UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________
FORM N-CSR
________
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-07527
TURNER FUNDS
(Exact name of registrant as specified in charter)
________
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, 2007
DATE OF REPORTING PERIOD: MARCH 31, 2007
ITEM 1. REPORTS TO STOCKHOLDERS.
[TURNER FUNDS LOGO]
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SEMIANNUAL REPORT
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March 31, 2007 (unaudited)
Turner Concentrated Growth Fund
Turner Core Growth Fund
Turner Emerging Growth Fund
Turner International Core Growth Fund
Turner Large Cap Growth Fund
Turner Large Cap Value Fund
Turner Midcap Equity Fund
Turner Midcap Growth Fund
Turner New Enterprise Fund
Turner Small Cap Equity Fund
Turner Small Cap Growth Fund
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CONTENTS
2 Letter to shareholders
5 Total returns of Turner Funds
7 Investment review:
Turner Concentrated Growth Fund
8 Investment review:
Turner Core Growth Fund
9 Investment review:
Turner Emerging Growth Fund
10 Investment review:
Turner International Core Growth Fund
11 Investment review:
Turner Large Cap Growth Fund
12 Investment review:
Turner Large Cap Value Fund
13 Investment review:
Turner Midcap Equity Fund
14 Investment review:
Turner Midcap Growth Fund
15 Investment review:
Turner New Enterprise Fund
16 Investment review:
Turner Small Cap Equity Fund
17 Investment review:
Turner Small Cap Growth Fund
18 Financial statements
52 Notes to financial statements
59 Board of Trustees considerations in approving the Advisory Agreement
60 Disclosure of fund expenses
TURNER FUNDS
As of March 31, 2007, the Turner Funds offered a series of 11 mutual funds to
individual and institutional investors. The minimum initial investment for
Institutional Class Shares in a Turner Fund is $250,000 ($25,000 for Turner
Large Cap Value Fund) for regular accounts and $100,000 ($10,000 for Turner
Large Cap Value Fund) for individual retirement accounts. The minimum initial
investment for Investor Class Shares and Retirement Class Shares is $2,500 for
regular accounts 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
and Turner Midcap Equity Fund). Turner Investment Partners, Inc., founded in
1990, invests approximately $23 billion in equity portfolios on behalf of
individuals and institutions. Turner Investment Management LLC, a subsidiary of
Turner Investment Partners, Inc., serves as the investment adviser for the
Turner Small Cap Equity Fund and Turner Midcap 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 2007 SEMIANNUAL REPORT | 1
LETTER TO SHAREHOLDERS
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TO OUR SHAREHOLDERS
In the six-month period ended March 31, 2007, both the stock market and the 11
Turner funds performed with mixed success -- strong at first, then less so.
Most of the gains by the market and our funds came in the first three months of
the period. Investor sentiment was most bullish then, influenced by a sustained
halt in the Federal Reserve's campaign of interest-rate hikes, stabilized oil
prices (hovering around $60 a barrel), record merger-and-acquisition activity
($3.8 trillion in deals globally for all of 2006, according to Thomson
Financial), strength in earnings (a 14.4% increase in S&P 500 companies' profits
from the previous year), and continued economic growth.
But as the six-month period progressed, investor sentiment soured slightly, and
the market's gains were more modest. Investors fretted that developments such as
the housing slump, foreclosures on subprime mortgages, a sudden spurt in oil
prices to nearly $66 a barrel, and a lackluster level of capital spending were
slowing the economy and corporate profit growth more rapidly than previously
thought.
SMALLER AND VALUE STOCKS DO BEST
Altogether, the market's robust and less-robust stints translated into total
returns for the six-month period that were ample by historical standards. The
S&P 500 Index rose 7.38%; the large-cap Russell 1000 Index, 7.19%; the Russell
Midcap Index, 12.38%; and the small-cap Russell 2000 Index, 11.02%. The
performance premiums achieved by mid-cap and small-cap stocks over their larger
brethren represented a continuation of a trend that's now at least six years
old. And in another long-standing trend, the value-investing style trumped the
growth-investing style: the broad-based Russell 3000 Value Index outpaced its
growth counterpart by 1.93 percentage points.
Value's superior results were reflected in the performance of cyclical stocks
that are sensitive to the state of the economy. Value stocks tend to be
concentrated in the cyclical sectors, so it wasn't surprising that three
cyclical sectors -- materials/processing, energy, and utilities/communication --
generated the highest returns of any sector in the Russell 3000 Index, ranging
from 15.47% to 20.12%.
In such a market environment, all 11 of our funds made money and produced good
gains in absolute terms. As in the market as a whole, small was better: our
funds specializing in smaller stocks climbed highest. In relative terms,
however, our funds' performance in the aggregate was only so-so. Of the nine
funds with track records longer than one year, five outperformed at least one of
their benchmarks. The five outperformers were the Turner Core Growth Fund, the
Turner Emerging Growth Fund, the Turner Large Cap Growth Fund, the Turner New
Enterprise Fund, and the Turner Small Cap Growth Fund.
NO PAYING UP FOR EARNINGS GROWTH
We attribute the lagging performance of two long-lived growth funds, the Turner
Concentrated Growth Fund and the Turner Midcap Growth Fund, mainly to a market
bias that prevailed throughout the period: the stocks of companies with middling
earnings growth and relatively low price/earnings multiples generally did best.
Conversely, the stocks of companies with the strongest earnings and highest
multiples -- the kind of stocks that those funds emphasize -- performed less
favorably. Corporate earnings have generally been good, so investors were
disinclined to pay premium share prices as long as other, lesser-growth
companies showed some earnings power.
Also trailing their benchmarks were a "core" fund that invests in both value and
growth stocks, the Turner Small Cap Equity Fund, and a value fund, the Turner
Large Cap Value Fund. In both cases, the funds' performance was hurt by not
owning enough commodity-related cyclical stocks. The rub was that
commodity-related cyclical stocks had done so well previously that they had
become prohibitively expensive to own, based on the funds' investment criteria.
If the market leadership shifts to other sectors (we think it should), we think
the Small Cap Equity Fund and the Large Cap Value Fund should do better.
During the period, on January 31, we introduced two new funds, the Turner
International Core Growth Fund and the Turner Midcap Equity Fund. The
International Core Growth Fund, our first foreign-stock fund, is run by Mark
Turner, the lead portfolio manager, and Chris McHugh and me, who serve as
comanagers. It invests in non-U.S. stocks with market capitalizations greater
than $2 billion. The Midcap Equity Fund, our second core-stock fund, is directed
by Steve Gold, the lead portfolio manager, and Tom DiBella. It emphasizes growth
and value stocks with medium market capitalizations, as represented by the
Russell Midcap Index.
NEWEST FUNDS START POSITIVELY
In their first two months of operations, the two funds got off to a positive
start. In a spirit of prudence and modesty, I wouldn't attempt to appraise my
own capabilities as a portfolio manager, since I suspect that Jerry Seinfeld may
have been onto something when he remarked, "Vanity is the last refuge of
incompetents and chief executives -- but I'm being redundant." However, I do
believe Mark, Chris, Steve, and Tom are terrific stock pickers, and I can't wait
to see what they accomplish with the International Core Growth Fund and the
Midcap Equity Fund in the years ahead.
2 | TURNER FUNDS 2007 SEMIANNUAL REPORT
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March 31, 2007
Below are the specific returns for all of our funds and their benchmarks in the
past six months. (Past performance is no guarantee of future results, and the
funds' subsequent performance may be lower or higher than the returns shown.
Please visit our Web site at WWW.TURNERINVESTMENTS.COM or call 1.800.224.6312
for their latest month-end performance.)
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TOTAL RETURNS
Six-month period ended March 31, 2007
TURNER CONCENTRATED GROWTH FUND (TTOPX) 6.45%
S&P 500 Index 7.38
NASDAQ 100 Index 7.44
Russell 1000 Growth Index 7.19
TURNER CORE GROWTH FUND,
INSTITUTIONAL CLASS (TTMEX) 7.37
S&P 500 Index 7.38
Russell 1000 Growth Index 7.19
TURNER EMERGING GROWTH FUND (TMCGX) 12.08
Russell 2000 Growth Index 11.46
TURNER INTERNATIONAL CORE GROWTH FUND (TICGX) 1.80*
MSCI World Growth ex-U.S. Index 4.03*
TURNER LARGE CAP GROWTH FUND,
INSTITUTIONAL CLASS (TSGEX) 5.50
Russell Top 200 Growth Index 5.46
Russell 1000 Growth Index 7.19
TURNER LARGE CAP VALUE FUND (TLVFX) 8.70
Russell 1000 Value Index 9.34
TURNER MIDCAP EQUITY FUND, INVESTOR CLASS (TMCFX) 1.30*
Russell Midcap Index 0.96*
TURNER MIDCAP GROWTH FUND, INVESTOR CLASS (TMGFX) 9.16
Russell Midcap Growth Index 11.18
TURNER NEW ENTERPRISE FUND (TBTBX) 9.11
NASDAQ Composite Index 7.62
TURNER SMALL CAP EQUITY FUND (TSEIX) 8.94
Russell 2000 Index 11.02
TURNER SMALL CAP GROWTH FUND (TSCEX) 13.99
Russell 2000 Growth Index 11.46
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* The return is for the period from the fund's inception, on January 31,
2007, to March 31, 2007.
For more details on the performance of each fund, see the INVESTMENT REVIEW
beginning on page 7.
Short-term performance is fine as far as it goes (which isn't far), but as we
never tire of repeating, what really matters in stock investing is performance
over the LONG RUN. John Maynard Keynes, the fabled British economist, may have
had a point when he rather dourly observed about the futility of some forms of
long-term thinking, "In the long run we are all dead." Even so, it's hard to
deny that the long run is the best standard by which to judge the merit of an
investment. By that measure, our funds remain distinctly meritorious. Of the
eight funds that have a track record longer than four years, seven of them have
outperformed their benchmarks since inception. We may indeed all die in the long
run, but in the interim most of us would undoubtedly choose to have our money in
mutual funds that have excelled over time rather than in perennial sluggards.
PRICE/EARNINGS RATIOS TO EXPAND?
As for the near-term prospects of the stock market, we believe that 2007 should
be a year in which price/earnings ratios expand and stocks in aggregate climb
higher. In our estimation, the possibility of higher price/earnings ratios would
bode well for high-quality stocks, especially high-quality LARGE-CAP stocks. Our
research shows that in every period when price/earnings multiples have increased
in the past 20 years, high-quality stocks have outperformed. We think any
expansion of P/E ratios -- which would be the first since 2003 -- could help to
offset a slackening rate of corporate earnings growth. The S&P 500 Index
reported fourth-quarter earnings growth of 11.2%. In contrast, Wall Street
analysts are projecting that year-over-year growth in first-quarter earnings
will be only 4%. (Investment-research firms like Thomson Financial, estimate the
actual figure may be appreciably higher.)
At any rate, we think corporate earnings should indeed slow but pick up in
subsequent quarters. Historically, the economic cycle has been the prime driver
of a multiple expansion, and we think the economy will keep growing and
reaccelerate slightly later in the year, to the benefit of the stock market.
Another thing that the stock market has going for it, paradoxically, is its
anemic record in this decade, in the aftermath of the worst bear market in
modern times, from 2000 to 2002. Overall, from 2000 to 2006 the S&P 500 Index
has gained a mere 1.1% annualized. We think the likelihood is that stocks, in
light of their extremely modest showing thus far in the decade, should revert to
the mean, i.e., they should gravitate upward toward the long-term average for
the remainder of the 2000s. In modern times, the worst decade for stocks was the
1970s, when they returned an annualized 5.9%. For stocks to earn a compound
annual return of 5% for this decade (just half the average of 10.4% since 1926),
they must average 14.7% a year going forward.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 3
LETTER TO SHAREHOLDERS (continued)
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March 31, 2007
HOW OUR FUNDS ARE POSITIONED
No matter what course the market may take, our focus in managing our growth
funds remains on owning stocks that we think have the strongest earnings
prospects. We currently favor shares of companies in the Internet, hotel,
brokerage, investment-exchange, natural-gas-utility, managed-care,
biotechnology, semiconductor, telecommunications, and wireless industries.
And our core and value funds, as always, are emphasizing stocks of companies
that we think have either undervalued assets or strong prospective earnings
power. We think select autos/transportation, materials/processing,
producer-durables, and technology shares offer above-average return potential,
based on those valuation and earnings criteria.
In closing, we reaffirm our commitment to doing our best to produce good
long-term performance for the Turner Funds. We look forward to reporting to you
again in six months about how we well we in fact met that commitment.
/s/ Bob Turner
Bob Turner
CHAIRMAN AND CHIEF INVESTMENT OFFICER
TURNER INVESTMENT PARTNERS
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. THE VIEWS EXPRESSED ARE
THOSE OF TURNER INVESTMENT PARTNERS AS OF MARCH 31, 2007, AND ARE NOT INTENDED
AS A FORECAST OR INVESTMENT RECOMMENDATIONS. THE INDEXES MENTIONED ARE NOT
AVAILABLE FOR INVESTMENT.
[PICTURE OMITTED]
BOB TURNER
4 | TURNER FUNDS 2007 SEMIANNUAL REPORT
PERFORMANCE
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TOTAL RETURNS OF TURNER FUNDS
Through March 31, 2007
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.
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 PREDICTORS 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 THERE IS NO GUARANTEE THAT
OWNING SECURITIES OF COMPANIES WITH RELATIVELY HIGH PRICE-TO-EARNINGS RATIOS
WILL CAUSE THE PORTFOLIO TO OUTPERFORM ITS BENCHMARK OR INDEX.
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)
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TURNER CONCENTRATED
GROWTH FUND 6.45% 1.38% (3.00)% 5.86% 2.62% N/A 1.88% $ 35.40
S&P 500 Index 7.38 0.64 11.83 10.06 6.27 n/a 2.07
NASDAQ 100 Index 7.44 1.01 4.54 7.66 4.39 n/a (3.07)
Russell 1000 Growth Index 7.19 1.19 7.06 7.01 3.47 n/a (1.93)
INCEPTION DATE: 6/30/99
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TURNER CORE GROWTH FUND --
INSTITUTIONAL CLASS SHARES 7.37 1.63 5.03 10.93 6.94 N/A 3.80 137.13
INVESTOR CLASS SHARES** 7.20 1.64 4.76 N/A N/A N/A 10.43 26.68
S&P 500 Index 7.38 0.64 11.83 10.06 6.27 n/a 4.04
Russell 1000 Growth Index 7.19 1.19 7.06 7.01 3.47 n/a 0.58
INCEPTION DATE: 2/28/01
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TURNER EMERGING GROWTH FUND(1) 12.08 2.94 3.81 14.96 12.84 N/A 27.72 592.33
Russell 2000 Growth Index 11.46 2.48 1.57 9.41 7.88 n/a 3.45
INCEPTION DATE: 2/27/98
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TURNER INTERNATIONAL CORE
GROWTH FUND N/A N/A N/A N/A N/A N/A 1.80* 1.01
MSCI World Growth ex-U.S. Index n/a n/a n/a n/a n/a n/a 4.03*
INCEPTION DATE: 1/31/07
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TURNER LARGE CAP GROWTH FUND
INSTITUTIONAL CLASS SHARES 5.50 1.21 2.38 4.88 3.04 N/A (7.44) 22.86
INVESTOR CLASS SHARES*** N/A N/A N/A N/A N/A N/A (0.84)* --
Russell Top 200 Growth Index 5.46 (0.02) 7.09 5.12 1.68 n/a (6.48)
Russell 1000 Growth Index 7.19 1.19 7.06 7.01 3.47 n/a (5.09)
INCEPTION DATE: 6/14/00
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TURNER LARGE CAP VALUE FUND 8.70 2.12 13.15 N/A N/A N/A 16.31 0.78
Russell 1000 Value Index 9.34 1.24 16.83 n/a n/a n/a 19.74
INCEPTION DATE: 10/10/05
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TURNER FUNDS 2007 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)
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TURNER MIDCAP EQUITY FUND --
INSTITUTIONAL CLASS SHARES N/A N/A N/A N/A N/A N/A 1.50%* $ --
INVESTOR CLASS SHARES N/A N/A N/A N/A N/A N/A 1.30* 0.24
Russell Midcap Index n/a n/a n/a n/a n/a n/a 0.96*
INCEPTION DATE: 1/31/07
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TURNER MIDCAP GROWTH FUND(1) --
INVESTOR CLASS SHARES 9.16% 3.25% (1.41)% 9.92% 7.44% 14.28% 13.44 1,090.70
RETIREMENT CLASS SHARES**** 8.94 3.16 (1.87) 9.40 6.92 N/A 10.07 5.40
Russell Midcap Growth Index 11.18 3.96 6.90 12.41 9.45 9.44 8.93
INCEPTION DATE: 10/1/96
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TURNER NEW ENTERPRISE FUND 9.11 0.44 (5.92) 9.24 9.49 N/A (5.49) 20.42
NASDAQ Composite Index 7.62 0.44 4.23 7.44 6.22 n/a (6.56)
INCEPTION DATE: 6/30/00
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TURNER SMALL CAP EQUITY FUND(1) 8.94 2.45 (0.63) 9.72 13.93 N/A 14.99 75.68
Russell 2000 Index 11.02 1.95 5.91 12.00 10.95 n/a 11.61
INCEPTION DATE: 3/4/02
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TURNER SMALL CAP GROWTH FUND(1) 13.99 3.72 0.40 10.43 9.04 11.09 14.10 294.02
Russell 2000 Growth Index 11.46 2.48 1.57 9.41 7.88 6.31 6.66
INCEPTION DATE: 2/7/94
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(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.
* Returns of less than one year are cumulative and are not annualized.
** Commenced operations on August 1, 2005.
*** Commenced operations on January 31, 2007.
**** Commenced operations on September 24, 2001.
Amounts designated as "--" are rounded to $0 ($mil).
EXPENSE RATIO+
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Gross Net
expense expense
ratio ratio
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TURNER CONCENTRATED
GROWTH FUND
Investor Class Shares 1.96% 1.59%
TURNER CORE GROWTH FUND
Institutional Class Shares 1.20% 0.69%
Investor Class Shares 1.45% 0.94%
TURNER EMERGING GROWTH FUND
Investor Class Shares 1.54% 1.40%
TURNER INTERNATIONAL
CORE GROWTH FUND
Institutional Class Shares 1.40% 1.10%
TURNER LARGE CAP GROWTH FUND
Institutional Class Shares 1.16% 0.69%
Investor Class Shares 1.41% 0.94%
Gross Net
expense expense
ratio ratio
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TURNER LARGE CAP VALUE FUND
Institutional Class Shares 7.71% 0.69%
TURNER MIDCAP EQUITY FUND
Institutional Class Shares 1.00% 0.90%
Investor Class Shares 1.25% 1.15%
TURNER MIDCAP GROWTH FUND
Investor Class Shares 1.28% 1.18%
Retirement Class Shares 1.53% 1.43%
TURNER NEW ENTERPRISE FUND
Investor Class Shares 2.16% 1.61%
TURNER SMALL CAP EQUITY FUND
Investor Class Shares 1.81% 1.45%
TURNER SMALL CAP GROWTH FUND
Investor Class Shares 1.55% 1.25%
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+ These expense ratios are based on the most recent prospectus and may
differ from those shown in the financial highlights.
6 | TURNER FUNDS 2007 SEMIANNUAL REPORT
INVESTMENT REVIEW
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TURNER CONCENTRATED GROWTH FUND
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FUND PROFILE
MARCH 31, 2007
o Ticker symbol TTOPX
o CUSIP #87252R862
o Top 5 holdings+++
(1) Cameco
(2) Monsanto
(3) Chicago Mercantile Exchange Holdings, Cl A
(4) Gilead Sciences
(5) Apple
o % in 5 largest holdings 20.4%+
o Number of holdings 29
o Price/earnings ratio 23.8
o Weighted average market capitalization $37.44 billion
o % of holdings with positive earnings surprises 82.7%
o % of holdings with negative earnings surprises 17.3%
o Net assets $35 million
[CHART]
MARKET CAPITALIZATION [ ] [ ] [X]
SMALL <---> LARGE [ ] [ ] [ ]
[ ] [ ] [ ]
VALUE <---> GROWTH
INVESTMENT STYLE
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GROWTH OF A $10,000 INVESTMENT IN THE TURNER CONCENTRATED GROWTH FUND:
JUNE 30, 1999-MARCH 31, 2007*
[LINE GRAPH]
Initial Investment Date 6/30/99 SEP. 99 SEP. 00 SEP. 01 SEP. 02 SEP. 03 SEP. 04 SEP. 05 SEP. 06 MAR. 07
- --------------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Turner Concentrated Growth
Fund $10,000 $13,990 $27,782 $8,223 $5,754 $8,638 $8,310 $10,137 $10,850 $11,550
S&P 500 Index $10,000 $ 9,376 $10,622 $7,794 $6,197 $7,709 $8,778 $ 9,853 $10,916 $11,722
NASDAQ 100 Index $10,000 $10,485 $15,553 $5,092 $3,631 $5,696 $6,190 $ 7,044 $ 7,308 $ 7,852
Russell 1000 Growth Index $10,000 $ 9,633 $11,890 $6,464 $5,009 $6,307 $6,780 $ 7,567 $ 8,024 $ 8,601
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AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2007)
SIX ONE THREE FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
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TURNER CONCENTRATED GROWTH FUND 6.45% (3.00)% 5.86% 2.62% 1.88%
S&P 500 Index 7.38% 11.83% 10.06% 6.27% 2.07%
NASDAQ 100 Index** 7.44% 4.54% 7.66% 4.39% (3.07)%
Russell 1000 Growth Index 7.19% 7.06% 7.01% 3.47% (1.93)%
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SECTOR WEIGHTINGS+:
[BAR CHART]
Information technology 43.3%
Health care 15.5%
Cash equivalents/short-term investments++ 12.7%
Financials 6.9%
Industrials 5.7%
Energy 4.5%
Materials 4.1%
Consumer discretionary 4.0%
Telecommunication services 3.3%
MANAGER'S DISCUSSION AND ANALYSIS
The Turner Concentrated Growth Fund (TTOPX) produced a good absolute return for
the six-month period ended March 31: a 6.45% gain. Unfortunately, that gain
underperformed the benchmark S&P 500 Index's 7.38% rise by 0.93 percentage
points.
Most of the fund's holdings were concentrated in three sectors: financials,
health care, and information technology, accounting for 66% of holdings. Of the
three sector positions, health care and financials outperformed their
corresponding index sectors. Brokerage, securities-exchange,
diversified-financial, biotechnology, and managed-care stocks fared best. A 43%
position in the information-technology sector, especially semiconductor and
wireless-communications stocks, hurt results the most.
