UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-07527
TURNER FUNDS
(Exact name of registrant as specified in charter)
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1205 Westlakes Drive, Suite 100
Berwyn, PA 19312
(Address of principal executive offices) (Zip code)
Turner Funds
P.O. Box 219805
Kansas City, MO 64121-9805
(Name and address of agent for service)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-800-224-6312
DATE OF FISCAL YEAR END: SEPTEMBER 30, 2008
DATE OF REPORTING PERIOD: MARCH 31, 2008
ITEM 1. REPORTS TO STOCKHOLDERS.
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[TURNER FUNDS LOGO] SEMIANNUAL REPORT
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March 31, 2008 (unaudited)
Turner Concentrated Growth Fund
Turner Core Growth Fund
Turner Emerging Growth Fund
Turner International Core Growth Fund
Turner Large Cap Growth Fund
Turner Midcap Equity Fund
Turner Midcap Growth Fund
Turner New Enterprise Fund
Turner Quantitative Large Cap Value 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 Midcap Equity Fund
13 Investment review:
Turner Midcap Growth Fund
14 Investment review:
Turner New Enterprise Fund
15 Investment review:
Turner Quantitative Large Cap Value Fund
16 Investment review:
Turner Small Cap Equity Fund
17 Investment review:
Turner Small Cap Growth Fund
18 Financial statements
50 Notes to financial statements
57 Board of Trustees considerations in approving the Advisory Agreements
58 Disclosure of fund expenses
TURNER FUNDS
As of March 31, 2008, 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
Quantitative Large Cap Value Fund) for regular accounts and $100,000 ($10,000
for Turner Quantitative 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, manages more than $25 billion in stock investments as of March 31, 2008.
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 Web site, www.turnerinvestments.com, or may write to Turner Funds,
P.O. Box 219805, Kansas City, Missouri 64121-9805.
TURNER FUNDS 2008 SEMIANNUAL REPORT | 1
LETTER TO SHAREHOLDERS
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TO OUR SHAREHOLDERS
Drip, drip, drip. That was the sound of the steady sequence of bad economic news
heard by stock investors in the six-month period ended March 31, 2008. The bad
news originated with the subprime-mortgage mess and proceeded to cascade with
increasing force throughout the economy and the global financial system, helping
to bring about a severe contraction of credit, the worst housing slump in modern
times, a weaker dollar, an earnings debacle in the financial-services sector,
and the collapse of Bear Stearns, one of the largest U.S. investment banks.
Other drips of bad news included a slowdown in consumer spending, historically
high gasoline and commodity prices, a rise in inflation, and a drop in
employment.
The problems begat by subprime mortgages were based on a simplistic notion that
proved misguided: the American home "seemed like such a sure bet that a huge
portion of the global financial system ended up owning a piece of it," as THE
NEW YORK TIMES observed. As Americans with spotty credit histories fell behind
on their subprime mortgages, though, the drips related to this supposedly sure
bet began to pick up in frequency and severity.
SECURITIZATION: THE S WORD
The problems were compounded when subprime loans with low credit ratings,
through modern financial alchemy, were repackaged as high-rated, exotic
securities, such as collateralized debt obligations, sold to institutional
investors -- a process known as "securitization." In theory, securitization
REDUCES risk, but in this instance it mainly served to SPREAD risk more broadly.
In many cases, investors heightened their risk by buying those securities with
lots of leverage (that is, they used lots of borrowed money). Once those
securities began losing money, the losses became magnified because the
investments were so highly leveraged -- and so difficult to sell.
Net-net, trust -- the glue that holds together the global financial system --
began to dissolve on a massive scale, to the point where the banks and
investment banks harbored doubts that much of the debt was really what it was
supposed to be. As a result they largely stopped extending credit. A high
tolerance for risk in subprime lending at the start of the period morphed into a
high level of risk aversion in ALL types of lending by the end of it. In effect,
the drip, drip, drip of bad news became such that by March the entire financial
system was in danger of seizing up.
Both the Treasury Department and the Federal Reserve acted decisively to address
that danger. The Treasury forced the sale of Bear Stearns. And the Fed agreed to
assume any losses of up to $29 billion in Bear Stearns' portfolios, offered to
lend as much as $200 billion directly to Wall Street firms to loosen up credit,
and cut short-term interest rates for the sixth time in six months (which
amounted to the sharpest and fastest cuts in decades). So extraordinary were the
Treasury and the Fed's moves over a highly eventful 10-day stretch in March that
THE WALL STREET JOURNAL called them the "10 days that changed capitalism."
THE DRIP PERVADES STOCKS
The drip, drip, drip permeated the stock market as well. Investor sentiment
turned negative, and the stock market, as represented by the S&P 500 Index,
recorded a 12.46% loss for the six-month period.
In the period the growth style of investing outperformed value investing -- that
is to say, growth did less worse. The broad-based Russell 3000 Growth Index lost
11.18%, while the Russell 3000 Value Index fell 13.96%. Value's underperformance
can mainly be attributed to the large weightings in financial-services stocks in
the value indexes; financial stocks declined more than 20%. Overall, it was one
of the worst periods for the stock market since the bear market of 2000-2002.
Alas, all 11 of the Turner funds reflected the market's weakness to varying
degrees, recording negative returns ranging from 6.23% to 17.89%. However, in
relative terms (performance versus a benchmark), there was some cause for cheer:
five funds outperformed. The best performers were our international growth fund,
the Turner International Core Growth Fund; our quantitative fund, the Turner
Quantitative Large Cap Value Fund; and three funds that specialize in smaller
stocks, the Turner Emerging Growth Fund, the Turner Midcap Growth Fund, and the
Turner Small Cap Equity Fund.
Here are the returns for each of our funds and their benchmarks in the past six
months. (Please call 1.800.224.6312 or visit our Web site at
www.turnerinvestments.com for the most recent month-end performance
information.)
2 | TURNER FUNDS 2008 SEMIANNUAL REPORT
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March 31, 2008
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TOTAL RETURNS
Six-month period ended March 31, 2008
TURNER CONCENTRATED GROWTH FUND (TTOPX) (17.79)%
S&P 500 Index (12.46)
NASDAQ 100 Index* (14.54)
Russell 1000 Growth Index (10.87)
TURNER CORE GROWTH FUND,
INSTITUTIONAL CLASS (TTMEX) (12.49)
S&P 500 Index (12.46)
Russell 1000 Growth Index (10.87)
TURNER EMERGING GROWTH FUND (TMCGX) (11.20)
Russell 2000 Growth Index (14.66)
TURNER INTERNATIONAL CORE GROWTH FUND (TICGX) (6.23)
MSCI World Growth ex-U.S. Index (7.78)
TURNER LARGE CAP GROWTH FUND,
INSTITUTIONAL CLASS (TSGEX) (15.32)
Russell Top 200 Growth Index (10.11)
Russell 1000 Growth Index (10.87)
TURNER MIDCAP EQUITY FUND,
INVESTOR CLASS (TMCFX) (14.23)
Russell Midcap Index (13.17)
TURNER MIDCAP GROWTH FUND,
INVESTOR CLASS (TMGFX) (11.65)
Russell Midcap Growth Index (12.46)
TURNER NEW ENTERPRISE FUND (TBTBX) (17.89)
NASDAQ Composite Index (15.27)
TURNER QUANTITATIVE LARGE CAP
VALUE FUND (TLVFX, FORMERLY
TURNER LARGE CAP VALUE FUND) (8.97)
Russell 1000 Value Index (14.01)
TURNER SMALL CAP EQUITY FUND (TSEIX) (13.97)
Russell 2000 Index (14.02)
TURNER SMALL CAP GROWTH FUND (TSCEX) (14.86)
Russell 2000 Growth Index (14.66)
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* Effective September 30, 2008, we intend to remove this benchmark, based on
our view that the other benchmarks for this fund are more appropriate.
For more details on the performance of each fund during the six-month period,
see the INVESTMENT REVIEW beginning on page 7.
WE SHARE THE PAIN
It's safe to say that neither you nor we are pleased with the losses of our
funds in particular and the stock market in general during the past six months.
Be that as it may, one consolation we can offer when the stock market endures
such a downbeat time is that the pain is shared by you and us; our portfolio
managers invest along with you in the funds they manage. In Turner's Wide World
of Investing, we share with you the thrill of victory (gains) and the agony of
defeat (losses). Happily, the equity balance has been slanted toward victory for
both of us; since our firm was founded in 1990, the stock market, as represented
by the S&P 500 Index, has recorded up years 78% of the time, with a compound
annual return of 10.5%, according to Ibbotson Associates.
In the past six months, our seven growth funds were stymied by a market that was
not only negative but also punished most harshly the stocks of companies
reporting the best earnings. Our growth-investing process is designed to
identify the shares of precisely those kind of corporate earnings leaders, so
during the period our process was of limited help. Many of our holdings were
characterized by above-average valuations, which shrank. Suffice it to say that
our growth funds have tended to perform best in periods when growth investing is
flourishing. The past six months were clearly not one of those times.
The results of our two core funds, the Turner Midcap Equity Fund and the Turner
Small Cap Equity Fund, which invest in both growth and value stocks, were
impaired by losses in certain major sectors, especially the producer-durables
sector. Even so, the Small Cap Equity Fund, as noted, managed to outperform, and
the Midcap Equity Fund trailed its target index only marginally, by about one
percentage point.
BEST MEASURE: THE LONG RUN
Of course, investment results of only six months' duration, whether positive or
negative, reveal little. As we never tire of emphasizing, the best measure of a
mutual fund is its long-term performance. And by that measure, our 11 funds look
good indeed: all 11 have beaten their benchmarks since inception, which we think
says something about the ability of our teams of portfolio managers.
Each of our funds is headed by a lead portfolio manager, backed by a team of
comanagers and analysts. As chairman and chief investment officer, I lead three
of our growth funds. But my duties involve more than that. One of my prime
responsibilities is to keep our teams of talented portfolio managers happy in
their jobs. As a result I think I have some idea what Miller Huggins felt like
managing the Murderer's Row lineup of sluggers on the New York Yankees of 1927
- -- Babe Ruth, Lou Gehrig, Earle Combs, Bob Meusel, et al. I count my lucky stars
to have a Murderer's Row of lead
TURNER FUNDS 2008 SEMIANNUAL REPORT | 3
LETTER TO SHAREHOLDERS (continued)
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March 31, 2008
portfolio managers who have helped make possible the long-term record of
investment excellence at the Turner Funds: Tom DiBella, Steve Gold, David
Kovacs, Chris McHugh, Bill McVail, Frank Sustersic, and Mark Turner.
I gain more than a little satisfaction that they evidently are happy enough in
their jobs to stick around here; they have an average tenure of 12 years at our
firm. We want them to continue doing what they do so well for many more years to
come. Unlike baseball players, many portfolio managers seem to get better with
age. Investing whizzes like John Templeton, Warren Buffett, and Bill Ruane were
only hitting their stride in their 40s and 50s.
IS THE WORST OVER?
As for the near-term investment outlook, no one knows what the market will do.
All we have to go on are the probabilities. And in our estimation, the
probabilities are that the stock market has already largely discounted the worst
of the drips, and corporate earnings in aggregate may be up for 2008 (although
earnings estimates are likely to be reduced in the near term). According to
Thomson Financial, earnings of the companies in the S&P 500 are expected to
rebound by 16% in the third quarter and 63% in the fourth (helped by a dismal
fourth quarter of 2007). That should help provide a supportive backdrop for
stocks in the remainder of the year.
We say that knowing full well that most key indicators are flashing signals
suggesting that the economy is slipping into a recession. But we think it's
still possible that a recession may not materialize. (A recession is only
evident in 20-20 hindsight, after the economy has had two or more quarters of
negative growth.) Any recession is likely to be brief and shallow, in our
estimation, especially in light of the government's professed resolve to
administer a solid dose of fiscal and monetary medicine to revive flagging
consumer confidence and the economy. About that resolve, FORTUNE magazine noted
that Ben Bernanke's Fed is "cutting rates rapidly and throwing everything but
the kitchen sink at today's problems. (Bernanke will probably throw that in too,
if the Fed's plumbers can unbolt it.)"
Whatever course the market, the economy, and Mr. Bernanke may take, our growth
funds, as always, are invested in stocks with the strongest earnings prospects.
The Turner Quantitative Large Cap Value Fund, employing our proprietary
quantitative model, is finding what we perceive as attractive values in both the
cyclical and non-cyclical sectors of the market. And our core funds, as usual,
are focused on owning stocks that we think have either undervalued assets or
strong prospective earnings power.
In closing, we thank you for the ultimate gesture of confidence in us: placing
your money in our funds. Shareholders can be notoriously fickle, eager to chase
the latest hot-performing fund. In contrast, our shareholders have been notably
loyal, by the standards of the mutual-fund industry: about 90% of the assets in
our funds have been invested there for one year or longer -- in most cases, MUCH
longer.
Rest assured that we remain committed to doing our best for you (and for us) to
produce superior long-term results for the Turner Funds. And we look forward to
discussing in future reports how well we are meeting 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, 2008, AND ARE NOT INTENDED
AS A FORECAST OR INVESTMENT RECOMMENDATIONS. THE INDEXES MENTIONED ARE NOT
AVAILABLE FOR INVESTMENT.
[PHOTO OF BOB TURNER]
BOB TURNER
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4 | TURNER FUNDS 2008 SEMIANNUAL REPORT
PERFORMANCE
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TOTAL RETURNS OF TURNER FUNDS
Through March 31, 2008
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PERFORMANCE DATA QUOTED.
PLEASE CALL 1.800.224.6312 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,
PENNSYLVANIA 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 1.800.224.6312. 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 (17.79)% (21.58)% 2.84% 10.78% 14.87% N/A 1.99% $ 36.76
S&P 500 Index (12.46) (9.44) (5.08) 5.85 11.32 n/a 1.23
NASDAQ 100 Index (14.54) (14.42) 1.04 6.82 12.27 n/a (2.61)
Russell 1000 Growth Index (10.87) (10.18) (0.75) 6.33 9.96 n/a (1.79)
INCEPTION DATE: 6/30/99
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TURNER CORE GROWTH FUND --
INSTITUTIONAL CLASS SHARES (12.49) (15.98) 1.06 9.49 13.95 N/A 3.41 363.78
INVESTOR CLASS SHARES* (12.60) (15.98) 0.85 N/A N/A N/A 6.73 235.02
S&P 500 Index (12.46) (9.44) (5.08) 5.85 11.32 n/a 2.70
Russell 1000 Growth Index (10.87) (10.18) (0.75) 6.33 9.96 n/a 0.39
INCEPTION DATE: 2/28/01
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TURNER EMERGING GROWTH FUND(1) (11.20) (13.08) (0.92) 9.53 20.18 23.83 24.55 556.42
Russell 2000 Growth Index (14.66) (12.83) (8.94) 5.74 14.24 1.75 2.15
INCEPTION DATE: 2/27/98
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TURNER INTERNATIONAL CORE
GROWTH FUND (6.23) (10.85) 12.47 N/A N/A N/A 12.30 4.53
MSCI World Growth ex-U.S. Index (7.78) (7.84) 3.76 n/a n/a n/a 6.78
INCEPTION DATE: 1/31/07
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TURNER LARGE CAP GROWTH FUND --
INSTITUTIONAL CLASS SHARES (15.32) (16.11) (2.19) 4.77 9.05 N/A (6.79) 37.53
INVESTOR CLASS SHARES** (15.53) (16.15) (2.58) N/A N/A N/A (2.92) 0.82
Russell Top 200 Growth Index (10.11) (9.83) 1.15 5.90 8.50 n/a (5.54)
Russell 1000 Growth Index (10.87) (10.18) (0.75) 6.33 9.96 n/a (4.55)
INCEPTION DATE: 6/14/00
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TURNER MIDCAP EQUITY FUND --
INSTITUTIONAL CLASS SHARES (13.95) (12.23) (9.46) N/A N/A N/A (6.98) 0.10
INVESTOR CLASS SHARES (14.23) (12.25) (10.17) N/A N/A N/A (7.77) 0.48
Russell Midcap Index (13.17) (9.98) (8.92) n/a n/a n/a (6.95)
INCEPTION DATE: 1/31/07
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TURNER FUNDS 2008 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 GROWTH FUND(1) --
INVESTOR CLASS SHARES (11.65)% (13.20)% 4.61% 9.84% 16.24% 9.07% 12.64% $ 1,254.11
RETIREMENT CLASS SHARES*** (11.74) (13.24) 4.39 9.41 15.73 N/A 9.18 6.16
Russell Midcap Growth Index (12.46) (10.95) (4.55) 7.77 15.20 5.16 7.69
INCEPTION DATE: 10/1/96
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TURNER NEW ENTERPRISE FUND(1) (17.89) (19.00) 4.83 12.42 21.81 N/A (4.22) 56.05
NASDAQ Composite Index (15.27) (13.88) (5.12) 5.28 11.94 n/a (6.37)
INCEPTION DATE: 6/30/00
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TURNER QUANTITATIVE
LARGE CAP VALUE FUND (8.97) (8.39) (2.93) N/A N/A N/A 8.10 0.85
Russell 1000 Value Index (14.01) (8.72) (9.99) n/a n/a n/a 6.67
INCEPTION DATE: 10/10/05
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TURNER SMALL CAP EQUITY FUND(1) (13.97) (11.28) (13.07) 2.51 13.78 N/A 9.81 43.74
Russell 2000 Index (14.02) (9.90) (13.00) 5.06 14.90 n/a 7.13
INCEPTION DATE: 3/4/02
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TURNER SMALL CAP GROWTH FUND(1) (14.86) (14.57) (5.87) 8.11 16.60 5.43 12.56 260.83
Russell 2000 Growth Index (14.66) (12.83) (8.94) 5.74 14.24 1.75 5.48
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.
* Commenced operations on August 1, 2005.
