26,360 1,719
JLG Industries 159,380 4,907
----------
Total Other general purpose
machinery manufacturing 9,872
----------
- ----------------------------------------------------------
OTHER HEAVY CONSTRUCTION--0.7%
- ----------------------------------------------------------
Granite Construction 41,290 2,010
----------
Total Other heavy construction 2,010
----------
- ----------------------------------------------------------
OTHER INVESTMENT POOLS & FUNDS--1.9%
- ----------------------------------------------------------
Highland Hospitality 98,230 1,248
Kilroy Realty # 24,590 1,900
Sunstone Hotel Investors 87,640 2,539
----------
Total Other investment pools & funds 5,687
----------
Value
Shares (000)
- ----------------------------------------------------------
OTHER NONMETALLIC MINERAL
PRODUCT MANUFACTURING--0.7%
- ----------------------------------------------------------
Novagold Resources* # 141,300 $ 2,162
----------
Total Other nonmetallic mineral
product manufacturing 2,162
----------
- ----------------------------------------------------------
OTHER PROFESSIONAL/SCIENTIFIC/
TECHNICAL SERVICE--0.7%
- ----------------------------------------------------------
VCA Antech* 74,790 2,130
----------
Total Other professional/
scientific/technical service 2,130
----------
- ----------------------------------------------------------
OUTPATIENT CARE CENTERS--3.0%
- ----------------------------------------------------------
Psychiatric Solutions* 158,900 5,264
Sierra Health Services* 87,220 3,550
----------
Total Outpatient care centers 8,814
----------
- ----------------------------------------------------------
PAPER & PAPER PRODUCT WHOLESALE--0.8%
- ----------------------------------------------------------
VistaPrint* 76,750 2,291
----------
Total Paper & paper product wholesale 2,291
----------
- ----------------------------------------------------------
PETROLEUM & COAL PRODUCTS
MANUFACTURING--1.1%
- ----------------------------------------------------------
Frontier Oil # 52,330 3,106
----------
Total Petroleum & coal products
manufacturing 3,106
----------
- ----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--6.4%
- ----------------------------------------------------------
Adams Respiratory Therapeutics* 46,090 1,833
Amylin Pharmaceuticals* # 65,560 3,209
Cubist Pharmaceuticals* 58,860 1,352
Myogen* 87,220 3,160
Neurocrine Biosciences* 26,830 1,732
New River Pharmaceuticals* 95,466 3,171
United Therapeutics* 20,340 1,348
Vertex Pharmaceuticals* 82,820 3,030
----------
Total Pharmaceutical &
medicine manufacturing 18,835
----------
TURNER FUNDS 2006 SEMIANNUAL REPORT 37
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
PLUMBING, HEATING & AC CONTRACTOR--1.0%
- ----------------------------------------------------------
Chemed 48,190 $ 2,860
----------
Total Plumbing, heating &
ac contractor 2,860
----------
- ----------------------------------------------------------
RAIL TRANSPORTATION--0.5%
- ----------------------------------------------------------
Genesee & Wyoming, Cl A* 50,950 1,563
----------
Total Rail transportation 1,563
----------
- ----------------------------------------------------------
RAILROAD ROLLING STOCK MANUFACTURING--1.1%
- ----------------------------------------------------------
Greenbrier 38,460 1,541
Wabtec 47,920 1,562
----------
Total Railroad rolling stock
manufacturing 3,103
----------
- ----------------------------------------------------------
SCIENTIFIC R&D SERVICES--1.3%
- ----------------------------------------------------------
Illumina* 78,310 1,860
Nektar Therapeutics* 93,400 1,903
----------
Total Scientific R&D services 3,763
----------
- ----------------------------------------------------------
SECURITIES & COMMODITY EXCHANGES--0.5%
- ----------------------------------------------------------
NASDAQ Stock Market* 39,950 1,600
----------
Total Securities &
commodity exchanges 1,600
----------
- ----------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--1.2%
- ----------------------------------------------------------
Greenhill # 22,700 1,501
Investment Technology Group* 42,740 2,128
----------
Total Security & commodity contracts
intermediation & brokerage 3,629
----------
- ----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--7.5%
- ----------------------------------------------------------
Emcore* 226,230 2,312
Energy Conversion Devices* # 26,200 1,289
Finisar* 282,710 1,399
Microsemi* # 87,000 2,533
ON Semiconductor* 218,370 1,585
PMC - Sierra* 275,360 3,384
Value
Shares (000)
- ----------------------------------------------------------
Silicon Laboratories* 55,380 $ 3,043
Sirf Technology Holdings* 72,380 2,563
Trident Microsystems* # 130,770 3,800
----------
Total Semiconductor & other electronic
component manufacturing 21,908
----------
- ----------------------------------------------------------
SHOE STORES--0.9%
- ----------------------------------------------------------
Genesco* # 65,270 2,538
----------
Total Shoe stores 2,538
----------
- ----------------------------------------------------------
SOFTWARE PUBLISHERS--2.8%
- ----------------------------------------------------------
F5 Networks* 59,520 4,315
Openwave Systems* # 174,700 3,770
----------
Total Software publishers 8,085
----------
- ----------------------------------------------------------
SPECIALTY FOOD STORES--0.3%
- ----------------------------------------------------------
Wild Oats Markets* 44,500 905
----------
Total Specialty food stores 905
----------
- ----------------------------------------------------------
SPORTING GOODS/HOBBY/
MUSICAL INSTRUMENT STORES--1.9%
- ----------------------------------------------------------
GameStop, Cl A* # 72,270 3,407
Hibbett Sporting Goods* 60,635 2,000
----------
Total Sporting goods/hobby/
musical instrument stores 5,407
----------
- ----------------------------------------------------------
TELECOMMUNICATIONS--3.0%
- ----------------------------------------------------------
Brightpoint* 101,035 3,138
SBA Communications, Cl A* 145,270 3,401
Time Warner Telecom, Cl A* # 124,180 2,229
----------
Total Telecommunications 8,768
----------
- ----------------------------------------------------------
WASTE COLLECTION--1.0%
- ----------------------------------------------------------
Waste Connections* 74,850 2,980
----------
Total Waste collection 2,980
----------
- ----------------------------------------------------------
TOTAL COMMON STOCK
(COST $197,690) 283,453
==========================================================
38 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--13.0%
- ----------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio (1) 38,003,480 $38,003
- ----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $38,003) 38,003
==========================================================
- ----------------------------------------------------------
CASH EQUIVALENT--2.2%
- ----------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares, 4.65%** 6,349,490 6,349
- ----------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $6,349) 6,349
==========================================================
- ----------------------------------------------------------
TOTAL INVESTMENTS--112.2%
(COST $242,042) 327,805
==========================================================
- ----------------------------------------------------------
OTHER ASSETS AND LIABILITIES-- (12.2)%
- ----------------------------------------------------------
Obligation to return securities
lending collateral (38,003)
Payable for investment
securities purchased (3,575)
Payable for capital shares redeemed (300)
Payable due to investment adviser (199)
Payable due to administrator (34)
Other assets and liabilities, net 6,575
- ----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (35,536)
==========================================================
- ----------------------------------------------------------
NET ASSETS-- 100.0% $292,269
==========================================================
Value
(000)
- ----------------------------------------------------------
NET ASSETS CONSIST OF:
- ----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- par value
$0.00001) based on 9,838,369
outstanding shares of beneficial interest $ 327,390
Accumulated net investment loss (1,199)
Accumulated net realized loss
on investments (119,685)
Net unrealized appreciation
on investments 85,763
- ----------------------------------------------------------
NET ASSETS $292,269
==========================================================
- ----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- CLASS I SHARES $29.71
==========================================================
* Non-income producing security
** Rate shown is the 7-day effective yield as of March 31, 2006.
# Security fully or partially on loan at March 31, 2006 (see Note 9 in Notes
to Financial Statements). The total value of securities on loan at March
31, 2006, was $36,984,974.
(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 2006 SEMIANNUAL REPORT 39
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
March 31, 2006
Value
Shares (000)
- ----------------------------------------------------------
COMMON STOCK--90.1%
- ----------------------------------------------------------
AEROSPACE PRODUCT & PARTS MANUFACTURING--1.0%
- ----------------------------------------------------------
Heico # 112,590 $ 3,568
LMI Aerospace* # 154,490 2,802
----------
Total Aerospace product &
parts manufacturing 6,370
----------
- ----------------------------------------------------------
AGENCIES & OTHER INSURANCE
RELATED ACTIVITIES--0.5%
- ----------------------------------------------------------
HealthExtras* # 93,069 3,285
----------
Total Agencies & other insurance
related activities 3,285
----------
- ----------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--4.2%
- ----------------------------------------------------------
Astec Industries* 84,925 3,049
Bucyrus International, Cl A # 313,230 15,094
Lufkin Industries # 94,100 5,217
NATCO Group, Cl A* 87,530 2,372
----------
Total Agriculture, construction &
mining machinery manufacturing 25,732
----------
- ----------------------------------------------------------
ARCHITECTURAL & STRUCTURAL METALS
MANUFACTURING--2.2%
- ----------------------------------------------------------
Drew Industries* # 125,600 4,465
RTI International Metals* # 172,447 9,459
----------
Total Architectural & structural
metals manufacturing 13,924
----------
- ----------------------------------------------------------
ARCHITECTURAL, ENGINEERING &
RELATED SERVICES--0.7%
- ----------------------------------------------------------
MTC Technologies* 151,090 4,229
----------
Total Architectural, engineering &
related services 4,229
----------
- ----------------------------------------------------------
AUTOMOTIVE PARTS, ACCESSORIES & TIRE STORES--0.7%
- ----------------------------------------------------------
MarineMax* # 132,550 4,443
----------
Total Automotive parts,
accessories & tire stores 4,443
----------
- ----------------------------------------------------------
AUTOMOTIVE R&M--0.3%
- ----------------------------------------------------------
Pacific Ethanol* # 84,650 1,828
----------
Total Automotive R&M 1,828
----------
Value
Shares (000)
- ----------------------------------------------------------
BASIC CHEMICAL MANUFACTURING--1.4%
- ----------------------------------------------------------
Tetra Technologies* 190,495 $ 8,961
----------
Total Basic chemical manufacturing 8,961
----------
- ----------------------------------------------------------
BEVERAGE MANUFACTURING--2.4%
- ----------------------------------------------------------
Boston Beer, Cl A* 51,764 1,346
Hansen Natural* # 107,080 13,498
----------
Total Beverage manufacturing 14,844
----------
- ----------------------------------------------------------
CLOTHING STORES--1.9%
- ----------------------------------------------------------
Dress Barn* # 179,970 8,630
JOS A Bank Clothiers* # 61,152 2,932
----------
Total Clothing stores 11,562
----------
- ----------------------------------------------------------
COAL MINING--1.0%
- ----------------------------------------------------------
James River Coal* # 173,550 5,895
----------
Total Coal mining 5,895
----------
- ----------------------------------------------------------
COMMERCIAL/INDUSTRIAL EQUIPMENT
RENTAL & LEASING--0.5%
- ----------------------------------------------------------
H&E Equipment Services* 96,830 2,820
----------
Total Commercial/industrial
equipment rental & leasing 2,820
----------
- ----------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--0.7%
- ----------------------------------------------------------
Comtech Telecommunications* # 157,215 4,586
----------
Total Communications
equipment manufacturing 4,586
----------
- ----------------------------------------------------------
COMMUNITY CARE FACILITIES FOR THE ELDERLY--0.5%
- ----------------------------------------------------------
American Retirement* 123,060 3,153
----------
Total Community care facilities
for the elderly 3,153
----------
- ----------------------------------------------------------
COMPUTER & PERIPHERAL
EQUIPMENT MANUFACTURING--0.6%
- ----------------------------------------------------------
Metrologic Instruments* # 169,000 3,909
----------
Total Computer & peripheral
equipment manufacturing 3,909
----------
40 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--3.6%
- ----------------------------------------------------------
Computer Programs & Systems # 68,900 $ 3,445
Covansys* 152,580 2,623
Perficient* # 139,684 1,622
Quality Systems # 325,760 10,782
Sapient* 466,860 3,562
----------
Total Computer systems design &
related services 22,034
----------
- ----------------------------------------------------------
CUT & SEW APPAREL MANUFACTURING--1.1%
- ----------------------------------------------------------
Volcom* 190,470 6,767
----------
Total Cut & sew apparel manufacturing 6,767
----------
- ----------------------------------------------------------
CUTLERY & HANDTOOL MANUFACTURING--0.6%
- ----------------------------------------------------------
Lifetime Brands # 123,710 3,487
----------
Total Cutlery & handtool manufacturing 3,487
----------
- ----------------------------------------------------------
DEEP SEA, COASTAL & GREAT LAKES
WATER TRANSPORTATION--0.7%
- ----------------------------------------------------------
Hornbeck Offshore Services* 127,280 4,591
----------
Total Deep sea, coastal & great lakes
water transportation 4,591
----------
- ----------------------------------------------------------
DEPARTMENT STORES--0.5%
- ----------------------------------------------------------
Citi Trends* # 76,220 3,030
----------
Total Department stores 3,030
----------
- ----------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--3.1%
- ----------------------------------------------------------
Boston Private Financial
Holdings # 157,130 5,310
Hanmi Financial # 173,820 3,139
IBERIABANK # 53,160 3,007
PFF Bancorp 156,132 5,263
Preferred Bank # 47,360 2,391
----------
Total Depository credit intermediation 19,110
----------
- ----------------------------------------------------------
ENGINE, TURBINE & POWER TRANSMISSION
EQUIPMENT MANUFACTURING--0.5%
- ----------------------------------------------------------
EnPro Industries* 87,150 2,989
----------
Total Engine, turbine & power
transmission equipment manufacturing 2,989
----------
Value
Shares (000)
- ----------------------------------------------------------
FOOTWEAR MANUFACTURING--1.8%