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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 their original cost. The performance in the above graph and
table does not reflect the deduction of taxes the shareholder will pay on
fund distributions or the redemptions of fund shares. The inception date
of the Turner Concentrated Growth Fund 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.
++ Cash equivalents include short-term investments held as collateral for
securities lending activity. Please see Note 10 in Notes to Financial
Statements for more detailed information.
+++ Cash equivalents and short-term investments are not being considered a
holding for top 5 holdings, but are counted in number of holdings.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 7
INVESTMENT REVIEW
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TURNER CORE GROWTH FUND
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FUND PROFILE
MARCH 31, 2007
o Ticker symbol TTMEX
Institutional Class Shares
o CUSIP #900297847
Institutional Class Shares
o Top 5 holdings+++
(1) General Electric
(2) Google, Cl A
(3) Procter & Gamble
(4) Goldman Sachs Group
(5) Cisco Systems
o % in 5 largest holdings 16.7%+
o Number of holdings 73
o Price/earnings ratio 20.5
o Weighted average market capitalization $62.73 billion
o % of holdings with positive earnings surprises 78.3%
o % of holdings with negative earnings surprises 19.9%
o Net assets $137 million, Institutional Class Shares
[CHART]
MARKET CAPITALIZATION [ ] [ ] [X]
SMALL <---> LARGE [ ] [ ] [ ]
[ ] [ ] [ ]
VALUE <---> GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $250,000 INVESTMENT IN THE TURNER CORE GROWTH FUND, INSTITUTIONAL
CLASS SHARES:
FEBRUARY 28, 2001-MARCH 31, 2007*,**
[LINE GRAPH]
Initial Investment Date 2/28/01 SEP. 01 SEP. 02 SEP. 03 SEP. 04 SEP. 05 SEP. 06 MAR. 07
- -------------------------- ------- ------- ------- ------- ------- ------- ------- -------
Turner Core Growth Fund,
Institutional Class
Shares $250,000 $204,530 $157,263 $201,014 $221,015 $273,263 $292,145 $313,676
S&P 500 Index $250,000 $211,479 $168,147 $209,158 $238,168 $267,343 $296,190 $318,048
Russell 1000 Growth Index $250,000 $194,671 $150,851 $189,951 $204,216 $227,906 $241,671 $259,047
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2007)
SIX ONE THREE FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
- --------------------------------------------------------------------------------------------------
TURNER CORE GROWTH FUND, INSTITUTIONAL CLASS SHARES 7.37% 5.03% 10.93% 6.94% 3.80%**
TURNER CORE GROWTH FUND, INVESTOR CLASS SHARES 7.20% 4.76% -- -- 10.43%***
S&P 500 Index 7.38% 11.83% 10.06% 6.27% 4.04%**
Russell 1000 Growth Index 7.19% 7.06% 7.01% 3.47% 0.58%**
- --------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
Information technology 21.4%
Financials 19.0%
Health care 11.7%
Energy 9.9%
Industrials 9.6%
Telecommunication services 8.0%
Consumer discretionary 7.6%
Consumer staples 7.3%
Cash equivalents/short-term investments++ 3.9%
Materials 1.2%
Utilities 0.4%
MANAGER'S DISCUSSION AND ANALYSIS
Some good stock selection enhanced the 7.37% gain of the Turner Core Growth
Fund, Institutional Class (TTMEX) in the six-month period ended March 31. As a
result, the fund's results were nearly flat with that of the S&P 500 Index, but
outperformed the Russell 1000 Growth Index's 7.19% return by 0.18 percentage
points.
Six of the fund's 10 sector positions beat their index sectors.
Telecommunications-services, health-care, and energy stocks, which amounted to a
30% weighting, boosted the fund's results the most. Winners here included
wireless-communications, biotechnology, energy-services, and solar-cell stocks.
A 29% position in the information-technology and consumer-discretionary sectors
was the prime detractor from performance. Semiconductor, data-networking,
Internet-equipment, gaming, and Internet-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 their original cost. The performance in the above graph and
table does 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. Performance of the Institutional and Investor Class
Shares will differ due to differences in fees.
** The inception date of the Turner Core Growth Fund (Institutional Class
Shares) was February 28, 2001. Index returns are based on Institutional
Class Shares inception date.
*** The inception date of the Turner Core Growth Fund (Investor Class Shares)
was August 1, 2005.
+ Percentages based on total investments.
++ Cash equivalents include short-term investments held as collateral for
securities lending activity. Please see Note 10 in Notes to Financial
Statements for more detailed information.
+++ Cash equivalents and short-term investments are not being considered a
holding for top 5 holdings, but are counted in number of holdings.
Amounts designated as "--" are not applicable.
8 | TURNER FUNDS 2007 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER EMERGING GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2007
o Ticker symbol TMCGX
o CUSIP #872524301
o Top 5 holdings+++
(1) iShares Russell 2000 Growth Index Fund
(2) Bucyrus International, Cl A
(3) Terra Industries
(4) RTI International Metals
(5) Hologic
o % in 5 largest holdings 8.1%+
o Number of holdings 111
o Price/earnings ratio 18.5
o Weighted average market capitalization $1.03 billion
o % of holdings with positive earnings surprises 75.4%
o % of holdings with negative earnings surprises 23.3%
o Net assets $592 million
[CHART]
MARKET CAPITALIZATION [ ] [ ] [ ]
SMALL <---> LARGE [ ] [ ] [ ]
[ ] [ ] [X]
VALUE <---> GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER EMERGING GROWTH FUND:
FEBRUARY 27, 1998-MARCH 31, 2007*
[LINE GRAPH]
Initial Investment Date 2/27/98 SEP. 98 SEP. 99 SEP. 00 SEP. 01 SEP. 02 SEP. 03 SEP. 04 SEP. 05 SEP. 06 Mar. 07
- --------------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Turner Emerging Growth
Fund $10,000 $9,882 $21,093 $48,308 $38,535 $38,489 $49,709 $61,410 $78,544 $82,432 $92,389
Russell 2000 Growth Index $10,000 $7,625 $10,113 $13,113 $ 7,528 $ 6,161 $ 8,731 $ 9,772 $11,528 $12,206 $13,605
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2007)
SIX ONE THREE FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
- --------------------------------------------------------------------------------
TURNER EMERGING GROWTH FUND 12.08% 3.81% 14.96% 12.84% 27.72%
Russell 2000 Growth Index 11.46% 1.57% 9.41% 7.88% 3.45%
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
Cash equivalents/short-term investments++ 38.2%
Industrials 13.9%
Health care 9.7%
Information technology 9.5%
Financials 9.5%
Energy 6.6%
Consumer discretionary 6.3%
Materials 4.1%
Consumer staples 1.1%
Telecommunication services 1.0%
Utilities 0.1%
MANAGER'S DISCUSSION AND ANALYSIS
The six months ended March 31 were a good period of performance for small-cap
stocks. The Turner Emerging Growth Fund (TMCGX) produced a good absolute and
relative return, a 12.08% gain, which beat its benchmark, the Russell 2000
Growth Index. The fund's margin of outperformance versus the index's 11.46%
return amounted to 0.62 percentage points.
Seven of the fund's 10 sector positions outperformed their corresponding index
sectors. Health-care and materials holdings, a 14% weighting in aggregate,
contributed the most to performance. Biotechnology, managed-care,
diagnostic-services, and metals stocks were especially strong. The primary
detractor from performance was the fund's consumer-discretionary holdings, a 6%
weighting. Underperformers here included gaming and outsourcing-services 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 their original cost. The performance in the above graph and
table does not reflect the deduction of taxes the shareholder will pay on
fund distributions or the redemptions of fund shares. The inception date
of the Turner Emerging 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 10 in Notes to Financial
Statements for more detailed information.
+++ Cash equivalents and short-term investments are not being considered a
holding for top 5 holdings, but are counted in number of holdings.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 9
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER INTERNATIONAL CORE GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2007
o Ticker symbol TICGX
o CUSIP #900297771
o Top 5 holdings++
(1) Mitsubishi Estate
(2) Kubota
(3) Deutsche Boerse
(4) Rolls-Royce Group
(5) Allied Irish Banks
o % in 5 largest holdings 12.3%+
o Number of holdings 63
o Price/earnings ratio 18.9
o Weighted average market capitalization $36.94 billion
o % of holdings with positive earnings surprises 57.5%
o % of holdings with negative earnings surprises 37.0%
o Net assets $1 million
[CHART]
MARKET CAPITALIZATION [ ] [ ] [ ]
SMALL <---> LARGE [ ] [ ] [ ]
[ ] [ ] [X]
VALUE <---> GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $250,000 INVESTMENT IN THE TURNER INTERNATIONAL CORE GROWTH FUND:
JANUARY 31, 2007-MARCH 31, 2007*
[LINE GRAPH]
Initial Investment Date 1/31/07 FEB. 07 MAR. 07
- --------------------------------------- ------- ------- -------
Turner International Core Growth Fund $250,000 $247,750 $254,489
MSCI World Growth ex-U.S. Index $250,000 $251,975 $260,089
- --------------------------------------------------------------------------------
AVERAGE CUMULATIVE TOTAL RETURNS (PERIOD ENDING MARCH 31, 2007)
SINCE
INCEPTION
- --------------------------------------------------------------------------------
TURNER INTERNATIONAL CORE GROWTH FUND 1.80%**
MSCI World Growth ex-U.S. Index 4.03%**
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
Financials 17.0%
Consumer staples 13.2%
Industrials 12.9%
Consumer discretionary 12.1%
Materials 12.1%
Information technology 9.1%
Health care 7.9%
Energy 6.6%
Utilities 3.7%
Telecommunication services 3.0%
Cash equivalents 2.4%
MANAGER'S DISCUSSION AND ANALYSIS
In its first two months of operations, the Turner International Core Growth Fund
(TICGX) generated a gain, 1.80%, which trailed the MSCI World Growth ex-U.S.
Index's 4.03% return by 2.23 percentage points.
Two relatively small sector positions, out of a total of 10, outperformed their
corresponding index sectors: industrials and telecommunications-services, which
totaled a 16% weighting. Diversified-industrial, natural-gas-utility, and
telecommunications stocks performed best. Conversely, financials shares, which
constituted 17% of the portfolio, impaired performance the most. Brokerage,
securities-exchange, and insurance stocks produced losses.
- --------------------------------------------------------------------------------
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or
less than their original cost. The performance in the above graph and
table does not reflect the deduction of taxes the shareholder will pay on
fund distributions or the redemptions of fund shares. The inception date
of the Turner International Core Growth Fund was January 31, 2007.
** Cumulative return, not annualized.
+ Percentages based on total investments.
++ Cash equivalents are not being considered a holding for top 5 holdings,
but are counted in number of holdings.
10 | TURNER FUNDS 2007 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER LARGE CAP GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2007
o Ticker symbol TSGEX
Institutional Class Shares
o CUSIP #87252R839
Institutional Class Shares
o Top 5 holdings++
(1) General Electric
(2) Cisco Systems
(3) Google, Cl A
(4) PepsiCo
(5) Gilead Sciences
o % in 5 largest holdings 22.0%+
o Number of holdings 48
o Price/earnings ratio 20.7
o Weighted average market capitalization $79.25 billion
o % of holdings with positive earnings surprises 87.9%
o % of holdings with negative earnings surprises 12.1%
o Net assets $23 million, Institutional Class Shares
[CHART]
MARKET CAPITALIZATION [ ] [ ] [X]
SMALL <---> LARGE [ ] [ ] [ ]
[ ] [ ] [ ]
VALUE <---> GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $250,000 INVESTMENT IN THE TURNER LARGE CAP GROWTH FUND,
INSTITUTIONAL CLASS SHARES:
JUNE 14, 2000-MARCH 31, 2007*,**
[LINE GRAPH]
Initial Investment Date 6/14/00 SEP. 00 SEP. 01 SEP. 02 SEP. 03 SEP. 04 SEP. 05 SEP. 06 MAR. 07
------- -------- -------- -------- -------- -------- -------- -------- --------
Turner Large Cap Growth Fund,
Institutional Class Shares $250,000 $245,248 $117,498 $ 87,501 $115,510 $120,870 $135,483 $140,089 $147,794
Russell Top 200 Growth Index $250,000 $238,641 $132,947 $101,319 $124,440 $131,819 $142,075 $150,315 $158,522
Russell 1000 Growth Index $250,000 $242,266 $131,696 $102,051 $128,503 $138,153 $154,179 $163,491 $175,246
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2007)
SIX ONE THREE FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
- ----------------------------------------------------------------------------------------------------------
TURNER LARGE CAP GROWTH FUND, INSTITUTIONAL CLASS SHARES 5.50% 2.38% 4.88% 3.04% (7.44)%**
TURNER LARGE CAP GROWTH FUND, INVESTOR CLASS SHARES -- -- -- -- (0.84)%***
Russell Top 200 Growth Index 5.46% 7.09% 5.12% 1.68% (6.48)%**
Russell 1000 Growth Index 7.19% 7.06% 7.01% 3.47% (5.09)%**
- ----------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
Information technology 33.4%
Health care 18.9%
Consumer discretionary 11.3%
Consumer staples 9.3%
Financials 9.0%
Industrials 8.3%
Telecommunication services 3.9%
Energy 3.3%
Materials 1.4%
Cash equivalents 1.2%
MANAGER'S DISCUSSION AND ANALYSIS
Good performance in most market sectors helped the Turner Large Cap Growth Fund,
Institutional Class (TSGEX) to reap a 5.50% gain in the six-month period ended
March 31. That return outperformed the Russell Top 200 Growth Index's 5.46% rise
by 0.04 percentage points.
The fund's consumer-discretionary, industrials, and telecommunications-services
positions, representing 24% of the portfolio, added the most value to results.
Luxury-goods, media, semiconductor-capital-equipment, and telecommunications
stocks did especially well. Altogether, seven of the fund's nine sector
positions outperformed the index sectors. Consumer-staples stocks, a 9%
weighting, detracted from results the most; tobacco, prescription-services, and
household-products stocks performed below par.
- --------------------------------------------------------------------------------
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or
less than their original cost. The performance in the above graph and
table does not reflect the deduction of taxes the shareholder will pay on
fund distributions or the redemptions of fund shares. Performance of the
Institutional and Investor Class Shares will differ due to differences in
fees.
** The inception date of the Turner Large Cap Growth Fund (Institutional
Class Shares) was June 14, 2000. Index returns are based on Institutional
Class Shares inception date.
*** The inception date of the Turner Large Cap Growth Fund (Investor Class
Shares) was January 31, 2007. Cumulative return, not annualized.
+ Percentages based on total investments.
++ Cash equivalents are not being considered a holding for top 5 holdings,
but are counted in number of holdings.
Amounts designated as "--" are not applicable.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 11
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER LARGE CAP VALUE FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2007
o Ticker symbol TLVFX
o CUSIP #900297821
o Top 5 holdings++
(1) Exxon Mobil
(2) AT&T
(3) Chevron
(4) Bank of America
(5) General Electric
o % in 5 largest holdings 18.5%+
o Number of holdings 80
o Price/earnings ratio 14.2
o Weighted average market capitalization $96.19 billion
o % of holdings with positive earnings surprises 86.5%
o % of holdings with negative earnings surprises 13.5%
o Net assets $0.8 million
[CHART]
MARKET CAPITALIZATION [X] [ ] [ ]
SMALL <---> LARGE [ ] [ ] [ ]
[ ] [ ] [ ]
VALUE <---> GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $25,000 INVESTMENT IN THE TURNER LARGE CAP VALUE FUND:
OCTOBER 10, 2005-MARCH 31, 2007*
[LINE GRAPH]
Initial Investment Date 10/10/05 OCT. 05 NOV. 05 DEC. 05 JAN. 06 FEB. 06 MAR. 06 APR 06 MAY. 06 JUN. 06 JUL. 06
-------- ------- ------- ------- ------- ------- ------- ------ ------- ------- -------
Turner Large Cap Value Fund $25,000 $24,950 $25,975 $26,069 $26,997 $27,124 $27,601 $28,305 $27,377 $27,527 $27,979
Russell 1000 Value Index $25,000 $25,340 $26,169 $26,328 $27,350 $27,517 $27,888 $28,596 $27,873 $28,051 $28,733
Initial Investment Date AUG. 06 SEP. 06 OCT. 06 NOV. 06 DEC. 07 JAN. 07 FEB. 07 MAR. 07
------- ------- ------- ------- ------- ------- ------- -------
Turner Large Cap Value Fund $28,331 $28,734 $29,688 $30,088 $30,585 $31,050 $30,453 $31,230
Russell 1000 Value Index $29,213 $29,794 $30,768 $31,470 $32,175 $32,587 $32,078 $32,576
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2007)
SIX ONE SINCE
MONTHS YEAR INCEPTION
- --------------------------------------------------------------------------------
TURNER LARGE CAP VALUE FUND 8.70% 13.15% 16.31%
Russell 1000 Value Index 9.34% 16.83% 19.74%
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
Financials 27.7%
Energy 13.1%
Industrials 10.9%
Utilities 8.2%
Information technology 8.0%
Health care 7.3%
Consumer discretionary 7.2%
Telecommunication services 6.6%
Consumer staples 6.6%
Materials 3.5%
Cash equivalents 0.9%
MANAGER'S DISCUSSION AND ANALYSIS
In the six-month period ended March 31, the Turner Large Cap Value Fund (TLVFX)
gained 8.70%. That return trailed the Russell 1000 Value Index's 9.34% advance
by 0.64 percentage points.
The fund is invested in large-cap value stocks that rank highly in a proprietary
quantitative model. Materials and telecommunications-services stocks, a 10%
weighting, enhanced performance to the greatest degree. Winners here included
metals, mining, natural-gas, and wireless-communications shares. Five of the
fund's 10 sector positions beat their corresponding index sectors. Hurting
results the most were information-technology and energy stocks, which
represented 21% of the portfolio. Materials stocks produced the highest return,
58%.
- --------------------------------------------------------------------------------
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or
less than their original cost. The performance in the above graph and
table does not reflect the deduction of taxes the shareholder will pay on
fund distributions or the redemptions of fund shares. The inception date
of the Turner Large Cap Value Fund was October 10, 2005.
+ Percentages based on total investments.
++ Cash equivalents are not being considered a holding for top 5 holdings,
but are counted in number of holdings.
12 | TURNER FUNDS 2007 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER MIDCAP EQUITY FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2007
o Ticker symbol TMCFX,
Investor Class Shares
o CUSIP #900297797,
Investor Class Shares
o Top 5 holdings++
(1) Precision Castparts
(2) Leap Wireless International
(3) NII Holdings
(4) Brink's
(5) Covanta Holding
o % in 5 largest holdings 9.7%+
o Number of holdings 74
o Price/earnings ratio 18.5
o Weighted average market capitalization $4.91 billion
o % of holdings with positive earnings surprises 79.1%
o % of holdings with negative earnings surprises 20.9%
o Net assets $0.2 million, Investor Class Shares
[CHART]
MARKET CAPITALIZATION [ ] [ ] [ ]
SMALL <---> LARGE [ ] [ ] [X]
[ ] [ ] [ ]
VALUE <---> GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER MIDCAP EQUITY FUND, INVESTOR CLASS
SHARES:
JANUARY 31, 2007-MARCH 31, 2007*
[LINE GRAPH]
Initial Investment Date 01/31/07 FEB. 07 MAR. 07
- ------------------------------------------ -------- ------- -------
Turner Midcap Equity Fund, Investor Class
Shares $10,000 $ 9,970 $10,130
Russell Mid-Cap Index $10,000 $10,016 $10,096
- --------------------------------------------------------------------------------
AVERAGE CUMULATIVE TOTAL RETURNS (PERIOD ENDING MARCH 31, 2007)
SINCE
INCEPTION
- --------------------------------------------------------------------------------
TURNER MIDCAP EQUITY FUND, INSTITUTIONAL CLASS SHARES 1.50%**
TURNER MIDCAP EQUITY FUND, INVESTOR CLASS SHARES 1.30%**
Russell Midcap Index 0.96%**
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
Industrials 17.5%
Consumer discretionary 17.2%
Financials 16.5%
Information technology 12.8%
Health care 6.7%
Materials 6.2%
Telecommunication services 5.5%
Utilities 5.4%
Energy 5.1%
Consumer staples 4.3%
Cash equivalents 2.8%
MANAGER'S DISCUSSION AND ANALYSIS
The Turner Midcap Equity Fund, Investor Class (TMCFX) achieved a gain, 1.30%, in
its first two months of operation. That return outperformed the fund's
benchmark, the Russell Midcap Index, by 0.34 percentage points.
Good relative returns in the consumer-discretionary, materials, and industrials
sectors, a 41% weighting, added the most value to the fund's results.
Discount-store, prison-services, high-end retailing, apparel, industrial-parts,
specialty-chemical, metals, engineered-products, and communications-equipment
stocks were notable contributors. Altogether, seven of 10 sector positions
outperformed their corresponding index sectors. A 6% position in
telecommunications-services stocks, especially in the wireless-communication and
natural-gas-utility industries, detracted most from performance.
- --------------------------------------------------------------------------------
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or
less than their original cost. The performance in the above graph and
table does not reflect the deduction of taxes the shareholder will pay on
fund distributions or the redemptions of fund shares. The inception date
of the Turner Midcap Equity Fund was January 31, 2007. Performance of the
Institutional and Investor Class Shares will differ due to differences in
fees.
** Cumulative return, not annualized.
+ Percentages based on total investments.