** Commenced operations on January 31, 2007.
*** Commenced operations on September 24, 2001.
EXPENSE RATIO+
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Gross Net
expense expense
ratio ratio
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TURNER CONCENTRATED
GROWTH FUND
Investor Class Shares 1.45% 1.11%
TURNER CORE GROWTH FUND
Institutional Class Shares 1.07% 0.69%
Investor Class Shares 1.32% 0.94%
TURNER EMERGING GROWTH FUND
Investor Class Shares 1.55% 1.40%
TURNER INTERNATIONAL
CORE GROWTH FUND
Institutional Class Shares 4.65% 1.10%
TURNER LARGE CAP GROWTH FUND
Institutional Class Shares 1.24% 0.69%
Investor Class Shares 1.49% 0.94%
Gross Net
expense expense
ratio ratio
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TURNER MIDCAP EQUITY FUND
Institutional Class Shares 31.28% 0.90%
Investor Class Shares 22.29% 1.15%
TURNER MIDCAP GROWTH FUND
Investor Class Shares 1.25% 1.18%
Retirement Class Shares 1.50% 1.43%
TURNER NEW ENTERPRISE FUND
Investor Class Shares 1.69% 1.27%
TURNER QUANTITATIVE LARGE CAP
VALUE FUND
Institutional Class Shares 5.28% 0.69%
TURNER SMALL CAP EQUITY FUND
Investor Class Shares 1.60% 1.45%
TURNER SMALL CAP GROWTH FUND
Investor Class Shares 1.49% 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 2008 SEMIANNUAL REPORT
INVESTMENT REVIEW
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TURNER CONCENTRATED GROWTH FUND
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FUND PROFILE
MARCH 31, 2008
o Ticker symbol TTOPX
o CUSIP #87252R862
o Top five holdings++
(1) Cisco Systems
(2) Gilead Sciences
(3) Charles River Laboratories International
(4) Corning
(5) CME Group
o % in five largest holdings 24.4%+
o Number of holdings 26
o Price/earnings ratio 21.2
o Weighted average market capitalization $47.03 billion
o % of holdings with positive earnings surprises 71.6%
o % of holdings with negative earnings surprises 24.2%
o Net assets $37 million
-------------------------
LARGE X
MARKET | -------------------------
CAPITALIZATION |
| -------------------------
SMALL
-------------------------
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, 2008*
[LINE GRAPH]
INITIAL INVESTMENT DATE TURNER CONCENTRATED GROWTH FUND S&P 500 Index NASDAQ 100 Index Russell 1000 Growth Index
- ---------------------- ------------------------------- ------------- ---------------- -------------------------
6/30/99 $10,000 $10,000 $10,000 $10,000
Sep. 99 $13,990 $ 9,376 $10,485 $ 9,633
Sep. 00 $27,782 $10,622 $15,553 $11,890
Sep. 01 $ 8,223 $ 7,794 $ 5,092 $ 6,464
Sep. 02 $ 5,754 $ 6,197 $ 3,631 $ 5,009
Sep. 03 $ 8,638 $ 7,709 $ 5,696 $ 6,307
Sep. 04 $ 8,310 $ 8,778 $ 6,190 $ 6,780
Sep. 05 $10,137 $ 9,853 $ 7,044 $ 7,567
Sep. 06 $10,850 $10,916 $ 7,308 $ 8,024
Sep. 07 $14,448 $12,711 $ 9,283 $ 9,577
Mar. 08 $11,878 $11,127 $ 7,933 $ 8,536
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AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2008)
SIX ONE THREE FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
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TURNER CONCENTRATED GROWTH FUND (17.79)% 2.84% 10.78% 14.87% 1.99%
S&P 500 Index (12.46)% (5.08)% 5.85% 11.32% 1.23%
NASDAQ 100 Index** (14.54)% 1.04% 6.82% 12.27% (2.61)%
Russell 1000 Growth Index (10.87)% (0.75)% 6.33% 9.96% (1.79)%
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SECTOR WEIGHTINGS+:
[BAR CHART]
Information Technology 29.9%
Health Care 20.9%
Consumer discretionary 19.1%
Industrials 12.1%
Financials 8.4%
Cash equivalents 4.2%
Materials 3.0%
Energy 2.4%
MANAGER'S DISCUSSION AND ANALYSIS
Poor results in two major sectors were largely responsible for the Turner
Concentrated Growth Fund (TTOPX) producing a 17.79% loss in the six-month period
ended March 31. That return underperformed the benchmark S&P 500 Index's 12.46%
decline by 5.33 percentage points.
Nearly 50% of the fund's holdings were concentrated in two sectors, consumer
discretionary and information technology, whose returns detracted most from
performance. In those sectors, Internet, retailing, semiconductor, and wireless
stocks declined sharply. Three sector positions, health care, materials, and
energy, added extra return. Biotechnology, specialty-pharmaceutical, mining, and
energy-services stocks fared best.
- --------------------------------------------------------------------------------
* 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 and short-term investments are not being considered a
holding for the top five holdings, but are counted in the number of
holdings.
TURNER FUNDS 2008 SEMIANNUAL REPORT | 7
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER CORE GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2008
o Ticker symbol TTMEX
Institutional Class Shares
o CUSIP #900297847
Institutional Class Shares
o Top five holdings+++
(1) General Electric
(2) Coca-Cola
(3) Cisco Systems
(4) Petroleo Brasileiro ADR
(5) Corning
o % in five largest holdings 15.4%+
o Number of holdings 76
o Price/earnings ratio 17.5
o Weighted average market capitalization $60.60 billion
o % of holdings with positive earnings surprises 75.9%
o % of holdings with negative earnings surprises 19.1%
o Net assets $364 million, Institutional Class Shares
-------------------------
LARGE X
MARKET | -------------------------
CAPITALIZATION |
| -------------------------
SMALL
-------------------------
VALUE ------------ GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $250,000 INVESTMENT IN THE
TURNER CORE GROWTH FUND, INSTITUTIONAL CLASS SHARES:
FEBRUARY 28, 2001-MARCH 31, 2008*,**
[LINE GRAPH]
TURNER CORE GROWTH FUND, Russell 1000
INITIAL INVESTMENT DATE INSTITUTIONAL CLASS SHARES S&P 500 Index Growth Index
- ----------------------- -------------------------- ------------- ------------
2/28/01 $250,000 $250,000 $250,000
Sep 01 $204,530 $211,479 $194,671
Sep 02 $157,263 $168,147 $150,851
Sep 03 $201,014 $209,158 $189,951
Sep 04 $221,015 $238,168 $204,216
Sep 05 $273,263 $267,343 $227,906
Sep 06 $292,145 $296,190 $241,671
Sep 07 $362,260 $344,883 $288,434
Mar 08 $317,014 $301,911 $257,082
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2008)
SIX ONE THREE FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
- ----------------------------------------------------------------------------------------------------
TURNER CORE GROWTH FUND, INSTITUTIONAL CLASS SHARES (12.49)% 1.06% 9.49% 13.95% 3.41%**
TURNER CORE GROWTH FUND, INVESTOR CLASS SHARES (12.60)% 0.85% -- -- 6.73%***
S&P 500 Index (12.46)% (5.08)% 5.85% 11.32% 2.70%**
Russell 1000 Growth Index (10.87)% (0.75)% 6.33% 9.96% 0.39%**
- ----------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
Information Technology 17.3%
Financials 15.2%
Energy 12.6%
Health Care 12.2%
Industrials 10.1%
Consumer discretionary 9.8%
Consumer staples 8.1%
Cash equivalents/short-term investments++ 5.5%
Telecommunication services 4.1%
Materials 3.7%
Utilities 1.4%
MANAGER'S DISCUSSION AND ANALYSIS
Some good stock selection tempered the 12.49% loss of the Turner Core Growth
Fund, Institutional Class (TTMEX) in the six-month period ended March 31. As a
result the fund's results nearly equaled that of the S&P 500 Index but
underperformed the Russell 1000 Growth Index's 10.87% drop by 1.62 percentage
points.
Six of the fund's 10 sector positions beat their index sectors. Energy and
health-care stocks, which amounted to a 25% weighting, boosted the fund's
results the most. Winners here included energy-services, drilling,
biotechnology, and specialty-pharmaceutical stocks. A 10% position in the
consumer-discretionary, producer-durables, and information-technology sectors
were the prime detractors from performance. Internet, retailing,
semiconductor-capital-equipment, semiconductor, data-networking, and
wireless-communications 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 the top five holdings, but are counted in the number of
holdings.
Amounts designated as "--" are not applicable.
8 | TURNER FUNDS 2008 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER EMERGING GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2008
o Ticker symbol TMCGX
o CUSIP #872524301
o Top five holdings+++
(1) Bucyrus International, Cl A
(2) Deckers Outdoor
(3) Terra Industries
(4) iShares Russell 2000 Index Fund
(5) Parexel International
o % in five largest holdings 15.1%+
o Number of holdings 89
o Price/earnings ratio 16.7
o Weighted average market capitalization $1.49 billion
o % of holdings with positive earnings surprises 73.0%
o % of holdings with negative earnings surprises 26.2%
o Net assets $556 million
-------------------------
LARGE
MARKET | -------------------------
CAPITALIZATION |
| -------------------------
SMALL X
-------------------------
VALUE ------------ GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE
TURNER EMERGING GROWTH FUND:
FEBRUARY 27, 1998-MARCH 31, 2008*
[LINE GRAPH]
Russell 2000
INITIAL INVESTMENT DATE TURNER EMERGING GROWTH FUND Growth Index
- ----------------------- --------------------------- ------------
2/27/98 $ 10,000 $10,000
Sep 98 $ 9,882 $ 7,625
Sep 99 $ 21,093 $10,113
Sep 00 $ 48,308 $13,113
Sep 01 $ 38,535 $ 7,528
Sep 02 $ 38,489 $ 6,161
Sep 03 $ 49,709 $ 8,731
Sep 04 $ 61,410 $ 9,772
Sep 05 $ 78,544 $11,528
Sep 06 $ 82,432 $12,206
Sep 07 $103,105 $14,518
Mar 08 $ 91,558 $12,390
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2008)
SIX ONE THREE FIVE TEN SINCE
MONTHS YEAR YEARS YEARS YEARS INCEPTION
- --------------------------------------------------------------------------------------
TURNER EMERGING GROWTH FUND (11.20)% (0.92)% 9.53% 20.18% 23.83% 24.55%
Russell 2000 Growth Index (14.66)% (8.94)% 5.74% 14.24% 1.75% 2.15%
- --------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
Cash equivalents/short-term investments++ 22.3%
Industrials 20.2%
Energy 16.8%
Health Care 13.6%
Information Technology 7.3%
Financials 7.1%
Consumer discretionary 6.7%
Materials 4.3%
Telecommunication services 1.2%
Consumer staples 0.3%
Utilities 0.2%
MANAGER'S DISCUSSION AND ANALYSIS
The six months ended March 31 were an unfavorable period of performance for
small-cap stocks. However, the Turner Emerging Growth Fund (TMCGX) produced a
good relative return, an 11.20% loss, which beat its benchmark, the Russell 2000
Growth Index. The fund's margin of outperformance versus the index's 14.66% loss
amounted to 3.46 percentage points.
Four of the fund's 10 sector positions outperformed their corresponding index
sectors. Health-care, industrials, and energy holdings, a 51% weighting in
aggregate, contributed the most to performance. Biotechnology,
specialty-pharmaceutical, medical-device, heavy-equipment, and energy-services
shares were especially strong. The primary detractors from performance were the
fund's materials, utilities, and telecommunications-services holdings, an 11%
weighting. Underperformers here included metals and utility 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 the top five holdings, but are counted in the number of
holdings.
TURNER FUNDS 2008 SEMIANNUAL REPORT | 9
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER INTERNATIONAL CORE GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2008
o Ticker symbol TICGX
o CUSIP #900297771
o Top five holdings++
(1) Nintendo
(2) Potash Corp. of Saskatchewan
(3) Nestle
(4) BG Group
(5) International Power
o % in five largest holdings 11.1%+
o Number of holdings 65
o Price/earnings ratio 15.5
o Weighted average market capitalization $39.87 billion
o % of holdings with positive earnings surprises 46.4%
o % of holdings with negative earnings surprises 24.2%
o Net assets $5 million
-------------------------
LARGE X
MARKET | -------------------------
CAPITALIZATION |
| -------------------------
SMALL
-------------------------
VALUE ------------ GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $250,000 INVESTMENT IN THE
TURNER INTERNATIONAL CORE GROWTH FUND:
JANUARY 31, 2007-MARCH 31, 2008*
[LINE GRAPH]
TURNER INTERNATIONAL MSCI World Growth ex-U.S.
INITIAL INVESTMENT DATE CORE GROWTH FUND Index
- ----------------------- -------------------- -------------------------
1/31/07 $250,000 $250,000
Mar 07 $254,500 $260,084
Jun 07 $274,750 $278,971
Sep 07 $305,250 $292,634
Dec 07 $321,073 $292,818
Mar 08 $286,240 $269,859
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2008)
SIX ONE SINCE
MONTHS YEAR INCEPTION
- --------------------------------------------------------------------------------
TURNER INTERNATIONAL CORE GROWTH FUND (6.23)% 12.47% 12.30%
MSCI World Growth ex-U.S. Index (7.78)% 3.76% 6.78%
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
Industrials 14.8%
Consumer staples 14.1%
Materials 13.9%
Information technology 11.1%
Financials 10.1%
Health care 9.5%
Consumer discretionary 9.2%
Energy 5.5%
Telecommunication services 4.6%
Utilities 3.9%
Cash equivalents 3.3%
MANAGER'S DISCUSSION AND ANALYSIS
In the six months ended March 31, the Turner International Core Growth Fund
(TICGX) recorded a loss of 6.23%, which outperformed the MSCI World Growth
ex-U.S. Index's 7.78% drop by 1.55 percentage points. It was the best return of
any Turner fund in the period, and the world stock markets in aggregate also
performed better than their U.S. counterparts.
Six of 10 sector positions beat their corresponding index sectors. Adding the
most value to results were holdings in four sectors, materials, information
technology, financials, and consumer staples, which totaled a 49% weighting.
Mining, wireless-communications, international-banking, investment-exchange, and
food-processing stocks performed best. Conversely, consumer-discretionary
shares, which constituted 9% of the portfolio, impaired performance the most.
Retailing, business-services, and diversified industrial 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.
+ Percentages based on total investments.
++ Cash equivalents are not being considered a holding for the top five
holdings, but are counted in the number of holdings.
10 | TURNER FUNDS 2008 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER LARGE CAP GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2008
o Ticker symbol TSGEX
Institutional Class Shares
o CUSIP #87252R839
Institutional Class Shares
o Top five holdings+++
(1) Cisco Systems
(2) Coca-Cola
(3) Corning
(4) Gilead Sciences
(5) QUALCOMM
o % in five largest holdings 23.6%+
o Number of holdings 50
o Price/earnings ratio 18.1
o Weighted average market capitalization $63.88 billion
o % of holdings with positive earnings surprises 84.6%
o % of holdings with negative earnings surprises 12.4%
o Net assets $38 million, Institutional Class Shares
-------------------------
LARGE X
MARKET | -------------------------
CAPITALIZATION |
| -------------------------
SMALL
-------------------------
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, 2008*,**
[LINE GRAPH]
TURNER LARGE CAP GROWTH FUND,
INITIAL INVESTMENT DATE INSTITUTIONAL CLASS SHARES Russell Top 200 Growth Index Russell 1000 Growth Index
------------------------ ---------------------------- ----------------------------- -------------------------
6/14/00 $250,000 $250,000 $250,000
Sep 00 $245,248 $238,641 $242,266
Sep 01 $117,498 $132,947 $131,696
Sep 02 $ 87,501 $101,319 $102,051
Sep 03 $115,510 $124,440 $128,503
Sep 04 $120,870 $131,819 $138,153
Sep 05 $135,483 $142,075 $154,179
Sep 06 $140,089 $150,315 $163,491
Sep 07 $170,713 $178,379 $195,127
Mar 08 $144,560 $160,345 $173,917
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2008)
SIX ONE THREE FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
- --------------------------------------------------------------------------------------------------------
TURNER LARGE CAP GROWTH FUND, INSTITUTIONAL CLASS SHARES (15.32)% (2.19)% 4.77% 9.05% (6.79)%**
TURNER LARGE CAP GROWTH FUND, INVESTOR CLASS SHARES (15.53)% (2.58)% -- -- (2.92)%***
Russell Top 200 Growth Index (10.11)% 1.15% 5.90% 8.50% (5.54)%**
Russell 1000 Growth Index (10.87)% (0.75)% 6.33% 9.96% (4.55)%**
- --------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
Information technology 29.3%
Health care 17.7%
Consumer discretionary 12.2%
Industrials 11.2%
Consumer staples 10.7%
Financials 6.6%
Energy 5.1%
Materials 3.0%
Cash equivalents/short-term investments++ 2.9%
Telecommunication services 1.3%
MANAGER'S DISCUSSION AND ANALYSIS
In the six-month period ended March 31, double-digit losses in two large sectors
were particularly detrimental to the performance of the Turner Large Cap Growth
Fund, Institutional Class (TSGEX). The fund lost 15.32%, which lagged the
Russell Top 200 Growth Index's 10.11% decline by 5.21 percentage points.
The fund's information-technology and consumer-discretionary positions,
representing 42% of the portfolio, hurt results the most. Semiconductor,
wireless-communications, data-networking, Internet, and retailing stocks were
especially negative. Altogether, five of the fund's nine sector positions
outperformed the index sectors. Health-care and energy stocks, a 23% weighting,
added the greatest extra return; biotechnology, medical-device, pharmaceutical,
and energy-services stocks did well.
- --------------------------------------------------------------------------------
* 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.