- ----------------------------------------------------------
Deckers Outdoor* # 145,500 $ 5,899
Skechers U.S.A., Cl A* 148,150 3,693
Stride Rite # 101,530 1,470
----------
Total Footwear manufacturing 11,062
----------
- ----------------------------------------------------------
FORGING & STAMPING--0.7%
- ----------------------------------------------------------
Ladish* 152,940 4,431
----------
Total Forging & stamping 4,431
----------
- ----------------------------------------------------------
FULL-SERVICE RESTAURANTS--0.5%
- ----------------------------------------------------------
Benihana* # 25,750 790
Benihana, Cl A* 66,968 2,071
----------
Total Full-service restaurants 2,861
----------
- ----------------------------------------------------------
GAMBLING INDUSTRIES--0.5%
- ----------------------------------------------------------
Isle of Capri Casinos* # 98,227 3,269
----------
Total Gambling industries 3,269
----------
- ----------------------------------------------------------
GENERAL FREIGHT TRUCKING--0.4%
- ----------------------------------------------------------
Universal Truckload Services* # 96,910 2,428
----------
Total General freight trucking 2,428
----------
- ----------------------------------------------------------
HOME HEALTH CARE SERVICES--0.7%
- ----------------------------------------------------------
Intuitive Surgical* # 35,739 4,217
----------
Total Home health care services 4,217
----------
- ----------------------------------------------------------
HOUSEHOLD APPLIANCE MANUFACTURING--0.9%
- ----------------------------------------------------------
Middleby* 67,500 5,651
----------
Total Household appliance manufacturing 5,651
----------
- ----------------------------------------------------------
INFORMATION SERVICES--0.6%
- ----------------------------------------------------------
24/7 Real Media* # 334,790 3,502
----------
Total Information services 3,502
----------
- ----------------------------------------------------------
INSURANCE CARRIERS--2.0%
- ----------------------------------------------------------
American Physicians Capital* # 75,020 3,601
Navigators Group* 63,530 3,151
United Fire & Casualty # 50,220 1,652
WellCare Health Plans* 85,950 3,906
----------
Total Insurance carriers 12,310
----------
TURNER FUNDS 2006 SEMIANNUAL REPORT 41
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
LIMITED-SERVICE EATING PLACES--0.8%
- ----------------------------------------------------------
California Pizza Kitchen* # 148,930 $ 4,833
----------
Total Limited-service eating places 4,833
----------
- ----------------------------------------------------------
MANAGEMENT, SCIENTIFIC & TECHNICAL
CONSULTING SERVICES--3.5%
- ----------------------------------------------------------
CRA International* # 134,880 6,644
HUB Group, Cl A* 167,242 7,623
Navigant Consulting* 336,480 7,184
----------
Total Management, scientific &
technical consulting services 21,451
----------
- ----------------------------------------------------------
MANUFACTURING & REPRODUCING
MAGNETIC & OPTICAL MEDIA--0.4%
- ----------------------------------------------------------
Vocus* 164,650 2,445
----------
Total Manufacturing & reproducing
magnetic & optical media 2,445
----------
- ----------------------------------------------------------
MEDICAL EQUIPMENT & SUPPLIES
MANUFACTURING--0.5%
- ----------------------------------------------------------
Arthrocare* # 64,420 3,081
----------
Total Medical equipment &
supplies manufacturing 3,081
----------
- ----------------------------------------------------------
MINING SUPPORT ACTIVITIES--2.5%
- ----------------------------------------------------------
Oceaneering International* 112,120 6,425
Pioneer Drilling* 169,840 2,791
W-H Energy Services* 138,390 6,157
----------
Total Mining support activities 15,373
----------
- ----------------------------------------------------------
MISCELLANEOUS NONDURABLE
GOODS WHOLESALE--1.6%
- ----------------------------------------------------------
Central Garden and Pet* 185,410 9,853
----------
Total Miscellaneous nondurable
goods wholesale 9,853
----------
- ----------------------------------------------------------
MOTOR VEHICLE PARTS MANUFACTURING--2.2%
- ----------------------------------------------------------
ESCO Technologies* # 270,620 13,707
----------
Total Motor vehicle parts
manufacturing 13,707
----------
Value
Shares (000)
- ----------------------------------------------------------
MOTOR VEHICLE/MOTOR VEHICLE PART & SUPPLY WHOLESALE--0.4%
- ----------------------------------------------------------
Keystone Automotive Industries* 57,200 $ 2,414
----------
Total Motor vehicle/motor vehicle
part & supply wholesale 2,414
----------
- ----------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/CONTROL
INSTRUMENTS MANUFACTURING--5.7%
- ----------------------------------------------------------
American Science & Engineering* # 93,965 8,777
EDO 137,790 4,251
Hologic* # 204,450 11,316
Itron* # 185,900 11,126
----------
Total Navigational/measuring/medical/
control instruments manufacturing 35,470
----------
- ----------------------------------------------------------
NONFERROUS PRODUCTION & PROCESSING--0.7%
- ----------------------------------------------------------
Intermagnetics General* # 184,160 4,613
----------
Total Nonferrous production & processing 4,613
----------
- ----------------------------------------------------------
NONRESIDENTIAL BUILDING CONSTRUCTION--0.4%
- ----------------------------------------------------------
Perini* 86,870 2,638
----------
Total Nonresidential building construction 2,638
----------
- ----------------------------------------------------------
OFFICES OF PHYSICIANS--1.2%
- ----------------------------------------------------------
Horizon Health* # 127,269 2,520
Symbion* # 213,877 4,844
----------
Total Offices of physicians 7,364
----------
- ----------------------------------------------------------
OIL & GAS EXTRACTION--4.7%
- ----------------------------------------------------------
Carrizo Oil & Gas* 78,850 2,049
Comstock Resources* # 165,160 4,904
Energy Partners* # 224,140 5,285
GMX Resources* # 82,370 3,085
KCS Energy* 276,330 7,185
Penn Virginia 89,430 6,349
----------
Total Oil & gas extraction 28,857
----------
- ----------------------------------------------------------
OTHER AMUSEMENT & RECREATION INDUSTRIES--0.4%
- ----------------------------------------------------------
Great Wolf Resorts* 224,130 2,598
----------
Total Other amusement &
recreation industries 2,598
----------
42 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--0.3%
- ----------------------------------------------------------
Evergreen Solar* # 126,570 $ 1,949
----------
Total Other electrical equipment &
component manufacturing 1,949
----------
- ----------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--2.4%
- ----------------------------------------------------------
Cascade # 47,470 2,509
JLG Industries # 396,560 12,210
----------
Total Other general purpose
machinery manufacturing 14,719
----------
- ----------------------------------------------------------
OTHER HEAVY CONSTRUCTION--1.5%
- ----------------------------------------------------------
Foster Wheeler* 192,700 9,117
----------
Total Other heavy construction 9,117
----------
- ----------------------------------------------------------
OTHER INVESTMENT POOLS & FUNDS--0.7%
- ----------------------------------------------------------
Highland Hospitality 357,900 4,549
----------
Total Other investment pools & funds 4,549
----------
- ----------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--0.4%
- ----------------------------------------------------------
Shuffle Master* # 74,165 2,651
----------
Total Other miscellaneous manufacturing 2,651
----------
- ----------------------------------------------------------
OTHER WOOD PRODUCT MANUFACTURING--0.5%
- ----------------------------------------------------------
Champion Enterprises* 188,740 2,824
----------
Total Other wood product
manufacturing 2,824
----------
- ----------------------------------------------------------
PETROLEUM & COAL PRODUCTS
MANUFACTURING--0.9%
- ----------------------------------------------------------
Giant Industries* # 77,920 5,419
----------
Total Petroleum & coal products
manufacturing 5,419
----------
- ----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--4.5%
- ----------------------------------------------------------
Conor Medsystems* 168,990 4,968
Myogen* 334,420 12,116
Panacos Pharmaceuticals* # 304,300 2,301
Value
Shares (000)
- ----------------------------------------------------------
Penwest Pharmaceuticals* 201,310 $ 4,366
United Therapeutics* 66,160 4,385
----------
Total Pharmaceutical & medicine
manufacturing 28,136
----------
- ----------------------------------------------------------
PLUMBING, HEATING & AC CONTRACTOR--1.5%
- ----------------------------------------------------------
Chemed # 158,120 9,383
----------
Total Plumbing, heating & ac contractor 9,383
----------
- ----------------------------------------------------------
RAIL TRANSPORTATION--1.4%
- ----------------------------------------------------------
Genesee & Wyoming, Cl A* # 274,615 8,425
----------
Total Rail transportation 8,425
----------
- ----------------------------------------------------------
SCHEDULED AIR TRANSPORTATION--0.7%
- ----------------------------------------------------------
Copa Holdings, Cl A* 191,330 4,372
----------
Total Scheduled air transportation 4,372
----------
- ----------------------------------------------------------
SCIENTIFIC R&D SERVICES--2.2%
- ----------------------------------------------------------
Arena Pharmaceuticals* 140,030 2,536
Kendle International* 172,694 5,837
SFBC International* # 220,440 5,374
----------
Total Scientific R&D services 13,747
----------
- ----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--1.9%
- ----------------------------------------------------------
Aeroflex* 420,140 5,769
Diodes* # 102,465 4,252
Genesis Microchip* # 111,200 1,895
----------
Total Semiconductor & other
electronic component manufacturing 11,916
----------
- ----------------------------------------------------------
SHOE STORES--1.6%
- ----------------------------------------------------------
Genesco* # 249,010 9,684
----------
Total Shoe stores 9,684
----------
- ----------------------------------------------------------
SOAP, CLEANERS & TOILET PREPARATION
MANUFACTURING--0.5%
- ----------------------------------------------------------
Chattem* 79,413 2,990
----------
Total Soap, cleaners & toilet
preparation manufacturing 2,990
----------
TURNER FUNDS 2006 SEMIANNUAL REPORT 43
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
SOCIAL ASSISTANCE--0.8%
- ----------------------------------------------------------
Providence Service* # 152,536 $ 4,960
----------
Total Social assistance 4,960
----------
- ----------------------------------------------------------
SOFTWARE PUBLISHERS--2.5%
- ----------------------------------------------------------
Actuate* 725,920 3,085
Ansys* # 120,950 6,550
Progress Software* # 112,030 3,259
Vasco Data Security
International* # 344,880 2,821
----------
Total Software publishers 15,715
----------
- ----------------------------------------------------------
SPECIALTY FOOD STORES--0.8%
- ----------------------------------------------------------
Wild Oats Markets* # 250,331 5,089
----------
Total Specialty food stores 5,089
----------
- ----------------------------------------------------------
SPORTING GOODS/HOBBY/MUSICAL
INSTRUMENT STORES--0.5%
- ----------------------------------------------------------
Hibbett Sporting Goods* # 99,445 3,281
----------
Total Sporting goods/hobby/musical
instrument stores 3,281
----------
- ----------------------------------------------------------
SPRING & WIRE PRODUCT
MANUFACTURING--0.7%
- ----------------------------------------------------------
Barnes Group 111,050 4,497
----------
Total Spring & wire product
manufacturing 4,497
----------
- ----------------------------------------------------------
STEEL PRODUCT MANUFACTURING
FROM PURCHASED STEEL--1.4%
- ----------------------------------------------------------
NS Group* 187,100 8,612
----------
Total Steel product manufacturing
from purchased steel 8,612
----------
- ----------------------------------------------------------
TELECOMMUNICATIONS--0.4%
- ----------------------------------------------------------
Dobson Communications, Cl A* 284,900 2,285
----------
Total Telecommunications 2,285
----------
Value
Shares (000)
- ----------------------------------------------------------
WATER, SEWAGE & OTHER SYSTEMS--0.2%
- ----------------------------------------------------------
Artesian Resources, Cl A 36,077 $ 1,205
----------
Total Water, sewage &
other systems 1,205
----------
- ----------------------------------------------------------
TOTAL COMMON STOCK
(COST $361,851) 557,502
==========================================================
- ----------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--28.0%
- ----------------------------------------------------------
Boston Global Investment Trust --
Quality Portfolio (1) 173,201,463 173,201
- ----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $173,201) 173,201
==========================================================
- ----------------------------------------------------------
CASH EQUIVALENT--10.1%
- ----------------------------------------------------------
BlackRock TempCash
Fund, Institutional
Shares, 4.65%** 62,511,446 62,511
- ----------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $62,511) 62,511
==========================================================
- ----------------------------------------------------------
TOTAL INVESTMENTS--128.2%
(COST $597,563) 793,214
==========================================================
- ----------------------------------------------------------
OTHER ASSETS AND LIABILITIES -- (28.2)%
- ----------------------------------------------------------
Obligation to return securities
lending collateral (173,201)
Payable for investment
securities purchased (2,210)
Payable due to investment adviser (492)
Payable for capital shares redeemed (183)
Payable due to administrator (73)
Other assets and liabilities, net 1,914
- ----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (174,245)
==========================================================
- ----------------------------------------------------------
NET ASSETS -- 100.0% $618,969
==========================================================
44 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
Value
(000)
- ----------------------------------------------------------
NET ASSETS CONSIST OF:
- ----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- par value
$0.00001) based on 10,242,396
outstanding shares of beneficial interest $411,495
Accumulated net investment loss (1,656)
Accumulated net realized gain
on investments 13,479
Net unrealized appreciation
on investments 195,651
- ----------------------------------------------------------
NET ASSETS $618,969
- ----------------------------------------------------------
- ----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- CLASS I SHARES $60.43
- ----------------------------------------------------------
* Non-income producing security
** Rate shown is the 7-day effective yield as of March 31, 2006.
# Security fully or partially on loan at March 31, 2006 (see Note 9 in Notes
to Financial Statements). The total value of securities on loan at March
31, 2006, was $166,720,099.