++ Cash equivalents are not being considered a holding for top 5 holdings,
but are counted in number of holdings.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 13
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER MIDCAP GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2007
o Ticker symbol TMGFX,
Investor Class Shares
o CUSIP #900297409,
Investor Class Shares
o Top 5 holdings+++
(1) NII Holdings
(2) International Game Technology
(3) Celgene
(4) T. Rowe Price Group
(5) Coach
o % in 5 largest holdings 9.6%+
o Number of holdings 96
o Price/earnings ratio 23.7
o Weighted average market capitalization $8.54 billion
o % of holdings with positive earnings surprises 78.2%
o % of holdings with negative earnings surprises 20.7%
o Net assets $1 billion, Investor Class Shares
[CHART]
MARKET CAPITALIZATION [ ] [ ] [ ]
SMALL <---> LARGE [ ] [ ] [X]
[ ] [ ] [ ]
VALUE <---> GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER MIDCAP GROWTH FUND, INVESTOR CLASS
SHARES:
OCTOBER 1, 1996-MARCH 31, 2007*,**
[LINE GRAPH]
Initial Investment Date 10/1/96 SEP. 97 SEP. 98 SEP. 99 SEP. 00 SEP. 01 SEP. 02 SEP. 03 SEP. 04 SEP. 05 SEP. 06 MAR. 07
- ----------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------
Turner Mid Cap Growth Fund,
Investor Class Shares $10,000 $14,377 $14,555 $26,792 $52,874 $21,678 $17,169 $24,346 $26,152 $32,881 $34,427 $37,580
Russell Midcap Growth Index $10,000 $13,029 $11,808 $16,199 $25,978 $12,529 $10,587 $14,705 $16,716 $20,641 $22,092 $24,562
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2007)
SIX ONE THREE FIVE TEN SINCE
MONTHS YEAR YEARS YEARS YEARS INCEPTION
- -------------------------------------------------------------------------------------------------------------
TURNER MIDCAP GROWTH FUND, INVESTOR CLASS SHARES 9.16% (1.41)% 9.92% 7.44% 14.28% 13.44%**
TURNER MIDCAP GROWTH FUND, RETIREMENT CLASS SHARES 8.94% (1.87)% 9.40% 6.92% -- 10.07%***
Russell Midcap Growth Index 11.18% 6.90% 12.41% 9.45% 9.44% 8.93%**
- -------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
Information technology 21.6%
Consumer discretionary 15.3%
Health care 13.3%
Cash equivalents/short-term investments++ 13.3%
Industrials 10.4%
Financials 8.1%
Telecommunication services 6.0%
Energy 5.5%
Consumer staples 3.3%
Materials 3.2%
MANAGER'S DISCUSSION AND ANALYSIS
The Turner Midcap Growth Fund, Investor Class (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 11.18%, a return superior to that of
large-cap growth indexes. For its part, the fund gained 9.16%, underperforming
its benchmark by 2.02 percentage points.
Good relative returns in the consumer-discretionary sector, a 15% weighting,
added the most value to the fund's results. Apparel, luxury-goods, video-gaming,
and media stocks were notable contributors. Altogether, five of nine sector
positions outperformed their corresponding index sectors. A 22% position in
information-technology stocks, especially in the wireless- equipment,
digital-networking, and semiconductor 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 their original cost. The performance in the above graph and
table does not reflect the deduction of taxes the shareholder will pay on
fund distributions or the redemptions of fund shares. Performance of the
Investor and Retirement Class Shares will differ due to differences in
fees.
** The inception date of the Turner Midcap Growth Fund (Investor Class
Shares) was October 1, 1996. Index returns are based on Investor Class
Shares inception date.
*** The inception date of the Turner Midcap Growth Fund (Retirement Class
Shares) was September 24, 2001.
+ Percentages based on total investments.
++ Cash equivalents include short-term investments held as collateral for
securities lending activity. Please see Note 10 in Notes to Financial
Statements for more detailed information.
+++ Cash equivalents and short-term investments are not being considered a
holding for top 5 holdings, but are counted in number of holdings.
Amounts designated as "--" are not applicable.
14 | TURNER FUNDS 2007 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER NEW ENTERPRISE FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2007
o Ticker symbol TBTBX
o CUSIP #87252R797
o Top 5 holdings+++
(1) Akamai Technologies
(2) NII Holdings
(3) Google, Cl A
(4) Apple
(5) F5 Networks
o % in 5 largest holdings 17.9%+
o Number of holdings 36
o Price/earnings ratio 30.4
o Weighted average market capitalization $19.29 billion
o % of holdings with positive earnings surprises 80.8%
o % of holdings with negative earnings surprises 19.2%
o Net assets $20 million
[CHART]
MARKET CAPITALIZATION [ ] [ ] [ ]
SMALL <---> LARGE [ ] [ ] [X]
[ ] [ ] [ ]
VALUE <---> GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER NEW ENTERPRISE FUND:
JUNE 30, 2000-MARCH 31, 2007*
[LINE GRAPH]
Initial Investment Date 6/30/00 SEP. 00 SEP. 01 SEP. 02 SEP. 03 SEP. 04 SEP. 05 SEP. 06 MAR. 07
- -------------------------------- ------- ------- ------- ------- ------- ------- ------- ------- ------
Turner New Enterprise Fund $10,000 $12,520 $3,290 $2,270 $4,340 $4,521 $5,861 $6,261 $6,832
NASDAQ Composite Index $10,000 $ 9,264 $3,792 $2,976 $4,556 $4,862 $5,552 $5,875 $6,323
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2007)
SIX ONE THREE FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
- --------------------------------------------------------------------------------
TURNER NEW ENTERPRISE FUND 9.11% (5.92)% 9.24% 9.49% (5.49)%
NASDAQ Composite Index 7.62% 4.23% 7.44% 6.22% (6.56)%
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
Information technology 37.1%
Cash equivalents/short-term investments++ 28.9%
Telecommunication services 9.9%
Health care 9.6%
Consumer discretionary 6.6%
Financials 4.0%
Materials 3.9%
MANAGER'S DISCUSSION AND ANALYSIS
Gains in three sectors -- health care, materials, and telecommunications
services -- drove the Turner New Enterprise Fund (TBTBX) to a 9.11% gain in the
six months ended March 31. The fund outperformed the NASDAQ Composite Index's
7.62% result by 1.49 percentage points.
Stocks in the three sectors accounted for 23% of the fund's holdings; the
health-care holdings gained 6% (versus a 4% gain for the index sector), the
materials holdings rose 18% (compared with a 12% gain for the index sector), and
the telecommunications-services holdings climbed 20% (versus 12% for the index
sector). Diminishing performance was a 7% position in consumer-discretionary
stocks, which rose 4%, compared with 13% for the index sector. Internet, gaming,
and business-services stocks were largely responsible for the shortfall.
- --------------------------------------------------------------------------------
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or
less than their original cost. The performance in the above graph and
table does not reflect the deduction of taxes the shareholder will pay on
fund distributions or the redemptions of fund shares. The inception date
of the Turner New Enterprise Fund 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 10 in Notes to Financials for
more detailed information.
+++ Cash equivalents and short-term investments are not being considered a
holding for top 5 holdings, but are counted in number of holdings.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 15
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER SMALL CAP EQUITY FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2007
o Ticker symbol TSEIX
o CUSIP #87252R714
o Top 5 holdings+++
(1) ON Semiconductor
(2) Analogic
(3) GFI Group
(4) Washington Group International
(5) MKS Instruments
o % in 5 largest holdings 8.3%+
o Number of holdings 102
o Price/earnings ratio 19.7
o Weighted average market capitalization $1.49 billion
o % of holdings with positive earnings surprises 69.0%
o % of holdings with negative earnings surprises 29.6%
o Net assets $76 million
[CHART]
MARKET CAPITALIZATION [ ] [ ] [ ]
SMALL <---> LARGE [ ] [ ] [ ]
[ ] [X] [ ]
VALUE <---> GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER SMALL CAP EQUITY FUND:
MARCH 4, 2002-MARCH 31, 2007*
[LINE GRAPH]
Initial Investment Date 3/4/02 SEP 02 SEP 03 SEP 04 SEP 05 SEP 06 MAR. 07
- ------------------------------------ ------ ------ ------ ------ ------ ------ -------
Turner Small Cap Equity Fund $10,000 $9,299 $12,278 $15,317 $17,671 $18,639 $20,306
Russell 2000 Index $10,000 $7,485 $10,217 $12,134 $14,313 $15,732 $17,466
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2007)
SIX ONE THREE FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
- --------------------------------------------------------------------------------
TURNER SMALL CAP EQUITY FUND 8.94% (0.63)% 9.72% 13.93% 14.99%
Russell 2000 Index 11.02% 5.91% 12.00% 10.95% 11.61%
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
Information technology 22.1%
Financials 18.3%
Consumer discretionary 16.9%
Health care 10.1%
Industrials 8.3%
Materials 6.8%
Cash equivalents/short-term investments++ 6.6%
Energy 4.1%
Consumer staples 3.3%
Utilities 2.1%
Telecommunication services 1.4%
MANAGER'S DISCUSSION AND ANALYSIS
The Turner Small Cap Equity Fund (TSEIX) gained 8.94% in the six-month period
ended March 31. That return lagged the Russell 2000 Index's 11.02% advance by
2.08 percentage points.
The fund is invested in both growth and value stocks, and both growth and value
stocks contributed extra return. Three of the fund's 10 sector positions beat
their corresponding index sectors. The greatest degree of outperformance was
supplied by consumer-discretionary, energy, and industrials stocks, which
represented 29% of the portfolio. Winners included Internet, consulting,
restaurant, automotive-parts, resort, energy-services, petroleum-exploration,
security-equipment, and industrial-controls shares. Consumer-staples stocks
produced the highest absolute return, 23%. A 22% position in
information-technology stocks hurt results the most; data-networking,
digital-piracy, and computer-graphics 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 their original cost. The performance in the above graph and
table does not reflect the deduction of taxes the shareholder will pay on
fund distributions or the redemptions of fund shares. The inception date
of the Turner Small Cap Equity Fund 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 10 in Notes to Financial
Statements for more detailed information.
+++ Cash equivalents and short-term investments are not being considered a
holding for top 5 holdings, but are counted in number of holdings.
16 | TURNER FUNDS 2007 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2007
o Ticker symbol TSCEX
o CUSIP #900297300
o Top 5 holdings+++
(1) Varian Semiconductor Equipment Associates
(2) Psychiatric Solutions
(3) Phillips-Van Heusen
(4) Tessera Technologies
(5) Polycom
o % in 5 largest holdings 4.7%+
o Number of holdings 115
o Price/earnings ratio 22.3
o Weighted average market capitalization $1.63 billion
o % of holdings with positive earnings surprises 80.5%
o % of holdings with negative earnings surprises 16.3%
o Net assets $294 million
[CHART]
MARKET CAPITALIZATION [ ] [ ] [ ]
SMALL <---> LARGE [ ] [ ] [ ]
[ ] [ ] [X]
VALUE <---> GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER SMALL CAP GROWTH FUND:
SEPTEMBER 30, 1996-MARCH 31, 2007*
[LINE GRAPH]
Initial Investment Date 9/30/96 SEP. 97 SEP. 98 SEP. 99 SEP. 00 SEP. 01 SEP. 02 SEP. 03 SEP. 04 SEP. 05 SEP 06 MAR. 07
- -------------------------- ------- ------ ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
Turner Small Cap Growth
Fund $10,000 $11,664 $9,693 $15,425 $24,074 $12,083 $9,744 $14,576 $16,468 $19,055 $20,206 $23,033
Russell 2000 Growth Index $10,000 $12,335 $9,272 $12,298 $15,945 $ 9,154 $7,492 $10,617 $11,883 $14,018 $14,843 $16,544
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2007)
SIX ONE THREE FIVE TEN SINCE
MONTHS YEAR YEARS YEARS YEARS INCEPTION
- --------------------------------------------------------------------------------
TURNER SMALL CAP GROWTH FUND 13.99% 0.40% 10.43% 9.04% 11.09% 14.10%
Russell 2000 Growth Index 11.46% 1.57% 9.41% 7.88% 6.31% 6.66%
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
Cash equivalents/short-term investments++ 39.7%
Information technology 15.8%
Health care 11.3%
Consumer discretionary 9.0%
Industrials 8.2%
Financials 6.3%
Materials 3.9%
Energy 3.1%
Telecommunication services 1.7%
Consumer staples 1.0%
MANAGER'S 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 13.99%,
beating the Russell 2000 Growth Index's 11.46% rise by 2.53 percentage points.
Five of the fund's nine sector positions beat their index-sector counterparts.
The fund's materials, consumer-discretionary, and health-care stocks, a 24%
weighting, performed best in relative terms, recording gains that provided
substantial margins of outperformance over their index counterparts. Winners
included metals, mining, apparel, consulting, prison-services,
business-services, managed-care, biotechnology, and medical-equipment stocks. A
1% position in consumer-staples stocks, particularly grocery and food-processing
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 their original cost. The performance in the above graph and
table does not reflect the deduction of taxes the shareholder will pay on
fund distributions or the redemptions of fund shares. The inception date
of the Turner Small Cap Growth Fund 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 10 in Notes to Financial
Statements for more detailed information.
+++ Cash equivalents and short-term investments are not being considered a
holding for top 5 holdings, but are counted in number of holdings.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 17
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER CONCENTRATED GROWTH FUND
March 31, 2007
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--99.4%+
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--4.5%
- --------------------------------------------------------------------------------
Guess? 13,200 $ 535
International Game Technology 26,550 1,072
------------
Total Consumer discretionary 1,607
------------
- --------------------------------------------------------------------------------
ENERGY--5.2%
- --------------------------------------------------------------------------------
Cameco 44,520 1,823
------------
Total Energy 1,823
------------
- --------------------------------------------------------------------------------
FINANCIALS--7.8%
- --------------------------------------------------------------------------------
Chicago Mercantile Exchange
Holdings, Cl A 3,040 1,618
Goldman Sachs Group 5,570 1,151
------------
Total Financials 2,769
------------
- --------------------------------------------------------------------------------
HEALTH CARE--17.6%
- --------------------------------------------------------------------------------
Allergan 12,440 1,379
Cephalon* 15,060 1,072
Gilead Sciences* 20,860 1,596
Intuitive Surgical* 8,990 1,093
Thermo Fisher Scientific* 23,540 1,100
------------
Total Health care 6,240
------------
- --------------------------------------------------------------------------------
INDUSTRIALS--6.6%
- --------------------------------------------------------------------------------
ABB ADR # 65,340 1,122
Deere 10,980 1,193
------------
Total Industrials 2,315
------------
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--49.4%
- --------------------------------------------------------------------------------
Akamai Technologies* 20,640 1,030
Apple* 16,780 1,559
Broadcom, Cl A* # 40,820 1,309
Cisco Systems* 56,800 1,450
Corning* 61,800 1,405
Dell* 66,680 1,548
F5 Networks* # 9,570 638
Google, Cl A* 3,140 1,439
Kla-Tencor 27,160 1,448
Qualcomm 24,780 1,057
Salesforce.com* # 26,100 1,117
SanDisk* 22,620 991
Value
Shares (000)
- --------------------------------------------------------------------------------
Sun Microsystems* 225,750 $ 1,357
Texas Instruments 37,230 1,121
------------
Total Information technology 17,469
------------
- --------------------------------------------------------------------------------
MATERIALS--4.6%
- --------------------------------------------------------------------------------
Monsanto 29,700 1,632
------------
Total Materials 1,632
------------
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--3.7%
- --------------------------------------------------------------------------------
NII Holdings* # 17,750 1,317
------------
Total Telecommunication services 1,317
------------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $29,844) 35,172
================================================================================
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--14.5%
- --------------------------------------------------------------------------------
Boston Global Investment Trust --
Enhanced Portfolio (1) 5,135,500 5,136
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD
AS COLLATERAL FOR LOANED SECURITIES
(COST $5,136) 5,136
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--113.9%
(COST $34,980) $ 40,308
================================================================================
Percentages are based on Net Assets of $35,400.**
* Non-income producing security
** This number has been rounded to the nearest thousand.
+ More narrow industries are utilized for compliance purposes, whereas broad
sectors are utilized for reporting purposes.
# Security fully or partially on loan at March 31, 2007. The total value of
securities on loan at March 31, 2007, was $4,982,516.
(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 -- Enhanced 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.
18 | TURNER FUNDS 2007 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER CORE GROWTH FUND
March 31, 2007
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--97.5%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--7.7%
- --------------------------------------------------------------------------------
Coach* 39,120 $ 1,958
Harman International Industries 15,420 1,482
International Game Technology 47,770 1,929
Las Vegas Sands* 20,060 1,737
News, Cl A 104,530 2,417
Polo Ralph Lauren 15,670 1,381
Starbucks* 55,340 1,735
------------
Total Consumer discretionary 12,639
------------
- --------------------------------------------------------------------------------
CONSUMER STAPLES--7.4%
- --------------------------------------------------------------------------------
CVS/Caremark 53,720 1,834
Hansen Natural* 25,480 965
PepsiCo 65,850 4,186
Procter & Gamble 81,760 5,164
------------
Total Consumer staples 12,149
------------
- --------------------------------------------------------------------------------
ENERGY--10.0%
- --------------------------------------------------------------------------------
Cameco 51,350 2,102
Cameron International* 39,740 2,495
Consol Energy 28,950 1,133
Marathon Oil 14,290 1,412
Schlumberger 43,250 2,989
Southwestern Energy* 18,670 765
Williams 93,660 2,666
XTO Energy 52,426 2,873
------------
Total Energy 16,435
------------
- --------------------------------------------------------------------------------
FINANCIALS--19.3%
- --------------------------------------------------------------------------------
American Express 57,860 3,263
CB Richard Ellis Group, Cl A* 71,890 2,457
Charles Schwab 170,360 3,116
Chicago Mercantile Exchange
Holdings, Cl A 7,390 3,935
Goldman Sachs Group 24,670 5,098
IntercontinentalExchange* 17,130 2,093
Nymex Holdings* 19,820 2,691
State Street 50,170 3,249
T. Rowe Price Group 60,690 2,864
UBS 46,830 2,783
------------
Total Financials 31,549
------------
Value
Shares (000)
- --------------------------------------------------------------------------------
HEALTH CARE--11.9%
- --------------------------------------------------------------------------------
Allergan 16,990 $ 1,883
Baxter International 46,310 2,439
Celgene* 32,670 1,714
Gilead Sciences* 37,670 2,882
Intuitive Surgical* 6,760 822
Novartis ADR 20,810 1,137
Roche Holding ADR 18,970 1,670
Shire ADR 24,490 1,516
St. Jude Medical* 26,830 1,009
Thermo Fisher Scientific* 35,960 1,681
UnitedHealth Group 51,420 2,724
------------
Total Health care 19,477
------------
- --------------------------------------------------------------------------------
INDUSTRIALS--9.8%
- --------------------------------------------------------------------------------
C.H. Robinson Worldwide 39,300 1,876
Deere 15,700 1,706
General Electric 218,570 7,729
Precision Castparts 16,500 1,717
Roper Industries 25,350 1,391
UAL* 40,680 1,553
------------
Total Industrials 15,972
------------
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--21.7%
- --------------------------------------------------------------------------------
Akamai Technologies* 22,130 1,105
Apple* 32,630 3,032
Broadcom, Cl A* 53,430 1,713
Cisco Systems* 164,040 4,188
Dell* 67,310 1,562
Electronic Arts* 28,580 1,439
Fiserv* 45,820 2,431
Google, Cl A* 12,150 5,567
Kla-Tencor 53,300 2,842
Nokia ADR 56,190 1,288
Paychex 56,610 2,144
Qualcomm 33,260 1,419
Salesforce.com* 34,580 1,481
SanDisk* 19,240 843
Sun Microsystems* 206,060 1,238
Sunpower, Cl A* # 25,830 1,175
Texas Instruments 67,230 2,023
------------
Total Information technology 35,490
------------
TURNER FUNDS 2007 SEMIANNUAL REPORT | 19
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER CORE GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
MATERIALS--1.2%
- --------------------------------------------------------------------------------
Monsanto 37,030 $ 2,035
------------
Total Materials 2,035
------------
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--8.1%
- --------------------------------------------------------------------------------
Crown Castle International* 52,230 1,678
Leap Wireless International* 29,990 1,979
Level 3 Communications* 209,970 1,281
NII Holdings* 56,290 4,175
Rogers Communications, Cl B 33,880 1,110
Time Warner Telecom, Cl A* 144,870 3,009
------------
Total Telecommunication services 13,232
------------
- --------------------------------------------------------------------------------
UTILITIES--0.4%
- --------------------------------------------------------------------------------
Aqua America # 31,816 714
------------
Total Utilities 714
------------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $144,420) 159,692
================================================================================
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--1.1%
- --------------------------------------------------------------------------------
Boston Global Investment Trust --
Enhanced Portfolio (1) 1,788,100 1,788
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD
AS COLLATERAL FOR LOANED SECURITIES
(COST $1,788) 1,788
================================================================================
Value
Shares (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT--2.9%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares, 5.227%** 4,769,843 $ 4,770
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $4,770) 4,770
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--101.5%
(COST $150,978) $ 166,250
================================================================================
Percentages are based on Net Assets of $163,801.***
* Non-income producing security
** Rate shown is the 7-day effective yield as of March 31, 2007.
*** This number has been rounded to the nearest thousand.
# Security fully or partially on loan at March 31, 2007. The total value of
securities on loan at March 31, 2007, was $1,713,565.
(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 -- Enhanced 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.