+ 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 are not being considered a holding for the top five
holdings, but are counted in the number of holdings.
Amounts designated as "--" are not applicable.
TURNER FUNDS 2008 SEMIANNUAL REPORT | 11
INVESTMENT REVIEW
- -------------------------------------------------------------------------------
TURNER MIDCAP EQUITY FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2008
o Ticker symbol TMCFX
Investor Class Shares
o CUSIP #900297797
Investor Class Shares
o Top five holdings++
(1) iShares Russell Midcap Index Fund
(2) Covanta Holding
(3) Range Resources
(4) Pediatrix Medical Group
(5) Sigma-Aldrich
o % in five largest holdings 10.4%+
o Number of holdings 76
o Price/earnings ratio 15.4
o Weighted average market capitalization $4.51 billion
o % of holdings with positive earnings surprises 77.0%
o % of holdings with negative earnings surprises 23.0%
o Net assets $0.5 million, Investor Class Shares
-------------------------
LARGE
MARKET | -------------------------
CAPITALIZATION | X
| -------------------------
SMALL
-------------------------
VALUE ------------ GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE
TURNER MIDCAP EQUITY FUND,
INVESTOR CLASS SHARES:
JANUARY 31, 2007-MARCH 31, 2008*
[LINE GRAPH]
TURNER MIDCAP EQUITY FUND,
INITIAL INVESTMENT DATE INVESTOR CLASS SHARES Russell Midcap Index
- ------------------------ -------------------------- ---------------------
1/31/07 $10,000 $10,000
Mar 07 $10,130 $10,096
Jun 07 $10,860 $10,631
Sep 07 $10,610 $10,590
Dec 07 $10,370 $10,215
Mar 08 $ 9,100 $ 9,196
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2008)
SIX ONE SINCE
MONTHS YEAR INCEPTION
- ----------------------------------------------------------------------------------------
TURNER MIDCAP EQUITY FUND, INSTITUTIONAL CLASS SHARES (13.95)% (9.46)% (6.98)%
TURNER MIDCAP EQUITY FUND, INVESTOR CLASS SHARES (14.23)% (10.17)% (7.77)%
Russell Midcap Index (13.17)% (8.92)% (6.95)%
- ----------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
Industrials 18.7%
Information technology 15.8%
Financials 15.7%
Health care 7.9%
Materials 7.8%
Consumer discretionary 7.3%
Consumer staples 6.9%
Energy 6.8%
Utilities 6.3%
Cash equivalents 5.5%
Telecommunication services 1.3%
MANAGER'S DISCUSSION AND ANALYSIS
The Turner Midcap Equity Fund, Investor Class (TMCFX) recorded a negative
return, 14.23%, in the six-month period ended March 31. That return
underperformed its benchmark, the Russell Midcap Index, by 1.06 percentage
points.
Good relative returns in the consumer-discretionary, financials, and health-care
sectors, a 31% weighting, added the most value to the fund's results. Retailing,
apparel, insurance, managed-care, and pharmaceutical stocks were notable
contributors. Altogether, four of the fund's 10 sector positions outperformed
their corresponding index sectors. A 26% position in energy and industrials
stocks, especially in the energy-production and capital-equipment 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. 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.
+ Percentages based on total investments.
++ Cash equivalents are not being considered a holding for the top five
holdings, but are counted in the number of holdings.
12 | TURNER FUNDS 2008 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER MIDCAP GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2008
o Ticker symbol TMGFX
Investor Class Shares
o CUSIP #900297409
Investor Class Shares
o Top five holdings+++
(1) Range Resources
(2) Weatherford International
(3) Flowserve
(4) T. Rowe Price Group
(5) Owens-Illinois
o % in five largest holdings 9.3%+
o Number of holdings 102
o Price/earnings ratio 20
o Weighted average market capitalization $9.75 billion
o % of holdings with positive earnings surprises 74.8%
o % of holdings with negative earnings surprises 23.6%
o Net assets $1 billion, Investor Class Shares
-------------------------
LARGE
MARKET | -------------------------
CAPITALIZATION | X
| -------------------------
SMALL
-------------------------
VALUE ------------ GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE
TURNER MIDCAP GROWTH FUND, INVESTOR CLASS SHARES:
SEPTEMBER 30, 1997-MARCH 31, 2008*,**
[LINE GRAPH]
TURNER MIDCAP GROWTH FUND,
INITIAL INVESTMENT DATE INVESTOR CLASS SHARES Russell Midcap Growth Index
- ------------------------ -------------------------- ---------------------------
9/30/97 $10,000 $10,000
Sep 98 $10,124 $ 9,063
Sep 99 $18,635 $12,434
Sep 00 $36,777 $19,940
Sep 01 $15,078 $ 9,617
Sep 02 $11,942 $ 8,126
Sep 03 $16,934 $11,287
Sep 04 $18,190 $12,831
Sep 05 $22,871 $15,843
Sep 06 $23,946 $16,957
Sep 07 $30,947 $20,555
Mar 08 $27,342 $17,994
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2008)
SIX ONE THREE FIVE TEN SINCE
MONTHS YEAR YEARS YEARS YEARS INCEPTION
- ------------------------------------------------------------------------------------------------------------
TURNER MIDCAP GROWTH FUND, INVESTOR CLASS SHARES (11.65)% 4.61% 9.84% 16.24% 9.07% 12.64%**
TURNER MIDCAP GROWTH FUND, RETIREMENT CLASS SHARES (11.74)% 4.39% 9.41% 15.73% -- 9.18%***
Russell Midcap Growth Index (12.46)% (4.55)% 7.77% 15.20% 5.16% 7.69%**
- ------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
Information technology 16.1%
Consumer discretionary 15.3%
Industrials 15.3%
Energy 11.4%
Health care 11.2%
Financials 9.0%
Cash equivalents/short-term investments++ 8.5%
Materials 5.8%
Consumer staples 3.6%
Utilities 2.4%
Telecommunication services 1.4%
MANAGER'S DISCUSSION AND ANALYSIS
The Turner Midcap Growth Fund, Investor Class (TMGFX) fell 11.65% in the
six-month period ended March 31. The fund beat the Russell Midcap Growth Index's
12.46% loss by 0.81 percentage point.
Good relative returns in the energy and materials sectors, a 17% weighting,
added the most value to the fund's results. Energy-services, metals, and mining
stocks were notable contributors. Altogether, seven of 10 sector positions
outperformed their corresponding index sectors. A 16% position in
information-technology stocks, especially in the wireless-equipment,
digital-networking, and semiconductor industries, was the prime detractor from
performance.
- --------------------------------------------------------------------------------
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or
less than 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 the top five holdings, but are counted in the number of
holdings.
Amounts designated as "--" are not applicable.
TURNER FUNDS 2008 SEMIANNUAL REPORT | 13
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER NEW ENTERPRISE FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2008
o Ticker symbol TBTBX
o CUSIP #87252R797
o Top five holdings+++
(1) Gilead Sciences
(2) Guess?
(3) Genzyme
(4) Monsanto
(5) BioMarin Pharmaceutical
o % in five largest holdings 20.9%+
o Number of holdings 38
o Price/earnings ratio 21.9
o Weighted average market capitalization $20.07 billion
o % of holdings with positive earnings surprises 71.4%
o % of holdings with negative earnings surprises 28.6%
o Net assets $56 million
-------------------------
LARGE
MARKET | -------------------------
CAPITALIZATION | X
| -------------------------
SMALL
-------------------------
VALUE ------------ GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE
TURNER NEW ENTERPRISE FUND:
JUNE 30, 2000-MARCH 31, 2008*
[LINE GRAPH]
INITIAL INVESTMENT DATE TURNER NEW ENTERPRISE FUND NASDAQ Composite Index
- ------------------------ -------------------------- ----------------------
6/30/00 $10,000 $10,000
Sep 00 $12,520 $ 9,264
Sep 01 $ 3,290 $ 3,792
Sep 02 $ 2,270 $ 2,976
Sep 03 $ 4,340 $ 4,556
Sep 04 $ 4,521 $ 4,862
Sep 05 $ 5,861 $ 5,552
Sep 06 $ 6,261 $ 5,875
Sep 07 $ 8,722 $ 7,081
Mar 08 $ 7,162 $ 6,000
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2008)
SIX ONE THREE FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
- -------------------------------------------------------------------------------
TURNER NEW ENTERPRISE FUND (17.89)% 4.83% 12.42% 21.81% (4.22)%
NASDAQ Composite Index (15.27)% (5.12)% 5.28% 11.94% (6.37)%
- -------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
Information technology 28.9%
Health care 21.1%
Consumer discretionary 17.6%
Industrials 12.2%
Cash equivalents/short-term investments++ 8.9%
Energy 5.5%
Materials 3.6%
Financials 2.2%
MANAGER'S DISCUSSION AND ANALYSIS
Sizable losses in two principal sectors -- information technology and financials
- -- contributed to the Turner New Enterprise Fund (TBTBX) recording a 17.89% loss
in the six months ended March 31. The fund trailed the NASDAQ Composite Index's
15.27% loss by 2.62 percentage points.
Stocks in the two sectors accounted for 31% of the fund's holdings;
weak-performing stocks included semiconductor, data-networking, software,
insurance, and investment-exchange shares. Enhancing performance was a 37%
position in the health-care, materials, and industrials sectors. Stocks in those
sectors that produced good relative returns included biotechnology,
specialty-pharmaceutical, health-care-products, metals, mining, and
heavy-equipment shares. Four of the fund's seven sector holdings outperformed
their corresponding index sectors.
- --------------------------------------------------------------------------------
* 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 the top five holdings, but are counted in the number of
holdings.
14 | TURNER FUNDS 2008 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER QUANTITATIVE LARGE CAP VALUE FUND
(FORMERLY TURNER LARGE CAP VALUE FUND)
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2008
o Ticker symbol TLVFX
o CUSIP #900297821
o Top five holdings++
(1) ExxonMobil
(2) AT&T
(3) General Electric
(4) Chevron
(5) Verizon Communications
o % in five largest holdings 19.1%+
o Number of holdings 92
o Price/earnings ratio 12.9
o Weighted average market capitalization $90.42 billion
o % of holdings with positive earnings surprises 67.1%
o % of holdings with negative earnings surprises 28.1%
o Net assets $0.9 million
-------------------------
LARGE X
MARKET | -------------------------
CAPITALIZATION |
| -------------------------
SMALL
-------------------------
VALUE ------------ GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $25,000 INVESTMENT IN THE
TURNER QUANTITATIVE LARGE CAP VALUE FUND:
OCTOBER 10, 2005-MARCH 31, 2008*
[LINE GRAPH]
TURNER QUANTITATIVE
INITIAL INVESTMENT DATE LARGE CAP VALUE FUND Russell 1000 Value Index
- ----------------------- -------------------- ------------------------
10/10/05 $25,000 $25,000
Dec 05 $26,068 $26,330
Mar 06 $27,600 $27,891
Jun 06 $27,526 $28,056
Sep 06 $28,731 $29,801
Dec 06 $30,585 $32,185
Mar 07 $31,233 $32,584
Jun 07 $33,254 $34,191
Sep 07 $33,307 $34,109
Dec 07 $33,092 $32,130
Mar 08 $30,314 $29,328
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2008)
SIX ONE SINCE
MONTHS YEAR INCEPTION
- --------------------------------------------------------------------------------
TURNER QUANTITATIVE LARGE CAP VALUE FUND (8.97)% (2.93)% 8.10%
Russell 1000 Value Index (14.01)% (9.99)% 6.67%
- --------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
Financials 26.0%
Energy 16.1%
Industrials 12.0%
Consumer staples 8.9%
Health care 7.4%
Utilities 6.9%
Consumer discretionary 5.8%
Telecommunication services 5.7%
Information technology 4.9%
Materials 4.8%
Cash equivalents 1.5%
MANAGER'S DISCUSSION AND ANALYSIS
In the six-month period ended March 31, the Turner Quantitative Large Cap Value
Fund (TLVFX) fell 8.97%. But that return was good enough to outdistance the
Russell 1000 Value Index, which declined 14.01%, by 5.04 percentage points.
The fund's proprietary quantitative model selected stocks that did well in
relative terms in eight of 10 market sectors. Financials and materials stocks, a
31% weighting, enhanced performance to the greatest degree. Winners here
included investment-management, financial-transaction-processing, insurance,
metals, and mining shares. Hurting results the most were consumer-staples
stocks, which represented 9% of the portfolio; diversified industrial, food, and
beverage stocks were among the detractors.
- --------------------------------------------------------------------------------
* 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 Quantitative Large Cap Value Fund was October 10, 2005.
+ Percentages based on total investments.
++ Cash equivalents are not being considered a holding for the top five
holdings, but are counted in the number of holdings.
TURNER FUNDS 2008 SEMI ANNUAL REPORT | 15
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER SMALL CAP EQUITY FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2008
o Ticker symbol TSEIX
o CUSIP #87252R714
o Top five holdings+++
(1) Petroleum Development
(2) Clean Harbors
(3) Trico Marine Services
(4) THQ
(5) Plexus
o % in five largest holdings 7.3%+
o Number of holdings 100
o Price/earnings ratio 17.2
o Weighted average market capitalization $1.34 billion
o % of holdings with positive earnings surprises 73.1%
o % of holdings with negative earnings surprises 25.1%
o Net assets $44 million
-------------------------
LARGE
MARKET | -------------------------
CAPITALIZATION |
| -------------------------
SMALL X
-------------------------
VALUE ------------ GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE
TURNER SMALL CAP EQUITY FUND:
MARCH 4, 2002-MARCH 31, 2008*
[LINE GRAPH]
INITIAL INVESTMENT DATE TURNER SMALL CAP EQUITY FUND Russell 2000 Index
- ----------------------- ---------------------------- ------------------
3/4/02 $10,000 $10,000
Sep 02 $ 9,299 $ 7,485
Sep 03 $12,278 $10,217
Sep 04 $15,317 $12,134
Sep 05 $17,671 $14,313
Sep 06 $18,639 $15,732
Sep 07 $20,518 $17,674
Mar 08 $17,652 $15,196
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2008)
SIX ONE THREE FIVE SINCE
MONTHS YEAR YEARS YEARS INCEPTION
- ---------------------------------------------------------------------------------
TURNER SMALL CAP EQUITY FUND (13.97)% (13.07)% 2.51% 13.78% 9.81%
Russell 2000 Index (14.02)% (13.00)% 5.06% 14.90% 7.13%
- ---------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
Information technology 15.9%
Industrials 15.5%
Financials 12.6%
Health care 12.0%
Cash equivalents/short-term investments++ 11.4%
Energy 8.2%
Consumer discretionary 7.5%
Materials 6.5%
Consumer staples 5.5%
Utilities 4.9%
MANAGER'S DISCUSSION AND ANALYSIS
The Turner Small Cap Equity Fund (TSEIX) lost 13.97% in the six-month period
ended March 31. That return beat the Russell 2000 Index's 14.02% decline by 0.05
percentage point.
The fund is invested in both growth and value stocks. Six of the fund's nine
sector positions beat their corresponding index sectors. The greatest degree of
outperformance was supplied by materials, energy, health-care, and industrials
stocks, which represented 42% of the portfolio. Winners included mining,
energy-services, biotechnology, and railroad shares. A 16% position in
information-technology stocks hurt results the most; aerospace, software,
data-networking, and information-services 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 the top five holdings, but are counted in the number of
holdings.
16 | TURNER FUNDS 2008 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2008
o Ticker symbol TSCEX
o CUSIP #900297300
o Top five holdings+++
(1) United Therapeutics
(2) FTI Consulting
(3) Parexel International
(4) Perrigo
(5) BioMarin Pharmaceutical
o % in five largest holdings 7.9%+
o Number of holdings 109
o Price/earnings ratio 19.4
o Weighted average market capitalization $2.12 billion
o % of holdings with positive earnings surprises 78.4%
o % of holdings with negative earnings surprises 19.2%
o Net assets $261 million
-------------------------
LARGE
MARKET | -------------------------
CAPITALIZATION |
| -------------------------
SMALL X
-------------------------
VALUE ------------ GROWTH
INVESTMENT STYLE
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE
TURNER SMALL CAP GROWTH FUND:
SEPTEMBER 30, 1997-MARCH 31, 2008*
[LINE GRAPH]
TURNER SMALL CAP Russell 2000
INITIAL INVESTMENT DATE GROWTH FUND Growth Index
- ------------------------ ---------------- ------------
9/30/97 $10,000 $10,000
Sep 98 $ 8,310 $ 7,517
Sep 99 $13,225 $ 9,970
Sep 00 $20,640 $12,927
Sep 01 $10,359 $ 7,421
Sep 02 $ 8,353 $ 6,074
Sep 03 $12,497 $ 8,607
Sep 04 $14,119 $ 9,634
Sep 05 $16,337 $11,365
Sep 06 $17,324 $12,033
Sep 07 $21,831 $14,312
Mar 08 $18,587 $12,214
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2008)
SIX ONE THREE FIVE TEN SINCE
MONTHS YEAR YEARS YEARS YEARS INCEPTION
- ----------------------------------------------------------------------------------------
TURNER SMALL CAP GROWTH FUND (14.86)% (5.87)% 8.11% 16.60% 5.43% 12.56%
Russell 2000 Growth Index (14.66)% (8.94)% 5.74% 14.24% 1.75% 5.48%
- ----------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
Health care 17.1%
Consumer discretionary 17.0%
Information technology 15.0%
Industrials 14.1%
Cash equivalents/short-term investments++ 13.0%
Energy 7.6%
Financials 6.4%
Materials 5.6%
Consumer staples 2.2%
Telecommunication services 1.3%
Utilities 0.7%
MANAGER'S DISCUSSION AND ANALYSIS
In the six-month period ended March 31, the Turner Small Cap Growth Fund (TSCEX)
declined 14.86%. The fund's loss represented a modest margin of
underperformance, 0.20 percentage point, to that of the Russell 2000 Growth
Index, which fell 14.66%.