(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 2006 SEMIANNUAL REPORT 45
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP EQUITY FUND
March 31, 2006
Value
Shares (000)
- ----------------------------------------------------------
COMMON STOCK--96.1%
- ----------------------------------------------------------
ACTIVITIES RELATED TO CREDIT INTERMEDIATION--1.1%
- ----------------------------------------------------------
Euronet Worldwide* 24,600 $ 931
----------
Total Activities related to credit
intermediation 931
----------
- ----------------------------------------------------------
ADVERTISING & RELATED SERVICES--0.9%
- ----------------------------------------------------------
Ventiv Health* 21,240 706
----------
Total Advertising & related services 706
----------
- ----------------------------------------------------------
AEROSPACE PRODUCT & PARTS
MANUFACTURING--0.8%
- ----------------------------------------------------------
Hexcel* 28,350 623
----------
Total Aerospace product &
parts manufacturing 623
----------
- ----------------------------------------------------------
AGENCIES & OTHER INSURANCE
RELATED ACTIVITIES--1.0%
- ----------------------------------------------------------
HealthExtras* 24,340 859
----------
Total Agencies & other insurance
related activities 859
----------
- ----------------------------------------------------------
AGRICULTURE, CONSTRUCTION &
MINING MACHINERY MANUFACTURING--4.1%
- ----------------------------------------------------------
Bucyrus International, Cl A 12,645 609
Hydril* 12,170 949
Lone Star Technologies* 15,493 858
Oil States International* 24,340 897
----------
Total Agriculture, construction &
mining machinery manufacturing 3,313
----------
- ----------------------------------------------------------
ALUMINA & ALUMINUM PRODUCTION &
PROCESSING--1.2%
- ----------------------------------------------------------
Aleris International* 21,240 1,021
----------
Total Alumina & aluminum
production & processing 1,021
----------
- ----------------------------------------------------------
APPAREL, PIECE GOODS & NOTIONS WHOLESALE--1.1%
- ----------------------------------------------------------
The Men's Wearhouse 24,230 871
----------
Total Apparel, piece goods &
notions wholesale 871
----------
Value
Shares (000)
- ----------------------------------------------------------
ARCHITECTURAL & STRUCTURAL METALS
MANUFACTURING--1.1%
- ----------------------------------------------------------
Griffon* 35,120 $ 872
----------
Total Architectural & structural
metals manufacturing 872
----------
- ----------------------------------------------------------
ARCHITECTURAL, ENGINEERING &
RELATED SERVICES--1.9%
- ----------------------------------------------------------
Tetra Tech* 31,820 608
Washington Group International* 16,455 944
----------
Total Architectural, engineering &
related services 1,552
----------
- ----------------------------------------------------------
AUTOMOTIVE EQUIPMENT RENTAL & LEASING--1.4%
- ----------------------------------------------------------
Amerco* 4,120 408
PHH* 26,250 701
----------
Total Automotive equipment
rental & leasing 1,109
----------
- ----------------------------------------------------------
BAKERIES & TORTILLA MANUFACTURING--1.0%
- ----------------------------------------------------------
Flowers Foods 26,270 780
----------
Total Bakeries & tortilla manufacturing 780
----------
- ----------------------------------------------------------
CEMENT & CONCRETE PRODUCT
MANUFACTURING--1.5%
- ----------------------------------------------------------
Texas Industries 19,670 1,190
----------
Total Cement & concrete
product manufacturing 1,190
----------
- ----------------------------------------------------------
CLOTHING STORES--2.5%
- ----------------------------------------------------------
Bebe Stores # 27,070 499
Charming Shoppes* 41,390 615
Too* 26,450 909
----------
Total Clothing stores 2,023
----------
- ----------------------------------------------------------
COAL MINING--1.1%
- ----------------------------------------------------------
Foundation Coal Holdings 22,540 927
----------
Total Coal mining 927
----------
46 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP EQUITY FUND
Value
Shares (000)
- ----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--1.0%
- ----------------------------------------------------------
Electronics for Imaging* 28,610 $ 800
----------
Total Computer & peripheral
equipment manufacturing 800
----------
- ----------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--2.5%
- ----------------------------------------------------------
Digital Insight* 19,620 714
Foundry Networks* 43,010 781
Xyratex* 16,160 509
----------
Total Computer systems design &
related services 2,004
----------
- ----------------------------------------------------------
CUT & SEW APPAREL MANUFACTURING--1.1%
- ----------------------------------------------------------
Phillips-Van Heusen 22,490 859
----------
Total Cut & sew apparel manufacturing 859
----------
- ----------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--1.8%
- ----------------------------------------------------------
First Midwest Bancorp 13,950 510
Provident Bankshares 15,690 572
SVB Financial Group* 7,560 401
----------
Total Depository credit intermediation 1,483
----------
- ----------------------------------------------------------
ELECTRIC POWER GENERATION,
TRANSMISSION & DISTRIBUTION--1.6%
- ----------------------------------------------------------
Allete 15,090 703
El Paso Electric 30,920 589
----------
Total Electric power generation,
transmission & distribution 1,292
----------
- ----------------------------------------------------------
ELECTRICAL GOODS WHOLESALE--1.1%
- ----------------------------------------------------------
Arris Group* 67,050 923
----------
Total Electrical goods wholesale 923
----------
- ----------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--1.1%
- ----------------------------------------------------------
PolyMedica 21,300 902
----------
Total Electronic shopping &
mail-order houses 902
----------
Value
Shares (000)
- ----------------------------------------------------------
FOOTWEAR MANUFACTURING--1.8%
- ----------------------------------------------------------
DSW, Cl A* # 26,560 $ 832
Skechers U.S.A., Cl A* 25,470 635
----------
Total Footwear manufacturing 1,467
----------
- ----------------------------------------------------------
FULL-SERVICE RESTAURANTS--0.9%
- ----------------------------------------------------------
Bob Evans Farms 23,790 707
----------
Total Full-service restaurants 707
----------
- ----------------------------------------------------------
GAMBLING INDUSTRIES--1.8%
- ----------------------------------------------------------
Isle of Capri Casinos* 21,950 731
Pinnacle Entertainment* 27,130 764
----------
Total Gambling industries 1,495
----------
- ----------------------------------------------------------
GROCERY STORES--1.1%
- ----------------------------------------------------------
Pantry* 14,130 882
----------
Total Grocery stores 882
----------
- ----------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--0.9%
- ----------------------------------------------------------
Varian Semiconductor
Equipment Associates* 26,430 742
----------
Total Industrial machinery
manufacturing 742
----------
- ----------------------------------------------------------
INFORMATION SERVICES--1.3%
- ----------------------------------------------------------
WebEx Communications* 17,110 576
Websense* 16,860 465
----------
Total Information services 1,041
----------
- ----------------------------------------------------------
INSURANCE CARRIERS--3.2%
- ----------------------------------------------------------
Delphi Financial Group, Cl A 11,960 618
Ohio Casualty 29,570 937
ProAssurance* 20,111 1,046
----------
Total Insurance carriers 2,601
----------
- ----------------------------------------------------------
LIMITED-SERVICE EATING PLACES--1.3%
- ----------------------------------------------------------
Domino's Pizza 38,240 1,092
----------
Total Limited-service eating places 1,092
----------
TURNER FUNDS 2006 SEMIANNUAL REPORT 47
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP EQUITY FUND
Value
Shares (000)
- ----------------------------------------------------------
MACHINERY, EQUIPMENT &
SUPPLIES WHOLESALE--1.0%
- ----------------------------------------------------------
Aviall* 21,390 $ 815
----------
Total Machinery, equipment &
supplies wholesale 815
----------
- ----------------------------------------------------------
MANAGEMENT, SCIENTIFIC &
TECHNICAL CONSULTING SERVICES--0.8%
- ----------------------------------------------------------
FTI Consulting* 24,120 688
----------
Total Management, scientific &
technical consulting services 688
----------
- ----------------------------------------------------------
MEDICAL EQUIPMENT &
SUPPLIES MANUFACTURING--1.9%
- ----------------------------------------------------------
Haemonetics* 19,470 989
Thoratec* 28,400 547
----------
Total Medical equipment &
supplies manufacturing 1,536
----------
- ----------------------------------------------------------
METAL ORE MINING--1.7%
- ----------------------------------------------------------
Cleveland-Cliffs # 7,070 616
Randgold Resources ADR* 43,620 792
----------
Total Metal ore mining 1,408
----------
- ----------------------------------------------------------
MISCELLANEOUS NONDURABLE
GOODS WHOLESALE--0.7%
- ----------------------------------------------------------
Central Garden and Pet* 10,580 562
----------
Total Miscellaneous nondurable
goods wholesale 562
----------
- ----------------------------------------------------------
MOTOR VEHICLE BODY & TRAILER
MANUFACTURING--0.9%
- ----------------------------------------------------------
Tenneco* 34,700 753
----------
Total Motor vehicle body &
trailer manufacturing 753
----------
- ----------------------------------------------------------
MOTOR VEHICLE MANUFACTURING--0.7%
- ----------------------------------------------------------
Federal Signal 30,800 570
----------
Total Motor vehicle manufacturing 570
----------
Value
Shares (000)
- ----------------------------------------------------------
NAVIGATIONAL/MEASURING/MEDICAL/
CONTROL INSTRUMENTS MANUFACTURING--2.5%
- ----------------------------------------------------------
Analogic 7,836 $ 519
DRS Technologies 12,810 703
Itron* 13,710 820
----------
Total Navigational/measuring/medical/
control instruments manufacturing 2,042
----------
- ----------------------------------------------------------
OIL & GAS EXTRACTION--0.9%
- ----------------------------------------------------------
Comstock Resources* 25,460 756
----------
Total Oil & gas extraction 756
----------
- ----------------------------------------------------------
OTHER AMUSEMENT & RECREATION INDUSTRIES--0.9%
- ----------------------------------------------------------
Vail Resorts* 18,760 717
----------
Total Other amusement &
recreation industries 717
----------
- ----------------------------------------------------------
OTHER ELECTRICAL EQUIPMENT &
COMPONENT MANUFACTURING--1.4%
- ----------------------------------------------------------
CommScope* # 40,670 1,161
----------
Total Other electrical equipment &
component manufacturing 1,161
----------
- ----------------------------------------------------------
OTHER FABRICATED METAL PRODUCT
MANUFACTURING--0.9%
- ----------------------------------------------------------
Kaydon 18,580 750
----------
Total Other fabricated metal
product manufacturing 750
----------
- ----------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--2.6%
- ----------------------------------------------------------
National Financial Partners 17,880 1,011
Waddell & Reed Financial, Cl A 48,030 1,109
----------
Total Other financial
investment activities 2,120
----------
- ----------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--3.7%
- ----------------------------------------------------------
Actuant, Cl A 15,310 937
Gardner Denver* 15,720 1,025
Nordson 21,330 1,064
----------
Total Other general purpose
machinery manufacturing 3,026
----------
48 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP EQUITY FUND
Value
Shares (000)
- ----------------------------------------------------------
OTHER INVESTMENT POOLS & FUNDS--6.9%
- ----------------------------------------------------------
Alexandria Real Estate Equities 9,825 $ 937
BioMed Realty Trust 26,700 791
Corporate Office Properties Trust # 18,870 863
Kilroy Realty 10,260 793
Maguire Properties 22,970 838
Strategic Hotels & Resorts 28,270 658
Taubman Centers 18,520 772
----------
Total Other investment pools & funds 5,652
----------
- ----------------------------------------------------------
OUTPATIENT CARE CENTERS--1.2%
- ----------------------------------------------------------
Psychiatric Solutions* 28,600 947
----------
Total Outpatient care centers 947
----------
- ----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--2.6%
- ----------------------------------------------------------
Alkermes* 21,060 464
Angiotech Pharmaceuticals* 53,930 798
First Horizon Pharmaceutical* 33,200 837
----------
Total Pharmaceutical &
medicine manufacturing 2,099
----------
- ----------------------------------------------------------
PLASTICS PRODUCT MANUFACTURING--0.7%
- ----------------------------------------------------------
Tupperware Brands 27,540 567
----------
Total Plastics product manufacturing 567
----------
- ----------------------------------------------------------
PLUMBING, HEATING & AC CONTRACTOR--1.1%
- ----------------------------------------------------------
Chemed 14,720 873
----------
Total Plumbing, heating & ac contractor 873
----------
- ----------------------------------------------------------
RAILROAD ROLLING STOCK MANUFACTURING--1.8%
- ----------------------------------------------------------
Freightcar America 9,710 618
Wabtec 25,000 815
----------
Total Railroad rolling
stock manufacturing 1,433
----------
- ----------------------------------------------------------
RESIDENTIAL BUILDING CONSTRUCTION--2.5%
- ----------------------------------------------------------
Walter Industries 30,230 2,014
----------
Total Residential building construction 2,014
----------
Value
Shares (000)
- ----------------------------------------------------------
SCHEDULED AIR TRANSPORTATION--0.7%
- ----------------------------------------------------------
Skywest 20,790 $ 608
----------
Total Scheduled air transportation 608
----------
- ----------------------------------------------------------
SCIENTIFIC R&D SERVICES--0.6%
- ----------------------------------------------------------
Nektar Therapeutics* 24,350 496
----------
Total Scientific R&D services 496
----------
- ----------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--0.8%
- ----------------------------------------------------------
GFI Group* 13,350 693
----------
Total Security & commodity contracts
intermediation & brokerage 693
----------
- ----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--3.5%
- ----------------------------------------------------------
Benchmark Electronics* 22,840 876
DSP Group* 27,610 801
NAM TAI Electronics 20,926 480
Standard Microsystems* 25,300 657
----------
Total Semiconductor & other electronic
component manufacturing 2,814
----------
- ----------------------------------------------------------
SOFTWARE PUBLISHERS--5.5%
- ----------------------------------------------------------
Blackbaud 38,770 822
Brocade Communications Systems* 152,190 1,017
Nuance Communications* 74,860 884
THQ* 33,755 874
Transaction Systems Architects* 28,790 898
----------
Total Software publishers 4,495
----------
- ----------------------------------------------------------
TELECOMMUNICATIONS--3.1%
- ----------------------------------------------------------
Brightpoint* 24,670 766
Dobson Communications, Cl A* 113,920 914
Ubiquitel* 80,750 815
----------
Total Telecommunications 2,495
----------
TURNER FUNDS 2006 SEMIANNUAL REPORT 49
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP EQUITY FUND
Value
Shares (000)
- ----------------------------------------------------------
WATER TRANSPORTATION SUPPORT ACTIVITIES--1.3%
- ----------------------------------------------------------
Kirby* 15,790 $ 1,075
----------
Total Water transportation
support activities 1,075
----------
- ----------------------------------------------------------
TOTAL COMMON STOCK
(COST $63,895) 78,232
==========================================================
- ----------------------------------------------------------
REGISTERED INVESTMENT COMPANY--1.0%
- ----------------------------------------------------------
iShares Russell 2000 Index Fund # 10,570 804
- ----------------------------------------------------------
TOTAL REGISTERED INVESTMENT COMPANY
(COST $706) 804
==========================================================
- ----------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--1.7%
- ----------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio (1) 1,399,030 1,399
- ----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $1,399) 1,399
==========================================================
- ----------------------------------------------------------
CASH EQUIVALENT--3.4%
- ----------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares, 4.65%** 2,745,116 2,745
- ----------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $2,745) 2,745
==========================================================
- ----------------------------------------------------------
TOTAL INVESTMENTS--102.2%
(COST $68,745) 83,180
==========================================================
- ----------------------------------------------------------
OTHER ASSETS AND LIABILITIES-- (2.2)%
- ----------------------------------------------------------
Obligation to return securities
lending collateral (1,399)
Payable for investment securities purchased (1,218)
Payable for capital shares redeemed (59)
Payable due to investment adviser (48)
Payable due to administrator (10)
Other assets and liabilities, net 909
- ----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (1,825)
==========================================================
- ----------------------------------------------------------
NET ASSETS -- 100.0% $81,355
==========================================================
Value
(000)
- ----------------------------------------------------------
NET ASSETS CONSIST OF:
- ----------------------------------------------------------
Portfolio capital of Class II Shares
(unlimited authorization -- par value
$0.00001) based on 4,380,950
outstanding shares of beneficial interest $62,107
Accumulated net investment loss (191)
Accumulated net realized gain
on investments 5,004
Net unrealized appreciation
on investments 14,435
- ----------------------------------------------------------
NET ASSETS $81,355
==========================================================
- ----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- CLASS II SHARES $18.57
==========================================================
* Non-income producing security
** Rate shown is the 7-day effective yield as of March 31, 2006.
# Security fully or partially on loan at March 31, 2006 (see Note 9 in Notes
to Financial Statements). The total value of securities on loan at March
31, 2006, was $1,362,474.
(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
The accompanying notes are an integral part of the financial statements.
50 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER TECHNOLOGY FUND
March 31, 2006
Value
Shares (000)
- ----------------------------------------------------------
COMMON STOCK--100.1%
- ----------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--1.2%
- ----------------------------------------------------------
Joy Global 3,100 $ 185
----------
Total Agriculture, construction &
mining machinery manufacturing 185
----------
- ----------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--3.4%
- ----------------------------------------------------------
Alcatel ADR* 33,790 520
----------
Total Communications equipment
manufacturing 520
----------
- ----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--10.0%
- ----------------------------------------------------------
Apple Computer* 8,830 554
Hewlett-Packard 17,200 566
Rackable Systems* 8,350 441
----------
Total Computer & peripheral
equipment manufacturing 1,561
----------
- ----------------------------------------------------------
COMPUTER SYSTEMS DESIGN &
RELATED SERVICES--6.1%
- ----------------------------------------------------------
Foundry Networks* 32,700 594
Witness Systems* 13,850 352
----------
Total Computer systems design &
related services 946
----------
- ----------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--2.5%
- ----------------------------------------------------------
eBay* 9,870 385
----------
Total Electronic shopping &
mail-order houses 385
----------
- ----------------------------------------------------------
HOME HEALTH CARE SERVICES--2.7%
- ----------------------------------------------------------
Intuitive Surgical* 3,610 426
----------
Total Home health care services 426
----------
- ----------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--4.7%
- ----------------------------------------------------------
Kla-Tencor 9,840 476
Varian Semiconductor
Equipment Associates* 8,850 248
----------
Total Industrial machinery
manufacturing 724
----------
Value
Shares (000)
- ----------------------------------------------------------
INFORMATION SERVICES--5.1%
- ----------------------------------------------------------
Google, Cl A* 1,450 $ 565
Internet Capital Group* 24,270 229
----------
Total Information services 794
----------
- ----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--3.2%
- ----------------------------------------------------------
Gilead Sciences* 8,090 503
----------
Total Pharmaceutical &
medicine manufacturing 503
----------
- ----------------------------------------------------------
SCIENTIFIC R&D SERVICES--3.3%
- ----------------------------------------------------------
Celgene* 11,500 509
----------
Total Scientific R&D services 509
----------
- ----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--35.2%
- ----------------------------------------------------------
Advanced Micro Devices* 18,860 625
ASML Holding, NY Shares* 22,650 461
Broadcom, Cl A* 16,860 728
Emcore* 30,060 307
Finisar* 49,000 243
JDS Uniphase* 151,720 633
Marvell Technology Group* 12,130 656
ON Semiconductor* 29,700 216
Silicon Laboratories* 9,290 511
Sirf Technology Holdings* 11,530 408
Trident Microsystems* 23,370 679
----------
Total Semiconductor & other electronic
component manufacturing 5,467
----------
- ----------------------------------------------------------
SOFTWARE PUBLISHERS--18.0%
- ----------------------------------------------------------
Akamai Technologies* 14,470 476
F5 Networks* 10,730 778
Nuance Communications* 23,800 281
Openwave Systems* 28,360 612
Red Hat* 14,220 398
Salesforce.com* 6,850 249
----------
Total Software publishers 2,794
----------
TURNER FUNDS 2006 SEMIANNUAL REPORT 51
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER TECHNOLOGY FUND
Value
Shares (000)
- ----------------------------------------------------------
TELECOMMUNICATIONS--4.7%
- ----------------------------------------------------------
China GrenTech, ADR* 8,800 $ 151
NII Holdings* 9,940 586
----------
Total Telecommunications 737
----------
- ----------------------------------------------------------
TOTAL COMMON STOCK
(COST $11,006) 15,551
==========================================================
- ----------------------------------------------------------
CASH EQUIVALENT--0.1%
- ----------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares, 4.65%** 14,708 15
- ----------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $15) 15
==========================================================
- ----------------------------------------------------------
TOTAL INVESTMENTS--100.2%
(COST $11,021) 15,566
==========================================================
- ----------------------------------------------------------
OTHER ASSETS AND LIABILITIES-- (0.2)%
- ----------------------------------------------------------
Payable for investment securities purchased (158)
Payable due to investment adviser (17)
Payable for capital shares redeemed (2)
Payable due to administrator (2)
Other assets and liabilities, net 155
- ----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (24)
==========================================================
NET ASSETS-- 100.0% $15,542
==========================================================
Value
(000)
- ----------------------------------------------------------
NET ASSETS CONSIST OF:
- ----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- par value
$0.00001) based on 1,903,994
outstanding shares of beneficial interest $139,905
Accumulated net investment loss (93)
Accumulated net realized loss
on investments (128,815)
Net unrealized appreciation
on investments 4,545
- ----------------------------------------------------------
NET ASSETS $15,542
==========================================================
- ----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- CLASS I SHARES $8.16
==========================================================
* Non-income producing security
** Rate shown is the 7-day effective yield as of March 31, 2006.
ADR -- American Depositary Receipt
Cl -- Class
NY -- New York
The accompanying notes are an integral part of the financial statements.