20 | TURNER FUNDS 2007 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER EMERGING GROWTH FUND
March 31, 2007
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--85.6%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--9.1%
- --------------------------------------------------------------------------------
Benihana* 27,460 $ 776
Benihana, Cl A* # 91,088 2,581
California Pizza Kitchen* # 128,640 4,231
Deckers Outdoor* # 158,260 11,240
Genesco* # 114,490 4,755
Great Wolf Resorts* # 248,286 3,285
Jo-Ann Stores* # 162,880 4,438
LJ International* # 229,920 2,336
New Oriental Education &
Technology Group* # 54,570 2,212
Skechers U.S.A., Cl A* 224,710 7,544
Syntax-Brillian* # 289,080 2,428
Trump Entertainment Resorts* # 174,740 3,158
United Retail Group* # 147,371 1,771
Volcom* # 91,220 3,134
------------
Total Consumer discretionary 53,889
------------
- --------------------------------------------------------------------------------
CONSUMER STAPLES--1.6%
- --------------------------------------------------------------------------------
Boston Beer, Cl A* 68,034 2,269
Wild Oats Markets* 392,451 7,143
------------
Total Consumer staples 9,412
------------
- --------------------------------------------------------------------------------
ENERGY--9.5%
- --------------------------------------------------------------------------------
Carrizo Oil & Gas* # 127,940 4,473
Dawson Geophysical* # 80,410 3,983
Input/Output* # 300,600 4,142
Lufkin Industries # 81,040 4,553
NATCO Group, Cl A* # 171,075 5,837
Oceaneering International* # 211,070 8,890
Penn Virginia 95,370 7,000
PetroHawk Energy* # 441,964 5,821
Tetra Technologies* # 175,740 4,342
W-H Energy Services* # 155,800 7,282
------------
Total Energy 56,323
------------
- --------------------------------------------------------------------------------
FINANCIALS--10.6%
- --------------------------------------------------------------------------------
American Physicians Capital* # 120,000 4,810
Boston Private Financial
Holdings # 133,080 3,716
Value
Shares (000)
- --------------------------------------------------------------------------------
Genesis Lease* 170,330 $ 4,454
Hanmi Financial # 180,910 3,448
Harleysville Group # 96,680 3,141
Highland Hospitality # 349,700 6,225
IBERIABANK 57,480 3,199
Meadowbrook Insurance Group* # 270,810 2,976
Navigators Group* # 107,460 5,391
Penson Worldwide* # 196,760 5,940
PFF Bancorp # 166,492 5,050
Preferred Bank 81,945 3,213
Thomas Weisel Partners Group* # 194,390 3,697
Tower Group # 124,600 4,015
United Fire & Casualty # 94,370 3,315
------------
Total Financials 62,590
------------
- --------------------------------------------------------------------------------
HEALTH CARE--13.8%
- --------------------------------------------------------------------------------
Alexion Pharmaceuticals* # 151,160 6,536
Align Technology* 249,690 3,960
Arthrocare* # 58,220 2,098
Cypress Bioscience* # 283,640 2,156
HMS Holdings* # 70,480 1,544
Hologic* # 207,440 11,957
Icon ADR* # 128,010 5,453
InterMune* # 182,350 4,497
Kendle International* # 104,010 3,695
Medivation* # 108,180 2,040
Micrus Endovascular* # 64,570 1,539
Northstar Neuroscience* # 199,930 2,559
Omnicell* # 234,800 4,912
Omrix Biopharmaceuticals* 178,760 6,841
Orthofix International* 84,860 4,332
Parexel International* # 233,427 8,396
Vital Images* # 88,530 2,945
WellCare Health Plans* # 34,550 2,945
Xenoport* # 123,170 3,432
------------
Total Health care 81,837
------------
- --------------------------------------------------------------------------------
INDUSTRIALS--19.9%
- --------------------------------------------------------------------------------
AAR* # 232,100 6,397
Barnes Group # 158,530 3,648
Bucyrus International, Cl A # 283,730 14,612
CBIZ* # 563,340 4,000
TURNER FUNDS 2007 SEMIANNUAL REPORT | 21
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER EMERGING GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
Clean Harbors* 90,430 $ 4,089
Comfort Systems USA 94,180 1,128
COMSYS IT Partners* 160,650 3,197
Copa Holdings, Cl A* # 214,560 11,048
CRA International* # 143,830 7,505
EnPro Industries* 116,660 4,206
Genesee & Wyoming, Cl A* # 107,335 2,856
H&E Equipment Services* 85,850 1,846
Heico # 133,150 4,859
HUB Group, Cl A* # 331,804 9,619
Huron Consulting Group* # 78,010 4,746
ICT Group* 139,450 2,440
Kenexa* # 90,550 2,819
Ladish* # 209,580 7,888
LMI Aerospace* # 184,940 3,445
Middleby* # 71,980 9,490
Navigant Consulting* # 170,250 3,364
Perini* # 129,800 4,784
------------
Total Industrials 117,986
------------
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--13.7%
- --------------------------------------------------------------------------------
Actuate* 864,320 4,512
Aeroflex* # 473,360 6,225
Ansys* # 128,990 6,549
CDC, Cl A* 246,030 2,224
Comtech Telecommunications* # 170,185 6,591
Diodes* # 105,345 3,671
DivX* # 61,710 1,237
Harris Stratex Networks, Cl A* # 192,225 3,689
Intevac* # 214,720 5,662
Lightbridge* 175,380 3,081
NetList* 224,710 1,564
Novatel* # 168,850 6,258
OSI Systems* 194,244 5,136
Perficient* # 193,934 3,836
Quality Systems* # 209,900 8,396
Sigma Designs* # 130,990 3,440
The9 ADR* # 173,280 5,846
Tyler Technologies* 246,870 3,135
------------
Total Information technology 81,052
------------
Value
Shares (000)
- --------------------------------------------------------------------------------
MATERIALS--5.8%
- --------------------------------------------------------------------------------
Claymont Steel Holdings* # 172,430 $ 3,436
Northwest Pipe* 73,770 2,938
RTI International Metals* 132,707 12,078
Terra Industries* # 711,400 12,449
Universal Stainless & Alloy* 74,290 3,527
------------
Total Materials 34,428
------------
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--1.4%
- --------------------------------------------------------------------------------
Dobson Communications, Cl A* # 552,560 4,746
NTELOS Holdings* 190,350 3,659
------------
Total Telecommunication services 8,405
------------
- --------------------------------------------------------------------------------
UTILITIES--0.2%
- --------------------------------------------------------------------------------
Artesian Resources, Cl A # 57,705 1,189
------------
Total Utilities 1,189
------------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $370,147) 507,111
================================================================================
- --------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANY--3.0%
- --------------------------------------------------------------------------------
iShares Russell 2000 Growth
Index Fund 219,840 17,600
- --------------------------------------------------------------------------------
TOTAL REGISTERED INVESTMENT COMPANY
(COST $17,002) 17,600
================================================================================
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--43.5%
- --------------------------------------------------------------------------------
Boston Global Investment Trust --
Enhanced Portfolio (1) 257,868,710 257,869
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $257,869) 257,869
================================================================================
22 | TURNER FUNDS 2007 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER EMERGING GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT--11.2%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares, 5.227%** 66,491,592 $ 66,492
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $66,492) 66,492
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--143.3%
(COST $711,510) $ 849,072
================================================================================
Percentages are based on Net Assets of $592,327.***
* Non-income producing security
** Rate shown is the 7-day effective yield as of March 31, 2007.
*** This number has been rounded to the nearest thousand.
# Security fully or partially on loan at March 31, 2007. The total value of
securities on loan at March 31, 2007, was $248,143,573.
(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 -- Enhanced 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.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 23
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER INTERNATIONAL CORE GROWTH FUND
March 31, 2007
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--98.7%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--10.8%
- --------------------------------------------------------------------------------
Focus Media Holding ADR* 150 $ 12
Galaxy Entertainment Group 7,000 7
Luxottica Group* 500 16
Marks & Spencer Group 990 13
Parkson Retail Group 2,500 16
Sony 300 15
Toyota Motor 200 13
WPP Group 1,110 17
------------
Total Consumer discretionary 109
------------
- --------------------------------------------------------------------------------
CONSUMER STAPLES--13.3%
- --------------------------------------------------------------------------------
Beiersdorf 220 15
Carlsberg, Cl B 130 14
Diageo 1,050 21
Groupe Danone 130 21
L'Oreal 150 17
Royal Numico 190 10
Shiseido 1,000 20
Wal-Mart de Mexico, Ser V 3,980 17
------------
Total Consumer staples 135
------------
- --------------------------------------------------------------------------------
ENERGY--8.7%
- --------------------------------------------------------------------------------
Acergy 610 13
BG Group 1,050 15
Cameco 500 20
Cie Generale de
Geophysique-Veritas* 60 13
Schlumberger 200 14
Tenaris* 540 13
------------
Total Energy 88
------------
- --------------------------------------------------------------------------------
FINANCIALS--17.2%
- --------------------------------------------------------------------------------
Allied Irish Banks 730 22
Arch Capital Group* 250 17
Banco Bilbao Vizcaya Argentaria 640 16
Deutsche Boerse 100 23
Man Group 1,780 19
Mitsubishi Estate 1,000 33
National Australia Bank 500 16
ORIX 50 13
UBS 260 15
------------
Total Financials 174
------------
Value
Shares (000)
- --------------------------------------------------------------------------------
HEALTH CARE--8.0%
- --------------------------------------------------------------------------------
CSL 280 $ 19
Novartis 220 13
Roche Holding 100 18
Shire 610 12
Smith & Nephew 1,030 13
Takeda Pharmaceutical 100 6
------------
Total Health care 81
------------
- --------------------------------------------------------------------------------
INDUSTRIALS--13.0%
- --------------------------------------------------------------------------------
ABB 1,260 22
CNH Global 460 17
Keppel 1,260 16
Kubota 3,000 26
Kuehne & Nagel International 160 13
Rolls-Royce Group 2,320 23
Rolls-Royce Group, B Shares 137,344 --
Ryanair Holdings ADR* 340 15
------------
Total Industrials 132
------------
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--9.3%
- --------------------------------------------------------------------------------
Canon 360 19
Chartered Semiconductor Manufacturing* 20,030 19
Infineon Technologies* 1,080 17
Nokia 900 21
Research In Motion* 130 18
------------
Total Information technology 94
------------
- --------------------------------------------------------------------------------
MATERIALS--10.3%
- --------------------------------------------------------------------------------
Agnico-Eagle Mines 380 14
Anglo American 230 12
Arcelor Mittal 310 17
Bayer 280 18
Potash Corp of Saskatchewan 120 19
Sumitomo Titanium 100 11
Syngenta* 70 13
------------
Total Materials 104
------------
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--4.4%
- --------------------------------------------------------------------------------
America Movil, Ser L 8,340 20
Millicom International Cellular* 130 10
Rogers Communications, Cl B 470 15
------------
Total Telecommunication services 45
------------
24 | TURNER FUNDS 2007 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER INTERNATIONAL CORE GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
UTILITIES--3.7%
- --------------------------------------------------------------------------------
International Power 2,610 $ 20
Veolia Environnement 240 18
------------
Total Utilities 38
------------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $984) 1,000
================================================================================
- --------------------------------------------------------------------------------
CASH EQUIVALENT--2.5%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares, 5.227%** 24,991 25
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $25) 25
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--101.2%
(COST $1,009) $ 1,025
================================================================================
Percentages are based on Net Assets of $1,013.***
* Non-income producing security
** Rate shown is the 7-day effective yield as of March 31, 2007.
*** This number has been rounded to the nearest thousand.
ADR -- American Depositary Receipt
Cl -- Class
Ser -- Series
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 25
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER LARGE CAP GROWTH FUND
March 31, 2007
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--99.2%+
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--11.4%
- --------------------------------------------------------------------------------
Coach* 9,010 $ 451
International Game Technology 11,710 473
Las Vegas Sands* 4,520 392
News, Cl A 26,230 606
Starbucks* 11,980 376
Toyota Motor ADR 2,350 301
------------
Total Consumer discretionary 2,599
------------
- --------------------------------------------------------------------------------
CONSUMER STAPLES--9.3%
- --------------------------------------------------------------------------------
CVS/Caremark 10,840 370
PepsiCo 12,570 799
Procter & Gamble 11,340 716
WM Wrigley Jr. 4,860 248
------------
Total Consumer staples 2,133
------------
- --------------------------------------------------------------------------------
ENERGY--3.3%
- --------------------------------------------------------------------------------
Cameco 5,960 244
Weatherford International* 5,150 232
XTO Energy 4,950 271
------------
Total Energy 747
------------
- --------------------------------------------------------------------------------
FINANCIALS--9.1%
- --------------------------------------------------------------------------------
Charles Schwab 20,970 384
Chicago Mercantile Exchange Holdings, Cl A 900 479
Goldman Sachs Group 2,730 564
State Street 4,980 323
UBS 5,490 326
------------
Total Financials 2,076
------------
- --------------------------------------------------------------------------------
HEALTH CARE--19.0%
- --------------------------------------------------------------------------------
Allergan 3,350 371
Baxter International 12,830 676
Celgene* 5,810 305
Gilead Sciences* 10,180 779
Novartis ADR 3,720 203
Roche Holding ADR 6,830 601
Shire ADR 3,590 222
Value
Shares (000)
- --------------------------------------------------------------------------------
Thermo Fisher Scientific* 13,360 $ 625
UnitedHealth Group 10,670 565
------------
Total Health care 4,347
------------
- --------------------------------------------------------------------------------
INDUSTRIALS--8.3%
- --------------------------------------------------------------------------------
Deere 3,980 432
FedEx 2,460 264
General Electric 34,380 1,216
------------
Total Industrials 1,912
------------
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--33.5%
- --------------------------------------------------------------------------------
Apple* 8,250 766
Broadcom, Cl A* 15,830 508
Cisco Systems* 44,870 1,145
Corning* 16,340 372
Dell* 13,970 324
Electronic Arts* 5,990 302
Google, Cl A* 2,430 1,113
Kla-Tencor 12,670 676
Maxim Integrated Products 7,800 229
Nokia ADR 17,960 412
Qualcomm 9,000 384
SanDisk* 5,790 254
Sun Microsystems* 94,930 570
Texas Instruments 20,130 606
------------
Total Information technology 7,661
------------
- --------------------------------------------------------------------------------
MATERIALS--1.4%
- --------------------------------------------------------------------------------
Monsanto 5,860 322
------------
Total Materials 322
------------
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--3.9%
- --------------------------------------------------------------------------------
American Tower, Cl A* 9,640 375
NII Holdings* 6,940 515
------------
Total Telecommunication services 890
------------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $19,554) 22,687
================================================================================
26 | TURNER FUNDS 2007 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER LARGE CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT--1.3%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares, 5.227%** 282,580 $ 283
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $283) 283
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.5%
(COST $19,837) $ 22,970
================================================================================
Percentages are based on Net Assets of $22,863.***
* Non-income producing security
** Rate shown is the 7-day effective yield as of March 31, 2007.
*** This number has been rounded to the nearest thousand.
+ More narrow industries are utilized for compliance purposes, whereas broad
sectors are utilized for reporting purposes.
ADR -- American Depositary Receipt
Cl -- Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 27
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER LARGE CAP VALUE FUND
March 31, 2007
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--99.6%++
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--7.3%
- --------------------------------------------------------------------------------
BorgWarner 60 $ 4
DIRECTV Group* 350 8
EchoStar Communications, Cl A* 120 5
J.C. Penney 120 10
News, Cl A 370 9
Office Depot* 160 6
OfficeMax 170 9
Phillips-Van Heusen 100 6
------------
Total Consumer discretionary 57
------------
- --------------------------------------------------------------------------------
CONSUMER STAPLES--6.6%
- --------------------------------------------------------------------------------
Altria Group 100 9
Archer-Daniels-Midland 140 5
CVS/Caremark 200 7
Loews 60 5
Procter & Gamble 290 18
Supervalu 210 8
------------
Total Consumer staples 52
------------
- --------------------------------------------------------------------------------
ENERGY--13.2%
- --------------------------------------------------------------------------------
Chevron 340 25
ConocoPhillips 180 12
EOG Resources 100 7
Exxon Mobil 600 45
Grant Prideco* 130 7
Murphy Oil 120 7
------------
Total Energy 103
------------
- --------------------------------------------------------------------------------
FINANCIALS--27.8%
- --------------------------------------------------------------------------------
AllianceBernstein Holding LP+ 100 9
American International Group 210 14
Bank of America 430 22
Citigroup 220 11
Fannie Mae 140 8
Franklin Resources 80 10
HCC Insurance Holdings 450 14
JPMorgan Chase 380 18
Lincoln National 180 12
Loews 270 12
Metlife 180 11
Value
Shares (000)
- --------------------------------------------------------------------------------
Philadelphia Consolidated Holding* 20 $ 1
PMI Group 280 13
Principal Financial Group 220 13
Public Storage 60 6
Reinsurance Group of America 190 11
State Street 200 13
W.R. Berkley 290 10
Wachovia 190 10
------------
Total Financials 218
------------
- --------------------------------------------------------------------------------
HEALTH CARE--7.3%
- --------------------------------------------------------------------------------
Cigna 60 9
Express Scripts* 90 7
Medco Health Solutions* 130 9
Pfizer 570 14
Schering-Plough 430 11
WellPoint* 80 7
------------
Total Health care 57
------------
- --------------------------------------------------------------------------------
INDUSTRIALS--11.0%
- --------------------------------------------------------------------------------
Boeing 130 11
Caterpillar 60 4
Cummins 40 6
Deere 100 11
Dun & Bradstreet 140 13
General Electric 590 21
Manpower 90 6
Northrop Grumman 80 6
Paccar 50 4
Union Pacific 40 4
------------
Total Industrials 86
------------
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--8.0%
- --------------------------------------------------------------------------------
Alliance Data Systems* 130 8
Factset Research Systems 120 8
Fidelity National Information Services 330 15
Hewlett-Packard 110 4
International Business Machines 70 7
Intersil, Cl A 230 6
MEMC Electronic Materials* 120 7
Texas Instruments 280 8
------------
Total Information technology 63
------------
28 | TURNER FUNDS 2007 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER LARGE CAP VALUE FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
MATERIALS--3.6%
- --------------------------------------------------------------------------------
Albemarle 180 $ 7
Allegheny Technologies 90 10
Ball 230 11
------------
Total Materials 28
------------
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--6.6%
- --------------------------------------------------------------------------------
AT&T 820 32
KT ADR 160 4
Qwest Communications International* 440 4
Telephone & Data Systems 100 6
Verizon Communications 170 6
------------
Total Telecommunication services 52
------------
- --------------------------------------------------------------------------------
UTILITIES--8.2%
- --------------------------------------------------------------------------------
Allegheny Energy* 150 7
Centerpoint Energy 560 10
Constellation Energy Group 140 12
Entergy 50 5
Equitable Resources 140 7
Mirant* 150 6
NRG Energy* 140 10
Pepco Holdings 220 7
------------
Total Utilities 64
------------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $711) 780
================================================================================
Value
Shares (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT--0.9%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares, 5.227%** 7,432 $ 7
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $7) 7
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.5%
(COST $718) $ 787
================================================================================
Percentages are based on Net Assets of $783.***
* Non-income producing security
** Rate shown is the 7-day effective yield as of March 31, 2007.
*** This number has been rounded to the nearest thousand.
+ Security considered to be a Master Limited Partnership. At March 31, 2007,
the security amounted to $8,850 or 1.13% of Net Assets.
++ More narrow industries are utilized for compliance purposes, whereas broad
sectors are utilized for reporting purposes.
ADR -- American Depositary Receipt
Cl -- Class
LP -- Limited Partnership
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 29
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER MIDCAP EQUITY FUND
March 31, 2007
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--96.6%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--17.3%
- --------------------------------------------------------------------------------
American Eagle Outfitters 90 $ 3
Autoliv 40 2
Career Education* 80 3
Columbia Sportswear 60 4
Dollar Tree Stores* 110 4
Goodyear Tire & Rubber* 110 4
Jarden* 110 4
O'Reilly Automotive* 70 2
PetSmart 80 3
R.H. Donnelley 60 4
Saks 160 3
Sally Beauty Holdings* 250 2
Wolverine World Wide 110 3
------------
Total Consumer discretionary 41
------------
- --------------------------------------------------------------------------------
CONSUMER STAPLES--4.2%
- --------------------------------------------------------------------------------
Church & Dwight 70 3
Hormel Foods 80 3
Molson Coors Brewing, Cl B 40 4
------------
Total Consumer staples 10
------------
- --------------------------------------------------------------------------------
ENERGY--5.1%
- --------------------------------------------------------------------------------
Acergy ADR* 150 3
Cameron International* 50 3
FMC Technologies* 40 3
Range Resources 90 3
------------
Total Energy 12
------------
- --------------------------------------------------------------------------------
FINANCIALS--15.2%
- --------------------------------------------------------------------------------
A.G. Edwards 50 3
Alexandria Real Estate Equities 30 3
Arch Capital Group* 40 3
Assurant 40 2
Douglas Emmett* 100 3
Essex Property Trust 30 4
Hanover Insurance Group 70 3
IntercontinentalExchange* 30 4
Lazard, Cl A 70 3
People's Bank 90 4
SL Green Realty 30 4
------------
Total Financials 36
------------
Value
Shares (000)
- --------------------------------------------------------------------------------
HEALTH CARE--6.7%
- --------------------------------------------------------------------------------
Barr Pharmaceuticals* 30 $ 1
Emdeon* 150 2
Health Net* 40 2
Henry Schein* 40 2
IMS Health 100 3
Pediatrix Medical Group* 30 2
WellCare Health Plans* 40 4
------------
Total Health care 16
------------
- --------------------------------------------------------------------------------
INDUSTRIALS--17.7%
- --------------------------------------------------------------------------------
Brink's 70 5
Carlisle 80 3
Chicago Bridge & Iron, NY Shares 90 3
Corrections Corp of America* 70 4
Covanta Holding* 200 4
Harsco 60 3
Lincoln Electric Holdings 50 3
Precision Castparts 50 5
Roper Industries 70 4
RR Donnelley & Sons 110 4
U.S. Airways Group* 50 2
WESCO International* 30 2
------------
Total Industrials 42
------------
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--13.1%
- --------------------------------------------------------------------------------
Alliance Data Systems* 50 3
Amphenol, Cl A 40 3
Factset Research Systems 40 2
Fairchild Semiconductor International* 160 3
Fidelity National Information Services 90 4
Harris 60 3
MEMC Electronic Materials* 70 4
Novell* 400 3
ON Semiconductor* 410 4
Verigy* 80 2
------------
Total Information technology 31
------------
- --------------------------------------------------------------------------------
MATERIALS--6.3%
- --------------------------------------------------------------------------------
Celanese, Ser A 120 4
Nalco Holding* 70 2
Sigma-Aldrich 70 3
30 | TURNER FUNDS 2007 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER MIDCAP EQUITY FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
Sonoco Products 80 $ 3
Titanium Metals* 100 3
------------
Total Materials 15
------------
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--5.5%
- --------------------------------------------------------------------------------
Leap Wireless International* 70 5
NII Holdings* 60 4
SBA Communications, Cl A* 140 4
------------
Total Telecommunication services 13
------------
- --------------------------------------------------------------------------------
UTILITIES--5.5%
- --------------------------------------------------------------------------------
Allegheny Energy* 70 3
MDU Resources Group 100 3
National Fuel Gas 70 3
Oneok 80 4
------------
Total Utilities 13
------------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $227) 229
================================================================================
- --------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANY--1.3%
- --------------------------------------------------------------------------------
iShares Russell Midcap Index Fund 30 3
- --------------------------------------------------------------------------------
TOTAL REGISTERED INVESTMENT COMPANY
(COST $3) 3
================================================================================
- --------------------------------------------------------------------------------
CASH EQUIVALENT--2.9%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares, 5.227%** 6,660 7