Five of the fund's 10 sector positions beat their index-sector counterparts. The
fund's health-care, financials, and industrials stocks, a 38% weighting,
performed best in relative terms, recording substantial margins of
outperformance over their index counterparts. Winners included biotechnology,
medical-device, investment-management, and shipping stocks. A 15% position in
information-technology stocks, particularly semiconductor and network-equipment
shares, were a drag on performance.
- --------------------------------------------------------------------------------
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or
less than 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 the top five holdings, but are counted in the number of
holdings.
TURNER FUNDS 2008 SEMIANNUAL REPORT | 17
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER CONCENTRATED GROWTH FUND
March 31, 2008
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--95.9%+
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--19.1%
- --------------------------------------------------------------------------------
Chipotle Mexican Grill, Cl A* 11,890 $ 1,349
Coach* 37,830 1,141
Focus Media Holding ADR* 15,280 537
GameStop, Cl A* 25,980 1,343
International Game Technology 33,220 1,336
Pulte Homes 91,710 1,334
----------
Total Consumer discretionary 7,040
----------
- --------------------------------------------------------------------------------
ENERGY--2.4%
- --------------------------------------------------------------------------------
Ultra Petroleum* 11,380 882
----------
Total Energy 882
----------
- --------------------------------------------------------------------------------
FINANCIALS--8.5%
- --------------------------------------------------------------------------------
CME Group 3,625 1,700
State Street 17,810 1,407
----------
Total Financials 3,107
----------
- --------------------------------------------------------------------------------
HEALTH CARE--20.9%
- --------------------------------------------------------------------------------
Baxter International 19,390 1,121
BioMarin Pharmaceutical* 39,290 1,390
Charles River Laboratories
International* 29,930 1,764
Gilead Sciences* 35,300 1,819
Intuitive Surgical* 4,960 1,609
----------
Total Health care 7,703
----------
- --------------------------------------------------------------------------------
INDUSTRIALS--12.1%
- --------------------------------------------------------------------------------
Deere 17,840 1,435
First Solar* 6,510 1,505
General Electric 40,450 1,497
----------
Total Industrials 4,437
----------
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--29.9%
- --------------------------------------------------------------------------------
Applied Materials 79,910 1,559
Cisco Systems* 80,170 1,931
Corning 72,490 1,743
Juniper Networks* 59,130 1,478
MEMC Electronic Materials* 16,840 1,194
QUALCOMM 41,430 1,699
Research In Motion* 12,350 1,386
----------
Total Information technology 10,990
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
MATERIALS--3.0%
- --------------------------------------------------------------------------------
Monsanto 9,770 $ 1,089
----------
Total Materials 1,089
----------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $33,041) 35,248
================================================================================
- --------------------------------------------------------------------------------
CASH EQUIVALENT--4.2%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund
Institutional Shares, 3.238%** 1,536,050 1,536
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $1,536) 1,536
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.1%
(COST $34,577) $ 36,784
================================================================================
Percentages are based on Net Assets of $36,762.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2008.
*** 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.
18 | TURNER FUNDS 2008 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER CORE GROWTH FUND
March 31, 2008
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--97.7%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--10.2%
- --------------------------------------------------------------------------------
Chipotle Mexican Grill, Cl A* 46,990 $ 5,330
Coach* 180,641 5,446
GameStop, Cl A* 125,550 6,492
Guess ? 123,350 4,992
International Game Technology 115,490 4,644
Lowe's 247,920 5,687
Nike, Cl B 56,620 3,850
Nordstrom 146,930 4,790
NVR* # 10,048 6,004
priceline.com* 36,620 4,426
TJX 140,130 4,634
Urban Outfitters* 144,850 4,541
----------
Total Consumer discretionary 60,836
----------
- --------------------------------------------------------------------------------
CONSUMER STAPLES--8.3%
- --------------------------------------------------------------------------------
Coca-Cola 340,670 20,737
Colgate-Palmolive 132,970 10,360
CVS Caremark 168,020 6,806
Fomento Economico
Mexicano ADR 136,950 5,722
Molson Coors Brewing, Cl B 121,020 6,362
----------
Total Consumer staples 49,987
----------
- --------------------------------------------------------------------------------
ENERGY--13.0%
- --------------------------------------------------------------------------------
Cameron International* 190,730 7,942
Consol Energy 122,050 8,445
Petroleo Brasileiro ADR 149,590 15,275
Range Resources 99,810 6,333
Southwestern Energy* 195,820 6,597
Weatherford International* 194,760 14,114
Williams 212,860 7,020
XTO Energy 194,202 12,013
----------
Total Energy 77,739
----------
- --------------------------------------------------------------------------------
FINANCIALS--15.8%
- --------------------------------------------------------------------------------
Aflac 162,380 10,547
BlackRock, Cl A # 35,830 7,316
Charles Schwab 531,120 10,001
Chubb 189,420 9,372
CME Group 22,210 10,419
Goldman Sachs Group 56,290 9,310
Value
Shares (000)
- --------------------------------------------------------------------------------
Northern Trust 118,960 $ 7,907
People's United Financial 139,930 2,422
PNC Financial Services Group 120,750 7,918
Public Storage^ 27,240 2,414
State Street 103,870 8,206
T. Rowe Price Group 169,790 8,489
----------
Total Financials 94,321
----------
- --------------------------------------------------------------------------------
HEALTH CARE--12.6%
- --------------------------------------------------------------------------------
Allergan 125,740 7,091
Baxter International 184,770 10,683
Becton Dickinson 46,920 4,028
BioMarin Pharmaceutical* 63,530 2,247
Genentech* 76,360 6,199
Genzyme* 78,670 5,864
Gilead Sciences* 280,070 14,432
Intuitive Surgical* 18,030 5,848
Teva Pharmaceutical Industries 93,190 4,304
Thermo Fisher Scientific* 130,900 7,440
Zimmer Holdings* 91,940 7,159
----------
Total Health care 75,295
----------
- --------------------------------------------------------------------------------
INDUSTRIALS--10.4%
- --------------------------------------------------------------------------------
Deere 150,120 12,076
Expeditors International
of Washington 94,550 4,272
First Solar* 28,980 6,698
General Electric 760,770 28,156
SPX 45,980 4,823
Union Pacific 51,540 6,462
----------
Total Industrials 62,487
----------
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--17.9%
- --------------------------------------------------------------------------------
Activision* 177,150 4,838
Akamai Technologies* 74,100 2,087
Apple* 100,020 14,353
Applied Materials 670,150 13,075
Cisco Systems* 693,300 16,702
Corning 612,570 14,726
Dolby Laboratories, Cl A* 44,380 1,609
Fiserv* 14,170 681
MEMC Electronic Materials* 48,450 3,435
TURNER FUNDS 2008 SEMIANNUAL REPORT | 19
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER CORE GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
Microchip Technology 97,200 $ 3,181
QUALCOMM 334,570 13,717
Research In Motion* 88,930 9,981
VeriSign* 119,870 3,984
Visa, Cl A* 81,460 5,080
----------
Total Information technology 107,449
----------
- --------------------------------------------------------------------------------
MATERIALS--3.8%
- --------------------------------------------------------------------------------
Monsanto 113,950 12,705
Mosaic* 53,460 5,485
Owens-Illinois* 79,280 4,474
----------
Total Materials 22,664
----------
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--4.2%
- --------------------------------------------------------------------------------
America Movil ADR, Ser L 182,310 11,611
Millicom International
Cellular* 64,448 6,094
Tele Norte Leste
Participacoes ADR # 289,490 7,683
----------
Total Telecommunication services 25,388
----------
- --------------------------------------------------------------------------------
UTILITIES--1.5%
- --------------------------------------------------------------------------------
Constellation Energy Group 101,660 8,974
----------
Total Utilities 8,974
----------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $566,753) 585,140
================================================================================
Value
Shares (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT--5.7%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund
Institutional Shares,
3.238%** (1) 34,144,636 $ 34,145
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $34,145) 34,145
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--103.4%
(COST $600,898) $ 619,285
================================================================================
Percentages are based on Net Assets of $598,797.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2008.
*** This number has been rounded to the nearest thousand.
^ Real Estate Investment Trust
# Security fully or partially on loan at March 31, 2008. The total value of
securities on loan at March 31, 2008, was $13,624,042.
(1) The Fund lends securities in its portfolio pursuant to a securities
lending agreement ("Lending Agreement") with Morgan Stanley. Unless
otherwise agreed, security loans made pursuant to the Lending Agreement
are required at all times to be secured by collateral equal to at least
100% of the market value of the securities loaned. Cash collateral
received is invested pursuant to the terms of the Lending Agreement in the
BlackRock TempCash Fund, Institutional Shares, a pooled investment fund.
All such investments are made at the risk of the Fund. As such, the Fund
is liable for investment losses. The Fund receives an annual fee for its
participation in the Lending Agreement based on projected lending
activity. This security or a partial position of this security was
purchased with cash collateral received from securities lending. The total
value of such security at March 31, 2008 was $13,761,773.
ADR -- American Depositary Receipt
Cl -- Class
Ser -- Series
The accompanying notes are an integral part of the financial statements.
20 | TURNER FUNDS 2008 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER EMERGING GROWTH FUND
March 31, 2008
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--81.4%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--7.4%
- --------------------------------------------------------------------------------
American Public Education* 28,420 $ 863
California Pizza Kitchen* 241,830 3,170
Deckers Outdoor* 206,780 22,295
DG FastChannel* 114,890 2,204
Great Wolf Resorts* 248,286 1,584
New Oriental Education &
Technology Group ADR* 54,570 3,540
Red Robin Gourmet Burgers* 84,140 3,161
Volcom* 202,230 4,087
----------
Total Consumer discretionary 40,904
----------
- --------------------------------------------------------------------------------
CONSUMER STAPLES--0.4%
- --------------------------------------------------------------------------------
Boston Beer, Cl A* 40,924 1,945
----------
Total Consumer staples 1,945
----------
- --------------------------------------------------------------------------------
ENERGY--18.5%
- --------------------------------------------------------------------------------
Bolt Technology* # 141,825 2,614
Carrizo Oil & Gas* 145,170 8,604
Dawson Geophysical* 82,820 5,590
ION Geophysical* 354,730 4,895
Lufkin Industries 55,260 3,527
NATCO Group, Cl A* 217,385 10,163
Oceaneering International* 155,930 9,824
Penn Virginia 190,740 8,410
PetroHawk Energy* 530,454 10,699
Petroleum Development* 73,540 5,094
StealthGas 143,010 2,224
T-3 Energy Services* 121,040 5,151
Trico Marine Services* 79,990 3,117
W-H Energy Services* 166,710 11,478
Willbros Group* 372,092 11,386
----------
Total Energy 102,776
----------
- --------------------------------------------------------------------------------
FINANCIALS--3.9%
- --------------------------------------------------------------------------------
American Physicians Capital 133,760 6,201
Harleysville Group 96,680 3,489
IBERIABANK 57,480 2,544
Meadowbrook Insurance
Group 334,740 2,614
National Interstate 54,100 1,263
Navigators Group* 107,460 5,846
----------
Total Financials 21,957
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
HEALTH CARE--14.9%
- --------------------------------------------------------------------------------
Acorda Therapeutics* # 271,740 $ 4,878
Air Methods* 80,442 3,891
Alexion Pharmaceuticals* 59,350 3,519
Cepheid* 30,838 752
HMS Holdings* 131,900 3,766
Hologic* 164,570 9,150
Icon ADR* 152,810 9,916
IPC The Hospitalist* 153,354 3,033
Kendle International* # 145,860 6,552
MWI Veterinary Supply* 109,620 3,865
Omnicell* 282,970 5,688
Parexel International* 466,854 12,185
PharmaNet Development
Group* 241,370 6,090
Rigel Pharmaceuticals* 154,260 2,879
XenoPort* 169,340 6,853
----------
Total Health care 83,017
----------
- --------------------------------------------------------------------------------
INDUSTRIALS--22.1%
- --------------------------------------------------------------------------------
AAR* 275,120 7,503
Barnes Group 233,570 5,360
Bucyrus International, Cl A 236,200 24,010
CBIZ* 563,340 4,574
Clean Harbors* 88,970 5,783
EnPro Industries* 158,980 4,959
Genesee & Wyoming, Cl A* 107,335 3,692
Genesis Lease ADR 111,900 1,628
GeoEye* 63,360 1,647
Heico # 133,480 6,507
HUB Group, Cl A* 82,694 2,720
Hurco* 51,143 2,393
II-VI* 187,210 7,110
Kenexa* 276,900 5,117
Ladish* 197,790 7,121
LMI Aerospace* 184,940 3,582
Middleby* # 153,210 9,559
Powell Industries* 80,360 3,164
Robbins & Myers 127,240 4,154
Titan International 118,960 3,641
Triumph Group # 155,190 8,835
----------
Total Industrials 123,059
----------
TURNER FUNDS 2008 SEMIANNUAL REPORT | 21
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER EMERGING GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--8.0%
- --------------------------------------------------------------------------------
Actuate* 401,870 $ 1,648
Advanced Analogic
Technologies* 337,410 1,896
Ansys* 276,860 9,557
Blue Coat Systems* 99,130 2,185
comScore* 82,710 1,659
Comtech Group* 244,090 2,634
Comtech Telecommunications* 100,365 3,914
Cybersource* 250,236 3,656
Network Equipment
Technologies* # 279,530 1,836
Phoenix Technologies* 149,440 2,340
Rofin-Sinar Technologies* 93,160 4,183
SPSS* 86,170 3,342
Stratasys* # 238,330 4,242
Yucheng Technologies* # 93,690 1,551
----------
Total Information technology 44,643
----------
- --------------------------------------------------------------------------------
MATERIALS--4.7%
- --------------------------------------------------------------------------------
Calgon Carbon* # 147,070 2,214
RTI International Metals* 108,647 4,912
Terra Industries* 530,040 8,832
----------
Total Materials 25,958
----------
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--1.3%
- --------------------------------------------------------------------------------
NTELOS Holdings 150,650 3,646
PAETEC Holding* 575,050 3,830
----------
Total Telecommunication services 7,476
----------
- --------------------------------------------------------------------------------
UTILITIES--0.2%
- --------------------------------------------------------------------------------
Artesian Resources, Cl A 57,705 1,069
----------
Total Utilities 1,069
----------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $340,608) 452,804
================================================================================
- --------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANY--3.9%
- --------------------------------------------------------------------------------
iShares Russell 2000
Growth Index Fund # 94,150 6,858
iShares Russell 2000
Index Fund # 215,550 14,767
- --------------------------------------------------------------------------------
TOTAL REGISTERED INVESTMENT
COMPANY (COST $22,333) 21,625
================================================================================
Value
Shares (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT--24.4%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund
Institutional Shares,
3.238%** (1) 135,811,453 $ 135,811
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $135,811) 135,811
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--109.7%
(COST $498,752) $ 610,240
================================================================================
Percentages are based on Net Assets of $556,421.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2008.
*** This number has been rounded to the nearest thousand.
# Security fully or partially on loan at March 31, 2008. The total value of
securities on loan at March 31, 2008, was $55,809,083.
(1) The Fund lends securities in its portfolio pursuant to a securities
lending agreement ("Lending Agreement") with Morgan Stanley. Unless
otherwise agreed, security loans made pursuant to the Lending Agreement
are required at all times to be secured by collateral equal to at least
100% of the market value of the securities loaned. Cash collateral
received is invested pursuant to the terms of the Lending Agreement in the
BlackRock TempCash Fund, Institutional Shares, a pooled investment fund.
All such investments are made at the risk of the Fund. As such, the Fund
is liable for investment losses. The Fund receives an annual fee for its
participation in the Lending Agreement based on projected lending
activity. This security or a partial position of this security was
purchased with cash collateral received from securities lending. The total
value of such security at March 31, 2008 was $57,492,362.
ADR -- American Depositary Receipt
Cl -- Class
The accompanying notes are an integral part of the financial statements.