52 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER CONCENTRATED GROWTH FUND
March 31, 2006
Value
Shares (000)
- ----------------------------------------------------------
COMMON STOCK--96.4%
- ----------------------------------------------------------
CEMENT & CONCRETE PRODUCT
MANUFACTURING--3.1%
- ----------------------------------------------------------
Cemex ADR 19,620 $ 1,281
----------
Total Cement & concrete
product manufacturing 1,281
----------
- ----------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--11.7%
- ----------------------------------------------------------
Alcatel ADR* 81,290 1,252
Qualcomm 38,520 1,949
Sony ADR 36,330 1,674
----------
Total Communications
equipment manufacturing 4,875
----------
- ----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--3.9%
- ----------------------------------------------------------
Apple Computer* 26,170 1,641
----------
Total Computer & peripheral
equipment manufacturing 1,641
----------
- ----------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--4.8%
- ----------------------------------------------------------
eBay* 51,450 2,009
----------
Total Electronic shopping &
mail-order houses 2,009
----------
- ----------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--3.1%
- ----------------------------------------------------------
Kla-Tencor 26,720 1,292
----------
Total Industrial machinery
manufacturing 1,292
----------
- ----------------------------------------------------------
INFORMATION SERVICES--6.7%
- ----------------------------------------------------------
Google, Cl A* 7,120 2,777
----------
Total Information services 2,777
----------
- ----------------------------------------------------------
INSURANCE CARRIERS--3.5%
- ----------------------------------------------------------
UnitedHealth Group 26,080 1,457
----------
Total Insurance carriers 1,457
----------
- ----------------------------------------------------------
MOTOR VEHICLE MANUFACTURING--4.0%
- ----------------------------------------------------------
Toyota Motor ADR 15,470 1,685
----------
Total Motor vehicle manufacturing 1,685
----------
Value
Shares (000)
- ----------------------------------------------------------
OTHER GENERAL PURPOSE MACHINERY
MANUFACTURING--3.0%
- ----------------------------------------------------------
Rockwell Automation 17,270 $ 1,242
----------
Total Other general purpose
machinery manufacturing 1,242
----------
- ----------------------------------------------------------
OTHER LEATHER & ALLIED PRODUCT
MANUFACTURING--4.1%
- ----------------------------------------------------------
Coach* 50,080 1,732
----------
Total Other leather & allied
product manufacturing 1,732
----------
- ----------------------------------------------------------
OTHER MISCELLANEOUS MANUFACTURING--3.1%
- ----------------------------------------------------------
Scientific Games, Cl A* 37,040 1,301
----------
Total Other miscellaneous
manufacturing 1,301
----------
- ----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--4.0%
- ----------------------------------------------------------
Gilead Sciences* 27,140 1,689
----------
Total Pharmaceutical &
medicine manufacturing 1,689
----------
- ----------------------------------------------------------
SECURITIES & COMMODITY EXCHANGES--3.2%
- ----------------------------------------------------------
Chicago Mercantile
Exchange Holdings 3,010 1,347
----------
Total Securities & commodity exchanges 1,347
----------
- ----------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--3.1%
- ----------------------------------------------------------
Charles Schwab 74,110 1,275
----------
Total Security & commodity
contracts intermediation & brokerage 1,275
----------
- ----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--15.8%
- ----------------------------------------------------------
Advanced Micro Devices* 49,730 1,649
Applied Materials 119,880 2,099
Broadcom, Cl A* 38,145 1,647
JDS Uniphase* 286,370 1,194
----------
Total Semiconductor & other
electronic component manufacturing 6,589
----------
TURNER FUNDS 2006 SEMIANNUAL REPORT 53
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER CONCENTRATED GROWTH FUND
Value
Shares (000)
- ----------------------------------------------------------
SOFTWARE PUBLISHERS--8.8%
- ----------------------------------------------------------
F5 Networks* 17,420 $ 1,263
Openwave Systems* 59,720 1,288
Salesforce.com* 30,850 1,121
----------
Total Software publishers 3,672
----------
- ----------------------------------------------------------
TELECOMMUNICATIONS--2.6%
- ----------------------------------------------------------
NII Holdings* 18,300 1,079
----------
Total Telecommunications 1,079
----------
- ----------------------------------------------------------
TRAVELER ACCOMMODATION--7.9%
- ----------------------------------------------------------
Starwood Hotels &
Resorts Worldwide 26,090 1,767
Station Casinos 19,080 1,514
----------
Total Traveler accommodation 3,281
----------
- ----------------------------------------------------------
TOTAL COMMON STOCK
(COST $33,904) 40,224
- ----------------------------------------------------------
- ----------------------------------------------------------
CASH EQUIVALENT--2.1%
- ----------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares, 4.65%** 879,609 880
- ----------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $880) 880
- ----------------------------------------------------------
- ----------------------------------------------------------
TOTAL INVESTMENTS--98.5%
(COST $34,784) $41,104
- ----------------------------------------------------------
Percentages are based on net assets of $41,746 (000).
* Non-income producing security
** Rate shown is the 7-day effective yield as of March 31, 2006.
ADR -- American Depositary Receipt
Cl -- Class
The accompanying notes are an integral part of the financial statements.
54 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER NEW ENTERPRISE FUND
March 31, 2006
Value
Shares (000)
- ----------------------------------------------------------
COMMON STOCK--98.5%
- ----------------------------------------------------------
ADVERTISING & RELATED SERVICES--1.7%
- ----------------------------------------------------------
aQuantive* 20,380 $ 480
----------
Total Advertising & related services 480
----------
- ----------------------------------------------------------
BEVERAGE MANUFACTURING--3.0%
- ----------------------------------------------------------
Hansen Natural* # 6,740 849
----------
Total Beverage manufacturing 849
----------
- ----------------------------------------------------------
COMMERCIAL/INDUSTRIAL EQUIPMENT
RENTAL & LEASING--1.5%
- ----------------------------------------------------------
H&E Equipment Services* 15,000 437
----------
Total Commercial/industrial
equipment rental & leasing 437
----------
- ----------------------------------------------------------
COMMUNICATIONS EQUIPMENT
MANUFACTURING--1.1%
- ----------------------------------------------------------
Sony ADR 7,030 324
----------
Total Communications equipment
manufacturing 324
----------
- ----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--4.9%
- ----------------------------------------------------------
Apple Computer* 8,010 502
Rackable Systems* 17,210 910
----------
Total Computer & peripheral
equipment manufacturing 1,412
----------
- ----------------------------------------------------------
ELECTRICAL GOODS WHOLESALE--1.9%
- ----------------------------------------------------------
WESCO International* 7,940 540
----------
Total Electrical goods wholesale 540
----------
- ----------------------------------------------------------
ELECTRONIC SHOPPING & MAIL-ORDER HOUSES--3.2%
- ----------------------------------------------------------
eBay* 11,280 441
Nutri/System* # 10,020 476
----------
Total Electronic shopping &
mail-order houses 917
----------
- ----------------------------------------------------------
FOUNDRIES--1.5%
- ----------------------------------------------------------
Precision Castparts 7,220 429
----------
Total Foundries 429
----------
- ----------------------------------------------------------
HOME HEALTH CARE SERVICES--2.5%
- ----------------------------------------------------------
Intuitive Surgical* 6,070 716
----------
Total Home health care services 716
----------
Value
Shares (000)
- ----------------------------------------------------------
INDUSTRIAL MACHINERY MANUFACTURING--3.6%
- ----------------------------------------------------------
Cymer* 7,660 $ 348
Varian Semiconductor
Equipment Associates* 24,150 678
----------
Total Industrial machinery manufacturing 1,026
----------
- ----------------------------------------------------------
INFORMATION SERVICES--3.9%
- ----------------------------------------------------------
Google, Cl A* 2,890 1,127
----------
Total Information services 1,127
----------
- ----------------------------------------------------------
MANAGEMENT, SCIENTIFIC &
TECHNICAL CONSULTING SERVICES--2.3%
- ----------------------------------------------------------
Monster Worldwide* 13,240 660
----------
Total Management, scientific &
technical consulting services 660
----------
- ----------------------------------------------------------
MEDICAL & DIAGNOSTIC LABORATORIES--1.7%
- ----------------------------------------------------------
Quest Diagnostics 9,630 494
----------
Total Medical & diagnostic laboratories 494
----------
- ----------------------------------------------------------
OIL & GAS EXTRACTION--4.7%
- ----------------------------------------------------------
GMX Resources* 20,890 782
Range Resources 20,505 560
----------
Total Oil & gas extraction 1,342
----------
- ----------------------------------------------------------
OTHER FINANCIAL INVESTMENT ACTIVITIES--1.3%
- ----------------------------------------------------------
Mitsubishi UFJ Financial
Group ADR 25,560 389
----------
Total Other financial investment activities 389
----------
- ----------------------------------------------------------
OTHER LEATHER & ALLIED PRODUCT
MANUFACTURING--1.8%
- ----------------------------------------------------------
Coach* 15,010 519
----------
Total Other leather & allied
product manufacturing 519
----------
- ----------------------------------------------------------
PAPER & PAPER PRODUCT WHOLESALE--1.5%
- ----------------------------------------------------------
VistaPrint* 14,710 439
----------
Total Paper & paper product wholesale 439
----------
- ----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--4.1%
- ----------------------------------------------------------
Amylin Pharmaceuticals* 7,610 372
Gilead Sciences* 12,770 795
----------
Total Pharmaceutical &
medicine manufacturing 1,167
----------
TURNER FUNDS 2006 SEMIANNUAL REPORT 55
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER NEW ENTERPRISE FUND
Value
Shares (000)
- ----------------------------------------------------------
SCIENTIFIC R&D SERVICES--1.3%
- ----------------------------------------------------------
PDL BioPharma* 11,000 $ 361
----------
Total Scientific R&D services 361
----------
- ----------------------------------------------------------
SECURITIES & COMMODITY EXCHANGES--2.3%
- ----------------------------------------------------------
Chicago Mercantile
Exchange Holdings 1,450 649
----------
Total Securities & commodity exchanges 649
----------
- ----------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--2.7%
- ----------------------------------------------------------
Thomas Weisel Partners Group* # 35,000 766
----------
Total Security & commodity contracts
intermediation & brokerage 766
----------
- ----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--21.9%
- ----------------------------------------------------------
Advanced Micro Devices* 24,150 801
Broadcom, Cl A* 15,120 653
JDS Uniphase* 204,070 851
Marvell Technology Group* 18,500 1,001
PMC - Sierra* 45,000 553
Silicon Laboratories* 17,780 977
Sirf Technology Holdings* # 9,970 353
Trident Microsystems* 37,450 1,088
----------
Total Semiconductor & other electronic
component manufacturing 6,277
----------
- ----------------------------------------------------------
SOFTWARE PUBLISHERS--15.4%
- ----------------------------------------------------------
Akamai Technologies* 23,580 776
F5 Networks* 16,970 1,230
Nuance Communications* 47,610 562
Openwave Systems* 33,970 733
Red Hat* 20,520 574
Salesforce.com* 14,600 531
----------
Total Software publishers 4,406
----------
- ----------------------------------------------------------
SPORTING GOODS/HOBBY/
MUSICAL INSTRUMENT STORES--2.8%
- ----------------------------------------------------------
GameStop, Cl A* # 17,160 809
----------
Total Sporting goods/hobby/
musical instrument stores 809
----------
Value
Shares (000)
- ----------------------------------------------------------
TELECOMMUNICATIONS--3.6%
- ----------------------------------------------------------
China GrenTech, ADR* 16,200 $ 277
NII Holdings* 12,800 755
----------
Total Telecommunications 1,032
----------
- ----------------------------------------------------------
TRAVELER ACCOMMODATION--2.3%
- ----------------------------------------------------------
Starwood Hotels &
Resorts Worldwide 9,620 651
----------
Total Traveler accommodation 651
----------
- ----------------------------------------------------------
TOTAL COMMON STOCK
(COST $23,592) 28,218
==========================================================
- ----------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--10.7%
- ----------------------------------------------------------
Boston Global Investment Trust--
Quality Portfolio (1) 3,058,860 3,059
- ----------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $3,059) 3,059
==========================================================
- ----------------------------------------------------------
CASH EQUIVALENT--2.4%
- ----------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares, 4.65%** 674,578 675
- ----------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $675) 675
==========================================================
- ----------------------------------------------------------
TOTAL INVESTMENTS--111.6%
(COST $27,326) $31,952
==========================================================
Percentages are based on net assets of $28,637 (000).
* Non-income producing security
** Rate shown is the 7-day effective yield as of March 31, 2006.
# Security fully or partially on loan at March 31, 2006 (see Note 9 in Notes
to Financial Statements). The total value of securities on loan at March
31, 2006, was $3,026,613.
(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
The accompanying notes are an integral part of the financial statements.