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $7) 7
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.8%
(COST $237) $ 239
================================================================================
Percentages are based on Net Assets of $237.***
* Non-income producing security
** Rate shown is the 7-day effective yield as of March 31, 2007.
*** This number has been rounded to the nearest thousand.
ADR -- American Depositary Receipt
Cl -- Class
NY -- New York
Ser -- Series
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 31
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER MIDCAP GROWTH FUND
March 31, 2007
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--99.7%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--17.5%
- --------------------------------------------------------------------------------
Coach* 429,670 $ 21,505
Focus Media Holding ADR* # 136,566 10,715
GameStop, Cl A* # 288,820 9,407
Goodyear Tire & Rubber* # 473,090 14,756
Guess? 315,300 12,767
Harman International Industries 113,430 10,898
Hilton Hotels 474,790 17,073
International Game Technology 614,600 24,818
MGM Mirage* 128,500 8,933
Polo Ralph Lauren # 166,910 14,713
Under Armour, Cl A* # 297,625 15,268
WMS Industries* # 288,070 11,304
Wynn Resorts # 214,577 20,355
------------
Total Consumer discretionary 192,512
------------
- --------------------------------------------------------------------------------
CONSUMER STAPLES--3.8%
- --------------------------------------------------------------------------------
Avon Products 361,450 13,468
Bunge 98,370 8,088
Hansen Natural* # 155,480 5,889
WM Wrigley Jr. # 276,440 14,079
------------
Total Consumer staples 41,524
------------
- --------------------------------------------------------------------------------
ENERGY--6.3%
- --------------------------------------------------------------------------------
Cameron International* 220,510 13,846
National Oilwell Varco* 169,360 13,175
Quicksilver Resources* # 217,110 8,634
Range Resources 473,755 15,823
Williams 618,780 17,611
------------
Total Energy 69,089
------------
- --------------------------------------------------------------------------------
FINANCIALS--9.3%
- --------------------------------------------------------------------------------
Affiliated Managers Group* 128,340 13,906
CB Richard Ellis Group, Cl A* 322,940 11,038
Cbot Holdings, Cl A* 19,900 3,612
Greenhill # 115,621 7,098
IntercontinentalExchange* 122,200 14,934
Macerich 99,800 9,217
Northern Trust 217,326 13,070
Synovus Financial 243,620 7,879
T. Rowe Price Group 456,802 21,556
------------
Total Financials 102,310
------------
Value
Shares (000)
- --------------------------------------------------------------------------------
HEALTH CARE--15.2%
- --------------------------------------------------------------------------------
Alexion Pharmaceuticals* 215,020 $ 9,297
Allergan # 96,510 10,695
C.R. Bard 74,640 5,935
Celgene* 461,795 24,226
Cephalon* 94,220 6,709
Express Scripts* 93,000 7,507
Health Net* 100,790 5,424
Henry Schein* 163,479 9,021
Hologic* 109,510 6,312
Intuitive Surgical* # 49,350 6,000
Kyphon* 122,250 5,518
Medicis Pharmaceutical, Cl A # 207,690 6,401
Pharmaceutical Product
Development 171,324 5,772
Psychiatric Solutions* # 221,264 8,919
Shire ADR 168,382 10,423
St. Jude Medical* 382,170 14,373
Thermo Fisher Scientific* 411,650 19,245
Universal Health Services, Cl B 93,230 5,338
------------
Total Health care 167,115
------------
- --------------------------------------------------------------------------------
INDUSTRIALS--12.0%
- --------------------------------------------------------------------------------
Ametek 286,290 9,888
C.H. Robinson Worldwide # 306,712 14,645
Corrections Corp of America* 117,227 6,191
CSX 301,650 12,081
General Cable* 130,040 6,948
Harsco 259,660 11,648
McDermott International* 117,760 5,768
Monster Worldwide* 251,035 11,892
Precision Castparts 202,670 21,088
Robert Half International # 265,970 9,844
Roper Industries 268,380 14,729
U.S. Airways Group* 144,440 6,569
------------
Total Industrials 131,291
------------
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--24.9%
- --------------------------------------------------------------------------------
Activision* 624,339 11,825
Akamai Technologies* 360,962 18,019
Altera* 641,000 12,814
aQuantive* 366,694 10,234
Atheros Communications* 420,891 10,072
Electronic Arts* 330,983 16,668
32 | TURNER FUNDS 2007 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER MIDCAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
F5 Networks* # 303,590 $ 20,243
Fiserv* 261,781 13,890
Integrated Device Technology* 726,537 11,203
Intersil, Cl A 554,830 14,698
Isilon Systems* # 271,178 4,385
Kla-Tencor # 369,270 19,690
Maxim Integrated Products 275,830 8,109
Paychex 315,002 11,929
Polycom* # 424,066 14,134
Salesforce.com* # 289,440 12,394
SAVVIS* 153,652 7,357
Sonus Networks* 553,530 4,467
Varian Semiconductor
Equipment Associates* # 336,520 17,963
VeriFone Holdings* 224,275 8,238
VeriSign* 593,554 14,910
VistaPrint* 242,660 9,294
------------
Total Information technology 272,536
------------
- --------------------------------------------------------------------------------
MATERIALS--3.7%
- --------------------------------------------------------------------------------
Agrium 296,090 11,349
Allegheny Technologies # 107,660 11,486
Celanese, Ser A 142,004 4,380
Owens-Illinois* # 522,540 13,466
------------
Total Materials 40,681
------------
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--7.0%
- --------------------------------------------------------------------------------
American Tower, Cl A* 370,930 14,448
BigBand Networks* 255,230 4,596
Cogent Communications Group* 183,442 4,335
Crown Castle International* 250,180 8,038
Leap Wireless International* 94,484 6,234
Level 3 Communications* # 1,557,200 9,499
NII Holdings* # 393,310 29,176
------------
Total Telecommunication services 76,326
------------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $876,983) 1,093,384
================================================================================
Value
Shares (000)
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--15.1%
- --------------------------------------------------------------------------------
Boston Global Investment
Trust -- Enhanced
Portfolio (1) 165,231,962 $ 165,232
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $165,232) 165,232
================================================================================
- --------------------------------------------------------------------------------
CASH EQUIVALENT--0.2%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares, 5.227%** 1,920,207 1,920
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $1,920) 1,920
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--115.0%
(COST $1,044,135) $ 1,260,536
================================================================================
Percentages are based on Net Assets of $1,096,097.***
* Non-income producing security
** Rate shown is the 7-day effective yield as of March 31, 2007.
*** This number has been rounded to the nearest thousand.
# Security fully or partially on loan at March 31, 2007. The total value of
securities on loan at March 31, 2007, was $159,329,707.
(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 -- Enhanced Portfolio, a
pooled investment fund. All such investments are made at the risk of the
Fund. As such, the Fund is liable for the investment losses. The Fund
receives an annual fee for its participation in the Lending Agreement
based on projected lending activity.
ADR -- American Depositary Receipt
Cl -- Class
Ser -- Series
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 33
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER NEW ENTERPRISE FUND
March 31, 2007
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--99.8%+
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--9.2%
- --------------------------------------------------------------------------------
Guess? 11,780 $ 477
Polo Ralph Lauren 4,920 434
Under Armour, Cl A* # 9,370 481
Wynn Resorts # 5,130 486
------------
Total Consumer discretionary 1,878
------------
- --------------------------------------------------------------------------------
FINANCIALS--5.6%
- --------------------------------------------------------------------------------
Chicago Mercantile Exchange
Holdings, Cl A 1,180 628
IntercontinentalExchange* # 4,310 527
------------
Total Financials 1,155
------------
- --------------------------------------------------------------------------------
HEALTH CARE--13.5%
- --------------------------------------------------------------------------------
Alexion Pharmaceuticals* # 8,350 361
Celgene* 13,520 709
Cephalon* # 3,890 277
Gilead Sciences* 9,340 715
Medicis Pharmaceutical, Cl A # 10,150 313
Psychiatric Solutions* 9,350 377
------------
Total Health care 2,752
------------
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--52.1%
- --------------------------------------------------------------------------------
Activision* # 19,240 364
Akamai Technologies* 22,300 1,113
Altera* # 15,420 308
Apple* 10,280 955
Atheros Communications* # 16,500 395
Comtech Group* # 28,380 496
F5 Networks* # 14,250 950
Google, Cl A* 2,230 1,022
Integrated Device Technology* 43,880 677
Intersil, Cl A # 26,080 691
Isilon Systems* # 11,140 180
Polycom* # 12,460 415
Research In Motion* 6,840 934
Salesforce.com* # 14,300 612
Varian Semiconductor
Equipment Associates* # 14,860 793
VeriSign* 15,880 399
VistaPrint* # 8,550 328
------------
Total Information technology 10,632
------------
Value
Shares (000)
- --------------------------------------------------------------------------------
MATERIALS--5.5%
- --------------------------------------------------------------------------------
Monsanto 14,520 $ 798
RTI International Metals* 3,560 324
------------
Total Materials 1,122
------------
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--13.9%
- --------------------------------------------------------------------------------
American Tower, Cl A* 18,360 715
Cogent Communications Group* # 23,910 565
Leap Wireless International* # 6,830 451
NII Holdings* 14,820 1,099
------------
Total Telecommunication services 2,830
------------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $16,076) 20,369
================================================================================
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--40.5%
- --------------------------------------------------------------------------------
Boston Global Investment Trust --
Enhanced Portfolio (1) 8,277,900 8,278
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $8,278) 8,278
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--140.3%
(COST $24,354) $ 28,647
================================================================================
Percentages are based on Net Assets of $20,415.**
* Non-income producing security
** This number has been rounded to the nearest thousand.
+ More narrow industries are utilized for compliance purposes, whereas broad
sectors are utilized for reporting purposes.
# Security fully or partially on loan at March 31, 2007. The total value of
securities on loan at March 31, 2007, was $7,957,943.
(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 -- Enhanced 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.
34 | TURNER FUNDS 2007 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER SMALL CAP EQUITY FUND
March 31, 2007
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--98.1%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--17.8%
- --------------------------------------------------------------------------------
99 Cents Only Stores* 51,900 $ 765
Applebees International 33,520 831
Arbitron 16,990 798
Bob Evans Farms 20,650 763
Cabela's* # 34,710 861
Domino's Pizza 23,940 777
Jarden* 20,070 769
Lions Gate Entertainment* 95,910 1,095
Live Nation* 40,050 884
PEP Boys-Manny Moe & Jack 32,180 614
PF Chang's China Bistro* # 12,640 529
Pinnacle Entertainment* 16,890 491
Skechers U.S.A., Cl A* 21,590 725
Smith & Wesson Holding* # 49,910 653
Tenneco* 28,940 737
Vail Resorts* 12,000 652
WMS Industries* 17,520 687
Wolverine World Wide 28,730 821
------------
Total Consumer discretionary 13,452
------------
- --------------------------------------------------------------------------------
CONSUMER STAPLES--3.4%
- --------------------------------------------------------------------------------
BJ's Wholesale Club* 25,910 877
Longs Drug Stores 21,070 1,088
Ralcorp Holdings* 9,820 631
------------
Total Consumer staples 2,596
------------
- --------------------------------------------------------------------------------
ENERGY--4.4%
- --------------------------------------------------------------------------------
Atwood Oceanics* 10,970 644
Goodrich Petroleum* # 16,640 559
Oil States International* 19,850 637
Parallel Petroleum* 26,260 603
Petroleum Development* 15,780 845
------------
Total Energy 3,288
------------
- --------------------------------------------------------------------------------
FINANCIALS--19.2%
- --------------------------------------------------------------------------------
BankAtlantic Bancorp, Cl A 28,640 314
BioMed Realty Trust 20,320 535
Corporate Office Properties Trust 11,390 520
Delphi Financial Group, Cl A 24,245 975
Employers Holdings* 22,050 442
First Midwest Bancorp 20,190 742
First Potomac Realty Trust 20,170 576
Value
Shares (000)
- --------------------------------------------------------------------------------
GFI Group* 18,600 $ 1,264
Greater Bay Bancorp 24,670 663
Harris & Harris Group* 26,990 349
International Securities
Exchange Holdings 13,370 653
Investment Technology Group* 16,430 644
IPC Holdings 32,960 951
LaSalle Hotel Properties 18,750 869
Mid-America Apartment
Communities 9,860 555
Potlatch 15,780 722
ProAssurance* 16,741 856
Strategic Hotels & Resorts 35,040 801
SVB Financial Group* 16,230 789
Tower Group 16,940 546
Waddell & Reed Financial, Cl A 34,040 794
------------
Total Financials 14,560
------------
- --------------------------------------------------------------------------------
HEALTH CARE--10.6%
- --------------------------------------------------------------------------------
Alpharma, Cl A 20,540 495
Analogic 23,066 1,450
BioMarin Pharmaceuticals* 22,270 384
Haemonetics* 13,690 640
inVentiv Health* 29,590 1,133
Owens & Minor 29,840 1,096
PolyMedica 11,010 466
Psychiatric Solutions* 27,710 1,117
Sirona Dental Systems* 15,050 519
Techne* 12,380 707
------------
Total Health care 8,007
------------
- --------------------------------------------------------------------------------
INDUSTRIALS--8.7%
- --------------------------------------------------------------------------------
AAR* 26,730 737
Alaska Air Group* 24,320 927
Armor Holdings* 13,440 905
Clean Harbors* 14,020 634
FTI Consulting* 30,500 1,024
FuelCell Energy* 53,200 418
Kaydon 17,550 747
Washington Group International* 18,235 1,211
------------
Total Industrials 6,603
------------
TURNER FUNDS 2007 SEMIANNUAL REPORT | 35
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER SMALL CAP EQUITY FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--23.2%
- --------------------------------------------------------------------------------
Agilysys 21,600 $ 485
Andrew* 85,900 910
Arris Group* 69,090 973
ATMI* 14,920 456
Cirrus Logic* 68,830 527
ECI Telecom* 65,570 538
eFunds* 24,040 641
FEI* 14,910 538
Foundry Networks* 56,640 769
Harmonic* 36,160 355
Itron* 16,490 1,072
Macrovision* 37,020 927
MKS Instruments* # 46,220 1,180
Nice Systems ADR* 27,570 938
ON Semiconductor* # 164,990 1,472
OSI Systems* 32,930 871
Progress Software* 9,810 306
Semtech* 68,940 929
SonicWALL* 43,240 361
THQ* 25,385 868
Transaction Systems Architects* 26,870 870
Ultra Clean Holdings* 32,150 556
Verigy* 44,500 1,044
------------
Total Information technology 17,586
------------
- --------------------------------------------------------------------------------
MATERIALS--7.1%
- --------------------------------------------------------------------------------
Cleveland-Cliffs 14,360 919
Compass Minerals International 26,940 900
Glatfelter 48,630 725
Haynes International* 5,390 393
Kaiser Aluminum* 7,720 602
PAN American Silver* 26,350 780
Randgold Resources ADR 31,680 758
Tronox, Cl A 22,110 318
------------
Total Materials 5,395
------------
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--1.5%
- --------------------------------------------------------------------------------
Cogent Communications Group* 24,970 590
NeuStar, Cl A* 18,470 525
------------
Total Telecommunication services 1,115
------------
Value
Shares (000)
- --------------------------------------------------------------------------------
UTILITIES--2.2%
- --------------------------------------------------------------------------------
El Paso Electric* 26,360 $ 695
Unisource Energy 26,220 984
------------
Total Utilities 1,679
------------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $65,326) 74,281
================================================================================
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--5.5%
- --------------------------------------------------------------------------------
Boston Global Investment Trust --
Enhanced Portfolio (1) 4,154,000 4,154
------------
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $4,154) 4,154
================================================================================
- --------------------------------------------------------------------------------
CASH EQUIVALENT--1.5%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares, 5.227%** 1,104,946 1,105
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $1,105) 1,105
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--105.1%
(COST $70,585) $ 79,540
================================================================================
Percentages are based on Net Assets of $75,679.***
* Non-income producing security
** Rate shown is the 7-day effective yield as of March 31, 2007.
*** This number has been rounded to the nearest thousand.
# Security fully or partially on loan at March 31, 2007. The total value of
securities on loan at March 31, 2007, was $3,886,456.
(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 -- Enhanced 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.
36 | TURNER FUNDS 2007 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER SMALL CAP GROWTH FUND
March 31, 2007
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--98.4%+
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--14.8%
- --------------------------------------------------------------------------------
Arbitron # 45,090 $ 2,117
Casual Male Retail Group* # 131,146 1,551
Citi Trends* # 54,240 2,318
Cooper Tire & Rubber # 137,840 2,521
DSW, Cl A* # 75,650 3,193
Guess? 82,500 3,340
Hibbett Sports* # 92,690 2,650
Iconix Brand Group* # 137,600 2,807
Life Time Fitness* # 67,690 3,480
McCormick & Schmick's
Seafood Restaurants* # 92,680 2,485
Phillips-Van Heusen # 68,430 4,024
Priceline.com* # 48,990 2,609
Under Armour, Cl A* # 64,690 3,319
WMS Industries* # 98,420 3,862
Zumiez* # 77,160 3,096
------------
Total Consumer discretionary 43,372
------------
- --------------------------------------------------------------------------------
CONSUMER STAPLES--1.6%
- --------------------------------------------------------------------------------
Pantry* 30,020 1,357
United Natural Foods* # 112,030 3,433
------------
Total Consumer staples 4,790
------------
- --------------------------------------------------------------------------------
ENERGY--5.0%
- --------------------------------------------------------------------------------
Alon USA Energy 41,140 1,489
Arena Resources* 59,820 2,998
Core Laboratories* # 27,770 2,328
Dril-Quip* # 62,860 2,721
Goodrich Petroleum* # 99,030 3,330
W-H Energy Services* 40,500 1,893
------------
Total Energy 14,759
------------
- --------------------------------------------------------------------------------
FINANCIALS--10.3%
- --------------------------------------------------------------------------------
Argonaut Group* # 72,394 2,343
Corporate Office
Properties Trust # 42,510 1,942
Digital Realty Trust 87,520 3,492
Value
Shares (000)
- --------------------------------------------------------------------------------
Greenhill # 44,950 $ 2,760
Hanmi Financial # 24,340 464
HFF, Cl A* 89,290 1,339
Highland Hospitality 135,820 2,418
International Securities
Exchange Holdings # 68,340 3,335
MarketAxess Holdings* # 159,580 2,671
Penson Worldwide* 66,170 1,998
SVB Financial Group* 36,640 1,780
United Community Banks # 80,920 2,653
Waddell & Reed Financial, Cl A 125,620 2,929
------------
Total Financials 30,124
------------
- --------------------------------------------------------------------------------
HEALTH CARE--18.4%
- --------------------------------------------------------------------------------
Affymetrix* 40,260 1,211
Alexion Pharmaceuticals* # 82,100 3,550
Alnylam Pharmaceuticals* # 66,390 1,195
Array Biopharma* # 119,200 1,514
BioMarin Pharmaceuticals* 103,030 1,778
Healthways* # 39,940 1,867
Hologic* # 63,340 3,651
Icon ADR* 35,470 1,511
Immucor* # 102,370 3,013
InterMune* # 64,140 1,582
inVentiv Health* 46,500 1,780
Inverness Medical Innovations* 49,480 2,166
KV Pharmaceutical, Cl A* # 82,610 2,043
Kyphon* # 51,400 2,320
Medicis Pharmaceutical, Cl A # 94,860 2,924
Mentor # 42,180 1,940
New River Pharmaceuticals* # 6,856 436
Parexel International* 87,210 3,137
Progenics Pharmaceuticals* # 52,900 1,253
Psychiatric Solutions* # 107,380 4,328
Sunrise Senior Living* # 91,910 3,632
Trizetto Group* 99,090 1,983
United Therapeutics* 25,170 1,354
West Pharmaceutical Services # 84,490 3,923
------------
Total Health care 54,091
------------
TURNER FUNDS 2007 SEMIANNUAL REPORT | 37
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
INDUSTRIALS--13.4%
- --------------------------------------------------------------------------------
Actuant, Cl A # 57,910 $ 2,943
Acuity Brands # 41,300 2,248
Airtran Holdings* # 192,990 1,982
American Commercial Lines* # 78,030 2,454
Cenveo* # 162,400 3,946
General Cable* # 61,220 3,271
Geo Group* # 38,090 1,726
Horizon Lines, Cl A 64,810 2,127
HUB Group, Cl A* 75,130 2,178
Huron Consulting Group* 47,540 2,892
Infrasource Services* 86,080 2,628
Kenexa* # 75,990 2,366
Knoll # 153,500 3,658
Ladish* 73,820 2,779
Regal-Beloit 44,300 2,055
------------
Total Industrials 39,253
------------
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--25.8%
- --------------------------------------------------------------------------------
Advent Software* 54,970 1,917
Altiris* 59,270 1,951
Anadigics* # 188,930 2,233
aQuantive* # 123,050 3,434
Atheros Communications* # 145,720 3,487
Cirrus Logic* 251,430 1,926
Comtech Group* # 186,270 3,256
Equinix* # 38,270 3,277
Formfactor* # 64,750 2,898
Foundry Networks* # 196,700 2,669
Internap Network Services* # 162,110 2,553
JA Solar Holdings ADR* # 108,510 1,963
Micros Systems* 71,310 3,850
Net 1 UEPS Technologies* # 96,240 2,395
Nice Systems ADR* # 68,000 2,313
ON Semiconductor* # 202,820 1,809
Polycom* # 119,120 3,970
Quality Systems* # 52,220 2,089
SAVVIS* # 62,230 2,980
Semtech* 123,972 1,671
Sonus Networks* # 441,557 3,563
Value
Shares (000)
- --------------------------------------------------------------------------------
Switch & Data Facilities* # 87,810 $ 1,591
Tessera Technologies* # 100,570 3,997
The9 ADR* # 54,310 1,832
THQ* # 102,660 3,510
Varian Semiconductor
Equipment Associates* # 115,930 6,188
VistaPrint* # 69,500 2,662
------------
Total Information technology 75,984
------------
- --------------------------------------------------------------------------------
MATERIALS--6.3%
- --------------------------------------------------------------------------------
Brush Engineered Materials* # 35,240 1,708
Century Aluminum* # 56,160 2,633
H.B. Fuller # 107,380 2,928
Hercules* 113,310 2,214
PAN American Silver* # 87,020 2,575
RTI International Metals* 21,820 1,986
Silgan Holdings 49,130 2,511
Terra Industries* 119,650 2,094
------------
Total Materials 18,649
------------
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--2.8%
- --------------------------------------------------------------------------------
Cogent Communications
Group* # 141,710 3,349
SBA Communications, Cl A* 49,980 1,477
Time Warner Telecom, Cl A* 167,690 3,483
------------
Total Telecommunication services 8,309
------------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $244,694) 289,331
================================================================================
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENT HELD AS COLLATERAL
FOR LOANED SECURITIES--62.3%
- --------------------------------------------------------------------------------
Boston Global Investment Trust --
Enhanced Portfolio (1) 183,044,750 183,045
- --------------------------------------------------------------------------------
TOTAL SHORT-TERM INVESTMENT HELD AS
COLLATERAL FOR LOANED SECURITIES
(COST $183,045) 183,045
================================================================================
38 | TURNER FUNDS 2007 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT--2.7%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund,
Institutional Shares, 5.227%** 7,925,878 $ 7,926
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $7,926) 7,926
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--163.4%
(COST $435,665) $480,302
================================================================================
Percentages are based on Net Assets of $294,021.***
* Non-income producing security
** Rate shown is the 7-day effective yield as of March 31, 2007.
*** This number has been rounded to the nearest thousand.
+ More narrow industries are utilized for compliance purposes, whereas broad
sectors are utilized for reporting purposes.