22 | TURNER FUNDS 2008 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER INTERNATIONAL CORE GROWTH FUND
March 31, 2008
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--95.2%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--8.2%
- --------------------------------------------------------------------------------
Central European Media
Enterprises, Cl A* 770 $ 65
CTC Media GDR* 2,050 57
Daimler 691 59
Focus Media Holding ADR* 1,700 60
Gafisa 2,540 42
Matsushita Electric Industrial 4,000 87
----------
Total Consumer discretionary 370
----------
- --------------------------------------------------------------------------------
CONSUMER STAPLES--14.3%
- --------------------------------------------------------------------------------
Beiersdorf 838 70
British American Tobacco 2,390 90
Coca-Cola Femsa 11,300 64
Coca-Cola Hellenic Bottling 1,600 75
Cosan, Cl A* 5,070 62
Diageo 3,590 72
L'Oreal 422 54
Nestle 194 97
Shiseido 2,320 61
----------
Total Consumer staples 645
----------
- --------------------------------------------------------------------------------
ENERGY--5.6%
- --------------------------------------------------------------------------------
Acergy 3,737 80
BG Group 4,090 95
Transocean 570 77
----------
Total Energy 252
----------
- --------------------------------------------------------------------------------
FINANCIALS--10.2%
- --------------------------------------------------------------------------------
Arch Capital Group* 1,090 75
Banco Santander Chile 1,203,365 61
Deutsche Boerse 480 77
Julius Baer Holding 980 72
Standard Bank Group 1 --
Standard Chartered 2,581 88
Sumitomo Mitsui
Financial Group 7 46
Unibanco - Uniao de
Bancos Brasileiros 3,658 43
----------
Total Financials 462
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
HEALTH CARE--9.6%
- --------------------------------------------------------------------------------
Alcon 520 $ 74
CSL 2,520 85
Icon ADR* 1,060 69
Novo Nordisk, Cl B 1,140 78
Roche Holding 360 68
Teva Pharmaceutical Industries 1,320 61
----------
Total Health care 435
----------
- --------------------------------------------------------------------------------
INDUSTRIALS--14.9%
- --------------------------------------------------------------------------------
Alstom 310 67
Canadian National Railway 1,060 51
CNH Global 1,280 67
Empresa Brasileira
de Aeronautica 5,249 52
Grupo Aeroportuario del
Pacifico ADR 1,230 55
Intertek Group 1,810 37
Koninklijke Philips Electronics 1,627 62
Kuehne & Nagel International 748 75
McDermott International* 1,210 66
Tyco International 1,600 71
Vestas Wind Systems 636 70
----------
Total Industrials 673
----------
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--11.1%
- --------------------------------------------------------------------------------
High Tech Computer 4,000 90
Hitachi 12,190 72
Nintendo 216 112
Research In Motion* 554 62
Samsung Electronics 100 63
Tyco Electronics 1,780 61
UBISOFT Entertainment* 520 45
----------
Total Information technology 505
----------
- --------------------------------------------------------------------------------
MATERIALS--14.0%
- --------------------------------------------------------------------------------
Agnico-Eagle Mines 1,260 86
ArcelorMittal 928 76
Cia Vale do Rio Doce 2,010 70
First Quantum Minerals 912 74
Mechel 530 60
Potash Corp. of Saskatchewan 712 111
Syngenta 250 73
Xstrata 1,220 85
----------
Total Materials 635
----------
TURNER FUNDS 2008 SEMIANNUAL REPORT | 23
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER INTERNATIONAL CORE GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--3.4%
- --------------------------------------------------------------------------------
America Movil, Ser L 29,310 $ 93
Millicom International Cellular* 660 63
----------
Total Telecommunication services 156
----------
- --------------------------------------------------------------------------------
UTILITIES--3.9%
- --------------------------------------------------------------------------------
Iberdrola Renovables* 11,734 82
International Power 11,976 94
----------
Total Utilities 176
----------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $4,077) 4,309
================================================================================
- --------------------------------------------------------------------------------
PREFERRED STOCK--2.3%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--1.1%
- --------------------------------------------------------------------------------
Lojas Americanas 6,618 49
----------
Total Consumer discretionary 49
----------
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--1.2%
- --------------------------------------------------------------------------------
Brasil Telecom Participacoes 4,109 54
----------
Total Telecommunication services 54
----------
- --------------------------------------------------------------------------------
TOTAL PREFERRED STOCK
(COST $112) 103
================================================================================
- --------------------------------------------------------------------------------
CASH EQUIVALENT--3.3%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund
Institutional Shares, 3.238%** 151,187 151
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $151) 151
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.8%
(COST $4,340) $ 4,563
================================================================================
Percentages are based on Net Assets of $4,526.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2008.
*** This number has been rounded to the nearest thousand.
ADR -- American Depositary Receipt
Cl -- Class
GDR -- Global Depositary Receipt
Ser -- Series
The accompanying notes are an integral part of the financial statements.
24 | TURNER FUNDS 2008 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER LARGE CAP GROWTH FUND
March 31, 2008
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--97.8%+
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--12.3%
- --------------------------------------------------------------------------------
Coach* 21,630 $ 652
GameStop, Cl A* 16,650 861
International Game Technology 15,400 619
Lowe's 22,280 511
Nike, Cl B 5,180 352
Nordstrom 16,730 546
TJX 19,160 634
Viacom, Cl B* 13,520 536
----------
Total Consumer discretionary 4,711
----------
- --------------------------------------------------------------------------------
CONSUMER STAPLES--10.8%
- --------------------------------------------------------------------------------
Coca-Cola 33,780 2,056
Colgate-Palmolive 12,000 935
CVS Caremark 16,690 676
Fomento Economico
Mexicano ADR 11,100 464
----------
Total Consumer staples 4,131
----------
- --------------------------------------------------------------------------------
ENERGY--5.2%
- --------------------------------------------------------------------------------
Petroleo Brasileiro ADR 5,930 606
Transocean 2,960 400
Weatherford International* 5,690 412
XTO Energy 9,122 564
----------
Total Energy 1,982
----------
- --------------------------------------------------------------------------------
FINANCIALS--6.6%
- --------------------------------------------------------------------------------
Aflac 4,090 266
BlackRock, Cl A # 1,940 396
CME Group 1,175 551
Goldman Sachs Group 2,290 379
PNC Financial Services Group 5,140 337
State Street 3,380 267
T. Rowe Price Group 7,190 359
----------
Total Financials 2,555
----------
- --------------------------------------------------------------------------------
HEALTH CARE--17.8%
- --------------------------------------------------------------------------------
Alcon 3,130 445
Allergan 11,280 636
Baxter International 15,330 886
Value
Shares (000)
- --------------------------------------------------------------------------------
Becton Dickinson 6,510 $ 559
Genentech* 8,940 726
Genzyme* 7,530 561
Gilead Sciences* 30,310 1,562
Thermo Fisher Scientific* 15,210 865
Zimmer Holdings* 7,570 590
----------
Total Health care 6,830
----------
- --------------------------------------------------------------------------------
INDUSTRIALS--11.3%
- --------------------------------------------------------------------------------
Deere 14,410 1,159
Expeditors International
of Washington 15,160 685
First Solar* 3,320 768
General Electric 30,500 1,129
Union Pacific 4,700 589
----------
Total Industrials 4,330
----------
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--29.5%
- --------------------------------------------------------------------------------
Accenture, Cl A 12,120 426
Apple* 10,080 1,446
Applied Materials 63,740 1,244
Cisco Systems* 91,330 2,200
Corning 74,310 1,786
Juniper Networks* 31,980 800
MEMC Electronic Materials* 14,110 1,000
QUALCOMM 37,070 1,520
Research In Motion* 8,070 906
----------
Total Information technology 11,328
----------
- --------------------------------------------------------------------------------
MATERIALS--3.0%
- --------------------------------------------------------------------------------
Monsanto 7,300 814
Mosaic* 3,480 357
----------
Total Materials 1,171
----------
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--1.3%
- --------------------------------------------------------------------------------
America Movil ADR, Ser L 7,630 486
----------
Total Telecommunication services 486
----------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $35,000) 37,524
================================================================================
TURNER FUNDS 2008 SEMIANNUAL REPORT | 25
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER LARGE CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT--2.9%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund
Institutional Shares,
3.238%** (1) 1,110,443 $ 1,110
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $1,110) 1,110
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--100.7%
(COST $36,110) $ 38,634
================================================================================
Percentages are based on Net Assets of $38,352.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2008.
*** 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, 2008. The total value of
securities on loan at March 31, 2008, was $378,860.
(1) The Fund lends securities in its portfolio pursuant to a securities
lending agreement ("Lending Agreement") with Morgan Stanley. Unless
otherwise agreed, security loans made pursuant to the Lending Agreement
are required at all times to be secured by collateral equal to at least
100% of the market value of the securities loaned. Cash collateral
received is invested pursuant to the terms of the Lending Agreement in the
BlackRock TempCash Fund, Institutional Shares, a pooled investment fund.
All such investments are made at the risk of the Fund. As such, the Fund
is liable for investment losses. The Fund receives an annual fee for its
participation in the Lending Agreement based on projected lending
activity. This security or a partial position of this security was
purchased with cash collateral received from securities lending. The total
value of such security at March 31, 2008 was $392,484.
ADR--American Depositary Receipt
Cl--Class
Ser--Series
The accompanying notes are an integral part of the financial statements.
26 | TURNER FUNDS 2008 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER MIDCAP EQUITY FUND
March 31, 2008
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--91.8%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--7.2%
- --------------------------------------------------------------------------------
American Eagle Outfitters 240 $ 4
CTC Media GDR* 300 8
Goodyear Tire & Rubber* 175 5
Hanesbrands* 290 8
PetSmart 170 3
Sally Beauty Holdings* 805 6
WABCO Holdings 170 8
----------
Total Consumer discretionary 42
----------
- --------------------------------------------------------------------------------
CONSUMER STAPLES--6.9%
- --------------------------------------------------------------------------------
Alberto-Culver, Cl B 310 8
Church & Dwight 160 9
Hormel Foods 190 8
Molson Coors Brewing, Cl B 165 9
PepsiAmericas 260 6
----------
Total Consumer staples 40
----------
- --------------------------------------------------------------------------------
ENERGY--6.7%
- --------------------------------------------------------------------------------
Denbury Resources* 280 8
Exterran Holdings* 80 5
Mariner Energy* 280 8
Range Resources 180 11
Superior Energy Services* 180 7
----------
Total Energy 39
----------
- --------------------------------------------------------------------------------
FINANCIALS--13.2%
- --------------------------------------------------------------------------------
Alexandria Real Estate Equities 60 6
Arch Capital Group* 130 9
Douglas Emmett 280 6
Everest Re Group 45 4
Federated Investors, Cl B 215 8
Hanover Insurance Group 160 7
IntercontinentalExchange* 60 8
NASDAQ OMX Group* 210 8
Nymex Holdings 60 6
Rayonier 170 7
SLM 265 4
Washington Federal 190 4
----------
Total Financials 77
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
HEALTH CARE--7.9%
- --------------------------------------------------------------------------------
AmerisourceBergen, Cl A 100 $ 4
BioMarin Pharmaceutical* 215 8
Charles River Laboratories
International* 105 6
Henry Schein* 135 8
Hospira* 220 9
Pediatrix Medical Group* 160 11
----------
Total Health care 46
----------
- --------------------------------------------------------------------------------
INDUSTRIALS--18.6%
- --------------------------------------------------------------------------------
Alliant Techsystems* 70 7
Armstrong World Industries 175 6
Brink's 130 9
Corrections Corp. of America* 310 8
Covanta Holding* 480 13
FTI Consulting* 135 9
Harsco 145 8
Hexcel* 250 5
Kansas City Southern* 70 3
Kirby* 170 10
Lincoln Electric Holdings 90 6
Manitowoc 220 9
Republic Services, Cl A 270 8
Roper Industries 115 7
----------
Total Industrials 108
----------
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--15.8%
- --------------------------------------------------------------------------------
Alliance Data Systems* 155 7
Amphenol, Cl A 195 7
BMC Software* 265 9
Ciena* 180 5
Convergys* 460 7
Global Payments 185 8
Hewitt Associates, Cl A* 140 6
Intersil, Cl A 210 5
Itron* 90 8
McAfee* 290 10
Novell* 1,075 7
Sybase* 385 10
Synopsys* 130 3
----------
Total Information technology 92
----------
TURNER FUNDS 2008 SEMIANNUAL REPORT | 27
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER MIDCAP EQUITY FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
MATERIALS--7.7%
- --------------------------------------------------------------------------------
Allegheny Technologies 70 $ 5
Carpenter Technology 120 7
Celanese, Ser A 235 9
Fording Canadian Coal Trust 140 7
Sigma-Aldrich 180 11
Steel Dynamics 190 6
----------
Total Materials 45
----------
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--1.4%
- --------------------------------------------------------------------------------
SBA Communications, Cl A* 250 8
----------
Total Telecommunication services 8
----------
- --------------------------------------------------------------------------------
UTILITIES--6.4%
- --------------------------------------------------------------------------------
Allegheny Energy 115 6
Equitable Resources 110 6
MDU Resources Group 280 7
National Fuel Gas 205 10
NSTAR 250 8
----------
Total Utilities 37
----------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $533) 534
================================================================================
- --------------------------------------------------------------------------------
REGISTERED INVESTMENT COMPANY--2.4%
- --------------------------------------------------------------------------------
iShares Russell Midcap
Index Fund 150 14
- --------------------------------------------------------------------------------
TOTAL REGISTERED INVESTMENT
COMPANY (COST $13) 14
================================================================================
- --------------------------------------------------------------------------------
CASH EQUIVALENT--5.5%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund
Institutional Shares, 3.238%** 31,863 32
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $32) 32
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--99.7%
(COST $578) $ 580
================================================================================
Percentages are based on Net Assets of $582.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2008.
*** This number has been rounded to the nearest thousand.
Cl -- Class
GDR -- Global Depositary Reciept
Ser -- Series
The accompanying notes are an integral part of the financial statements.
28 | TURNER FUNDS 2008 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER MIDCAP GROWTH FUND
March 31, 2008
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--97.0%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--16.2%
- --------------------------------------------------------------------------------
Central European Media
Enterprises, Cl A* 93,632 $ 7,980
Chipotle Mexican
Grill, Cl A* # 84,020 9,530
Coach* 437,220 13,182
Darden Restaurants 246,980 8,039
Dick's Sporting Goods* 204,390 5,474
DR Horton 535,802 8,439
Focus Media Holding ADR* # 224,982 7,908
GameStop, Cl A* 328,030 16,962
Guess ? 477,207 19,313
International Game
Technology 416,742 16,757
Nordstrom 429,710 14,009
priceline.com* # 107,690 13,015
Pulte Homes 830,100 12,078
TJX 498,648 16,490
Urban Outfitters* 389,050 12,197
WMS Industries* 410,605 14,770
Wynn Resorts 81,957 8,248
----------
Total Consumer discretionary 204,391
----------
- --------------------------------------------------------------------------------
CONSUMER STAPLES--3.8%
- --------------------------------------------------------------------------------
Alberto-Culver, Cl B 598,770 16,412
Central European
Distribution* # 159,140 9,260
Chattem* # 119,120 7,903
Molson Coors Brewing, Cl B 270,020 14,195
----------
Total Consumer staples 47,770
----------
- --------------------------------------------------------------------------------
ENERGY--12.1%
- --------------------------------------------------------------------------------
Consol Energy 254,160 17,585
Denbury Resources* 289,920 8,277
Diamond Offshore Drilling 105,380 12,266
National Oilwell Varco* 140,840 8,222
Quicksilver Resources* 431,910 15,778
Range Resources 449,935 28,549
Southwestern Energy* 383,380 12,916
Ultra Petroleum* 127,340 9,869
Weatherford International* 369,130 26,751
Williams 372,070 12,271
----------
Total Energy 152,484
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
FINANCIALS--9.6%
- --------------------------------------------------------------------------------
AON 234,080 $ 9,410
Assurant 160,170 9,748
BlackRock, Cl A # 101,420 20,708
Federated Investors, Cl B 178,412 6,987
Hudson City Bancorp 802,110 14,181
Interactive Brokers
Group, Cl A* 247,753 6,360
IntercontinentalExchange* 69,080 9,015
Northern Trust 217,326 14,446
Public Storage 81,060 7,183
T. Rowe Price Group 456,802 22,840
----------
Total Financials 120,878
----------
- --------------------------------------------------------------------------------
HEALTH CARE--11.8%
- --------------------------------------------------------------------------------
Alexion Pharmaceuticals* 130,990 7,768
Allergan 321,420 18,125
BioMarin Pharmaceutical* 334,833 11,843
Charles River Laboratories
International* 196,860 11,603
Covance* 75,200 6,239
CR Bard 83,740 8,072
Dentsply International 242,950 9,378
Express Scripts* 338,070 21,745
Henry Schein* 200,769 11,524
Hologic* 137,600 7,651
Intuitive Surgical* 54,330 17,622
Shire ADR 143,450 8,314
United Therapeutics* # 104,650 9,073
----------
Total Health care 148,957
----------
- --------------------------------------------------------------------------------
INDUSTRIALS--16.2%
- --------------------------------------------------------------------------------
AGCO* 329,120 19,708
Ametek 374,410 16,440
Covanta Holding* 256,330 7,049
CSX 239,330 13,419
Expeditors International
of Washington 345,200 15,596
First Solar* 63,680 14,719
Flowserve 231,960 24,212
Fluor 67,940 9,590
FTI Consulting* 176,470 12,537
Harsco 217,100 12,023
TURNER FUNDS 2008 SEMIANNUAL REPORT | 29
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER MIDCAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
Joy Global 178,850 $ 11,654
Precision Castparts 74,580 7,613
Ryder System 120,550 7,343
Shaw Group* 190,300 8,971
SPX 117,300 12,305
Stericycle* 205,030 10,559
----------
Total Industrials 203,738
----------
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--17.0%
- --------------------------------------------------------------------------------
Activision* 427,630 11,679
Akamai Technologies* 322,480 9,081
Altera 683,070 12,589
Atheros Communications* 288,956 6,022
Cavium Networks* # 420,449 6,895
Dolby Laboratories, Cl A* 110,358 4,002
Informatica* 739,280 12,612
Juniper Networks* 596,140 14,903
Mastercard, Cl A 83,730 18,671
McAfee* 490,650 16,236
MEMC Electronic Materials* 224,930 15,948
Microchip Technology # 491,790 16,096
Micros Systems* 31,910 1,074
Omniture* # 315,260 7,317
Salesforce.com* 259,840 15,037
Varian Semiconductor
Equipment Associates* 472,040 13,288
VeriSign* 460,954 15,322
VistaPrint* # 275,860 9,641
Websense* 433,701 8,132
----------
Total Information technology 214,545
----------
- --------------------------------------------------------------------------------
MATERIALS--6.2%
- --------------------------------------------------------------------------------
Agnico-Eagle Mines # 70,990 4,807
Air Products & Chemicals 194,680 17,911
Celanese, Ser A 161,800 6,318
Mosaic* 131,580 13,500
Owens-Illinois* 388,800 21,940
Steel Dynamics 405,040 13,382
----------
Total Materials 77,858
----------
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--1.5%
- --------------------------------------------------------------------------------
Crown Castle International* 262,800 9,064
Millicom International
Cellular* 107,265 10,142
----------
Total Telecommunication services 19,206
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
UTILITIES--2.6%
- --------------------------------------------------------------------------------
Constellation Energy Group 115,120 $ 10,161
NRG Energy* 146,490 5,712
Questar 171,380 9,693
Reliant Energy* 288,950 6,834
-----------
Total Utilities 32,400
-----------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $1,044,379) 1,222,227
================================================================================
- --------------------------------------------------------------------------------
CASH EQUIVALENT--9.0%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund
Institutional Shares,
3.238%** (1) 113,229,409 113,229
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $113,229) 113,229
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--106.0%
(COST $1,157,608) $1,335,456
================================================================================
Percentages are based on Net Assets of $1,260,268.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2008.