56 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER LARGE CAP VALUE FUND
March 31, 2006
Value
Shares (000)
- ----------------------------------------------------------
COMMON STOCK--98.4%
- ----------------------------------------------------------
ADVERTISING & RELATED SERVICES--0.5%
- ----------------------------------------------------------
Time Warner 190 $ 3
----------
Total Advertising & related services 3
----------
- ----------------------------------------------------------
AEROSPACE PRODUCT & PARTS
MANUFACTURING--2.0%
- ----------------------------------------------------------
Boeing 50 4
Goodrich 70 3
Textron 40 4
----------
Total Aerospace product &
parts manufacturing 11
----------
- ----------------------------------------------------------
AGRICULTURE, CONSTRUCTION & MINING
MACHINERY MANUFACTURING--2.7%
- ----------------------------------------------------------
Caterpillar 60 4
Grant Prideco* 130 6
Terex* 60 5
----------
Total Agriculture, construction &
mining machinery manufacturing 15
----------
- ----------------------------------------------------------
AUTOMOTIVE EQUIPMENT RENTAL & LEASING--0.7%
- ----------------------------------------------------------
Ryder System 90 4
----------
Total Automotive equipment
rental & leasing 4
----------
- ----------------------------------------------------------
BASIC CHEMICAL MANUFACTURING--0.7%
- ----------------------------------------------------------
Celanese, Ser A 180 4
----------
Total Basic chemical manufacturing 4
----------
- ----------------------------------------------------------
BEVERAGE MANUFACTURING--0.7%
- ----------------------------------------------------------
Molson Coors Brewing, Cl B 60 4
----------
Total Beverage manufacturing 4
----------
- ----------------------------------------------------------
BOILER, TANK & SHIPPING CONTAINER
MANUFACTURING--0.5%
- ----------------------------------------------------------
Crown Holdings* 170 3
----------
Total Boiler, tank & shipping
container manufacturing 3
----------
Value
Shares (000)
- ----------------------------------------------------------
BUILDING MATERIAL & SUPPLIES DEALERS--0.7%
- ----------------------------------------------------------
Lowe's 70 $ 4
----------
Total Building material & supplies dealers 4
----------
- ----------------------------------------------------------
CABLE NETWORKS & PROGRAM DISTRIBUTION--0.7%
- ----------------------------------------------------------
DIRECTV Group* 250 4
----------
Total Cable networks &
program distribution 4
----------
- ----------------------------------------------------------
CLOTHING STORES--1.6%
- ----------------------------------------------------------
Abercrombie & Fitch, Cl A 90 5
Ross Stores 130 4
----------
Total Clothing stores 9
----------
- ----------------------------------------------------------
COAL MINING--0.8%
- ----------------------------------------------------------
Consol Energy 60 4
----------
Total Coal mining 4
----------
- ----------------------------------------------------------
COMPUTER & PERIPHERAL EQUIPMENT
MANUFACTURING--3.1%
- ----------------------------------------------------------
Hewlett-Packard 400 13
Integrated Device Technology* 230 4
----------
Total Computer & peripheral
equipment manufacturing 17
----------
- ----------------------------------------------------------
DEPARTMENT STORES--1.1%
- ----------------------------------------------------------
J.C. Penney 100 6
----------
Total Department stores 6
----------
- ----------------------------------------------------------
DEPOSITORY CREDIT INTERMEDIATION--10.1%
- ----------------------------------------------------------
Bank of America 340 15
Citigroup 380 18
SunTrust Banks 90 7
Wachovia 140 8
Wells Fargo 130 8
----------
Total Depository credit intermediation 56
----------
TURNER FUNDS 2006 SEMIANNUAL REPORT 57
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER LARGE CAP VALUE FUND
Value
Shares (000)
- ----------------------------------------------------------
ELECTRIC POWER GENERATION,
TRANSMISSION & DISTRIBUTION--5.1%
- ----------------------------------------------------------
AES* 250 $ 4
Allegheny Energy* 110 4
Duke Energy* 250 7
Exelon 80 4
FirstEnergy 90 4
TXU 100 5
----------
Total Electric power generation,
transmission & distribution 28
----------
- ----------------------------------------------------------
ENGINE, TURBINE & POWER TRANSMISSION
EQUIPMENT MANUFACTURING--0.9%
- ----------------------------------------------------------
Cummins 50 5
----------
Total Engine, turbine & power transmission
equipment manufacturing 5
----------
- ----------------------------------------------------------
GAMBLING INDUSTRIES--1.3%
- ----------------------------------------------------------
Penn National Gaming* 160 7
----------
Total Gambling industries 7
----------
- ----------------------------------------------------------
GRAIN & OILSEED MILLING--0.9%
- ----------------------------------------------------------
Archer-Daniels-Midland 150 5
----------
Total Grain & oilseed milling 5
----------
- ----------------------------------------------------------
GROCERY STORES--0.9%
- ----------------------------------------------------------
Whole Foods Market 70 5
----------
Total Grocery stores 5
----------
- ----------------------------------------------------------
HEALTH & PERSONAL CARE STORES--1.8%
- ----------------------------------------------------------
CVS 210 210 6
Omnicare 70 4
----------
Total Health & personal care stores 10
----------
- ----------------------------------------------------------
INSURANCE CARRIERS--12.1%
- ----------------------------------------------------------
Aetna 110 5
AMBAC Financial Group 50 4
American Financial Group 120 5
American International Group 100 7
Assurant 130 6
Chubb 50 5
Value
Shares (000)
- ----------------------------------------------------------
CNA Financial* 180 $ 6
Hartford Financial Services Group 50 4
HCC Insurance Holdings 130 5
Loews 40 4
Reinsurance Group of America 90 4
Safeco 140 7
WR Berkley 90 5
----------
Total Insurance carriers 67
----------
- ----------------------------------------------------------
MINING SUPPORT ACTIVITIES--2.2%
- ----------------------------------------------------------
ENSCO International 60 3
Helix Energy Solutions Group* 90 3
Tidewater 100 6
----------
Total Mining support activities 12
----------
- ----------------------------------------------------------
MISCELLANEOUS NONDURABLE
GOODS WHOLESALE--0.9%
- ----------------------------------------------------------
Altria Group 70 5
----------
Total Miscellaneous nondurable
goods wholesale 5
----------
- ----------------------------------------------------------
NATURAL GAS DISTRIBUTION--0.9%
- ----------------------------------------------------------
Southern Union* 200 5
----------
Total Natural gas distribution 5
----------
- ----------------------------------------------------------
NONDEPOSITORY CREDIT INTERMEDIATION--4.4%
- ----------------------------------------------------------
AmeriCredit* 130 4
Capital One Financial 50 4
CapitalSource 230 6
CIT Group 70 4
Freddie Mac 100 6
----------
Total Nondepository credit
intermediation 24
----------
- ----------------------------------------------------------
NONMETALLIC MINERAL MINING & QUARRYING--2.0%
- ----------------------------------------------------------
Martin Marietta Materials 50 5
Vulcan Materials 70 6
----------
Total Nonmetallic mineral
mining & quarrying 11
----------
58 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER LARGE CAP VALUE FUND
Value
Shares (000)
- ----------------------------------------------------------
OFFICE SUPPLIES, STATIONERY & GIFT STORES--0.9%
- ----------------------------------------------------------
Office Depot* 130 $ 5
----------
Total Office supplies,
stationery & gift stores 5
----------
- ----------------------------------------------------------
OIL & GAS EXTRACTION--0.8%
- ----------------------------------------------------------
Unit* 80 4
----------
Total Oil & gas extraction 4
----------
- ----------------------------------------------------------
OTHER INVESTMENT POOLS & FUNDS--1.3%
- ----------------------------------------------------------
Host Marriott 310 7
----------
Total Other investment pools & funds 7
----------
- ----------------------------------------------------------
PETROLEUM & COAL PRODUCTS
MANUFACTURING--10.3%
- ----------------------------------------------------------
Chevron 190 11
ConocoPhillips 170 11
Exxon Mobil 580 35
----------
Total Petroleum & coal products
manufacturing 57
----------
- ----------------------------------------------------------
PHARMACEUTICAL & MEDICINE
MANUFACTURING--4.3%
- ----------------------------------------------------------
Merck 180 6
Pfizer 710 18
----------
Total Pharmaceutical &
medicine manufacturing 24
----------
- ----------------------------------------------------------
PHARMACEUTICAL PREPARATION--0.8%
- ----------------------------------------------------------
Bausch & Lomb 70 4
----------
Total Pharmaceutical preparation 4
----------
- ----------------------------------------------------------
PIPELINE TRANSPORTATION OF NATURAL GAS--2.4%
- ----------------------------------------------------------
Kinder Morgan 40 4
Questar 60 4
Western Gas Resources 110 5
----------
Total Pipeline transportation
of natural gas 13
----------
Value
Shares (000)
- ----------------------------------------------------------
RAIL TRANSPORTATION--0.9%
- ----------------------------------------------------------
Union Pacific 50 $ 5
----------
Total Rail transportation 5
----------
- ----------------------------------------------------------
SCHEDULED AIR TRANSPORTATION--0.7%
- ----------------------------------------------------------
AMR* 150 4
----------
Total Scheduled air transportation 4
----------
- ----------------------------------------------------------
SECURITY & COMMODITY CONTRACTS
INTERMEDIATION & BROKERAGE--9.8%
- ----------------------------------------------------------
Bear Stearns 50 7
Goldman Sachs Group 40 6
JPMorgan Chase 360 15
Lehman Brothers Holdings 50 7
Merrill Lynch 140 11
Morgan Stanley 120 8
----------
Total Security & commodity contracts
intermediation & brokerage 54
----------
- ----------------------------------------------------------
SEMICONDUCTOR & OTHER ELECTRONIC
COMPONENT MANUFACTURING--2.2%
- ----------------------------------------------------------
Advanced Micro Devices* 90 3
Nvidia* 110 6
QLogic* 140 3
----------
Total Semiconductor & other electronic
component manufacturing 12
----------
- ----------------------------------------------------------
TELECOMMUNICATIONS--3.6%
- ----------------------------------------------------------
AT&T 160 4
Qwest Communications
International* 650 4
Sprint Nextel 250 7
Verizon Communications 130 5
----------
Total Telecommunications 20
----------
- ----------------------------------------------------------
TRAVELER ACCOMMODATION--1.1%
- ----------------------------------------------------------
Boyd Gaming 120 6
----------
Total Traveler accommodation 6
----------
- ----------------------------------------------------------
TOTAL COMMON STOCK
(COST $519) 543
==========================================================
TURNER FUNDS 2006 SEMIANNUAL REPORT 59
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER LARGE CAP VALUE FUND
Value
Shares (000)
- ----------------------------------------------------------
CASH EQUIVALENT--2.0%
- ----------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares, 4.65%** 10,730 $ 11
- ----------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $11) 11
==========================================================
- ----------------------------------------------------------
TOTAL INVESTMENTS--100.4%
(COST $530) 554
==========================================================
- ----------------------------------------------------------
OTHER ASSETS AND LIABILITIES-- (0.4)%
- ----------------------------------------------------------
Receivable from investment adviser 3
Other assets and liabilities, net (5)
- ----------------------------------------------------------
TOTAL OTHER ASSETS AND LIABILITIES (2)
==========================================================
- ----------------------------------------------------------
NET ASSETS-- 100.0% $ 552
==========================================================
- ----------------------------------------------------------
NET ASSETS CONSIST OF:
- ----------------------------------------------------------
Portfolio capital of Class I Shares
(unlimited authorization -- par value
$0.00001) based on 50,247
outstanding shares of beneficial interest $ 502
Undistributed net investment income 2
Accumulated net realized gain
on investments 24
Net unrealized appreciation
on investments 24
- ----------------------------------------------------------
NET ASSETS $ 552
==========================================================
- ----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-- CLASS I SHARES $10.99
==========================================================
* Non-income producing security
** Rate shown is the 7-day effective yield as of March 31, 2006.
Cl -- Class
Ser -- Series
The accompanying notes are an integral part of the financial statements.
60 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (000)
Turner Turner Turner
Large Cap Concentrated New Enterprise
Growth Fund Growth Fund Fund
----------- ------------ --------------
3/31/06 3/31/06 3/31/06
- -----------------------------------------------------------------------------------------------------------------------------------
Assets:
- -----------------------------------------------------------------------------------------------------------------------------------
Investment securities, at cost $ 10,402 $ 34,784 $ 27,326
- -----------------------------------------------------------------------------------------------------------------------------------
Investment securities, at value $ 13,137 $ 41,104 $ 31,952
Receivable for investment securities sold 36,093 2,708 1,630
Receivable for capital shares sold 347 413 106
Receivable for dividend and interest income 54 16 7
- -----------------------------------------------------------------------------------------------------------------------------------
Total assets 49,631 44,241 33,695
- -----------------------------------------------------------------------------------------------------------------------------------
Liabilities:
Payable for capital shares redeemed 35,801 3 86
Payable for investment securities purchased 1,126 2,425 1,876
Payable due to investment adviser 11 41 24
Payable due to administrator 6 5 3
Obligation to return securities lending collateral -- -- 3,059
Accrued expenses 36 21 10
- -----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 36,980 2,495 5,058
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets $ 12,651 $ 41,746 $ 28,637
===================================================================================================================================
Net assets:
Portfolio capital of Class I Shares $ 26,166 $ 189,569 $ 32,099
Undistributed net investment income/
(Accumulated net investment loss) 33 (212) (46)
Accumulated net realized loss on investments (16,283) (153,931) (8,042)
Net unrealized appreciation on investments 2,735 6,320 4,626
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets $ 12,651 $ 41,746 $ 28,637
===================================================================================================================================
Outstanding shares of beneficial interest (1)
Class I Shares (2) 2,200,822 5,007,575 3,945,647
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share-- Class I Shares $ 5.75 $ 8.34 $ 7.26
===================================================================================================================================
(1) Unlimited authorization-- par value $0.00001.
(2) Shares have not been rounded.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2006 SEMIANNUAL REPORT 61
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (000)
Turner Turner
Turner Core Strategic Turner
Large Cap Growth Growth Midcap
Growth Fund Fund Fund Growth Fund
- -------------------------------------------------------------------------------------------------------------------------------
10/1/05 thru 10/1/05 thru 10/1/05 thru 10/1/05 thru
3/31/06 3/31/06 3/31/06 3/31/06
- -------------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 220 $ 391 $ 27 $ 6,466
Interest 10 30 4 443
Securities lending 1 3 1 110
Foreign taxes withheld (4) (2) -- (3)
- -------------------------------------------------------------------------------------------------------------------------------
Total Investment Income 227 422 32 7,016
- -------------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 135 207 33 3,948
Administrator fees 33 41 7 780
Chief Compliance Officer fees 5 2 1 83
Distribution fees(1) -- -- -- 2
Shareholder service fees(1) -- 1 -- 2
Transfer agent fees 57 49 16 882
Custodian fees 16 25 10 95
Professional fees 5 6 1 122
Printing fees 5 7 1 122
Registration fees 4 1 1 68
Trustees' fees 2 2 -- 37
Insurance and other fees 2 2 -- 55
- -------------------------------------------------------------------------------------------------------------------------------
Total expenses 264 343 70 6,196
Less:
Investment advisory fee waiver (96) (153) (14) --
Administrator fee waiver-- Class I -- (27) -- --
Distribution fee waiver -- -- -- --
Reimbursements from adviser -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net expenses 168 163 56 6,196
- -------------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 59 259 (24) 820
- -------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from securities sold 7,541 (5) 306 57,776
Net unrealized appreciation (depreciation)
of investment securities (4,692) 4,581 792 99,584
- -------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments 2,849 4,576 1,098 157,360
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $ 2,908 $4,835 $1,074 $158,180
===============================================================================================================================
Turner Turner Turner Turner
Small Cap Micro Cap Small Cap Technology
Growth Fund Growth Fund Equity Fund Fund
- ----------------------------------------------------------------------------------------------------------------------------
10/1/05 thru 10/1/05 thru 10/1/05 thru 10/1/05 thru
3/31/06 3/31/06 3/31/06 3/31/06
- ----------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 277 $ 644 $ 235 $ 8
Interest 76 1,212 35 3
Securities lending 112 242 8 3
Foreign taxes withheld -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Total Investment Income 465 2,098 278 14
- ----------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 1,331 2,682 336 71
Administrator fees 197 397 52 10
Chief Compliance Officer fees 21 40 5 1
Distribution fees(1) -- -- 88 --
Shareholder service fees(1) -- -- -- --
Transfer agent fees 211 514 54 29
Custodian fees 36 55 26 3
Professional fees 31 62 8 2
Printing fees 30 62 8 2
Registration fees 18 33 4 1
Trustees' fees 10 19 3 1
Insurance and other fees 15 27 4 1
- ----------------------------------------------------------------------------------------------------------------------------
Total expenses 1,900 3,891 588 121
Less:
Investment advisory fee waiver (236) (137) (75) (14)
Administrator fee waiver-- Class I -- -- -- --
Distribution fee waiver -- -- (61) --
Reimbursements from adviser -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Net expenses 1,664 3,754 452 107
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (1,199) (1,656) (174) (93)
- ----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from securities sold 12,586 14,551 5,342 998
Net unrealized appreciation (depreciation)
of investment securities 39,095 58,504 5,561 2,071
- ----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments 51,681 73,055 10,903 3,069
- ----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $50,482 $71,399 $10,729 $2,976
============================================================================================================================
Turner
Concentrated Turner Turner
Growth New Enterprise Large Cap
Fund Fund Value Fund
- -----------------------------------------------------------------------------------------------------------
10/1/05 thru 10/1/05 thru 10/10/05(2) thru
3/31/06 3/31/06 3/31/06
- -----------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 63 $ 69 $ 5
Interest 12 13 --
Securities lending 11 3 --
Foreign taxes withheld (1) -- --
- -----------------------------------------------------------------------------------------------------------
Total Investment Income 85 85 5
- -----------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 254 111 1
Administrator fees 25 12 --
Chief Compliance Officer fees 3 1 --
Distribution fees(1) -- -- --
Shareholder service fees(1) -- -- --
Transfer agent fees 32 21 13
Custodian fees 8 6 5
Professional fees 4 2 --
Printing fees 4 2 --
Registration fees 2 1 --
Trustees' fees 1 -- --
Insurance and other fees 2 1 --
- -----------------------------------------------------------------------------------------------------------
Total expenses 335 157 19
Less:
Investment advisory fee waiver (38) (26) (1)
Administrator fee waiver-- Class I -- -- --
Distribution fee waiver -- -- --
Reimbursements from adviser -- -- (17)
- -----------------------------------------------------------------------------------------------------------
Net expenses 297 131 1
- -----------------------------------------------------------------------------------------------------------
Net investment income (loss) (212) (46) 4
- -----------------------------------------------------------------------------------------------------------
Net realized gain (loss) from securities sold 2,668 588 24
Net unrealized appreciation (depreciation)
of investment securities 2,929 2,803 24
- -----------------------------------------------------------------------------------------------------------
Net realized and unrealized gain
on investments 5,597 3,391 48
- -----------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations $5,385 $3,345 $ 52
===========================================================================================================
(1) Attributable to Class II Shares only.