# Security fully or partially on loan at March 31, 2007. The total value of
securities on loan at March 31, 2007, was $176,530,925.
(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 -- Enhanced 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.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 39
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (000)
March 31, 2007
Turner Turner Turner
Concentrated Core Turner International
Growth Growth Emerging Core Growth
Fund Fund Growth Fund Fund
- ----------------------------------------------------------------------------------------------------------------------
Assets:
- ----------------------------------------------------------------------------------------------------------------------
Investment securities, at cost $ 34,980 $ 150,978 $ 711,510 $ 1,009
======================================================================================================================
Investment securities, at value $ 40,308* $ 166,250* $ 849,072* $ 1,025
Receivable for investment securities sold 1,391 932 8,963 18
Receivable for capital shares sold 1 1,240 494 --
Receivable from investment adviser -- -- -- 3
Receivable for dividend and interest income 12 206 479 2
- ----------------------------------------------------------------------------------------------------------------------
Total assets 41,712 168,628 859,008 1,048
======================================================================================================================
Liabilities:
Obligation to return securities lending collateral 5,136 1,788 257,869 --
Payable for investment securities purchased 1,072 2,722 7,895 31
Payable to custodian 44 -- -- --
Payable for capital shares redeemed 19 205 145 --
Payable due to investment adviser 11 65 448 --
Payable due to shareholder servicing 11 6 125 --
Payable due to administrator 4 7 73 --
Payable due to Chief Compliance Officer 1 2 9 --
Payable due to distributor -- -- -- --
Other accrued expenses 14 32 117 4
- ----------------------------------------------------------------------------------------------------------------------
Total liabilities 6,312 4,827 266,681 35
- ----------------------------------------------------------------------------------------------------------------------
Net assets $ 35,400 $ 163,801 $ 592,327 $ 1,013
======================================================================================================================
*Includes market value of securities on loan $ 4,983 $ 1,714 $ 248,144 $ --
======================================================================================================================
Net assets:
Portfolio capital of Institutional Class Shares $ -- $ 125,406 $ -- $ 1,000
Portfolio capital of Investor Class Shares 184,098 24,679 412,995 --
Portfolio capital of Retirement Class Shares -- -- -- --
Undistributed net investment income/
(Accumulated net investment loss) (113) 90 (1,440) 2
Accumulated net realized gain (loss)
on investments (153,913) (1,646) 43,210 (5)
Net unrealized appreciation on investments 5,328 15,272 137,562 16
- ----------------------------------------------------------------------------------------------------------------------
Net assets $ 35,400 $ 163,801 $ 592,327 $ 1,013
======================================================================================================================
Outstanding shares of beneficial interest (1)
Institutional Class Shares (2) -- 11,007,341 -- 99,448
- ----------------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Investor Class Shares (2) 4,373,368 2,148,465 10,317,848 --
- ----------------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Retirement Class Shares (2) -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Net Assets -- Institutional Class Shares (2) $ -- $ 137,125,435 $ -- $ 1,012,725
- ----------------------------------------------------------------------------------------------------------------------
Net Assets -- Investor Class Shares (2) $ 35,400,215 $ 26,675,591 $ 592,326,510 $ --
- ----------------------------------------------------------------------------------------------------------------------
Net Assets -- Retirement Class Shares (2) $ -- $ -- $ -- $ --
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Institutional Class Shares $ -- $ 12.46 $ -- $ 10.18
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Investor Class Shares $ 8.09 $ 12.42 $ 57.41 $ --
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Retirement Class Shares $ -- $ -- $ -- $ --
======================================================================================================================
(Unaudited)
- --------------------------------------------------------------------------------
Turner Turner Turner Turner
Large Cap Large Cap Midcap Midcap
Growth Fund Value Fund Equity Fund Growth Fund
- ------------------------------------------------------------------------------------------------------------------------
Assets:
- ------------------------------------------------------------------------------------------------------------------------
Investment securities, at cost $ 19,837 $ 718 $ 237 $ 1,044,135
========================================================================================================================
Investment securities, at value $ 22,970 $ 787 $ 239 $ 1,260,536*
Receivable for investment securities sold 106 -- 1 5,827
Receivable for capital shares sold 21 -- -- 1,958
Receivable from investment adviser -- 2 5 --
Receivable for dividend and interest income 33 1 -- 413
- ------------------------------------------------------------------------------------------------------------------------
Total assets 23,130 790 245 1,268,734
========================================================================================================================
Liabilities:
Obligation to return securities lending collateral -- -- -- 165,232
Payable for investment securities purchased 92 -- 2 4,743
Payable to custodian -- -- -- --
Payable for capital shares redeemed 161 -- -- 1,409
Payable due to investment adviser 2 -- -- 595
Payable due to shareholder servicing -- -- -- 1
Payable due to administrator 3 -- -- 135
Payable due to Chief Compliance Officer -- -- -- 17
Payable due to distributor -- -- -- 247
Other accrued expenses 9 7 6 258
- ------------------------------------------------------------------------------------------------------------------------
Total liabilities 267 7 8 172,637
- ------------------------------------------------------------------------------------------------------------------------
Net assets $ 22,863 $ 783 $ 237 $ 1,096,097
========================================================================================================================
*Includes market value of securities on loan $ -- $ -- $ -- $ 159,330
========================================================================================================================
Net assets:
Portfolio capital of Institutional Class Shares $ 35,665 $ 675 $ -- $ --
Portfolio capital of Investor Class Shares 2 -- 236 1,245,114
Portfolio capital of Retirement Class Shares -- -- -- 4,782
Undistributed net investment income/
(Accumulated net investment loss) 15 1 -- (3,221)
Accumulated net realized gain (loss)
on investments (15,952) 38 (1) (366,979)
Net unrealized appreciation on investments 3,133 69 2 216,401
- ------------------------------------------------------------------------------------------------------------------------
Net assets $ 22,863 $ 783 $ 237 $ 1,096,097
========================================================================================================================
Outstanding shares of beneficial interest (1)
Institutional Class Shares (2) 3,895,925 64,947 12 --
- ------------------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Investor Class Shares (2) 238 -- 23,432 36,164,240
- ------------------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Retirement Class Shares (2) -- -- -- 183,887
- ------------------------------------------------------------------------------------------------------------------------
Net Assets -- Institutional Class Shares (2) $ 22,861,313 $ 783,046 $ 126 $ --
- ------------------------------------------------------------------------------------------------------------------------
Net Assets -- Investor Class Shares (2) $ 1,398 $ -- $ 237,340 $ 1,090,695,613
- ------------------------------------------------------------------------------------------------------------------------
Net Assets -- Retirement Class Shares (2) $ -- $ -- $ -- $ 5,401,576
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Institutional Class Shares $ 5.87 $ 12.06 $ 10.15 $ --
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Investor Class Shares $ 5.87 $ -- $ 10.13 $ 30.16
- ------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Retirement Class Shares $ -- $ -- $ -- $ 29.37
========================================================================================================================
Turner Turner Turner
New Enterprise Small Cap Small Cap
Fund Equity Fund Growth Fund
- --------------------------------------------------------------------------------------------------------
Assets:
- --------------------------------------------------------------------------------------------------------
Investment securities, at cost $ 24,354 $ 70,585 $ 435,665
========================================================================================================
Investment securities, at value $ 28,647* $ 79,540* $ 480,302*
Receivable for investment securities sold 743 1,005 3,871
Receivable for capital shares sold -- 56 346
Receivable from investment adviser -- -- --
Receivable for dividend and interest income 1 48 161
- --------------------------------------------------------------------------------------------------------
Total assets 29,391 80,649 484,680
========================================================================================================
Liabilities:
Obligation to return securities lending collateral 8,278 4,154 183,045
Payable for investment securities purchased 233 670 7,009
Payable to custodian 420 -- --
Payable for capital shares redeemed 5 35 229
Payable due to investment adviser 5 54 184
Payable due to shareholder servicing 6 16 91
Payable due to administrator 3 9 36
Payable due to Chief Compliance Officer -- 1 5
Payable due to distributor -- -- --
Other accrued expenses 26 31 60
- --------------------------------------------------------------------------------------------------------
Total liabilities 8,976 4,970 190,659
- --------------------------------------------------------------------------------------------------------
Net assets $ 20,415 $ 75,679 $ 294,021
========================================================================================================
*Includes market value of securities on loan $ 7,958 $ 3,886 $ 176,531
========================================================================================================
Net assets:
Portfolio capital of Institutional Class Shares $ -- $ -- $ --
Portfolio capital of Investor Class Shares 27,680 62,474 326,741
Portfolio capital of Retirement Class Shares -- -- --
Undistributed net investment income/
(Accumulated net investment loss) (128) (218) (876)
Accumulated net realized gain (loss)
on investments (11,430) 4,468 (76,481)
Net unrealized appreciation on investments 4,293 8,955 44,637
- --------------------------------------------------------------------------------------------------------
Net assets $ 20,415 $ 75,679 $ 294,021
========================================================================================================
Outstanding shares of beneficial interest (1)
Institutional Class Shares (2) -- -- --
- --------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Investor Class Shares (2) 2,989,988 4,418,576 9,855,111
- --------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Retirement Class Shares (2) -- -- --
- --------------------------------------------------------------------------------------------------------
Net Assets -- Institutional Class Shares (2) $ -- $ -- $ --
- --------------------------------------------------------------------------------------------------------
Net Assets -- Investor Class Shares (2) $ 20,415,213 $ 75,678,601 $ 294,020,557
- --------------------------------------------------------------------------------------------------------
Net Assets -- Retirement Class Shares (2) $ -- $ -- $ --
- --------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Institutional Class Shares $ -- $ -- $ --
- --------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Investor Class Shares $ 6.83 $ 17.13 $ 29.83
- --------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Retirement Class Shares $ -- $ -- $ --
========================================================================================================
(1) Unlimited authorization -- par value $0.00001.
(2) Shares and Net Assets have not been rounded.
Amounts designated as "--" are either not applicable, $0 or have been rounded to
$0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 40 & 41
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (000)
Turner Turner Turner
Concentrated Core Turner International
Growth Growth Emerging Core Growth
Fund Fund Growth Fund Fund
-------------------------------------------------------------
10/1/06 thru 10/1/06 thru 10/1/06 thru 1/31/07(3) thru
3/31/07 3/31/07 3/31/07 3/31/07
- --------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 61 $ 695 $ 2,432 $ 3
Securities lending 9 4 262 --
Foreign taxes withheld (1) (9) -- --
- --------------------------------------------------------------------------------------------------------------------------
Total investment income 69 690 2,694 3
- --------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 134 504 2,953 1
Administrator fees 28 98 431 --
Shareholder service fees(1) 15 32 242 --
Shareholder service fees(2) -- -- -- --
Distribution fees(1) -- -- -- --
Distribution fees(2) -- -- -- --
Chief Compliance Officer fees 1 4 19 --
Transfer agent fees 30 56 409 4
Custodian fees 9 28 55 2
Printing fees 4 17 64 --
Professional fees 4 13 58 --
Registration fees 2 4 33 --
Trustees' fees 2 5 24 --
Insurance and other fees 2 5 28 1
- --------------------------------------------------------------------------------------------------------------------------
Total expenses 231 766 4,316 8
Less:
Investment advisory fee waiver (49) (243) (182) (1)
Administrator fee waiver -- (39) -- --
Reimbursements of other operating expenses -- -- -- (6)
Distribution fee waiver -- -- -- --
- --------------------------------------------------------------------------------------------------------------------------
Net expenses 182 484 4,134 1
- --------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (113) 206 (1,440) 2
- --------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from securities sold 2,583 1,066 45,071 (4)
Net realized loss on foreign
currency transactions -- -- -- (1)
Net unrealized appreciation (depreciation)
on investments (10) 6,838 23,031 16
- --------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments
and foreign currency transactions 2,573 7,904 68,102 11
- --------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 2,460 $ 8,110 $ 66,662 $ 13
==========================================================================================================================
(Unaudited)
- --------------------------------------------------------------------------------
Turner Turner Turner Turner
Large Cap Large Cap Midcap Midcap
Growth Fund Value Fund Equity Fund Growth Fund
- -------------------------------------------------------------------------------------------------------------------------
10/1/06 thru 10/1/06 thru 1/31/07(3) thru 10/1/06 thru
3/31/07 3/31/07 3/31/07 3/31/07
- -------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 106 $ 6 $ -- $ 3,301
Securities lending 1 1 -- 117
Foreign taxes withheld (2) -- -- (2)
- -------------------------------------------------------------------------------------------------------------------------
Total investment income 105 7 -- 3,416
- -------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 67 2 -- 4,215
Administrator fees 16 1 -- 821
Shareholder service fees(1) -- -- -- 445
Shareholder service fees(2) -- -- -- 5
Distribution fees(1) -- -- -- --
Distribution fees(2) -- -- -- 5
Chief Compliance Officer fees 1 -- -- 36
Transfer agent fees 36 13 9 796
Custodian fees 15 3 1 99
Printing fees 3 -- -- 122
Professional fees 2 -- -- 110
Registration fees 2 -- -- 64
Trustees' fees 1 -- -- 46
Insurance and other fees 1 -- -- 55
- -------------------------------------------------------------------------------------------------------------------------
Total expenses 144 19 10 6,819
Less:
Investment advisory fee waiver (66) (2) -- (182)
Administrator fee waiver -- -- -- --
Reimbursements of other operating expenses -- (15) (10) --
Distribution fee waiver -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------
Net expenses 78 2 -- 6,637
- -------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 27 5 -- (3,221)
- -------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from securities sold 349 38 (1) 51,274
Net realized loss on foreign
currency transactions -- -- -- --
Net unrealized appreciation (depreciation)
on investments 758 14 2 51,721
- -------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments
and foreign currency transactions 1,107 52 1 102,995
- -------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 1,134 $ 57 $ 1 $ 99,774
=========================================================================================================================
Turner Turner Turner
New Enterprise Small Cap Small Cap
Fund Equity Fund Growth Fund
- --------------------------------------------------------------------------------------------------------------
10/1/06 thru 10/1/06 thru 10/1/06 thru
3/31/07 3/31/07 3/31/07
- --------------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 15 $ 256 $ 713
Securities lending 4 29 167
Foreign taxes withheld -- -- --
- --------------------------------------------------------------------------------------------------------------
Total investment income 19 285 880
- --------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 117 374 1,413
Administrator fees 17 57 206
Shareholder service fees(1) 9 31 120
Shareholder service fees(2) -- -- --
Distribution fees(1) -- 68 --
Distribution fees(2) -- -- --
Chief Compliance Officer fees 1 3 9
Transfer agent fees 32 63 150
Custodian fees 14 25 38
Printing fees 3 8 32
Professional fees 2 8 28
Registration fees 2 4 16
Trustees' fees 1 3 11
Insurance and other fees 1 5 13
- --------------------------------------------------------------------------------------------------------------
Total expenses 199 649 2,036
Less:
Investment advisory fee waiver (52) (78) (270)
Administrator fee waiver -- -- --
Reimbursements of other operating expenses -- -- --
Distribution fee waiver -- (68) --
- --------------------------------------------------------------------------------------------------------------
Net expenses 147 503 1,766
- --------------------------------------------------------------------------------------------------------------
Net investment income (loss) (128) (218) (886)
- --------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from securities sold 2,171 5,265 16,044
Net realized loss on foreign
currency transactions -- -- --
Net unrealized appreciation (depreciation)
on investments 124 1,921 19,968
- --------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments
and foreign currency transactions 2,295 7,186 36,012
- --------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations $ 2,167 $ 6,968 $ 35,126
==============================================================================================================
(1) Attributable to Investor Class Shares only.
(2) Attributable to Retirement Class Shares only.
(3) Commencement of operations.
Amounts designated as "--" are either not applicable, $0 or have been rounded to
$0.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 42 & 43
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (000)
Turner Concentrated
Growth Fund
--------------------------------
10/1/06 thru year ended
3/31/07 (unaudited) 9/30/06
- ------------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (113) $ (367)
Net realized gain (loss) from securities sold 2,583 103
Net realized loss on foreign currency transactions -- --
Net unrealized appreciation (depreciation) on investments (10) 1,947
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 2,460 1,683
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Institutional Class Shares -- --
Investor Class Shares -- --
Realized capital gains
Institutional Class Shares -- --
Investor Class Shares -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Institutional Class Shares
Proceeds from shares issued -- --
Proceeds from shares issued in lieu of cash distributions -- --
Cost of shares redeemed -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Institutional Class Shares transactions -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Proceeds from shares issued 2,091 17,480
Proceeds from shares issued in lieu of cash distributions -- --
Cost of shares redeemed (7,331) (11,762)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor Class Shares transactions (5,240) 5,718
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share transactions (5,240) 5,718
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (2,780) 7,401
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 38,180 30,779
- ------------------------------------------------------------------------------------------------------------------------------------
End of period $ 35,400 $ 38,180
====================================================================================================================================
Undistributed net investment income
(accumulated net investment loss) $ (113) $ --
====================================================================================================================================
Shares issued and redeemed:
Institutional Class Shares
Issued -- --
Issued in lieu of cash distributions -- --
Redeemed -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Institutional Class Shares -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Issued 264 2,225
Issued in lieu of cash distributions -- --
Redeemed (916) (1,534)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Shares (652) 691
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions (652) 691
====================================================================================================================================
- --------------------------------------------------------------------------------
Turner Core Turner Emerging
Growth Fund Growth Fund
--------------------------------------------------------------------
10/1/06 thru year ended 10/1/06 thru year ended
3/31/07 (unaudited) 9/30/06 3/31/07 (unaudited) 9/30/06
- ------------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ 206 $ 478 $ (1,440) $ (3,209)
Net realized gain (loss) from securities sold 1,066 (1,095) 45,071 50,190
Net realized loss on foreign currency transactions -- -- -- --
Net unrealized appreciation (depreciation) on investments 6,838 4,497 23,031 (22,616)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 8,110 3,880 66,662 24,365
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Institutional Class Shares (444) (162) -- --
Investor Class Shares (52) (1) -- --
Realized capital gains
Institutional Class Shares -- -- -- --
Investor Class Shares -- -- (50,964) (29,515)
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (496) (163) (50,964) (29,515)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Institutional Class Shares
Proceeds from shares issued 65,415 40,388 -- --
Proceeds from shares issued in lieu of cash distributions 444 109 -- --
Cost of shares redeemed (6,644) (12,778) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Institutional
Class Shares transactions 59,215 27,719 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Proceeds from shares issued 4,050 24,928 41,407 147,890
Proceeds from shares issued in lieu of cash distributions 52 1 50,559 28,983
Cost of shares redeemed (2,483) (1,870) (80,564) (108,604)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor
Class Shares transactions 1,619 23,059 11,402 68,269
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital
share transactions 60,834 50,778 11,402 68,269
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 68,448 54,495 27,100 63,119
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 95,353 40,858 565,227 502,108
- ------------------------------------------------------------------------------------------------------------------------------------
End of period $ 163,801 $ 95,353 $ 592,327 $ 565,227
====================================================================================================================================
Undistributed net investment income
(accumulated net investment loss) $ 90 $ 380 $ (1,440) $ --
====================================================================================================================================
Shares issued and redeemed:
Institutional Class Shares
Issued 5,335 3,530 -- --
Issued in lieu of cash distributions 36 10 -- --
Redeemed (538) (1,103) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Institutional Class Shares 4,833 2,437 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Issued 329 2,182 718 2,589
Issued in lieu of cash distributions 4 -- 898 533
Redeemed (202) (165) (1,397) (1,916)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Shares 131 2,017 219 1,206
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions 4,964 4,454 219 1,206
====================================================================================================================================
Turner International Turner Large Cap
Core Growth Fund Growth Fund
--------------------------------------------------------
1/31/07 (1) thru 10/1/06 thru year ended
3/31/07 (unaudited) 3/31/07 (unaudited) 9/30/06
- ------------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ 2 $ 27 $ 80
Net realized gain (loss) from securities sold (4) 349 7,523
Net realized loss on foreign currency transactions (1) -- --
Net unrealized appreciation (depreciation) on investments 16 758 (5,052)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 13 1,134 2,551
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Institutional Class Shares -- (66) (109)
Investor Class Shares -- -- --
Realized capital gains
Institutional Class Shares -- -- --
Investor Class Shares -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions -- (66) (109)
- ------------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Institutional Class Shares
Proceeds from shares issued 1,000 6,353 21,806
Proceeds from shares issued in lieu of cash distributions -- 54 106
Cost of shares redeemed -- (4,124) (47,869)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Institutional
Class Shares transactions 1,000 2,283 (25,957)
- ------------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Proceeds from shares issued -- 2 --
Proceeds from shares issued in lieu of cash distributions -- -- --
Cost of shares redeemed -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor
Class Shares transactions -- 2 --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share transactions 1,000 2,285 (25,957)
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 1,013 3,353 (23,515)
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period -- 19,510 43,025
- ------------------------------------------------------------------------------------------------------------------------------------
End of period $ 1,013 $ 22,863 $ 19,510
====================================================================================================================================
Undistributed net investment income
(accumulated net investment loss) $ 2 $ 15 $ 54
====================================================================================================================================
Shares issued and redeemed:
Institutional Class Shares
Issued 99 1,094 3,911
Issued in lieu of cash distributions -- 9 19
Redeemed -- (703) (8,386)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Institutional Class Shares 99 400 (4,456)
- ------------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Issued -- -- --
Issued in lieu of cash distributions -- -- --
Redeemed -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Shares -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions 99 400 (4,456)
====================================================================================================================================
(1) Commencement of Operations.