*** This number has been rounded to the nearest thousand.
# Security fully or partially on loan at March 31, 2008. The total value of
securities on loan at March 31, 2008, was $75,396,991.
(1) The Fund lends securities in its portfolio pursuant to a securities
lending agreement ("Lending Agreement") with Morgan Stanley. Unless
otherwise agreed, security loans made pursuant to the Lending Agreement
are required at all times to be secured by collateral equal to at least
100% of the market value of the securities loaned. Cash collateral
received is invested pursuant to the terms of the Lending Agreement in the
BlackRock TempCash Fund, Institutional Shares, a pooled investment fund.
All such investments are made at the risk of the Fund. As such, the Fund
is liable for investment losses. The Fund receives an annual fee for its
participation in the Lending Agreement based on projected lending
activity. This security or a partial position of this security was
purchased with cash collateral received from securities lending. The total
value of such security at March 31, 2008 was $77,902,804.
ADR -- American Depositary Receipt
Cl -- Class
Ser -- Series
The accompanying notes are an integral part of the financial statements.
30 | TURNER FUNDS 2008 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER NEW ENTERPRISE FUND
March 31, 2008
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--98.6%+
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--19.1%
- --------------------------------------------------------------------------------
Coach* 29,120 $ 878
DR Horton 55,000 866
Focus Media Holding ADR* # 19,430 683
Guess ? 73,830 2,988
International Game Technology 21,430 862
Nordstrom 29,400 958
priceline.com* 8,270 1,000
Pulte Homes 51,290 746
TJX 51,480 1,703
----------
Total Consumer discretionary 10,684
----------
- --------------------------------------------------------------------------------
ENERGY--6.0%
- --------------------------------------------------------------------------------
Consol Energy 23,020 1,593
Ultra Petroleum* 22,500 1,744
----------
Total Energy 3,337
----------
- --------------------------------------------------------------------------------
FINANCIALS--2.4%
- --------------------------------------------------------------------------------
BlackRock, Cl A # 6,560 1,339
----------
Total Financials 1,339
----------
- --------------------------------------------------------------------------------
HEALTH CARE--22.8%
- --------------------------------------------------------------------------------
BioMarin Pharmaceutical* 60,289 2,133
Genentech* 20,160 1,637
Genzyme* 29,290 2,183
Gilead Sciences* 61,970 3,193
Intuitive Surgical* 4,810 1,560
United Therapeutics* 24,120 2,091
----------
Total Health care 12,797
----------
- --------------------------------------------------------------------------------
INDUSTRIALS--13.2%
- --------------------------------------------------------------------------------
Bucyrus International, Cl A 19,820 2,015
CSX 19,860 1,114
Deere 16,520 1,329
First Solar* 3,280 758
Flowserve 10,820 1,129
Stericycle* 21,020 1,082
----------
Total Industrials 7,427
----------
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--31.2%
- --------------------------------------------------------------------------------
Cavium Networks* # 75,080 1,231
Corning 85,930 2,066
Informatica* 111,500 1,902
Juniper Networks* 51,010 1,275
McAfee* 32,200 1,065
Value
Shares (000)
- --------------------------------------------------------------------------------
MEMC Electronic Materials* 17,700 $ 1,255
Microchip Technology 50,100 1,640
QUALCOMM 30,920 1,268
Research In Motion* 16,150 1,813
Salesforce.com* 20,320 1,176
VeriSign* 36,410 1,210
Websense* 85,100 1,596
----------
Total Information technology 17,497
----------
- --------------------------------------------------------------------------------
MATERIALS--3.9%
- --------------------------------------------------------------------------------
Monsanto 19,510 2,175
----------
Total Materials 2,175
----------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $52,908) 55,256
================================================================================
- --------------------------------------------------------------------------------
CASH EQUIVALENT--9.6%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund
Institutional Shares,
3.238%** (1) 5,401,413 5,401
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $5,401) 5,401
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--108.2%
(COST $58,309) $ 60,657
================================================================================
Percentages are based on Net Assets of $56,051.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2008.
*** 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, 2008. The total value of
securities on loan at March 31, 2008, was $4,401,897.
(1) The Fund lends securities in its portfolio pursuant to a securities
lending agreement ("Lending Agreement") with Morgan Stanley. Unless
otherwise agreed, security loans made pursuant to the Lending Agreement
are required at all times to be secured by collateral equal to at least
100% of the market value of the securities loaned. Cash collateral
received is invested pursuant to the terms of the Lending Agreement in the
BlackRock TempCash Fund, Institutional Shares, a pooled investment fund.
All such investments are made at the risk of the Fund. As such, the Fund
is liable for investment losses. The Fund receives an annual fee for its
participation in the Lending Agreement based on projected lending
activity. This security or a partial position of this security was
purchased with cash collateral received from securities lending. The total
value of such security at March 31, 2008 was $4,537,813.
ADR -- American Depositary Receipt
Cl -- Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2008 SEMIANNUAL REPORT | 31
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER QUANTITATIVE LARGE CAP VALUE FUND
March 31, 2008
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--98.1%+
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--5.8%
- --------------------------------------------------------------------------------
DIRECTV Group* 240 $ 6
Gap 330 7
Johnson Controls 200 7
News, Cl A 290 5
Time Warner 480 7
Walt Disney 310 10
Wyndham Worldwide 410 8
----------
Total Consumer discretionary 50
----------
- --------------------------------------------------------------------------------
CONSUMER STAPLES--8.8%
- --------------------------------------------------------------------------------
Altria Group 150 3
Archer-Daniels-Midland 230 9
Coca-Cola 90 6
Constellation Brands, Cl A* 230 4
CVS Caremark 220 9
Molson Coors Brewing, Cl B 110 6
Philip Morris International* 150 8
Procter & Gamble 100 7
Reynolds American 160 9
SUPERVALU 280 8
Wal-Mart Stores 110 6
----------
Total Consumer staples 75
----------
- --------------------------------------------------------------------------------
ENERGY--16.0%
- --------------------------------------------------------------------------------
Apache 60 7
Chevron 290 25
ConocoPhillips 110 8
Exxon Mobil 690 58
Hess 80 7
Murphy Oil 90 8
Occidental Petroleum 110 8
Pioneer Natural Resources 160 8
Williams 240 8
----------
Total Energy 137
----------
- --------------------------------------------------------------------------------
FINANCIALS--26.0%
- --------------------------------------------------------------------------------
Aflac 160 10
AMB Property 210 12
American Capital Strategies 270 9
Ameriprise Financial 170 9
AON 260 11
Assurant 120 7
Value
Shares (000)
- --------------------------------------------------------------------------------
Bank of New York Mellon 240 $ 10
Boston Properties 110 10
Chubb 140 7
Citigroup 540 12
Fidelity National Financial, Cl A 590 11
Invesco 300 7
Legg Mason 150 8
MetLife 150 9
Principal Financial Group 170 10
Rayonier 140 6
Regency Centers 160 10
State Street 150 12
TD Ameritrade Holding* 370 6
Torchmark 140 8
Travelers 230 11
Unum Group 400 9
Vornado Realty Trust 110 10
WR Berkley 290 8
----------
Total Financials 222
----------
- --------------------------------------------------------------------------------
HEALTH CARE--7.4%
- --------------------------------------------------------------------------------
AmerisourceBergen, Cl A 200 8
Applera - Applied Biosystems Group 210 7
Biogen Idec* 130 8
Eli Lilly 120 6
Pfizer 640 13
Shire ADR 80 5
Thermo Fisher Scientific* 170 10
Watson Pharmaceuticals* 210 6
----------
Total Health care 63
----------
- --------------------------------------------------------------------------------
INDUSTRIALS--11.9%
- --------------------------------------------------------------------------------
Cummins 120 5
First Solar* 30 7
Flowserve 80 8
General Electric 840 31
Honeywell International 140 8
ITT 170 9
Northrop Grumman 90 7
Raytheon 150 10
Union Pacific 70 9
Waste Management 240 8
----------
Total Industrials 102
----------
32 | TURNER FUNDS 2008 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER QUANTITATIVE LARGE CAP VALUE FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--4.9%
- --------------------------------------------------------------------------------
Automatic Data Processing 210 $ 9
Fidelity National Information Services 220 8
Hewlett-Packard 90 4
Intel 220 5
MEMC Electronic Materials* 80 6
Seagate Technology 190 4
Texas Instruments 220 6
----------
Total Information technology 42
----------
- --------------------------------------------------------------------------------
MATERIALS--4.8%
- --------------------------------------------------------------------------------
Air Products & Chemicals 90 8
EI Du Pont de Nemours 90 4
Freeport-McMoRan Copper & Gold 70 7
Nucor 100 7
Reliance Steel & Aluminum 120 7
Sigma-Aldrich 130 8
----------
Total Materials 41
----------
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--5.6%
- --------------------------------------------------------------------------------
AT&T 890 34
Verizon Communications 390 14
----------
Total Telecommunication services 48
----------
- --------------------------------------------------------------------------------
UTILITIES--6.9%
- --------------------------------------------------------------------------------
Centerpoint Energy 540 8
Dominion Resources 290 12
DPL 280 7
Edison International 170 8
Entergy 80 9
NRG Energy* 190 7
Public Service Enterprise Group 190 8
----------
Total Utilities 59
----------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $840) 839
================================================================================
Value
Shares (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT--1.5%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund
Institutional Shares,
3.238%** 12,878 $ 13
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $13) 13
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--99.6%
(COST $853) $ 852
================================================================================
Percentages are based on Net Assets of $855.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2008.
*** 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 2008 SEMIANNUAL REPORT | 33
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER SMALL CAP EQUITY FUND
March 31, 2008
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--96.0%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--8.2%
- --------------------------------------------------------------------------------
Bob Evans Farms 17,820 $ 492
Bright Horizons Family Solutions* 11,320 487
Callaway Golf 38,950 572
Ihop # 3,320 159
Lions Gate Entertainment* 46,270 451
Matthews International, Cl A 12,140 586
Tupperware Brands 13,890 537
Zale* # 14,210 281
----------
Total Consumer discretionary 3,565
----------
- --------------------------------------------------------------------------------
CONSUMER STAPLES--5.9%
- --------------------------------------------------------------------------------
BJ's Wholesale Club* 17,340 619
Cal-Maine Foods # 3,120 104
Chiquita Brands International* 20,760 480
Darling International* 36,240 469
Flowers Foods 17,590 435
Imperial Sugar # 9,180 173
Longs Drug Stores 7,460 317
----------
Total Consumer staples 2,597
----------
- --------------------------------------------------------------------------------
ENERGY--8.9%
- --------------------------------------------------------------------------------
Alpha Natural Resources* 10,710 465
Bill Barrett* 9,660 457
BPZ Resources* # 14,540 316
El Paso Pipeline Partners LP 14,090 319
International Coal Group* # 54,530 346
Penn Virginia 11,160 492
Petroleum Development* 11,560 801
Trico Marine Services* 17,540 684
----------
Total Energy 3,880
----------
- --------------------------------------------------------------------------------
FINANCIALS--13.7%
- --------------------------------------------------------------------------------
Amtrust Financial Services # 23,880 387
BioMed Realty Trust 24,920 595
Digital Realty Trust 12,830 456
Extra Space Storage 15,990 259
GFI Group 4,330 248
Interactive Brokers Group, Cl A* 17,890 459
Investment Technology Group* 11,530 533
Investors Bancorp* 14,180 218
IPC Holdings 17,000 476
Omega Healthcare Investors 17,390 302
Value
Shares (000)
- --------------------------------------------------------------------------------
Potlatch 9,260 $ 382
ProAssurance* 11,091 597
Strategic Hotels & Resorts 25,230 331
SVB Financial Group* # 8,840 386
UMB Financial 8,480 349
----------
Total Financials 5,978
----------
- --------------------------------------------------------------------------------
HEALTH CARE--13.0%
- --------------------------------------------------------------------------------
Air Methods* 5,930 287
Amedisys* 13,990 550
Analogic 7,426 494
Haemonetics* 8,210 489
HealthExtras* 13,020 323
inVentiv Health* 12,140 350
Kendle International* 11,860 533
Martek Biosciences* 18,530 567
Owens & Minor 10,150 399
Savient Pharmaceuticals* 15,910 318
STERIS 20,540 551
Sun Healthcare Group* 10,550 139
Varian* 8,380 485
Zoll Medical* 7,700 205
----------
Total Health care 5,690
----------
- --------------------------------------------------------------------------------
INDUSTRIALS--16.8%
- --------------------------------------------------------------------------------
AAR* 19,480 531
ABM Industries 4,710 106
Astec Industries* 7,450 289
Atlas Air Worldwide Holdings* 8,780 483
AZZ* # 13,430 478
Barnes Group 15,760 362
Briggs & Stratton # 17,040 305
China Security & Surveillance Technology* 20,570 365
Clean Harbors* 10,710 696
EnerSys* 24,290 581
Geo Group* 16,470 468
GrafTech International* 16,370 265
Kaydon 12,130 532
Kirby* 9,960 568
Moog, Cl A* 10,090 426
Seaspan # 15,680 447
Teledyne Technologies* 9,870 464
----------
Total Industrials 7,366
----------
34 | TURNER FUNDS 2008 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER SMALL CAP EQUITY FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--17.2%
- --------------------------------------------------------------------------------
Ariba* 43,460 $ 420
Bankrate* 11,510 574
Checkpoint Systems* 21,980 590
Electro Scientific Industries* 15,680 258
Exar* 52,840 435
Interwoven* 28,110 300
Mantech International, Cl A* 6,260 284
MercadoLibre GDR* 10,120 402
Microsemi* 20,440 466
Nice Systems ADR* 11,920 336
Plexus* 22,910 643
Progress Software* 17,060 511
S1* 39,990 284
Silicon Laboratories* 10,600 334
SonicWALL* 42,600 348
THQ* 29,570 645
Verigy* 14,990 283
Wright Express* 13,980 430
----------
Total Information technology 7,543
----------
- --------------------------------------------------------------------------------
MATERIALS--7.0%
- --------------------------------------------------------------------------------
Calgon Carbon* # 30,920 465
Coeur d'Alene Mines* 137,450 555
Kaiser Aluminum 6,230 432
Koppers Holdings 13,570 601
Minerals Technologies 6,560 412
Schnitzer Steel Industries, Cl A 6,020 428
Sensient Technologies 6,070 179
----------
Total Materials 3,072
----------
- --------------------------------------------------------------------------------
UTILITIES--5.3%
- --------------------------------------------------------------------------------
Allete 7,870 304
El Paso Electric* 23,500 502
ITC Holdings 12,090 629
New Jersey Resources 15,165 471
Southwest Gas 14,270 399
----------
Total Utilities 2,305
----------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $40,612) 41,996
================================================================================
Value
Shares (000)
- --------------------------------------------------------------------------------
CASH EQUIVALENT--12.4%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund
Institutional Shares,
3.238%** (1) 5,424,233 $ 5,424
================================================================================
TOTAL CASH EQUIVALENT
(COST $5,424) 5,424
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--108.4%
(COST $46,036) $ 47,420
================================================================================
Percentages are based on Net Assets of $43,741.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2008.
*** This number has been rounded to the nearest thousand.
# Security fully or partially on loan at March 31, 2008. The total value of
securities on loan at March 31, 2008, was $3,485,845.
(1) The Fund lends securities in its portfolio pursuant to a securities
lending agreement ("Lending Agreement") with Morgan Stanley. Unless
otherwise agreed, security loans made pursuant to the Lending Agreement
are required at all times to be secured by collateral equal to at least
100% of the market value of the securities loaned. Cash collateral
received is invested pursuant to the terms of the Lending Agreement in the
BlackRock TempCash Fund, Institutional Shares, a pooled investment fund.
All such investments are made at the risk of the Fund. As such, the Fund
is liable for investment losses. The Fund receives an annual fee for its
participation in the Lending Agreement based on projected lending
activity. This security or a partial position of this security was
purchased with cash collateral received from securities lending. The total
value of such security at March 31, 2008 was $3,579,166.