(2) Commencement of operations.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
62 & 63 TURNER FUNDS 2006 SEMIANNUAL REPORT
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (000)
Turner Large Cap Turner Core
Growth Fund Growth Fund (1)
- ---------------------------------------------------------------------------------------------------------------
10/1/05 thru 10/1/05 thru
3/31/06 year ended 3/31/06 year ended
(unaudited) 9/30/05 (unaudited) 9/30/05
- ---------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ 59 $ 94 $ 259 $ 65
Net realized gain (loss) from securities sold 7,541 7,141 (5) 395
Net change in unrealized appreciation
(depreciation) of investments (4,692) (384) 4,581 3,222
- ---------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 2,908 6,851 4,835 3,682
- ---------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares (109) (53) (162) --
Class II Shares -- -- (1) --
- ---------------------------------------------------------------------------------------------------------------
Total dividends and distributions (109) (53) (163) --
- ---------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 13,228 24,448 24,367 33,622
Proceeds from shares issued in lieu
of cash distributions 106 53 109 --
Cost of shares redeemed (46,507) (56,265) (1,316) (1,527)
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
Class I Shares transactions (33,173) (31,764) 23,160 32,095
- ---------------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued -- -- 1,501 1
Proceeds from shares issued in lieu
of cash distributions -- -- 1 --
Cost of shares redeemed -- -- (18) --
- ---------------------------------------------------------------------------------------------------------------
Net increase in net assets from
Class II Shares transactions -- -- 1,484 1
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions (33,173) (31,764) 24,644 32,096
- ---------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (30,374) (24,966) 29,316 35,778
- ---------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 43,025 67,991 40,858 5,080
- ---------------------------------------------------------------------------------------------------------------
End of period $ 12,651 $ 43,025 $ 70,174 $ 40,858
===============================================================================================================
Undistributed net investment income
(accumulated net investment loss) $ 33 $ 83 $ 161 $ 65
===============================================================================================================
Shares issued and redeemed:
Class I Shares
Issued 2,363 4,787 2,132 5,458
Issued in lieu of cash distributions 19 10 9 --
Redeemed (8,133) (10,913) (113) (2,296)
- ---------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares (5,751) (6,116) 2,028 3,162
- ---------------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- -- 131 --
Redeemed -- -- (2) --
- ---------------------------------------------------------------------------------------------------------------
Increase in Class II Shares -- -- 129 --
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions (5,751) (6,116) 2,157 3,162
===============================================================================================================
Turner Strategic Turner Midcap
Growth Fund Growth Fund
- ----------------------------------------------------------------------------------------------------------------
10/1/05 thru 10/1/05 thru
3/31/06 year ended 3/31/06 year ended
(unaudited) 9/30/05 (unaudited) 9/30/05
- ----------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (24) $ (44) $ 820 $ (7,313)
Net realized gain (loss) from securities sold 306 353 57,776 118,724
Net change in unrealized appreciation
(depreciation) of investments 792 708 99,584 100,398
- ----------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 1,074 1,017 158,180 211,809
- ----------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares -- -- -- --
Class II Shares -- -- -- --
- ----------------------------------------------------------------------------------------------------------------
Total dividends and distributions -- -- -- --
- ----------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 3,878 4,312 227,083 259,069
Proceeds from shares issued in lieu
of cash distributions -- -- -- --
Cost of shares redeemed (577) (2,601) (132,247) (372,696)
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
Class I Shares transactions 3,301 1,711 94,836 (113,627)
- ----------------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued -- -- 422 446
Proceeds from shares issued in lieu
of cash distributions -- -- -- --
Cost of shares redeemed -- -- (284) (359)
- ----------------------------------------------------------------------------------------------------------------
Net increase in net assets from
Class II Shares transactions -- -- 138 87
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions 3,301 1,711 94,974 (113,540)
- ----------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 4,375 2,728 253,154 98,269
- ----------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 7,158 4,430 957,563 859,294
- ----------------------------------------------------------------------------------------------------------------
End of period $ 11,533 $ 7,158 $ 1,210,717 $ 957,563
================================================================================================================
Undistributed net investment income
(accumulated net investment loss) $ (24) $ -- $ 812 $ (8)
================================================================================================================
Shares issued and redeemed:
Class I Shares
Issued 307 404 7,936 10,915
Issued in lieu of cash distributions -- -- -- --
Redeemed (47) (239) (4,650) (15,573)
- ----------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares 260 165 3,286 (4,658)
- ----------------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- -- 14 19
Redeemed -- -- (10) (15)
- ----------------------------------------------------------------------------------------------------------------
Increase in Class II Shares -- -- 4 4
- ----------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions 260 165 3,290 (4,654)
================================================================================================================
Turner Small Cap
Growth Fund
- --------------------------------------------------------------------------------
10/1/05 thru
3/31/06 year ended
(unaudited) 9/30/05
- --------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (1,199) $ (2,248)
Net realized gain (loss) from securities sold 12,586 21,220
Net change in unrealized appreciation
(depreciation) of investments 39,095 17,030
- --------------------------------------------------------------------------------
Net increase in net assets resulting
from operations 50,482 36,002
- --------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares -- --
Class II Shares -- --
- --------------------------------------------------------------------------------
Total dividends and distributions -- --
- --------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 51,562 77,920
Proceeds from shares issued in lieu
of cash distributions -- --
Cost of shares redeemed (66,924) (93,986)
- --------------------------------------------------------------------------------
Net increase (decrease) in net assets from
Class I Shares transactions (15,362) (16,066)
- --------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued -- --
Proceeds from shares issued in lieu
of cash distributions -- --
Cost of shares redeemed -- --
- --------------------------------------------------------------------------------
Net increase in net assets from
Class II Shares transactions -- --
- --------------------------------------------------------------------------------
Net increase (decrease) in net assets
from capital share transactions (15,362) (16,066)
- --------------------------------------------------------------------------------
Total increase (decrease) in net assets 35,120 19,936
- --------------------------------------------------------------------------------
Net assets:
Beginning of period 257,149 237,213
- --------------------------------------------------------------------------------
End of period $ 292,269 $ 257,149
================================================================================
Undistributed net investment income
(accumulated net investment loss) $ (1,199) $ --
================================================================================
Shares issued and redeemed:
Class I Shares
Issued 1,914 3,390
Issued in lieu of cash distributions -- --
Redeemed (2,497) (4,092)
- --------------------------------------------------------------------------------
Increase (decrease) in Class I Shares (583) (702)
- --------------------------------------------------------------------------------
Class II Shares
Issued -- --
Redeemed -- --
- --------------------------------------------------------------------------------
Increase in Class II Shares -- --
- --------------------------------------------------------------------------------
Net increase (decrease) in share transactions (583) (702)
================================================================================
(1) Effective February 25, 2005, the Constellation Funds reorganized the
Constellation TIP Core Growth 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.
64 & 65 TURNER FUNDS 2006 SEMIANNUAL REPORT
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (000)
Turner Micro Cap Turner Small Cap Turner
Growth Fund Equity Fund Technology Fund
- -----------------------------------------------------------------------------------------------------------------------------------
10/1/05 thru 10/1/05 thru 10/1/05 thru
3/31/06 year ended 3/31/06 year ended 3/31/06 year ended
(unaudited) 9/30/05 (unaudited) 9/30/05 (unaudited) 9/30/05
- -----------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment gain (loss) $ (1,656) $ (3,897) $ (174) $ (359) $ (93) $ (167)
Net realized gain from securities sold 14,551 42,124 5,342 130 998 844
Net change in unrealized appreciation
of investments 58,504 66,602 5,561 6,763 2,071 1,943
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
resulting from operations 71,399 104,829 10,729 6,534 2,976 2,620
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares -- -- -- -- -- --
Realized capital gains
Class I Shares (29,515) (48,588) -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (29,515) (48,588) -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 89,032 125,396 -- -- 2,107 1,607
Proceeds from shares issued in lieu
of cash distributions 28,983 47,598 -- -- -- --
Cost of shares redeemed (43,038) (93,819) -- -- (2,448) (7,350)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
Class I Shares transactions 74,977 79,175 -- -- (341) (5,743)
- -----------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued -- -- 8,494 36,702 -- --
Proceeds from shares issued in lieu
of cash distributions -- -- -- -- -- --
Cost of shares redeemed -- -- (5,581) (4,694) -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
Class II Shares transactions -- -- 2,913 32,008 -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
capital share transactions 74,977 79,175 2,913 32,008 (341) (5,743)
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 116,861 135,416 13,642 38,542 2,635 (3,123)
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 502,108 366,692 67,713 29,171 12,907 16,030
- -----------------------------------------------------------------------------------------------------------------------------------
End of period $ 618,969 $ 502,108 $ 81,355 $ 67,713 $ 15,542 $ 12,907
===================================================================================================================================
Undistributed net investment income/
(accumulated net investment loss) $ (1,656) $ -- $ (191) $ (17) $ (93) $ --
===================================================================================================================================
Shares issued and redeemed:
Class I Shares
Issued 1,580 2,435 -- -- 273 264
Issued in lieu of cash distributions 533 983 -- -- -- --
Redeemed (764) (1,857) -- -- (328) (1,194)
- -----------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares 1,349 1,561 -- -- (55) (930)
- -----------------------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- -- 503 2,430 -- --
Issued in lieu of cash distributions -- -- -- -- -- --
Redeemed -- -- (339) (309) -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Increase in Class II Shares -- -- 164 2,121 -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions 1,349 1,561 164 2,121 (55) (930)
===================================================================================================================================
Turner Concentrated Turner New Turner Large Cap
Growth Fund Enterprise Fund Value Fund
- -------------------------------------------------------------------------------------------------------------------------
10/1/05 thru 10/1/05 thru 10/10/05(1) thru
3/31/06 year ended 3/31/06 year ended 3/31/06
(unaudited) 9/30/05 (unaudited) 9/30/05 (unaudited)
- -------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment gain (loss) $ (212) $ (195) $ (46) $ (128) $ 4
Net realized gain from securities sold 2,668 4,356 588 1,971 24
Net change in unrealized appreciation
of investments 2,929 2,922 2,803 885 24
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
resulting from operations 5,385 7,083 3,345 2,728 52
- -------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Class I Shares -- -- -- -- (2)
Realized capital gains
Class I Shares -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions -- -- -- -- (2)
- -------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Class I Shares
Proceeds from shares issued 9,760 7,012 18,845 7,793 500
Proceeds from shares issued in lieu
of cash distributions -- -- -- -- 2
Cost of shares redeemed (4,178) (22,425) (2,697) (12,182) --
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
Class I Shares transactions 5,582 (15,413) 16,148 (4,389) 502
- -------------------------------------------------------------------------------------------------------------------------
Class II Shares
Proceeds from shares issued -- -- -- -- --
Proceeds from shares issued in lieu
of cash distributions -- -- -- -- --
Cost of shares redeemed -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
Class II Shares transactions -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from
capital share transactions 5,582 (15,413) 16,148 (4,389) 502
- -------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 10,967 (8,330) 19,493 (1,661) 552
- -------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 30,779 39,109 9,144 10,805 --
- -------------------------------------------------------------------------------------------------------------------------
End of period $ 41,746 $ 30,779 $ 28,637 $ 9,144 $ 552
=========================================================================================================================
Undistributed net investment income/
(accumulated net investment loss) $ (212) $ -- $ (46) $ -- $ 2
=========================================================================================================================
Shares issued and redeemed:
Class I Shares
Issued 1,207 1,085 2,805 1,494 50
Issued in lieu of cash distributions -- -- -- -- --
Redeemed (533) (3,468) (419) (2,324) --
- -------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in Class I Shares 674 (2,383) 2,386 (830) 50
- -------------------------------------------------------------------------------------------------------------------------
Class II Shares
Issued -- -- -- -- --
Issued in lieu of cash distributions -- -- -- -- --
Redeemed -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Increase in Class II Shares -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions 674 (2,383) 2,386 (830) 50
=========================================================================================================================
(1) Commencement of operations.
Amounts designated as "--" are either $0 or have been rounded to $0
The accompanying notes are an integral part of the financial statements.