Amounts designated as "--" are either not applicable, $0, or have been rounded
to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 44 & 45
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (000)
Turner Large Cap Turner Midcap
Value Fund Equity Fund
---------------------------------------------------------
10/1/06 thru 10/10/05 (1) 1/31/07 (1) thru
3/31/07 (unaudited) thru 9/30/06 3/31/07 (unaudited)
- --------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ 5 $ 7 $ --
Net realized gain (loss) from securities sold 38 12 (1)
Net unrealized appreciation (depreciation) on investments 14 55 2
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations 57 74 1
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Institutional Class Shares (9) (2) --
Investor Class Shares -- -- --
Retirement Class Shares -- -- --
Realized capital gains
Institutional Class Shares (12) -- --
Investor Class Shares -- -- --
Retirement Class Shares -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (21) (2) --
- --------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Institutional Class Shares
Proceeds from shares issued 230 506 --
Proceeds from shares issued in lieu of cash distributions 21 2 --
Cost of shares redeemed (84) -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Institutional Class Shares
transactions 167 508 --
- --------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Proceeds from shares issued -- -- 236
Proceeds from shares issued upon reorganization of the
Technology Fund into the New Enterprise Fund -- -- --
Proceeds from shares issued in lieu of cash distributions -- -- --
Cost of shares redeemed -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor Class Shares
transactions -- -- 236
- --------------------------------------------------------------------------------------------------------------------------------
Retirement Class Shares
Proceeds from shares issued -- -- --
Proceeds from shares issued in lieu of cash distributions -- -- --
Cost of shares redeemed -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Retirement Class Shares transactions -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share
transactions 167 508 236
- --------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 203 580 237
- --------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 580 -- --
- --------------------------------------------------------------------------------------------------------------------------------
End of period $ 783 $ 580 $ 237
================================================================================================================================
Undistributed net investment income
(accumulated net investment loss) $ 1 $ 5 $ --
================================================================================================================================
Shares issued and redeemed:
Institutional Class Shares
Issued 19 51 --
Issued in lieu of cash distributions 2 -- --
Redeemed (7) -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in Institutional Class Shares 14 51 --
- --------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Issued -- -- 23
Issued upon reorganization of the Technology Fund into the New -- -- --
Enterprise Fund
Issued in lieu of cash distributions -- -- --
Redeemed -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Shares -- -- 23
- --------------------------------------------------------------------------------------------------------------------------------
Retirement Class Shares
Issued -- -- --
Issued in lieu of cash distributions -- -- --
Redeemed -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in Retirement Class Shares -- -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions 14 51 23
================================================================================================================================
- --------------------------------------------------------------------------------
Turner Midcap Turner New
Growth Fund Enterprise Fund
---------------------------------------------------------------------
10/1/06 thru year ended 10/1/06 thru year ended
3/31/07 (unaudited) 9/30/06 3/31/07 (unaudited) 9/30/06
- ------------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (3,221) $ (3,286) $ (128) $ (184)
Net realized gain (loss) from securities sold 51,274 76,426 2,171 (1,292)
Net unrealized appreciation (depreciation) on investments 51,721 (35,031) 124 560
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 99,774 38,109 2,167 (916)
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Institutional Class Shares -- -- -- --
Investor Class Shares -- -- -- --
Retirement Class Shares -- -- -- --
Realized capital gains
Institutional Class Shares -- -- -- --
Investor Class Shares -- -- -- --
Retirement Class Shares -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Institutional Class Shares
Proceeds from shares issued -- -- -- --
Proceeds from shares issued in lieu of cash distributions -- -- -- --
Cost of shares redeemed -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Institutional Class Shares
transactions -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Proceeds from shares issued 133,517 405,746 2,516 24,113
Proceeds from shares issued upon reorganization of the
Technology Fund into the New Enterprise Fund -- -- -- 10,445
Proceeds from shares issued in lieu of cash distributions -- -- -- --
Cost of shares redeemed (255,556) (286,382) (8,308) (18,746)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor Class
Shares transactions (122,039) 119,364 (5,792) 15,812
- ------------------------------------------------------------------------------------------------------------------------------------
Retirement Class Shares
Proceeds from shares issued 3,451 1,595 -- --
Proceeds from shares issued in lieu of cash distributions -- -- -- --
Cost of shares redeemed (734) (986) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Retirement Class Shares
transactions 2,717 609 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share (119,322) 119,973 (5,792) 15,812
transactions
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (19,548) 158,082 (3,625) 14,896
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 1,115,645 957,563 24,040 9,144
- ------------------------------------------------------------------------------------------------------------------------------------
End of period $ 1,096,097 $ 1,115,645 $ 20,415 $ 24,040
====================================================================================================================================
Undistributed net investment income
(accumulated net investment loss) $ (3,221) $ -- $ (128) $ --
====================================================================================================================================
Shares issued and redeemed:
Institutional Class Shares
Issued -- -- -- --
Issued in lieu of cash distributions -- -- -- --
Redeemed -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in Institutional Class Shares -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Issued 4,528 14,224 368 3,566
Issued upon reorganization of the Technology Fund into
the New Enterprise Fund -- -- -- 1,675
Issued in lieu of cash distributions -- -- -- --
Redeemed (8,657) (10,145) (1,219) (2,960)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Shares (4,129) 4,079 (851) 2,281
- ------------------------------------------------------------------------------------------------------------------------------------
Retirement Class Shares
Issued 119 57 -- --
Issued in lieu of cash distributions -- -- -- --
Redeemed (26) (37) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in Retirement Class Shares 93 20 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions (4,036) 4,099 (851) 2,281
====================================================================================================================================
Turner Small Cap Turner Small Cap
Equity Fund Growth Fund
---------------------------------------------------------------------
10/1/06 thru year ended 10/1/06 thru year ended
3/31/07 (unaudited) 9/30/06 3/31/07 (unaudited) 9/30/06
- ------------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (218) $ (300) $ (886) $ (2,093)
Net realized gain (loss) from securities sold 5,265 5,261 16,044 39,786
Net unrealized appreciation (depreciation) on investments 1,921 (1,840) 19,968 (21,999)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations 6,968 3,121 35,126 15,694
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Institutional Class Shares -- -- -- --
Investor Class Shares -- -- -- --
Retirement Class Shares -- -- -- --
Realized capital gains
Institutional Class Shares -- -- -- --
Investor Class Shares (5,701) -- -- --
Retirement Class Shares -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (5,701) -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Institutional Class Shares
Proceeds from shares issued -- -- -- --
Proceeds from shares issued in lieu of cash distributions -- -- -- --
Cost of shares redeemed -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Institutional Class Shares
transactions -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Proceeds from shares issued 3,943 21,402 51,872 114,978
Proceeds from shares issued upon reorganization of the
Technology Fund into the New Enterprise Fund -- -- -- --
Proceeds from shares issued in lieu of cash distributions 5,671 -- -- --
Cost of shares redeemed (16,542) (10,896) (41,248) (139,550)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor Class
Shares transactions (6,928) 10,506 10,624 (24,572)
- ------------------------------------------------------------------------------------------------------------------------------------
Retirement Class Shares
Proceeds from shares issued -- -- -- --
Proceeds from shares issued in lieu of cash distributions -- -- -- --
Cost of shares redeemed -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Retirement Class Shares
transactions -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share (6,928) 10,506 10,624 (24,572)
transactions
- ------------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (5,661) 13,627 45,750 (8,878)
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 81,340 67,713 248,271 257,149
- ------------------------------------------------------------------------------------------------------------------------------------
End of period $ 75,679 $ 81,340 $ 294,021 $ 248,271
====================================================================================================================================
Undistributed net investment income
(accumulated net investment loss) $ (218) $ -- $ (876) $ 10
====================================================================================================================================
Shares issued and redeemed:
Institutional Class Shares
Issued -- -- -- --
Issued in lieu of cash distributions -- -- -- --
Redeemed -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in Institutional Class Shares -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Issued 229 1,231 1,805 4,244
Issued upon reorganization of the Technology Fund into
the New Enterprise Fund -- -- -- --
Issued in lieu of cash distributions 336 -- -- --
Redeemed (947) (647) (1,435) (5,180)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Shares (382) 584 370 (936)
- ------------------------------------------------------------------------------------------------------------------------------------
Retirement Class Shares
Issued -- -- -- --
Issued in lieu of cash distributions -- -- -- --
Redeemed -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in Retirement Class Shares -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions (382) 584 370 (936)
====================================================================================================================================
(1) Commencement of Operations.
Amounts designated as "--" are either not applicable, $0, or have been rounded
to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 46 & 47
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 Total
beginning income (losses) on investment investment capital dividends and
of period (loss) investments operations income gains distributions
- ------------------------------------------------------------------------------------------------------------
Turner Concentrated Growth Fund -- Investor Class Shares
- --------------------------------------------------------
2007* $ 7.60 (0.02) (3) 0.51 0.49 -- -- --
2006 $ 7.10 (0.08) (3) 0.58 0.50 -- -- --
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) -- -- --
- -----------------------------------------------------
Turner Core Growth Fund -- Institutional Class Shares
- -----------------------------------------------------
2007* $ 11.65 0.05 0.81 0.86 (0.05) -- (0.05)
2006 $ 10.93 0.06 0.69 0.75 (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) -- -- --
- ------------------------------------------------
Turner Core Growth Fund -- Investor Class Shares
- ------------------------------------------------
2007* $ 11.61 0.03 0.81 0.84 (0.03) -- (0.03)
2006 $ 10.93 0.07 0.64 0.71 (0.03) -- (0.03)
2005 (2) $ 10.58 -- 0.35 0.35 -- -- --
- ----------------------------------------------------
Turner Emerging Growth Fund -- Investor Class Shares
- ----------------------------------------------------
2007* $ 55.97 (0.14) (3) 6.80 6.66 -- (5.22) (5.22)
2006 $ 56.46 (0.32) (3) 3.02 2.70 -- (3.19) (3.19)
2005 $ 50.02 (0.46) (3) 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 (5) (0.04) -- -- --
- -------------------------------------------------------------------
Turner International Core Growth Fund -- Institutional Class Shares
- -------------------------------------------------------------------
2007* (6) $ 10.00 0.02 (3) 0.16 0.18 -- -- --
- ----------------------------------------------------------
Turner Large Cap Growth Fund -- Institutional Class Shares
- ----------------------------------------------------------
2007* $ 5.58 0.01 (3) 0.30 0.31 (0.02) -- (0.02)
2006 $ 5.41 0.01 (3) 0.17 0.18 (0.01) -- (0.01)
2005 $ 4.83 0.01 (3) 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) -- -- --
- -----------------------------------------------------
Turner Large Cap Growth Fund -- Investor Class Shares
- -----------------------------------------------------
2007* (6) $ 5.92 0.01 (0.06) (0.05) -- -- --
- ---------------------------------------------------------
Turner Large Cap Value Fund -- Institutional Class Shares
- ---------------------------------------------------------
2007* $ 11.44 0.08 (3) 0.91 0.99 (0.15) (0.22) (0.37)
2006 (4) $ 10.00 0.16 (3) 1.33 1.49 (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 Concentrated Growth Fund -- Investor Class Shares
- --------------------------------------------------------
2007* $ 8.09 6.45%+ $ 35,400 0.96% 1.21% (0.59)% 80.19%
2006 $ 7.60 7.04% $ 38,180 1.59% 1.79% (1.01)% 250.81%
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%
- -----------------------------------------------------
Turner Core Growth Fund -- Institutional Class Shares
- -----------------------------------------------------
2007* $ 12.46 7.37%+ $ 137,125 0.67% 1.09% 0.36% 50.40%
2006 $ 11.65 6.91% $ 71,935 0.59% 1.20% 0.77% 123.67%
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%
- ------------------------------------------------
Turner Core Growth Fund -- Investor Class Shares
- ------------------------------------------------
2007* $ 12.42 7.20%+ $ 26,676 0.94% 1.34% 0.08% 50.40%
2006 $ 11.61 6.52% $ 23,418 0.94% 1.43% 0.23% 123.67%
2005 (2) $ 10.93 3.31%+ $ 1 0.83% 2.50% 0.33% 136.36%
- ----------------------------------------------------
Turner Emerging Growth Fund -- Investor Class Shares
- ----------------------------------------------------
2007* $ 57.41 12.08%+ $ 592,327 1.40% 1.46% (0.49)% 53.38%
2006 $ 55.97 4.95% $ 565,227 1.40% 1.44% (0.57)% 77.87%
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%
- -------------------------------------------------------------------
Turner International Core Growth Fund -- Institutional Class Shares
- -------------------------------------------------------------------
2007* (6) $ 10.18 1.80%+ $ 1,013 1.14% 6.02% 1.19% 29.01%
- ----------------------------------------------------------
Turner Large Cap Growth Fund -- Institutional Class Shares
- ----------------------------------------------------------
2007* $ 5.87 5.50%+ $ 22,861 0.71% 1.30% 0.24% 51.71%
2006 $ 5.58 3.40% $ 19,510 0.75% 1.16% 0.26% 194.17%
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%
- -----------------------------------------------------
Turner Large Cap Growth Fund -- Investor Class Shares
- -----------------------------------------------------
2007* (6) $ 5.87 (0.84)%+ $ 2 0.30% 0.74% 1.06% 51.71%
- ---------------------------------------------------------
Turner Large Cap Value Fund -- Institutional Class Shares
- ---------------------------------------------------------
2007* $ 12.06 8.70%+ $ 783 0.63% 5.41% 1.34% 124.51%
2006 (4) $ 11.44 14.92%+ $ 580 0.59% 7.71% 1.52% 251.67%
* For the six-month period ended March 31, 2007, unless otherwise indicated
(unaudited). All ratios for the period have been annualized.
** Amount represents less than $0.01 per share.
+ Total return is for the period indicated and has 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 August 1, 2005. All ratios for the period have
been annualized.
(3) Based on average shares outstanding.
(4) Commenced operations on October 10, 2005. All ratios for the period have
been annualized.
(5) 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.
(6) Commenced operations on January 31, 2007. All ratios for the period have
been annualized.
Amounts designated as "--" are either $0, or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 48 & 49
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Realized and
Net asset Net unrealized Total Dividends Distributions Tax
value, investment gains from from net from Return Total
beginning income (losses) on investment investment capital of dividends and
of period (loss) investments operations income gains Capital distributions
- -----------------------------------------------------------------------------------------------------------------------
Turner Midcap Equity Fund -- Institutional Class Shares
- -------------------------------------------------------
2007* (4) $ 10.00 0.01 0.14 0.15 -- -- -- --
- --------------------------------------------------
Turner Midcap Equity Fund -- Investor Class Shares
- --------------------------------------------------
2007* (4) $ 10.00 -- 0.13 0.13 -- -- -- --
- --------------------------------------------------
Turner Midcap Growth Fund -- Investor Class Shares
- --------------------------------------------------
2007* $ 27.63 (0.08) (1) 2.61 2.53 -- -- -- --
2006 $ 26.39 (0.08) (1) 1.32 1.24 -- -- -- --
2005 $ 20.99 (0.19) (1) 5.59 5.40 -- -- -- --
2004 $ 19.54 (0.18) (1) 1.63 1.45 -- -- -- --
2003 $ 13.78 (0.14) (1) 5.90 5.76 -- -- -- --
2002 $ 17.40 (0.14) (3.48) (3.62) -- -- -- --
- ----------------------------------------------------
Turner Midcap Growth Fund -- Retirement Class Shares
- ----------------------------------------------------
2007* $ 26.96 (0.15) (1) 2.56 2.41 -- -- -- --
2006 $ 25.89 (0.23) (1) 1.30 1.07 -- -- -- --
2005 $ 20.69 (0.30) (1) 5.50 5.20 -- -- -- --
2004 $ 19.36 (0.28) (1) 1.61 1.33 -- -- -- --
2003 $ 13.72 (0.23) (1) 5.87 5.64 -- -- -- --
2002 $ 17.41 (0.22) (1) (3.47) (3.69) -- -- -- --
- ---------------------------------------------------
Turner New Enterprise Fund -- Investor Class Shares
- ---------------------------------------------------
2007* $ 6.26 (0.04) (1) 0.61 0.57 -- -- -- --
2006 $ 5.86 (0.07) (1) 0.47 (2) 0.40 -- -- -- --
2005 $ 4.52 (0.03) 1.37 1.34 -- -- -- --
2004 $ 4.34 (0.06) 0.24 (2) 0.18 -- -- -- --
2003 $ 2.27 (0.02) 2.09 2.07 -- -- -- --
2002 $ 3.29 (0.04) (0.98) (1.02) -- -- -- --
- -----------------------------------------------------
Turner Small Cap Equity Fund -- Investor Class Shares
- -----------------------------------------------------
2007* $ 16.94 (0.05) (1) 1.54 1.49 -- (1.30) -- (1.30)
2006 $ 16.06 (0.07) (1) 0.95 0.88 -- -- -- --
2005 $ 13.92 (0.11) (1) 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 (3) $ 10.00 -- (0.70) (0.70) -- -- -- --
- -----------------------------------------------------
Turner Small Cap Growth Fund -- Investor Class Shares
- -----------------------------------------------------
2007* $ 26.17 (0.09) (1) 3.75 3.66 -- -- -- --
2006 $ 24.68 (0.21) (1) 1.70 1.49 -- -- -- --
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) -- -- -- --
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 Midcap Equity Fund -- Institutional Class Shares
- -------------------------------------------------------
2007* (4) $ 10.15 1.50%+ $ -- 0.62% 36.19% 0.61% 12.05%
- --------------------------------------------------
Turner Midcap Equity Fund -- Investor Class Shares
- --------------------------------------------------
2007* (4) $ 10.13 1.30%+ $ 237 1.17% 31.76% 0.18% 12.05%
- --------------------------------------------------
Turner Midcap Growth Fund -- Investor Class Shares
- --------------------------------------------------
2007* $ 30.16 9.16%+ $ 1,090,696 1.18% 1.21% (0.57)% 88.38%
2006 $ 27.63 4.70% $ 1,113,201 1.18% 1.18% (0.30)% 134.55%
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%
- ----------------------------------------------------
Turner Midcap Growth Fund -- Retirement Class Shares
- ----------------------------------------------------
2007* $ 29.37 8.94%+ $ 5,401 1.58% 1.62% (1.05)% 88.38%
2006 $ 26.96 4.13% $ 2,444 1.68% 1.68% (0.83)% 134.55%
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%
- ---------------------------------------------------
Turner New Enterprise Fund -- Investor Class Shares
- ---------------------------------------------------
2007* $ 6.83 9.11%+ $ 20,415 1.23% 1.67% (1.07)% 95.80%
2006 $ 6.26 6.83% $ 24,040 1.61% 2.06% (1.02)% 234.62%
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%
- -----------------------------------------------------
Turner Small Cap Equity Fund -- Investor Class Shares
- -----------------------------------------------------
2007* $ 17.13 8.94%+ $ 75,679 1.28% 1.65% (0.55)% 77.91%
2006 $ 16.94 5.48% $ 81,340 1.24% 1.70% (0.39)% 143.43%
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 (3) $ 9.30 (7.00)%+ $ 7,260 1.35% 3.02% (0.07)% 86.94%
- -----------------------------------------------------
Turner Small Cap Growth Fund -- Investor Class Shares
- -----------------------------------------------------
2007* $ 29.83 13.99%+ $ 294,021 1.25% 1.44% (0.63)% 65.75%
2006 $ 26.17 6.04% $ 248,271 1.25% 1.42% (0.79)% 154.27%
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%
* For the six-month period ended March 31, 2007, unless otherwise indicated
(unaudited). All ratios for the period have been annualized.
+ Total return is for the period indicated and has not been annualized.
++ Inclusive of fees paid indirectly, waivers and/or reimbursements.
+++ Excludes effect of in-kind transfers and mergers.
(1) Based on average shares outstanding.
(2) 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.
(3) Commenced operations on March 4, 2002. All ratios for the period have been
annualized.
(4) Commenced operations on January 31, 2007. All ratios for the period have
been annualized.
Amounts designated as "--" are either $0, or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 50 & 51
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
March 31, 2007
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, 2007. The
financial statements included herein are those of the Turner Concentrated Growth
Fund (the "Concentrated Growth Fund"), the Turner Core Growth Fund (the "Core
Growth Fund"), the Turner Emerging Growth Fund (the "Emerging Growth Fund"), the
Turner International Core Growth Fund (the "International Core Growth Fund"),
the Turner Large Cap Growth Fund (the "Large Cap Growth Fund"), the Turner Large
Cap Value Fund (the "Large Cap Value Fund"), the Turner Midcap Equity Fund (the
"Midcap Equity Fund"), the Turner Midcap Growth Fund (the "Midcap Growth Fund"),
the Turner New Enterprise Fund (the "New Enterprise Fund"), the Turner Small Cap
Equity Fund (the "Small Cap Equity Fund") and the Turner Small Cap Growth Fund
(the "Small Cap Growth Fund"), each a "Fund" and collectively the "Funds." The
Large Cap Value Fund commenced operations on October 10, 2005. The International
Core Growth Fund and the Midcap Equity Fund commenced operations on January 31,
2007.
Each Fund is registered as a diversified portfolio of the Trust with the
exception of the Large Cap Growth Fund and the Concentrated Growth Fund, each of
which are non-diversified.
The Funds are registered to offer different classes of shares: Institutional
Class Shares, Investor Class Shares, Retirement Class Shares, or a combination
of the three. 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, Institutional Class
Shares, equal in dollar value and in the number of shares of the Constellation
TIP Core Growth Fund.
On September 27, 2006, the assets of the Turner Technology Fund (the "Technology
Fund") were reorganized into the New Enterprise Fund. Under the Agreement and
Plan of Reorganization, 1,589,625 shares of the Technology Fund were exchanged
for 1,674,572 shares of the New Enterprise Fund in a tax-free exchange.
Upon the business combination of such Funds on September 27, 2006, the net
assets of the Technology Fund, which included paid-in-capital of $137,747,073,
accumulated realized losses of $129,088,165 and unrealized gains of $1,786,570,
combined with the New Enterprise Fund were $24,141,573. The aggregate net assets
of the Technology and New Enterprise Funds immediately before the reorganization
were $10,445,478 and $13,696,095, respectively.
The Emerging Growth, Small Cap Equity and Small Cap Growth Funds were closed to
new investors on March 7, 2000, May 1, 2005 and July 31, 2004, respectively.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of the significant accounting policies followed by
the Funds.
USE OF ESTIMATES--The preparation of financial statements in conformity
with 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. The prices for foreign securities are
reported in local currency and converted to U.S. dollars using currency
exchange rates. 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 "Board"). The Funds' Fair Value Procedures are implemented
through a Fair Value Committee (the "Committee") designated by the Board.
Some of the more common reasons that may necessitate that a security be
valued using Fair Value Procedures include: the security's trading has
been halted or suspended;
52 | TURNER FUNDS 2007 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
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; the security has not been traded for an
extended period of time; the security's primary pricing source is not able
or willing to provide a price; or trading of the security is subject to
local government-imposed restrictions. 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.