ADR -- American Depositary Receipt
Cl -- Class
GDR -- Global Depositary Reciept
LP -- Limited Partnership
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2008 SEMIANNUAL REPORT | 35
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER SMALL CAP GROWTH FUND
March 31, 2008
Value
Shares (000)
- --------------------------------------------------------------------------------
COMMON STOCK--98.7%
- --------------------------------------------------------------------------------
CONSUMER DISCRETIONARY--19.3%
- --------------------------------------------------------------------------------
Aeropostale* 101,970 $ 2,764
AirMedia Group ADR* # 110,860 1,763
Buckle 38,020 1,701
Capella Education* 44,540 2,432
Chipotle Mexican Grill, Cl A* 33,930 3,849
Deckers Outdoor* 27,550 2,970
Fossil* 78,920 2,410
Gymboree* 66,030 2,633
Interactive Data 119,360 3,398
J Crew Group* # 61,140 2,701
Lennar, Cl A # 87,170 1,640
LKQ* 131,970 2,965
Lululemon Athletica* # 33,850 962
NetFlix* # 58,500 2,027
New Oriental Education &
Technology Group ADR* 19,080 1,237
priceline.com* # 32,640 3,945
Red Robin Gourmet Burgers* # 87,730 3,296
Strayer Education 15,750 2,402
True Religion Apparel* # 82,510 1,531
WMS Industries* 102,130 3,674
----------
Total Consumer discretionary 50,300
----------
- --------------------------------------------------------------------------------
CONSUMER STAPLES--2.5%
- --------------------------------------------------------------------------------
Central European Distribution* 38,700 2,252
Chattem* # 33,130 2,198
Flowers Foods 80,975 2,004
----------
Total Consumer staples 6,454
----------
- --------------------------------------------------------------------------------
ENERGY--8.6%
- --------------------------------------------------------------------------------
Alpha Natural Resources* 45,990 1,998
Arena Resources* 66,200 2,563
Atwood Oceanics* 22,830 2,094
Concho Resources* 118,920 3,049
Core Laboratories* 24,880 2,968
Hornbeck Offshore Services* # 53,700 2,453
PetroHawk Energy* 170,020 3,429
W-H Energy Services* 25,360 1,746
Willbros Group* 68,630 2,100
----------
Total Energy 22,400
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
FINANCIALS--7.2%
- --------------------------------------------------------------------------------
Digital Realty Trust^ 78,350 $ 2,781
Dime Community Bancshares 72,659 1,270
Extra Space Storage 129,265 2,093
Greenhill # 54,043 3,759
Investment Technology Group* 62,890 2,904
MSCI, Cl A* 65,370 1,945
Waddell & Reed Financial, Cl A 122,800 3,946
Westamerica Bancorporation 3,890 205
----------
Total Financials 18,903
----------
- --------------------------------------------------------------------------------
HEALTH CARE--19.4%
- --------------------------------------------------------------------------------
Acorda Therapeutics* 88,990 1,597
Alexion Pharmaceuticals* 24,124 1,431
AMERIGROUP* 56,720 1,550
Auxilium Pharmaceuticals* # 60,200 1,610
BioMarin Pharmaceutical* 124,630 4,408
Cepheid* 54,500 1,329
Haemonetics* 47,470 2,828
Hologic* 61,920 3,443
Icon ADR* 51,201 3,322
Illumina* 18,180 1,380
KV Pharmaceutical, Cl A* # 134,050 3,346
NuVasive* 69,350 2,393
Parexel International* 171,520 4,477
Pediatrix Medical Group* 38,290 2,581
Perrigo 117,850 4,446
Rigel Pharmaceuticals* 68,880 1,285
Savient Pharmaceuticals* 67,480 1,350
TomoTherapy* # 54,560 783
United Therapeutics* # 59,020 5,117
XenoPort* 51,560 2,087
----------
Total Health care 50,763
----------
- --------------------------------------------------------------------------------
INDUSTRIALS--16.0%
- --------------------------------------------------------------------------------
Actuant, Cl A 102,940 3,110
Aecom Technology* 71,230 1,853
American Superconductor* # 61,030 1,415
Bucyrus International, Cl A 29,410 2,989
FTI Consulting* 70,970 5,042
IHS, Cl A* 47,800 3,074
JA Solar Holdings ADR* 94,580 1,759
Landstar System 45,190 2,357
36 | TURNER FUNDS 2008 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- --------------------------------------------------------------------------------
Middleby* 25,240 $ 1,575
Mobile Mini* 87,056 1,654
Orbital Sciences* 84,270 2,031
RBC Bearings* 71,450 2,653
Robbins & Myers 88,140 2,878
Teledyne Technologies* 31,750 1,492
Tetra Tech* 57,170 1,115
TransDigm Group* 54,790 2,030
Wabtec 57,960 2,183
Woodward Governor 94,100 2,514
----------
Total Industrials 41,724
----------
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY--17.0%
- --------------------------------------------------------------------------------
Ansys* 103,690 3,579
Atheros Communications* 73,400 1,530
Cavium Networks* 72,758 1,193
comScore* 49,690 997
Comtech Telecommunications* 30,120 1,175
Concur Technologies* 74,050 2,299
Constant Contact* # 36,974 535
EMS Technologies* 67,290 1,826
Flir Systems* 117,380 3,532
Informatica* 183,580 3,132
Jack Henry & Associates 123,340 3,043
Micros Systems* 108,140 3,640
Net 1 UEPS Technologies* 61,980 1,398
Omniture* 116,177 2,696
Plexus* 102,990 2,889
Sybase* 76,780 2,019
Take-Two Interactive Software* 39,560 1,010
VistaPrint* # 84,440 2,951
Vocus* 62,190 1,642
Websense* 169,160 3,172
----------
Total Information technology 44,258
----------
- --------------------------------------------------------------------------------
MATERIALS--6.4%
- --------------------------------------------------------------------------------
Century Aluminum* 59,840 3,964
CF Industries Holdings 15,750 1,632
Compass Minerals International 36,510 2,153
Greif, Cl A 39,470 2,681
Hecla Mining* # 178,480 1,992
Koppers Holdings 49,220 2,181
Terra Industries* 59,180 2,103
----------
Total Materials 16,706
----------
Value
Shares (000)
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES--1.5%
- --------------------------------------------------------------------------------
Cellcom Israel 43,970 $ 1,382
Syniverse Holdings* 146,550 2,441
----------
Total Telecommunication services 3,823
----------
- --------------------------------------------------------------------------------
UTILITIES--0.8%
- --------------------------------------------------------------------------------
ITC Holdings 41,340 2,152
----------
Total Utilities 2,152
----------
- --------------------------------------------------------------------------------
TOTAL COMMON STOCK
(COST $228,607) 257,483
================================================================================
- --------------------------------------------------------------------------------
CASH EQUIVALENT--14.8%
- --------------------------------------------------------------------------------
BlackRock TempCash Fund
Institutional Shares,
3.238%** (1) 38,635,422 38,635
- --------------------------------------------------------------------------------
TOTAL CASH EQUIVALENT
(COST $38,635) 38,635
================================================================================
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS--113.5%
(COST $267,242) $ 296,118
================================================================================
Percentages are based on Net Assets of $260,834.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2008.
*** This number has been rounded to the nearest thousand.
^ Real Estate Investment Trust
# Security fully or partially on loan at March 31, 2008. The total value of
securities on loan at March 31, 2008, was $34,363,223.
(1) The Fund lends securities in its portfolio pursuant to a securities
lending agreement ("Lending Agreement") with Morgan Stanley. Unless
otherwise agreed, security loans made pursuant to the Lending Agreement
are required at all times to be secured by collateral equal to at least
100% of the market value of the securities loaned. Cash collateral
received is invested pursuant to the terms of the Lending Agreement in the
BlackRock TempCash Fund, Institutional Shares, a pooled investment fund.
All such investments are made at the risk of the Fund. As such, the Fund
is liable for investment losses. The Fund receives an annual fee for its
participation in the Lending Agreement based on projected lending
activity. This security or a partial position of this security was
purchased with cash collateral received from securities lending. The total
value of such security at March 31, 2008 was $35,568,774.
ADR -- American Depositary Receipt
Cl -- Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2008 SEMIANNUAL REPORT | 37
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (000)
March 31, 2008
Turner Turner Turner Turner
Concentrated Core Growth Emerging International
Growth Fund Fund Growth Fund Core Growth Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Assets:
- ------------------------------------------------------------------------------------------------------------------------------------
Investment securities, at cost $ 34,577 $ 600,898 $ 498,752 $ 4,340
Foreign currency, at cost -- -- -- 10
====================================================================================================================================
Investment securities, at value $ 36,784 $ 619,285* $ 610,240* $ 4,563
Foreign currency, at value -- -- -- 9
Receivable for capital shares sold 29 3,460 140 --
Receivable for investment securities sold -- 12,357 4,064 9
Receivable from investment adviser -- -- -- 6
Receivable for dividend income 28 563 406 16
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets 36,841 635,665 614,850 4,603
====================================================================================================================================
Liabilities:
Payable due to investment adviser 39 259 428 --
Payable due to shareholder servicing 18 110 118 --
Payable for capital shares redeemed 5 1,156 242 --
Payable due to administrator 4 70 66 1
Payable due to Chief Compliance Officer 1 10 7 --
Payable for investment securities purchased -- 21,483 -- 72
Obligation to return securities lending collateral -- 13,762 57,492 --
Payable due to distributor -- -- -- --
Other accrued expenses 12 18 76 4
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities 79 36,868 58,429 77
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets $ 36,762 $ 598,797 $ 556,421 $ 4,526
====================================================================================================================================
*Includes market value of securities on loan $ -- $ 13,624 $ 55,809 $ --
====================================================================================================================================
Net assets:
Portfolio capital of Institutional Class Shares $ -- $ 374,685 $ -- $ 4,450
Portfolio capital of Investor Class Shares 188,618 264,155 465,483 --
Portfolio capital of Retirement Class Shares -- -- -- --
Undistributed net investment income/(Accumulated net
investment loss)/(Distributions in excess of net investment
income) (278) 655 (1,245) 19
Accumulated net realized loss on investments (153,785) (59,085) (19,305) (166)
Net unrealized appreciation (depreciation) on investments 2,207 18,387 111,488 223
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets $ 36,762 $ 598,797 $ 556,421 $ 4,526
====================================================================================================================================
Outstanding shares of beneficial interest (1)
Institutional Class Shares (2) -- 28,935,520 -- 399,051
- ------------------------------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Investor Class Shares (2) 4,418,855 18,786,223 11,326,738 --
- ------------------------------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Retirement Class Shares (2) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets -- Institutional Class Shares (2) $ -- $ 363,781,725 $ -- $ 4,525,802
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets -- Investor Class Shares (2) $ 36,762,030 $ 235,015,198 $ 556,420,954 $ --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets -- Retirement Class Shares (2) $ -- $ -- $ -- $ --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption price per share
-- Institutional Class Shares $ -- $ 12.57 $ -- $ 11.34
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption price per share
-- Investor Class Shares $ 8.32 $ 12.51 $ 49.12 $ --
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption price per share
-- Retirement Class Shares $ -- $ -- $ -- $ --
====================================================================================================================================
(Unaudited)
- --------------------------------------------------------------------------------
Turner Turner Turner
Large Cap Midcap Midcap
Growth Fund Equity Fund Growth Fund
- -----------------------------------------------------------------------------------------------------------------
Assets:
- -----------------------------------------------------------------------------------------------------------------
Investment securities, at cost $ 36,110 $ 578 $ 1,157,608
Foreign currency, at cost -- -- --
=================================================================================================================
Investment securities, at value $ 38,634* $ 580 $ 1,335,456*
Foreign currency, at value -- -- --
Receivable for capital shares sold 99 -- 3,603
Receivable for investment securities sold 1,111 3 12,641
Receivable from investment adviser -- 7 --
Receivable for dividend income 28 -- 645
- -----------------------------------------------------------------------------------------------------------------
Total assets 39,872 590 1,352,345
=================================================================================================================
Liabilities:
Payable due to investment adviser 5 -- 724
Payable due to shareholder servicing -- -- 265
Payable for capital shares redeemed 1 -- 837
Payable due to administrator 5 -- 150
Payable due to Chief Compliance Officer 1 -- 17
Payable for investment securities purchased 1,107 8 11,964
Obligation to return securities lending collateral 392 -- 77,903
Payable due to distributor -- -- 10
Other accrued expenses 9 -- 207
- -----------------------------------------------------------------------------------------------------------------
Total liabilities 1,520 8 92,077
- -----------------------------------------------------------------------------------------------------------------
Net assets $ 38,352 $ 582 $ 1,260,268
=================================================================================================================
*Includes market value of securities on loan $ 379 $ -- $ 75,397
=================================================================================================================
Net assets:
Portfolio capital of Institutional Class Shares $ 53,305 $ 100 $ --
Portfolio capital of Investor Class Shares 871 559 1,359,508
Portfolio capital of Retirement Class Shares -- -- 5,320
Undistributed net investment income/(Accumulated net
investment loss)/(Distributions in excess of net investment
income) 4 (1) (2,322)
Accumulated net realized loss on investments (18,352) (78) (280,086)
Net unrealized appreciation (depreciation) on investments 2,524 2 177,848
- -----------------------------------------------------------------------------------------------------------------
Net assets $ 38,352 $ 582 $ 1,260,268
=================================================================================================================
Outstanding shares of beneficial interest (1)
Institutional Class Shares (2) 6,555,081 10,788 --
- -----------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Investor Class Shares (2) 144,268 53,121 39,745,431
- -----------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Retirement Class Shares (2) -- -- 200,778
- -----------------------------------------------------------------------------------------------------------------
Net Assets -- Institutional Class Shares (2) $ 37,528,588 $ 99,184 $ --
- -----------------------------------------------------------------------------------------------------------------
Net Assets -- Investor Class Shares (2) $ 823,320 $ 483,142 $ 1,254,113,282
- -----------------------------------------------------------------------------------------------------------------
Net Assets -- Retirement Class Shares (2) $ -- $ -- $ 6,154,975
- -----------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption price per share
-- Institutional Class Shares $ 5.73 $ 9.19 $ --
- -----------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption price per share
-- Investor Class Shares $ 5.71 $ 9.10 $ 31.55
- -----------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption price per share
-- Retirement Class Shares $ -- $ -- $ 30.66
=================================================================================================================
Turner
Turner Quantitative Turner Turner
New Enterprise Large Cap Small Cap Small Cap
Fund Value Fund Equity Fund Growth Fund
- ---------------------------------------------------------------------------------------------------------------------------------
Assets:
- ---------------------------------------------------------------------------------------------------------------------------------
Investment securities, at cost $ 58,309 $ 853 $ 46,036 $ 267,242
Foreign currency, at cost -- -- -- --
=================================================================================================================================
Investment securities, at value $ 60,657* $ 852 $ 47,420* $ 296,118*
Foreign currency, at value -- -- -- --
Receivable for capital shares sold 51 -- 5 429
Receivable for investment securities sold -- -- 781 1,755
Receivable from investment adviser -- 4 -- --
Receivable for dividend income 20 2 48 199
- ---------------------------------------------------------------------------------------------------------------------------------
Total assets 60,728 858 48,254 298,501
=================================================================================================================================
Liabilities:
Payable due to investment adviser 52 -- 29 163
Payable due to shareholder servicing 12 -- 9 63
Payable for capital shares redeemed 57 -- 28 81
Payable due to administrator 7 -- 5 31
Payable due to Chief Compliance Officer 1 -- 1 4
Payable for investment securities purchased -- -- 842 1,709
Obligation to return securities lending collateral 4,538 -- 3,579 35,569
Payable due to distributor -- -- -- --
Other accrued expenses 10 3 20 47
- ---------------------------------------------------------------------------------------------------------------------------------
Total liabilities 4,677 3 4,513 37,667
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets $ 56,051 $ 855 $ 43,741 $ 260,834
=================================================================================================================================
*Includes market value of securities on loan $ 4,402 $ -- $ 3,486 $ 34,363
=================================================================================================================================
Net assets:
Portfolio capital of Institutional Class Shares $ -- $ 895 $ -- $ --
Portfolio capital of Investor Class Shares 73,793 -- 46,439 307,409
Portfolio capital of Retirement Class Shares -- -- -- --
Undistributed net investment income/(Accumulated net
investment loss)/(Distributions in excess of net
investment income) (307) 3 (126) (400)
Accumulated net realized loss on investments (19,783) (42) (3,956) (75,051)
Net unrealized appreciation (depreciation) on investments 2,348 (1) 1,384 28,876
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets $ 56,051 $ 855 $ 43,741 $ 260,834
=================================================================================================================================
Outstanding shares of beneficial interest (1)
Institutional Class Shares (2) -- 85,051 -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Investor Class Shares (2) 7,830,404 -- 3,519,997 9,289,005
- ---------------------------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Retirement Class Shares (2) -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets -- Institutional Class Shares (2) $ -- $ 854,938 $ -- $ --
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets -- Investor Class Shares (2) $ 56,051,180 $ -- $ 43,740,688 $ 260,833,972
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets -- Retirement Class Shares (2) $ -- $ -- $ -- $ --
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption price per share
-- Institutional Class Shares $ -- $ 10.05 $ -- $ --
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption price per share
-- Investor Class Shares $ 7.16 $ -- $ 12.43 $ 28.08
- ---------------------------------------------------------------------------------------------------------------------------------
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 2008 SEMIANNUAL REPORT | 38 & 39
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (000)
Turner Turner Turner
Concentrated Core Turner International
Growth Growth Emerging Core Growth
Fund Fund Growth Fund Fund
-----------------------------------------------------------
10/1/07 thru 10/1/07 thru 10/1/07 thru 10/1/07 thru
3/31/08 3/31/08 3/31/08 3/31/08
- -------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 179 $ 2,979 $ 2,433 $ 44
Securities lending 9 55 358 --
Foreign taxes withheld -- (75) (20) (3)
- -------------------------------------------------------------------------------------------------------------------------
Total Investment income 188 2,959 2,771 41
- -------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 399 1,726 3,061 16
Shareholder service fees (1) 72 226 765 --
Shareholder service fees (2) -- -- -- --
Distribution fees (2) -- -- -- --
Administrator fees 40 350 429 3
Chief Compliance Officer fees 3 19 11 --
Transfer agent fees 17 51 47 14
Custodian fees 11 51 55 18
Professional fees 5 48 62 --
Registration fees 5 27 34 3
Printing fees 5 49 43 --
Trustees' fees 2 16 22 --
Insurance and other fees 3 11 26 2
- -------------------------------------------------------------------------------------------------------------------------
Total expenses 562 2,574 4,555 56
Less:
Investment advisory fee waiver (82) (374) (257) (16)
Fees paid indirectly (3) (8) (1) (8) --
Administrator fee waiver -- (250) -- --
Reimbursements of other operating expenses -- -- -- (19)
- -------------------------------------------------------------------------------------------------------------------------
Net expenses 472 1,949 4,290 21
- -------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (284) 1,010 (1,519) 20
- -------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from securities sold (4,971) (54,753) (1,544) (89)
Net realized loss on foreign currency transactions -- -- -- (15)
Net change in unrealized depreciation on
investments, foreign currencies, and translation
of other assets and liabilities denominated
in foreign currencies (6,683) (29,818) (68,518) (181)
- -------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized loss on investments (11,654) (84,571) (70,062) (285)
- -------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (11,938) $ (83,561) $ (71,581) $ (265)
=========================================================================================================================
(Unaudited)
- --------------------------------------------------------------------------------
Turner Turner Turner
Large Cap Midcap Midcap
Growth Fund Equity Fund Growth Fund
- ---------------------------------------------------------------------------------------------------------
10/1/07 thru 10/1/07 thru 10/1/07 thru
3/31/08 3/31/08 3/31/08
- ---------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 192 $ 3 $ 5,194
Securities lending 2 -- 191
Foreign taxes withheld (5) -- (6)
- ---------------------------------------------------------------------------------------------------------
Total Investment income 189 3 5,379
- ---------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 120 2 5,021
Shareholder service fees (1) -- 1 1,666
Shareholder service fees (2) -- -- 8
Distribution fees (2) -- -- 8
Administrator fees 28 -- 938
Chief Compliance Officer fees 2 -- 34
Transfer agent fees 28 27 186
Custodian fees 17 7 69
Professional fees 4 -- 135
Registration fees 7 7 64
Printing fees 3 -- 97
Trustees' fees 1 -- 48
Insurance and other fees 4 1 53
- ---------------------------------------------------------------------------------------------------------
Total expenses 214 45 8,327
Less:
Investment advisory fee waiver (75) (2) (399)
Fees paid indirectly (3) (1) -- (26)
Administrator fee waiver -- -- --
Reimbursements of other operating expenses -- (39) --
- ---------------------------------------------------------------------------------------------------------
Net expenses 138 4 7,902
- ---------------------------------------------------------------------------------------------------------
Net investment income (loss) 51 (1) (2,523)
- ---------------------------------------------------------------------------------------------------------
Net realized gain (loss) from securities sold (2,806) (57) 4,358
Net realized loss on foreign currency transactions -- -- --
Net change in unrealized depreciation on
investments, foreign currencies, and translation
of other assets and liabilities denominated
in foreign currencies (4,041) (24) (165,413)
- ---------------------------------------------------------------------------------------------------------
Net realized and unrealized loss on investments (6,847) (81) (161,055)
- ---------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (6,796) $ (82) $ (163,578)
=========================================================================================================
Turner
Turner Quantitative Turner Turner
New Enterprise Large Cap Small Cap Small Cap
Fund Value Fund Equity Fund Growth Fund
- -------------------------------------------------------------------------------------------------------------------------
10/1/07 thru 10/1/07 thru 10/1/07 thru 10/1/07 thru
3/31/08 3/31/08 3/31/08 3/31/08
- -------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 289 $ 9 $ 204 $ 749
Securities lending 10 -- 36 379
Foreign taxes withheld -- -- -- (23)
- -------------------------------------------------------------------------------------------------------------------------
Total Investment income 299 9 240 1,105
- -------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 530 3 248 1,480
Shareholder service fees (1) 103 -- 65 370
Shareholder service fees (2) -- -- -- --
Distribution fees (2) -- -- -- --
Administrator fees 58 1 37 207
Chief Compliance Officer fees 3 -- 2 7
Transfer agent fees 30 13 16 33
Custodian fees 11 4 28 44
Professional fees 8 -- 5 30
Registration fees 10 5 8 17
Printing fees 8 -- 3 20
Trustees' fees 3 -- 2 11
Insurance and other fees 3 -- 2 14
- -------------------------------------------------------------------------------------------------------------------------
Total expenses 767 26 416 2,233
Less:
Investment advisory fee waiver (121) (3) (37) (371)
Fees paid indirectly (3) (12) -- (1) (12)
Administrator fee waiver -- -- -- --
Reimbursements of other operating expenses -- (20) -- --
- -------------------------------------------------------------------------------------------------------------------------
Net expenses 634 3 378 1,850
- -------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (335) 6 (138) (745)
- -------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from securities sold (9,797) (13) (3,112) (21,333)
Net realized loss on foreign currency transactions -- -- -- --
Net change in unrealized depreciation on
investments, foreign currencies, and translation
of other assets and liabilities denominated
in foreign currencies (7,775) (75) (4,000) (24,513)
- -------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized loss on investments (17,572) (88) (7,112) (45,846)
- -------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations $ (17,907) $ (82) $ (7,250) $ (46,591)
=========================================================================================================================
(1) Attributable to Investor Class Shares only.