66 & 67 TURNER FUNDS 2006 SEMIANNUAL REPORT
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Realized and
Net asset Net unrealized Total Dividends Distributions
value, investment gains from from net from
beginning income (losses) on investment investment capital Total
of period (loss) investments operations income gains distributions
- -----------------------------------------------------------------------------------------------------------------------------------
Turner Large Cap Growth Fund -- Class I Shares
- ----------------------------------------------------------
2006* $ 5.41 0.01 (4) 0.34 0.35 (0.01) -- (0.01)
2005 $ 4.83 0.01 (4) 0.57 0.58 --** -- --
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) -- -- --
- ----------------------------------------------------------
Turner Core Growth Fund -- Class I Shares
- ----------------------------------------------------------
2006* $ 10.93 0.04 0.97 1.01 (0.03) -- (0.03)
2005 $ 8.84 0.02 2.07 2.09 -- -- --
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(2) $ 10.00 -- (1.82) (1.82) -- -- --
- ----------------------------------------------------------
Turner Core Growth Fund -- Class II Shares
- ----------------------------------------------------------
2006* $ 10.93 0.03 0.95 0.98 (0.03) -- (0.03)
2005(7) $ 10.58 -- 0.35 0.35 -- -- --
- ----------------------------------------------------------
Turner Strategic Growth Fund-- Class I Shares(3)
- ----------------------------------------------------------
2006* $ 11.68 (0.03) (4) 1.55 1.52 -- -- --
2005 $ 9.88 (0.07) (4) 1.87 1.80 -- -- --
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) (4) (11.63) (11.73) -- (5.46) (5.46)
- ----------------------------------------------------------
Turner Midcap Growth Fund -- Class I Shares
- ----------------------------------------------------------
2006* $ 26.39 0.02 (4) 4.18 4.20 -- -- --
2005 $ 20.99 (0.19) (4) 5.59 5.40 -- -- --
2004 $ 19.54 (0.18) (4) 1.63 1.45 -- -- --
2003 $ 13.78 (0.14) (4) 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)
- ----------------------------------------------------------
Turner Midcap Growth Fund -- Class II Shares
- ----------------------------------------------------------
2006* $ 25.89 (0.05) (4) 4.09 4.04 -- -- --
2005 $ 20.69 (0.30) (4) 5.50 5.20 -- -- --
2004 $ 19.36 (0.28) (4) 1.61 1.33 -- -- --
2003 $ 13.72 (0.23) (4) 5.87 5.64 -- -- --
2002 $ 17.41 (0.22) (4) (3.47) (3.69) -- -- --
2001 (6) $ 17.30 -- 0.11 0.11 -- -- --
Ratio of net
Net Ratio of Ratio of total investment
Net asset assets end net expenses expenses income (loss) Portfolio
value, end Total of period to average to average to average turnover
of period return (000) net assets++ net assets net assets++ rate+++
- ----------------------------------------------------------------------------------------------------------------------------------
Turner Large Cap Growth Fund -- Class I Shares
- ----------------------------------------------------------
2006* $ 5.75 6.55%+ $ 12,651 0.75% 1.18% 0.26% 92.75%
2005 $ 5.41 12.09% $ 43,025 0.75% 1.10% 0.16% 154.66%
2004 $ 4.83 4.64% $ 67,991 0.75% 0.94% 0.11% 165.94%
2003 $ 4.62 32.01% $ 79,416 0.75% 0.97% 0.03% 201.35%
2002 $ 3.50 (25.53)% $ 59,971 0.65% 0.90% -- % 272.99%
2001 $ 4.70 (52.09)% $ 53,048 0.74% 1.03% (0.14)% 376.49%
- ----------------------------------------------------------
Turner Core Growth Fund -- Class I Shares
- ----------------------------------------------------------
2006* $11.91 9.29%+ $ 68,639 0.59% 1.24% 0.94% 61.44%
2005 $10.93 23.64% $ 40,857 0.69% (1) 1.60% 0.46% 136.36%
2004 $ 8.84 9.95% $ 5,080 1.25% 1.97% (0.27)% 104.00%
2003 $ 8.04 27.82% $ 5,528 1.25% 2.14% (0.34)% 187.00%
2002 $ 6.29 (23.11)% $ 4,747 1.25% 1.91% (0.33)% 313.00%
2001(2) $ 8.18 (18.20)%+ $ 6,949 1.25% 5.35% (0.20)% 91.00%
- ----------------------------------------------------------
Turner Core Growth Fund -- Class II Shares
- ----------------------------------------------------------
2006* $11.88 8.99%+ $ 1,535 0.94% 1.52% 0.57% 61.44%
2005(7) $10.93 3.31% $ 1 0.83% 2.50% 0.33% 136.36%
- ----------------------------------------------------------
Turner Strategic Growth Fund-- Class I Shares(3)
- ----------------------------------------------------------
2006* $13.20 13.01%+ $ 11,533 1.25% 1.57% (0.53)% 77.49%
2005 $11.68 18.22% $ 7,158 1.25% 1.73% (0.64)% 206.17%
2004 $ 9.88 5.67% $ 4,430 1.25% 1.83% (0.70)% 262.01%
2003 $ 9.35 41.88% $ 3,551 1.25% 1.53% (0.77)% 282.15%
2002 $ 6.59 (26.86)% $ 4,847 1.26% (5) 5.98%(5) (0.71)% 391.98%
2001 $ 9.01 (53.71)% $ 9,776 1.25% (5) 3.49%(5) (0.69)% 400.04%
- ----------------------------------------------------------
Turner Midcap Growth Fund -- Class I Shares
- ----------------------------------------------------------
2006* $30.59 15.92%+ $1,208,459 1.18% 1.18% 0.16% 57.44%
2005 $26.39 25.73% $ 955,730 1.20% 1.20% (0.78)% 151.63%
2004 $20.99 7.42% $ 857,899 1.16% 1.16% (0.84)% 167.17%
2003 $19.54 41.80% $ 773,788 1.15% 1.18% (0.87)% 208.80%
2002 $13.78 (20.80)% $ 561,244 1.05% 1.16% (0.81)% 259.62%
2001 $17.40 (59.00)% $ 595,761 1.04% 1.12% (0.77)% 335.57%
- ----------------------------------------------------------
Turner Midcap Growth Fund -- Class II Shares
- ----------------------------------------------------------
2006* $29.93 15.60%+ $ 2,258 1.68% 1.68% (0.34)% 57.44%
2005 $25.89 25.13% $ 1,833 1.70% 1.70% (1.28)% 151.63%
2004 $20.69 6.87% $ 1,395 1.66% 1.66% (1.35)% 167.17%
2003 $19.36 41.11% $ 423 1.65% 1.68% (1.36)% 208.80%
2002 $13.72 (21.19)% $ 102 1.55% 1.66% (1.25)% 259.62%
2001 (6) $17.41 0.64%+ $ 7 1.54% 1.95% (1.04)% 335.57%
* For the six-month period ended March 31, 2006 (unaudited). 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 fees paid indirectly, waivers and/or reimbursements.
+++ Excludes effect of in-kind transfers and mergers.
(1) For the period October 1, 2004 through February 25, 2005, the total expense
cap was 1.25%. Effective February 26, 2005, the total expense cap was
changed to 0.59%.
(2) Commenced operations on February 28, 2001. All ratios for the period have
been annualized.
(3) 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.
(4) Based on average shares outstanding.
(5) Expense ratios include the Mercury Select Growth Fund's, Class I Shares
portion of the master's allocated expenses.
(6) Commenced operations on September 24, 2001. All ratios for the period have
been annualized.
(7) Commenced operations on August 1, 2005. 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.
68 & 69 TURNER FUNDS 2006 SEMIANNUAL REPORT
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Realized and
Net asset Net unrealized Total Dividends Distributions
value, investment gains from from net from Return
beginning income (losses) on investment investment capital of Total
of period (loss) investments operations income gains Capital distributions
- --------------------------------------------------------------------------------------------------------------------------------
Turner Small Cap Growth Fund -- Class I Shares
- ----------------------------------------------------------
2006* $ 24.68 (0.12) 5.15 5.03 -- -- -- --
2005 $ 21.33 (0.01) 3.36 3.35 -- -- -- --
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)
- ----------------------------------------------------------
Turner Micro Cap Growth Fund -- Class I Shares
- ----------------------------------------------------------
2006* $ 56.46 (0.17) (4) 7.33 7.16 -- (3.19) -- (3.19)
2005 $ 50.02 (0.46) (4) 13.35 12.89 -- (6.45) -- (6.45)
2004 $ 41.38 (0.39) 10.04 9.65 -- (1.01) -- (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) -- (4.70)
- ----------------------------------------------------------
Turner Small Cap Equity Fund -- Class II Shares
- ----------------------------------------------------------
2006* $ 16.06 (0.04) (4) 2.55 2.51 -- -- -- --
2005 $ 13.92 (0.11) (4) 2.25 2.14 -- -- -- --
2004 $ 12.27 (0.02) 2.95 2.93 -- (1.23) (0.05) (1.28)
2003 $ 9.30 (0.02) 3.00 2.98 (0.01) -- -- (0.01)
2002 (2) $ 10.00 -- (0.70) (0.70) -- -- -- --
- ----------------------------------------------------------
Turner Technology Fund -- Class I Shares
- ----------------------------------------------------------
2006* $ 6.59 (0.05) 1.62 1.57 -- -- -- --
2005 $ 5.55 (0.03) 1.07 1.04 -- -- -- --
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) -- (4.24)
- ----------------------------------------------------------
Turner Concentrated Growth Fund-- Class I Shares
- ----------------------------------------------------------
2006* $ 7.10 (0.04) 1.28 1.24 -- -- -- --
2005 $ 5.82 (0.02) 1.30 1.28 -- -- -- --
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) -- (3.93)
- ----------------------------------------------------------
Turner New Enterprise Fund -- Class I Shares
- ----------------------------------------------------------
2006* $ 5.86 (0.01) 1.41 1.40 -- -- -- --
2005 $ 4.52 (0.03) 1.37 1.34 -- -- -- --
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) (9.23) -- -- -- --
- ----------------------------------------------------------
Turner Large Cap Value Fund -- Class I Shares
- ----------------------------------------------------------
2006*(5) $ 10.00 0.09 0.95 1.04 (0.05) -- -- (0.05)
Ratio of net
Net Ratio of Ratio of total investment
Net asset assets end net expenses expenses income (loss) Portfolio
value, end Total of period to average to average to average turnover
of period return (000) net assets++ net assets net assets++ rate+++
- --------------------------------------------------------------------------------------------------------------------------------
Turner Small Cap Growth Fund -- Class I Shares
- ----------------------------------------------------------
2006* $29.71 20.38%+ $292,269 1.25% 1.43% (0.90)% 68.98%
2005 $24.68 15.71% $257,149 1.25% 1.44% (0.91)% 152.96%
2004 $21.33 12.98% $237,213 1.25% 1.41% (0.95)% 151.02%
2003 $18.88 49.60% $192,791 1.25% 1.41% (0.79)% 187.95%
2002 $12.62 (19.36)% $144,181 1.25% 1.40% (0.99)% 188.34%
2001 $15.65 (49.81)% $241,876 1.25% 1.40% (0.96)% 176.11%
- ----------------------------------------------------------
Turner Micro Cap Growth Fund -- Class I Shares
- ----------------------------------------------------------
2006* $60.43 13.32%+ $618,969 1.40% 1.45% (0.62)% 37.67%
2005 $56.46 27.90% $502,108 1.40% 1.44% (0.90)% 73.50%
2004 $50.02 23.54% $366,692 1.40% 1.42% (0.85)% 122.45%
2003 $41.38 29.15% $253,840 1.40% 1.44% (0.81)% 147.77%
2002 $32.04 (0.12)% $178,130 1.31% 1.42% (0.88)% 88.89%
2001 $32.08 (20.23)% $160,010 1.25% 1.40% (0.50)% 121.96%
- ----------------------------------------------------------
Turner Small Cap Equity Fund -- Class II Shares
- ----------------------------------------------------------
2006* $18.57 15.63%+ $ 81,355 1.28% 1.66% (0.49)% 71.69%
2005 $16.06 15.37% $ 67,713 1.43% 1.67% (0.71)% 170.22%
2004 $13.92 24.75% $ 29,171 1.35% 1.94% (0.25)% 221.99%
2003 $12.27 32.04% $ 12,557 1.32% 2.05% (0.26)% 287.39%
2002 (2) $ 9.30 (7.00)%+ $ 7,260 1.35% 3.02% (0.07)% 86.94%
- ----------------------------------------------------------
Turner Technology Fund -- Class I Shares
- ----------------------------------------------------------
2006* $ 8.16 23.82%+ $ 15,542 1.52% 1.71% (1.32)% 62.74%
2005 $ 6.59 18.74% $ 12,907 1.29% 1.50% (1.11)% 156.92%
2004 $ 5.55 4.52% $ 16,030 1.65% 1.80% (1.50)% 331.52%
2003 $ 5.31 75.25% $ 19,696 1.13% 1.49% (0.97)% 523.75%
2002 $ 3.03 (37.91)% $ 11,662 0.88% 1.43% (0.84)% 734.40%
2001 $ 4.88 (81.12)% $ 25,147 1.21% 1.58% (1.10)% 727.24%
- ----------------------------------------------------------
Turner Concentrated Growth Fund-- Class I Shares
- ----------------------------------------------------------
2006* $ 8.34 17.46%+ $ 41,746 1.73% 1.95% (1.23)% 132.97%
2005 $ 7.10 21.99% $ 30,779 1.15% 1.41% (0.57)% 329.52%
2004 $ 5.82 (3.80)% $ 39,109 1.42% 1.57% (0.99)% 498.78%
2003 $ 6.05 50.12% $ 47,004 1.23% 1.60% (0.90)% 762.18%
2002 $ 4.03 (30.03)% $ 29,182 0.30% 1.17% (0.03)% 1,182.61%
2001 $ 5.76 (70.40)% $ 56,803 1.05% 1.32% (0.76)% 1,117.77%
- ----------------------------------------------------------
Turner New Enterprise Fund -- Class I Shares
- ----------------------------------------------------------
2006* $ 7.26 23.89%+ $ 28,637 1.61% 1.94% (0.56)% 75.16%
2005 $ 5.86 29.65% $ 9,144 1.36% 1.87% (1.14)% 226.82%
2004 $ 4.52 4.15% $ 10,805 1.18% 1.51% (0.83)% 382.08%
2003 $ 4.34 91.19% $ 13,468 1.16% 1.99% (0.95)% 451.37%
2002 $ 2.27 (31.00)% $ 3,198 0.98% 2.04% (0.92)% 754.09%
2001 (3) $ 3.29 (73.72)% $ 6,144 1.28% 3.13% (1.04)% 758.98%
- ----------------------------------------------------------
Turner Large Cap Value Fund -- Class I Shares
- ----------------------------------------------------------
2006*(5) $10.99 10.40%+ $ 552 0.59% 7.87% 1.70% 164.53%
* For the six-month period ended March 31, 2006, unless otherwise indicated
(unaudited). All ratios for the period have been annualized.
+ Returns are for the period indicated and have not been annualized.
++ Inclusive of fees paid indirectly, waivers and/or 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) Based on average shares outstanding.
(5) Commenced operations on October 10, 2005. All ratios for the period have
been annualized.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
70 & 71 TURNER FUNDS 2006 SEMIANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
March 31, 2006
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 eleven active portfolios as of March 31, 2006. The
financial statements included herein are those of the Turner Large Cap Growth
Fund (the "Large Cap Growth Fund"), the Turner Core Growth Fund (the "Core
Growth Fund"), the Turner Strategic Growth Fund (the "Strategic Growth 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"), the Turner New
Enterprise Fund (the "New Enterprise Fund") and the Turner Large Cap Value Fund
(the "Large Cap Value Fund"), each a "Fund" and collectively the "Funds." The
Large Cap Value Fund commenced operations on October 10, 2005.
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 Constellation TIP Core Growth Fund reorganized
with and into a newly-created series of the Turner Funds, 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 returns earned
by shareholders to seeking long-term capital appreciation. Each shareholder
received a number of shares of the Turner Core Growth Fund, Class I Shares,
equal in dollar value and in the number of shares of the Constellation TIP Core
Growth Fund.
The Turner Core Growth Fund's Statement of Changes includes activity of the
Constellation TIP Core Growth Fund prior to the reorganization on February 25,
2005.
As of March 31, 2006, the Turner International Opportunities Fund and the Turner
International Discovery Fund are also registered as diversified portfolios of
the Trust, but have not yet commenced operations.
The Small Cap Growth, Micro Cap Growth and Small Cap Equity Funds were closed to
new investors on July 31, 2004, March 7, 2000 and May 1, 2005, 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 generally accepted accounting principles in the United States of
America requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the
reported amounts of increases and decreases in net assets from operations
during the reporting 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 of
Trustees. The Funds' Fair Value Procedures are implemented through a Fair
Value Committee (the "Committee") designated by the Board of Trustees. 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
determining realized gains and losses on the sales of investment securities
are those of the specific securities sold during the respective holding
period.