For securities that principally trade on a foreign market or exchange, a
significant gap in time can exist between the time of a particular
security's last trade and the time at which a Fund calculates its net
asset value. The closing prices of such securities may no longer reflect
their market value at the time the Fund calculates net asset value if an
event that could materially affect the value of those securities (a
"Significant Event") has occurred between the time of the security's last
close and the time that the Fund calculates net asset value. A Significant
Event may relate to a single issuer or to an entire market sector. If the
Adviser of the Fund becomes aware of a Significant Event that has occurred
with respect to a security or group of securities after the closing of the
exchange or market on which the security or securities principally trade,
but before the time at which the Fund calculates net asset value, it may
request that a Committee meeting be called. In addition, the Fund's
Administrator monitors price movements among certain selected indices,
securities and/or baskets of securities that may be an indicator that the
closing prices received earlier from foreign exchanges or markets may not
reflect market value at the time the Fund calculates net asset value. If
price movements in a monitored index or security exceed levels established
by the Administrator and approved by the Committee, the Administrator
notifies the Adviser for any Fund holding the relevant securities that
such limits have been exceeded. In such event, the Adviser makes the
determination whether a Committee meeting should be called based on the
information provided.
The Fund uses FT Interactive Data Corp. ("FT") as a third party fair
valuation vendor. FT provides a fair value for foreign securities in the
International Core Growth Fund based on certain factors and methodologies
(involving, generally, tracking valuation correlations between the U.S.
market and each non-U.S. security) applied by FT in the event that there
is a movement in the U.S. market that exceeds a specific threshold
established by the Committee. The Committee establishes a "confidence
interval" which is used to determine the level of correlation between the
value of a foreign security and movements in the U.S. market before a
particular security is fair valued when the threshold is exceeded. In the
event that the threshold established by the Committee is exceeded on a
specific day, the International Core Growth Fund values its non-U.S.
securities that exceed the applicable "confidence interval" based upon the
fair values provided by FT. In such event, it is not necessary to hold a
Committee meeting. In the event that the Adviser believes that the fair
values provided by FT are not reliable, the Adviser contacts the
International Core Growth Fund's Administrator and may request that a
meeting of the Committee be held.
If a local market in which the International Core Growth Fund owns
securities is closed for one or more days or a portion of a day, the
International Core Growth Fund shall value all securities held in that
corresponding currency based on the fair value prices provided by FT using
the predetermined confidence interval discussed above.
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.
FOREIGN CURRENCY TRANSLATION--The books and records of the International
Core Growth Fund are maintained in U.S. dollars. Investment securities and
other assets and liabilities denominated in a foreign currency are
translated into U.S. dollars on the date of valuation. The International
Core Growth Fund does not isolate that portion of realized or unrealized
gains and losses resulting from changes in the foreign exchange rate from
fluctuations arising from changes in the market prices of the securities.
These gains and losses are included in net realized and unrealized gains
and losses on investments on the Statement of Operations. Net realized and
unrealized gains and losses on foreign currency transactions represent net
foreign exchange gains or losses from foreign currency exchange contracts,
disposition of foreign currencies, currency gains or losses realized
between trade and settlement dates on securities transactions and the
difference between the amount of the investment income and foreign
withholding taxes recorded on the International Core Growth Fund's books
and the U.S. dollar equivalent amounts actually received or paid.
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.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 53
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 Co. (the "Distributor") provides distribution
services to the Funds under a Distribution Agreement. Prior to January 1, 2006,
Constellation Investment Distribution Company, Inc. provided distribution
services to the Funds.
4. ADMINISTRATION, SHAREHOLDER SERVICING, AND DISTRIBUTION AGREEMENTS:
Turner provides administrative services to the Funds under Administration
Agreements 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. Prior to February 1, 2007, Turner had contractually agreed to limit its
administrator fee in the Core Growth Fund, Institutional Class Shares to 0.05%
through January 31, 2007. Effective February 1, 2007, Turner has discontinued
this arrangement. 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, 2007, SEI was paid $487,707 by Turner.
The Funds have adopted a Distribution Plan for Investor Class and Retirement
Class Shares (the "Distribution Plan") under which firms, including the
Distributor, that provide distribution services may receive compensation. Under
the Distribution Plan, which was adopted pursuant to Rule 12b-1 under the
Investment Company Act of 1940, as amended, the Distributor is entitled to
receive aggregate fees for distribution services not exceeding seventy-five
basis points (0.75%) of the Fund's average daily net assets attributable to
Investor Class or Retirement Class Shares that are subject to the arrangement in
return for providing a broad range of distribution services. Currently, the
Retirement Class Shares of the Midcap Growth Fund pay the Distributor 0.25% in
distribution fees.
The Funds have also adopted Shareholder Services Plans (the "Shareholder
Services Plans"). Under the Shareholder Services Plans, Service Providers are
entitled to receive aggregate fees for shareholder services not exceeding
twenty-five basis points (0.25%) of each Fund's average daily net assets
attributable to Investor Class and Retirement Class Shares that are subject to
the arrangement in return for providing shareholder services. Currently,
Investor Class Shares of the Concentrated Growth Fund, Core Growth Fund,
Emerging Growth Fund, Large Cap Growth Fund, Midcap Equity Fund, Midcap Growth
Fund, New Enterprise Fund, Small Cap Equity Fund, and Small Cap Growth Fund, and
Retirement Class Shares of the Midcap Growth Fund pay 0.25% in shareholder
servicing fees.
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, 2007:
AMOUNT
---------
Concentrated Growth Fund $ 14,998
Core Growth Fund 24,442
Emerging Growth Fund 357,251
International Core Growth Fund --
Large Cap Growth Fund 17,578
Large Cap Value Fund --
Midcap Equity Fund --
Midcap Growth Fund 627,385
New Enterprise Fund 7,642
Small Cap Equity Fund 46,097
Small Cap Growth Fund 118,599
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
Amended and Restated Advisory Agreement dated November 17, 2006, Turner
Investment Management LLC, an affiliate of Turner, serves as the investment
adviser for the Small Cap Equity Fund and Midcap Equity Fund.
For their 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
54 | TURNER FUNDS 2007 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
and reimbursements may be terminated at any time. Accordingly, the advisory fee
and expense caps for certain Funds are as follows:
ADVISORY FEES TOTAL EXPENSE CAP(8)
------------- --------------------
Core Growth Fund 0.75% 0.69%(1),(3)
Emerging Growth Fund 1.00 1.40
International Core Growth Fund 0.85 1.10(1)
Large Cap Growth Fund 0.60 0.69(1)(4)
Large Cap Value Fund 0.60 0.69(5)
Midcap Equity Fund 0.75 0.90
Midcap Growth Fund 0.75 1.18(2)(6)
Small Cap Equity Fund 0.95 1.45(7)
Small Cap Growth Fund 1.00 1.25
(1) REPRESENTS MAXIMUM EXPENSE CAP FOR INSTITUTIONAL CLASS SHARES WHERE FUNDS
OFFER BOTH INSTITUTIONAL CLASS SHARES AND INVESTOR CLASS SHARES.
(2) REPRESENTS MAXIMUM EXPENSE CAP FOR INVESTOR CLASS SHARES WHERE FUNDS OFFER
BOTH INVESTOR CLASS SHARES AND RETIREMENT CLASS SHARES.
(3) PRIOR TO FEBRUARY 1, 2007, THE MAXIMUM EXPENSE CAP FOR THE FUND WAS 0.59%.
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%.
(4) PRIOR TO FEBRUARY 1, 2007, THE MAXIMUM EXPENSE CAP FOR THE FUND WAS 0.75%.
(5) PRIOR TO FEBRUARY 1, 2007, THE MAXIMUM EXPENSE CAP FOR THE FUND WAS 0.59%.
(6) PRIOR TO FEBRUARY 1, 2007, THE MAXIMUM EXPENSE CAP FOR THE FUND WAS 1.25%.
(7) PRIOR TO FEBRUARY 1, 2007, THE MAXIMUM EXPENSE CAP FOR THE FUND WAS 1.20%.
PRIOR TO DECEMBER 1, 2005, THE MAXIMUM EXPENSE CAP FOR THE FUND WAS 1.45%.
(8) TURNER INVESTMENT PARTNERS, INC. HAS CONTRACTUALLY AGREED TO WAIVE FUND
EXPENSES TO KEEP THE NET TOTAL OPERATING EXPENSES FOR THE CORE GROWTH
FUND, EMERGING GROWTH FUND, INTERNATIONAL CORE GROWTH FUND, LARGE CAP
GROWTH FUND, LARGE CAP VALUE FUND, MIDCAP EQUITY FUND, MIDCAP GROWTH FUND,
AND THE SMALL CAP GROWTH FUND FROM EXCEEDING 0.69%, 1.40%, 1.10%, 0.69%,
0.69%, 0.90%, 1.18%, AND 1.25%, RESPECTIVELY, THROUGH JANUARY 31, 2008.
TURNER INVESTMENT MANAGEMENT LLC HAS CONTRACTUALLY AGREED TO WAIVE FUND
EXPENSES TO KEEP THE NET TOTAL OPERATING EXPENSES FOR THE SMALL CAP EQUITY
FUND FROM EXCEEDING 1.45% THROUGH JANUARY 31, 2008.
For the remaining Funds, the advisory fee is comprised of a base fee and a
performance adjustment that increases or decreases the total fee depending upon
the performance of the Fund relative to the Fund's performance benchmark. The
Fund's base fee (1.10% for all Funds) is accrued daily and paid monthly, based
on the Fund's average net assets during the current month.
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
-------- ---------- ------------ --------
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, 2007, the Funds' advisory fees, before
waivers, were adjusted in accordance with the policy described above:
NET
BASE ADVISORY
ADVISORY PERFORMANCE FEE BEFORE
FEE ADJUSTMENT WAIVERS
--------- ----------- ----------
Concentrated Growth Fund $ 208,509 $ (74,619) $ 133,890
New Enterprise Fund 131,042 (14,480) 116,562
6. REDEMPTION FEES:
Sales or exchanges out of the Core Growth Fund, Large Cap Value Fund, New
Enterprise Fund and the Small Cap Equity Fund, within 90 days of purchase are
not currently subject to a redemption fee of 2.00%, but may be in the future.
The Funds will provide notice to shareholders before they implement the
redemption fee.
7. 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, 2007 were as follows
(000):
PURCHASES SALES
(000) (000)
--------- ----------
Concentrated Growth Fund $ 29,981 $ 35,429
Core Growth Fund 122,429 65,044
Emerging Growth Fund 276,943 320,421
International Core Growth Fund 1,262 273
Large Cap Growth Fund 13,602 11,312
Large Cap Value Fund 1,005 848
Midcap Equity Fund 259 28
Midcap Growth Fund 986,122 1,092,207
New Enterprise Fund 22,471 28,073
Small Cap Equity Fund 60,278 71,492
Small Cap Growth Fund 189,572 179,968
TURNER FUNDS 2007 SEMIANNUAL REPORT | 55
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
8. 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 determined under accounting
principles generally accepted in the United States of America. These book/tax
differences are either temporary or permanent in nature. These differences are
primarily due to wash sales, REIT adjustments 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, 2006 and September 30, 2005 were as follows (000):
ORDINARY LONG-TERM
INCOME CAPITAL GAIN TOTAL
-------- ------------ --------
Core Growth Fund
2006 $ 163 $ -- $ 163
2005 -- -- --
Emerging Growth Fund
2006 $ 8,774 $ 20,741 $ 29,515
2005 7,955 40,633 48,588
Large Cap Growth Fund
2006 $ 109 $ -- $ 109
2005 53 -- 53
Large Cap Value Fund
2006* $ 2 $ -- $ 2
* Period from inception October 10, 2005 through September 30, 2006.
As of September 30, 2006, 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)
------------- ------------- ------------ ------- -------------- -------------
Concentrated Growth Fund $ -- $ -- $ (156,432) $ -- $ 5,274 $ (151,158)
Core Growth Fund 380 -- (1,778) (630) 8,130 6,102
Emerging Growth Fund -- 49,569 -- -- 114,065 163,634
Large Cap Growth Fund 54 -- (16,253) -- 2,327 (13,872)
Large Cap Value Fund 17 -- -- -- 55 72
Midcap Growth Fund -- -- (417,047) -- 163,474 (253,573)
New Enterprise Fund -- -- (12,084) (1,421) 4,073 (9,432)
Small Cap Equity Fund -- 5,139 -- -- 6,799 11,938
Small Cap Growth Fund -- -- (92,222) -- 24,376 (67,846)
Post-October losses represent losses realized on investment transactions from
November 1, 2005 through September 30, 2006 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.
56 | TURNER FUNDS 2007 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
At September 30, 2006, 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 2014 TOTAL
-------- --------- --------- ----- ----- ---------
Concentrated Growth Fund $ 11,053 $ 132,529 $ 12,850 $ -- $ -- $ 156,432
Core Growth Fund -- -- 1,578 -- 200 1,778
Large Cap Growth Fund -- 1,115 15,138 -- -- 16,253
Midcap Growth Fund -- 287,548 129,499 -- -- 417,047
New Enterprise Fund 674 10,777 385 248 -- 12,084
Small Cap Growth Fund -- 66,228 25,994 -- -- 92,222
During the year ended September 30, 2006, the Concentrated Growth Fund, Large
Cap Growth Fund, Midcap Growth Fund, New Enterprise Fund, Small Cap Equity Fund,
and the Small Cap Growth Fund utilized capital loss carryforwards of $19,327,
$7,503,703, $77,515,658, $140,979, $210,551 and $39,832,013, respectively, to
offset capital gains.
At March 31, 2007, the total cost of securities for Federal income tax purposes
and the aggregate gross unrealized appreciation and depreciation for the
securities held by the Funds were as follows (000):
NET
FEDERAL UNREALIZED UNREALIZED UNREALIZED
FUND TAX COST APPRECIATION DEPRECIATION APPRECIATION
- ---- ---------- ------------ ------------ ------------
Concentrated Growth Fund $ 34,986 $ 5,793 $ (471) $ 5,322
Core Growth Fund 151,231 17,497 (2,478) 15,019
Emerging Growth Fund 711,600 143,261 (5,789) 137,472
International Core Growth Fund 1,009 31 (15) 16
Large Cap Growth Fund 19,890 3,416 (336) 3,080
Large Cap Value Fund 718 72 (3) 69
Midcap Equity Fund 237 8 (6) 2
Midcap Growth Fund 1,044,584 231,683 (15,731) 215,952
New Enterprise Fund 24,447 4,534 (334) 4,200
Small Cap Equity Fund 70,655 9,692 (807) 8,885
Small Cap Growth Fund 435,879 51,116 (6,693) 44,423
9. 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.
10. 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 -- Enhanced 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.
TURNER FUNDS 2007 SEMIANNUAL REPORT | 57
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
11. NEW ACCOUNTING PRONOUNCEMENTS:
In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB
interpretation 48 ("FIN 48"), "Accounting for Uncertainty in Income Taxes." This
standard defines the threshold for recognizing the benefits of tax-return
positions in the financial statements as "more-likely-than-not" to be sustained
by the taxing authority and requires measurement of a tax position meeting the
more-likely-than-not criterion, based on the largest benefit that is more than
50 percent likely to be realized. FIN 48 is effective as of the beginning of the
first fiscal year beginning after December 15, 2006. At adoption, companies must
adjust their financial statements to reflect only those tax positions that are
more-likely-than-not to be sustained as of the adoption date. As of March 31,
2007, the Fund has not evaluated the impact that will result from adopting FIN
48.
In September 2006, the FASB issued Statement on Financial Accounting Standards
("SFAS") No. 157, "Fair Value Measurements." This standard establishes a single
authoritative definition of fair value, sets out a framework for measuring fair
value and requires additional disclosures about fair value measurements. SFAS
No. 157 applies to fair value measurements already required or permitted by
existing standards. SFAS No. 157 is effective for financial statements issued
for fiscal years beginning after November 15, 2007 and interim periods within
those fiscal years. The changes to current generally accepted accounting
principles from the application of this Statement relate to the definition of
fair value, the methods used to measure fair value, and the expanded disclosures
about fair value measurements. As of March 31, 2007, the Funds do not believe
the adoption of SFAS No. 157 will impact the financial statement amounts,
however, additional disclosures may be required about the inputs used to develop
the measurements and the effect of certain of the measurements on changes in net
assets for the period.
58 | TURNER FUNDS 2007 SEMIANNUAL REPORT
BOARD OF TRUSTEES CONSIDERATIONS IN APPROVING THE ADVISORY AGREEMENT (Unaudited)
- --------------------------------------------------------------------------------
BOARD OF TRUSTEES CONSIDERATIONS IN APPROVING THE ADVISORY AGREEMENT
On February 9, 2007, 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 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 years versus each Fund's respective peer group; (3)
the contractual and actual compensation to be paid under the 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,
2006; (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 of 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. The Board deliberated on the approval of the Advisory Agreements
in light of this information. In its deliberations, the Board 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 Adviser 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 other than the Concentrated Growth Fund were below their
respective medians). The independent Trustees also discussed that the
Concentrated Growth Fund's net expense ratio was high due to the
performance-based component of its advisory fee. The independent Trustees also
concluded that: they were satisfied with the quality of services provided by the
Adviser in advising the Funds; the profits earned by the Adviser seemed
reasonable in light of the nature, extent and quality of the services provided
to each Fund; and that each Fund was not large enough to attain significant
economies of scale.
Based on the Board's deliberations and its evaluation of the information
described above, the Trustees, including all of the non-interested Trustees,
unanimously: (a) concluded that the 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 2007 SEMIANNUAL REPORT | 59
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
10/1/06 3/31/07 RATIOS PERIOD*
- --------------------------------------------------------------------------------------------------------------------
Turner Concentrated Growth Fund - Investor Class Shares
- --------------------------------------------------------------------------------------------------------------------
Actual Fund Return $1,000.00 $1,064.50 0.96% $4.94
Hypothetical 5% Return 1,000.00 1,020.14 0.96 4.84
- --------------------------------------------------------------------------------------------------------------------
Turner Core Growth Fund - Institutional Class Shares
- --------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,073.70 0.67 3.46
Hypothetical 5% Return 1,000.00 1,021.59 0.67 3.38
- --------------------------------------------------------------------------------------------------------------------
Turner Core Growth Fund - Investor Class Shares
- --------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,072.00 0.94 4.86
Hypothetical 5% Return 1,000.00 1,020.24 0.94 4.73
- --------------------------------------------------------------------------------------------------------------------
Turner Emerging Growth Fund - Investor Class Shares
- --------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,120.80 1.40 7.40
Hypothetical 5% Return 1,000.00 1,017.95 1.40 7.04
- --------------------------------------------------------------------------------------------------------------------
Turner International Core Growth Fund - Institutional Class Shares
- --------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,018.00 1.14 1.86**
Hypothetical 5% Return 1,000.00 1,019.25 1.14 1.86**
- --------------------------------------------------------------------------------------------------------------------
Turner Large Cap Growth Fund - Institutional Class Shares
- --------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,055.00 0.71 3.64
Hypothetical 5% Return 1,000.00 1,021.39 0.71 3.58
- --------------------------------------------------------------------------------------------------------------------
Turner Large Cap Growth Fund - Investor Class Shares
- --------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 991.60 0.30 0.48**
Hypothetical 5% Return 1,000.00 1,023.44 0.30 0.49**
- --------------------------------------------------------------------------------------------------------------------
Turner Large Cap Value Fund - Institutional Class Shares
- --------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,087.00 0.63 3.28
Hypothetical 5% Return 1,000.00 1,021.79 0.63 3.18
- --------------------------------------------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/1/06 3/31/07 RATIOS PERIOD*
- --------------------------------------------------------------------------------------------------------------------
Turner Midcap Equity Fund - Institutional Class Shares
- --------------------------------------------------------------------------------------------------------------------
Actual Fund Return $1,000.00 $1,015.00 0.62% $1.01**
Hypothetical 5% Return 1,000.00 1,021.84 0.62 1.01**
- --------------------------------------------------------------------------------------------------------------------
Turner Midcap Equity Fund - Investor Class Shares
- --------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,013.00 1.17 1.90**
Hypothetical 5% Return 1,000.00 1,019.10 1.17 1.91**
- --------------------------------------------------------------------------------------------------------------------
Turner Midcap Growth Fund - Investor Class Shares
- --------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,091.60 1.18 6.15
Hypothetical 5% Return 1,000.00 1,019.05 1.18 5.94
- --------------------------------------------------------------------------------------------------------------------
Turner Midcap Growth Fund - Retirement Class Shares
- --------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,089.40 1.58 8.23
Hypothetical 5% Return 1,000.00 1,017.05 1.58 7.95
- --------------------------------------------------------------------------------------------------------------------
Turner New Enterprise Fund - Investor Class Shares
- --------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,091.10 1.23 6.41
Hypothetical 5% Return 1,000.00 1,018.80 1.23 6.19
- --------------------------------------------------------------------------------------------------------------------
Turner Small Cap Equity Fund - Investor Class Shares
- --------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,089.40 1.28 6.67
Hypothetical 5% Return 1,000.00 1,018.55 1.28 6.44
- --------------------------------------------------------------------------------------------------------------------
Turner Small Cap Growth Fund - Investor Class Shares
- --------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 1,139.90 1.25 6.67
Hypothetical 5% Return 1,000.00 1,018.70 1.25 6.29
- --------------------------------------------------------------------------------------------------------------------
* Unless otherwise indicated, 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 10/1/06 -
3/31/07).
** Expenses are equal to the Fund's annualized expense ratio multiplied by
the average account value over the period, multiplied by 59/365 (to
reflect the period from inception to date, 2/1/07 - 3/31/07).
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TURNER FUNDS 2007 SEMIANNUAL REPORT | 63
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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 and
Midcap 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.
64 | TURNER FUNDS 2007 SEMIANNUAL REPORT
[TURNER FUNDS LOGO]
------------------------------------------
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-002-0501
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 registrant's principal executive officer and principal financial
officer, concluded that the registrant's disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940) were
effective as of a date within 90 days of the filing date of this report (the
"Evaluation Date"), based on their evaluation of the effectiveness of the
registrant's disclosure controls and procedures required by Rule 30a-3(b) under
the Investment Company Act of 1940 and Rule 13a-15(b) or 15d-15(b) under the
Securities Exchange Act of 1934.
(b) There were no significant changes in the registrant's internal control over
financial reporting that occurred during the registrant's last fiscal quarter
that have materially affected, or are reasonably likely to materially affect,
the registrant's 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
Date: June 6, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /s/ Thomas R. Trala, Jr.
---------------------------------------
Thomas R. Trala, Jr., President
Date: June 6, 2007
By (Signature and Title)* /s/ Michael Lawson
---------------------------------------
Michael Lawson, Controller and
Chief Financial Officer
Date: June 6, 2007
* Print the name and title of each signing officer under his or her signature.