72 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
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 or employees of
Turner Investment Partners, Inc. ("Turner") or SEI Global Mutual Funds Services
("SEI"), the Trust's sub-administrator. 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.
SEI Investments Distribution Company (the "Distributor") provides distribution
services and shareholder servicing to the Funds under separate Distribution and
Shareholder Servicing Agreements. Prior to January 1, 2006, Constellation
Investment Distribution Company, Inc. provided distribution services and
shareholder servicing to the Funds.
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. Turner has contractually agreed to limit its administrator fee in the
Core Growth Fund, Class I Shares to 0.05% through January 31, 2007. 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,
2006, SEI was paid $451,094 by Turner.
The Core Growth, Midcap Growth, and Small Cap Equity 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 with respect to distribution
fees only, 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 distribution fees of 0.25% of the Midcap Growth and the Small
Cap Equity Funds' Class II Shares' average daily net assets. In addition, under
the Class II Plan, aggregate fees not exceeding 0.25% of the Midcap Growth and
the Core Growth Funds' Class II Shares' average daily net assets are paid to
servicing agents in return for providing a broad range of shareholder services.
Effective December 1, 2005 the Small Cap Equity Fund has voluntarily agreed to
waive its distribution fee.
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 months
ended March 31, 2006:
AMOUNT
-----------
Large Cap Growth Fund $ 41,278
Core Growth Fund 14,704
Strategic Growth Fund 2,775
Midcap Growth Fund 729,823
Small Cap Growth Fund 174,609
Micro Cap Growth Fund 454,476
Small Cap Equity Fund 36,373
Technology Fund 8,307
Concentrated Growth Fund 12,537
New Enterprise Fund 8,134
Large Cap Value Fund 505
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 terminated
at any time. Accordingly, the advisory fee and expense caps for certain Funds
are as follows:
TURNER FUNDS 2006 SEMIANNUAL REPORT 73
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
ADVISORY FEES TOTAL EXPENSE CAP
------------- -----------------
Large Cap Growth Fund 0.60% 0.75%
Core Growth Fund 0.75 0.59(1),(4)
Strategic Growth Fund 0.75 1.25(3)
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
Large Cap Value Fund 0.60 0.59(5)
(1) REPRESENTS MAXIMUM EXPENSE CAP FOR CLASS I SHARES WHERE FUNDS OFFER BOTH
CLASS I SHARES AND CLASS II SHARES.
(2) TURNER INVESTMENT MANAGEMENT LLC HAS CONTRACTUALLY AGREED TO KEEP "OTHER"
EXPENSES FROM EXCEEDING 0.25% THROUGH JANUARY 31, 2007.
(3) TURNER INVESTMENT PARTNERS, INC. HAS CONTRACTUALLY AGREED TO WAIVE FUND
EXPENSES TO KEEP THE FUND'S NET TOTAL OPERATING EXPENSES FROM EXCEEDING
1.25% THROUGH JANUARY 31, 2007.
(4) PRIOR TO THE REORGANIZATION OF THE CONSTELLATION TIP CORE GROWTH FUND ON
FEBRUARY 25, 2005, THE MAXIMUM EXPENSE CAP FOR THE FUND WAS 1.25%.
(5) TURNER INVESTMENT PARTNERS, INC. HAS CONTRACTUALLY AGREED TO WAIVE FUND
EXPENSES TO KEEP THE FUND'S NET TOTAL OPERATING EXPENSES FROM EXCEEDING
0.59% THROUGH JANUARY 31, 2007.
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 months ended March 31, 2006, the Funds' advisory fees, before
waivers, were adjusted in accordance with the policy described above:
BASE NET ADVISER
ADVISER PERFORMANCE FEE BEFORE
FEE ADJUSTMENT WAIVERS
--------- ---------- -----------
Technology Fund $ 77,170 $ (5,770) $ 71,400
Concentrated Growth Fund 188,884 65,099 253,983
New Enterprise Fund 89,503 21,357 110,860
6. INVESTMENT TRANSACTIONS:
The cost of security purchases and the proceeds from security sales, other than
short-term investments, for the six months ended March 31, 2006, were as follows
(000):
PURCHASES SALES
(000) (000)
---------- ---------
Large Cap Growth Fund $ 36,714 $ 70,412
Core Growth Fund 57,219 33,326
Strategic Growth Fund 9,997 6,857
Midcap Growth Fund 662,522 595,425
Small Cap Growth Fund 182,417 201,451
Micro Cap Growth Fund 230,143 180,896
Small Cap Equity Fund 53,421 50,209
Technology Fund 8,762 9,061
Concentrated Growth Fund 49,074 44,770
New Enterprise Fund 28,277 12,507
Large Cap Value Fund 1,361 865
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 dividends and 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 deter
74 TURNER FUNDS 2006 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
mined 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 and net operating losses. The
character of dividends and distributions made during the year from net
investment income or net realized gains, and the timing of distributions where
the fiscal year in which the amounts are distributed may differ from the year
that the income or realized gains (losses) were recorded by the Fund. To the
extent these differences are permanent, adjustments are made to the appropriate
equity accounts in the period that the differences arise.
The tax character of dividends and distributions declared during the years ended
September 30, 2005 and September 30, 2004 were as follows (000):
ORDINARY LONG-TERM RETURN OF
INCOME CAPITAL GAIN CAPITAL TOTAL
-------- ------------ --------- ----------
Large Cap Growth Fund
2005 $ 53 $ -- $ -- $ 53
2004 87 -- -- 87
Micro Cap Growth Fund
2005 7,955 40,633 -- 48,588
2004 330 6,184 -- 6,514
Small Cap Equity Fund
2005 -- -- -- --
2004 1,006 310 51 1,367
As of September 30, 2005, the components of distributable earnings (accumulated
losses) on a tax basis were as follows (000):
TOTAL
DISTRIBUTABLE
UNDISTRIBUTED UNDISTRIBUTED CAPITAL POST- UNREALIZED EARNINGS
ORDINARY LONG-TERM LOSS OCTOBER APPRECIATION (ACCUMULATED
INCOME CAPITAL GAIN CARRYFORWARD LOSSES (DEPRECIATION) LOSSES)
------------- ------------- ------------ ------- -------------- ------------
Large Cap Growth Fund $ 82 $ -- $ (23,756) $ -- $ 7,360 $ (16,314)
Core Growth Fund 65 -- (1,576) -- 3,896 2,385
Strategic Growth Fund -- -- (13,046) -- 1,067 (11,979)
Midcap Growth Fund -- -- (494,561) -- 199,593 (294,968)
Small Cap Growth Fund -- -- (132,053) -- 46,450 (85,603)
Micro Cap Growth Fund 8,774 20,019 -- -- 136,797 165,590
Small Cap Equity Fund -- -- (209) (10) 8,738 8,519
Technology Fund -- -- (129,813) -- 2,474 (127,339)
Concentrated Growth Fund -- -- (156,452) (81) 3,325 (153,208)
New Enterprise Fund -- -- (8,630) -- 1,823 (6,807)
Post-October losses represent losses realized on investment transactions from
November 1, 2004 through September 30, 2005 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, 2005, 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 2013 TOTAL
---------------- ------------------ ------------------ ----------------- ------------------
Large Cap Growth Fund $ -- $ 8,618 $ 15,138 $ -- $ 23,756
Core Growth Fund -- -- 1,576 -- 1,576
Strategic Growth Fund 1,508 8,526 3,012 -- 13,046
Midcap Growth Fund -- 365,062 129,499 -- 494,561
Small Cap Growth Fund -- 106,059 25,994 -- 132,053
Small Cap Equity Fund -- -- -- 209 209
Technology Fund 13,243 108,584 7,986 -- 129,813
Concentrated Growth Fund 11,073 132,529 12,850 -- 156,452
New Enterprise Fund 815 7,183 385 247 8,630
TURNER FUNDS 2006 SEMIANNUAL REPORT 75
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
During the year ended September 30, 2005, the Large Cap Growth Fund, Core Growth
Fund, Strategic Growth Fund, Midcap Growth Fund, Small Cap Growth Fund,
Technology Fund, and Concentrated Growth Fund utilized capital loss
carryforwards of $6,776,047, $419,358, $344,483, $116,510,771, $21,241,133,
$748,146, and $893,945, respectively, to offset capital gains.
At March 31, 2006, 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
TAX COST APPRECIATION DEPRECIATION APPRECIATION
------------ ------------ ------------ -------------
Large Cap Growth Fund $ 10,403 $ 2,773 $ (39) $ 2,734
Core Growth Fund 61,473 9,238 (806) 8,432
Strategic Growth Fund 10,039 1,991 (146) 1,845
Midcap Growth Fund 1,015,178 309,189 (9,942) 299,247
Small Cap Growth Fund 242,249 86,551 (995) 85,556
Micro Cap Growth Fund 597,679 200,440 (4,905) 195,535
Small Cap Equity Fund 68,903 14,835 (558) 14,277
Technology Fund 11,021 4,681 (136) 4,545
Concentrated Growth Fund 34,795 6,881 (572) 6,309
New Enterprise Fund 27,334 5,159 (541) 4,618
Large Cap Value Fund 530 31 (7) 24
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. SUBSEQUENT EVENTS:
On February 24, 2006, the Board of Trustees approved the reorganization of the
Turner Strategic Growth Fund into a corresponding shell portfolio of the Phoenix
Opportunities Trust. The shareholder meeting is scheduled for June 8, 2006 and
the transaction is expected to occur in June 2006.
On May 18, 2006, the Board of Trustees approved the reorganization of the
Technology Fund into the New Enterprise Fund. The shareholder meeting is
scheduled for July 2006.
76 TURNER FUNDS 2006 SEMIANNUAL REPORT
BOARD OF TRUSTEES CONSIDERATIONS IN APPROVING THE ADVISORY AGREEMENT (Unaudited)
- --------------------------------------------------------------------------------
BOARD OF TRUSTEES CONSIDERATIONS IN APPROVING THE ADVISORY AGREEMENT
On February 24, 2006, 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 Turner
Investment Partners, Inc. 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
the past one, three and five year periods compared to each Fund's respective
peer group for the one-, three- and five- year periods; (3) the contractual and
actual compensation to be paid under the Advisory Agreements as compared to the
compensation paid to relevant Morningstar peer groups; (4) the expense ratios of
the Funds, with expense waivers, as compared to expense ratios for relevant
Morningstar 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,
2005; (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 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 Advisers in advising the Funds; the profits earned by the Advisers 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 2006 SEMIANNUAL REPORT 77
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 a mutual fund's gross income and directly reduce its final investment
return. These expenses are expressed as a percentage of a mutual fund's average
net assets; this percentage is known as a mutual 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 the 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 "Expenses 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
10/01/05 3/31/06 RATIOS PERIOD*
- ----------------------------------------------------------------------
Turner Large Cap Growth Fund
- ----------------------------------------------------------------------
Actual Fund Return $1,000.00 $1,065.50 0.75% $3.86
Hypothetical 5%
Return 1,000.00 1,021.19 0.75 3.78
- ----------------------------------------------------------------------
Turner Core Growth Fund Class I Shares
- ----------------------------------------------------------------------
Actual Fund Return 1,000.00 1,092.90 0.59 3.08
Hypothetical 5%
Return 1,000.00 1,021.99 0.59 2.97
- ----------------------------------------------------------------------
Turner Core Growth Fund Class II Shares
- ----------------------------------------------------------------------
Actual Fund Return 1,000.00 1,089.90 0.94 4.90
Hypothetical 5%
Return 1,000.00 1,020.24 0.94 4.73
- ----------------------------------------------------------------------
Turner Strategic Growth Fund
- ----------------------------------------------------------------------
Actual Fund Return 1,000.00 1,130.10 1.25 6.64
Hypothetical 5%
Return 1,000.00 1,018.70 1.25 6.29
- ----------------------------------------------------------------------
Turner Midcap Growth Fund Class I Shares
- ----------------------------------------------------------------------
Actual Fund Return 1,000.00 1,159.20 1.18 6.35
Hypothetical 5%
Return 1,000.00 1,019.05 1.18 5.94
- ----------------------------------------------------------------------
Turner Midcap Growth Fund Class II Shares
- ----------------------------------------------------------------------
Actual Fund Return 1,000.00 1,156.00 1.68 9.03
Hypothetical 5%
Return 1,000.00 1,016.55 1.68 8.45
- ----------------------------------------------------------------------
Turner Small Cap Growth Fund
- ----------------------------------------------------------------------
Actual Fund Return 1,000.00 1,203.80 1.25 6.87
Hypothetical 5%
Return 1,000.00 1,018.70 1.25 6.29
- ----------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/01/05 3/31/06 RATIOS PERIOD*
- ----------------------------------------------------------------------
Turner Micro Cap Growth Fund
- ----------------------------------------------------------------------
Actual Fund Return $1,000.00 $1,133.20 1.40% $7.45
Hypothetical 5%
Return 1,000.00 1,017.95 1.40 7.04
- ----------------------------------------------------------------------
Turner Small Cap Equity Fund
- ----------------------------------------------------------------------
Actual Fund Return 1,000.00 1,156.30 1.28 6.88
Hypothetical 5%
Return 1,000.00 1,018.55 1.28 6.44
- ----------------------------------------------------------------------
Turner Technology Fund
- ----------------------------------------------------------------------
Actual Fund Return 1,000.00 1,238.20 1.52 8.48
Hypothetical 5%
Return 1,000.00 1,017.35 1.52 7.64
- ----------------------------------------------------------------------
Turner Concentrated Growth Fund
- ----------------------------------------------------------------------
Actual Fund Return 1,000.00 1,174.60 1.73 9.38
Hypothetical 5%
Return 1,000.00 1,016.31 1.73 8.70
- ----------------------------------------------------------------------
Turner New Enterprise Fund
- ---------------------------------------------------------------------
Actual Fund Return 1,000.00 1,238.90 1.61 8.99
Hypothetical 5%
Return 1,000.00 1,016.90 1.61 8.10
- ----------------------------------------------------------------------
Turner Large Cap Value Fund
- ----------------------------------------------------------------------
Actual Fund Return 1,000.00 1,104.00 0.59 2.92**
Hypothetical 5%
Return 1,000.00 1,021.99 0.59 2.81**
- ----------------------------------------------------------------------
* 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 10/1/05 - 3/31/06).
** Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 172/365 (to reflect
the period from inception to date, 10/10/05 - 3/31/06).
78 TURNER FUNDS 2006 SEMIANNUAL REPORT
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TURNER FUNDS 2006 SEMIANNUAL REPORT 79
- --------------------------------------------------------------------------------
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
SEI INVESTMENTS DISTRIBUTION COMPANY
Oaks, 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 Funds file their complete schedules of portfolio holdings with the
Securities and Exchange Commission (the "Commission") for the first and third
quarters of each fiscal year on Form N-Q within sixty days after the end of the
period. The Funds' 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.
80 TURNER FUNDS 2006 SEMIANNUAL REPORT
[BLANK PAGE]
TURNER FUNDS
- ----------------------------------------
TURNER FUNDS
P.O. Box 219805
Kansas City, MO 64121-9805
Telephone: 1-800-224-6312
Email: mutualfunds@turnerinvestments.com
Web Site: www.turnerinvestments.com
TUR-SA-002-0500
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. Effective for closed-end management investment companies for
fiscal years ending on or after December 31, 2005.
Item 9. Purchases of Equity Securities by Closed-End Management 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 since the Registrant's
last proxy solicitation.
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 significant changes in the registrant's internal control over
financial reporting that occurred during the second fiscal quarter of the period
covered by this report, that have materially affected, or are 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.
(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: June 2, 2006
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: June 2, 2006
By (Signature and Title)* /s/ Michael Lawson
------------------------------
Michael Lawson,
Controller and CFO
Date: June 2, 2006
* Print the name and title of each signing officer under his or her signature.