(2) Attributable to Retirement Class Shares only.
(3) See Note 4 in Notes to Financial Statements.
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 2008 SEMIANNUAL REPORT | 40 & 41
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (000)
Turner Concentrated
Growth Fund
---------------------------------
10/1/07 thru year ended
3/31/08 (unaudited) 9/30/07
- --------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (284) $ (209)
Net realized gain (loss) from securities sold (4,971) 7,682
Net realized loss on foreign currency transactions -- --
Net change in unrealized appreciation (depreciation) on investments,
foreign currencies, and translation of other assets and
liabilities denominated in foreign currencies (6,683) 3,552
- --------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from operations (11,938) 11,025
- --------------------------------------------------------------------------------------------------------------------
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 in net assets from Institutional Class Shares transactions -- --
- --------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Proceeds from shares issued 22,607 30,295
Proceeds from shares issued in lieu of cash distributions -- --
Cost of shares redeemed (35,308) (18,099)
- --------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor Class Shares transactions (12,701) 12,196
- --------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share transactions (12,701) 12,196
- --------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (24,639) 23,221
- --------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 61,401 38,180
- --------------------------------------------------------------------------------------------------------------------
End of period $ 36,762 $ 61,401
====================================================================================================================
Undistributed net investment income (Accumulated net investment loss)
(Distributions in excess of net investment income) $ (278) $ 6
====================================================================================================================
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 2,234 3,178
Issued in lieu of cash distributions -- --
Redeemed (3,882) (2,136)
- --------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Shares (1,648) 1,042
- --------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions (1,648) 1,042
====================================================================================================================
- --------------------------------------------------------------------------------
Turner Core Turner Emerging
Growth Fund Growth Fund
-----------------------------------------------------------------
10/1/07 thru year ended 10/1/07 thru year ended
3/31/08 (unaudited) 9/30/07 3/31/08 (unaudited) 9/30/07
- -----------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ 1,010 $ 646 $ (1,519) $ (3,011)
Net realized gain (loss) from securities sold (54,753) (1,620) (1,544) 71,394
Net realized loss on foreign currency transactions -- -- -- --
Net change in unrealized appreciation (depreciation) on
investments, foreign currencies, and translation of other
assets and liabilities denominated in foreign currencies (29,818) 39,771 (68,518) 65,475
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations (83,561) 38,797 (71,581) 133,858
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Institutional Class Shares (612) (444) -- --
Investor Class Shares (273) (52) (2,912) --
Realized capital gains
Institutional Class Shares -- -- -- --
Investor Class Shares -- -- (84,525) (50,964)
- -----------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (885) (496) (87,437) (50,964)
- -----------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Institutional Class Shares
Proceeds from shares issued 193,600 147,804 -- --
Proceeds from shares issued in lieu of cash distributions 503 444 -- --
Cost of shares redeemed (19,208) (14,649) -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Institutional Class Shares
transactions 174,895 133,599 -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Proceeds from shares issued 250,073 13,619 47,664 84,795
Proceeds from shares issued in lieu of cash distributions 271 52 86,908 50,559
Cost of shares redeemed (17,315) (5,605) (57,170) (145,438)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor Class Shares
transactions 233,029 8,066 77,402 (10,084)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share
transactions 407,924 141,665 77,402 (10,084)
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 323,478 179,966 (81,616) 72,810
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 275,319 95,353 638,037 565,227
- -----------------------------------------------------------------------------------------------------------------------------------
End of period $ 598,797 $ 275,319 $ 556,421 $ 638,037
===================================================================================================================================
Undistributed net investment income (Accumulated net investment
loss) (Distributions in excess of net investment income) $ 655 $ 530 $ (1,245) $ 3,186
===================================================================================================================================
Shares issued and redeemed:
Institutional Class Shares
Issued 13,794 11,444 -- --
Issued in lieu of cash distributions 33 36 -- --
Redeemed (1,413) (1,132) -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in Institutional Class Shares 12,414 10,348 -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Issued 17,443 1,038 856 1,420
Issued in lieu of cash distributions 18 4 1,563 898
Redeemed (1,295) (439) (1,051) (2,458)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Shares 16,166 603 1,368 (140)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions 28,580 10,951 1,368 (140)
===================================================================================================================================
Turner International Turner Large Cap
Core Growth Fund Growth Fund
-----------------------------------------------------------------------
10/1/07 thru 1/31/07 (1) thru 10/1/07 thru year ended
3/31/08 (unaudited) 9/30/07 3/31/08 (unaudited) 9/30/07
- -----------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ 20 $ 11 $ 51 $ 54
Net realized gain (loss) from securities sold (89) (34) (2,806) 755
Net realized loss on foreign currency transactions (15) (7) -- --
Net change in unrealized appreciation (depreciation) on
investments, foreign currencies, and translation of
other assets and liabilities denominated in foreign
currencies (181) 404 (4,041) 4,190
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations (265) 374 (6,796) 4,999
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Institutional Class Shares (5) -- (89) (66)
Investor Class Shares -- -- -- --
Realized capital gains
Institutional Class Shares (28) -- -- --
Investor Class Shares -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (33) -- (89) (66)
- -----------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Institutional Class Shares
Proceeds from shares issued 3,531 2,035 12,987 19,850
Proceeds from shares issued in lieu of cash
distributions 33 -- 75 54
Cost of shares redeemed (1,149) -- (6,513) (6,530)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Institutional Class Shares
transactions 2,415 2,035 6,549 13,374
- -----------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Proceeds from shares issued -- -- 834 86
Proceeds from shares issued in lieu of cash
distributions -- -- -- --
Cost of shares redeemed -- -- (47) (2)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor Class
Shares transactions -- -- 787 84
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital
share transactions 2,415 2,035 7,336 13,458
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 2,117 2,409 451 18,391
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 2,409 -- 37,901 19,510
- -----------------------------------------------------------------------------------------------------------------------------------
End of period $ 4,526 $ 2,409 $ 38,352 $ 37,901
===================================================================================================================================
Undistributed net investment income (Accumulated net
investment loss) (Distributions in excess of net
investment income) $ 19 $ 4 $ 4 $ 42
===================================================================================================================================
Shares issued and redeemed:
Institutional Class Shares
Issued 294 197 1,976 3,159
Issued in lieu of cash distributions 3 -- 11 9
Redeemed (95) -- (1,007) (1,089)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in Institutional Class Shares 202 197 980 2,079
- -----------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Issued -- -- 138 13
Issued in lieu of cash distributions -- -- -- --
Redeemed -- -- (7) --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Shares -- -- 131 13
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions 202 197 1,111 2,092
===================================================================================================================================
(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 2008 SEMIANNUAL REPORT | 42 & 43
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (000)
Turner Midcap Turner Midcap
Equity Fund Growth Fund
--------------------------------------------------------------------------
10/1/07 thru 1/31/07 (1) thru 10/1/07 thru year ended
3/31/08 (unaudited) 9/30/07 3/31/08(unaudited) 9/30/07
- -----------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (1) $ (1) $ (2,523) $ (7,435)
Net realized gain (loss) from securities sold (57) (21) 4,358 133,836
Net change in unrealized appreciation
(depreciation) on investments (24) 26 (165,413) 178,581
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations (82) 4 (163,578) 304,982
- -----------------------------------------------------------------------------------------------------------------------------------
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 100 -- -- --
Proceeds from shares issued in lieu of cash
distributions -- -- -- --
Cost of shares redeemed -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Institutional Class
Shares transactions 100 -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Proceeds from shares issued 122 629 272,942 327,209
Proceeds from shares issued in lieu of cash
distributions -- -- -- --
Cost of shares redeemed (90) (101) (196,212) (404,010)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor
Class Shares transactions 32 528 76,730 (76,801)
- -----------------------------------------------------------------------------------------------------------------------------------
Retirement Class Shares
Proceeds from shares issued -- -- 1,405 4,134
Proceeds from shares issued in lieu of cash
distributions -- -- -- --
Cost of shares redeemed -- -- (673) (1,576)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Retirement Class
Shares transactions -- -- 732 2,558
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital
share transactions 132 528 77,462 (74,243)
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 50 532 (86,116) 230,739
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 532 -- 1,346,384 1,115,645
- -----------------------------------------------------------------------------------------------------------------------------------
End of period $ 582 $ 532 $ 1,260,268 $ 1,346,384
===================================================================================================================================
Undistributed net investment income
(Accumulated net investment loss) $ (1) $ -- $ (2,322) $ 201
===================================================================================================================================
Shares issued and redeemed:
Institutional Class Shares
Issued 11 -- -- --
Issued in lieu of cash distributions -- -- -- --
Redeemed -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in Institutional Class Shares 11 -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Issued 12 60 7,990 10,387
Issued in lieu of cash distributions -- -- -- --
Redeemed (9) (10) (5,776) (13,149)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Shares 3 50 2,214 (2,762)
- -----------------------------------------------------------------------------------------------------------------------------------
Retirement Class Shares
Issued -- -- 42 140
Issued in lieu of cash distributions -- -- -- --
Redeemed -- -- (20) (52)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in Retirement Class Shares -- -- 22 88
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions 14 50 2,236 (2,674)
===================================================================================================================================
- --------------------------------------------------------------------------------
Turner New Turner Quantitative
Enterprise Fund Large Cap Value Fund
--------------------------------------------------------------------
10/1/07 thru year ended 10/1/07 thru year ended
3/31/08 (unaudited) 9/30/07 3/31/08 (unaudited) 9/30/07
- -------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (335) $ (248) $ 6 $ 9
Net realized gain (loss) from securities sold (9,797) 3,615 (13) 81
Net change in unrealized appreciation (depreciation)
on investments (7,775) 5,954 (75) 19
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations (17,907) 9,321 (82) 109
- -------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Institutional Class Shares -- -- (8) (9)
Investor Class Shares -- -- -- --
Retirement Class Shares -- -- -- --
Realized capital gains
Institutional Class Shares -- -- (110) (12)
Investor Class Shares -- -- -- --
Retirement Class Shares -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions -- -- (118) (21)
- -------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Institutional Class Shares
Proceeds from shares issued -- -- 102 230
Proceeds from shares issued in lieu of cash
distributions -- -- 118 21
Cost of shares redeemed -- -- -- (84)
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Institutional Class
Shares transactions -- -- 220 167
- -------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Proceeds from shares issued 52,542 50,438 -- --
Proceeds from shares issued in lieu of cash
distributions -- -- -- --
Cost of shares redeemed (48,729) (13,654) -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor
Class Shares transactions 3,813 36,784 -- --
- -------------------------------------------------------------------------------------------------------------------------------
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 3,813 36,784 220 167
- -------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (14,094) 46,105 20 255
- -------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 70,145 24,040 835 580
- -------------------------------------------------------------------------------------------------------------------------------
End of period $ 56,051 $ 70,145 $ 855 $ 835
===============================================================================================================================
Undistributed net investment income
(Accumulated net investment loss) $ (307) $ 28 $ 3 $ 5
===============================================================================================================================
Shares issued and redeemed:
Institutional Class Shares
Issued -- -- 9 19
Issued in lieu of cash distributions -- -- 11 2
Redeemed -- -- -- (7)
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in Institutional Class Shares -- -- 20 14
- -------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Issued 6,054 6,123 -- --
Issued in lieu of cash distributions -- -- -- --
Redeemed (6,271) (1,917) -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Shares (217) 4,206 -- --
- -------------------------------------------------------------------------------------------------------------------------------
Retirement Class Shares
Issued -- -- -- --
Issued in lieu of cash distributions -- -- -- --
Redeemed -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net increase in Retirement Class Shares -- -- -- --
- -------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions (217) 4,206 20 14
===============================================================================================================================
Turner Small Cap Turner Small Cap
Equity Fund Growth Fund
--------------------------------------------------------------------
10/1/07 thru year ended 10/1/07 thru year ended
3/31/08 (unaudited) 9/30/07 3/31/08 (unaudited) 9/30/07
- ---------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (138) $ (513) $ (745) $ (1,930)
Net realized gain (loss) from securities sold (3,112) 9,940 (21,333) 38,846
Net change in unrealized appreciation (depreciation)
on investments (4,000) (1,650) (24,513) 28,720
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations (7,250) 7,777 (46,591) 65,636
- ---------------------------------------------------------------------------------------------------------------------------------
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 (9,517) (5,701) -- --
Retirement Class Shares -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (9,517) (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 3,844 7,445 30,476 80,195
Proceeds from shares issued in lieu of cash
distributions 9,456 5,671 -- --
Cost of shares redeemed (18,084) (31,240) (40,981) (76,172)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor Class
Shares transactions (4,784) (18,124) (10,505) 4,023
- ---------------------------------------------------------------------------------------------------------------------------------
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 (4,784) (18,124) (10,505) 4,023
- ---------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (21,551) (16,048) (57,096) 69,659
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 65,292 81,340 317,930 248,271
- ---------------------------------------------------------------------------------------------------------------------------------
End of period $ 43,741 $ 65,292 $ 260,834 $ 317,930
=================================================================================================================================
Undistributed net investment income
(Accumulated net investment loss) $ (126) $ 12 $ (400) $ 345
=================================================================================================================================
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 280 430 975 2,703
Issued in lieu of cash distributions 676 336 -- --
Redeemed (1,207) (1,796) (1,327) (2,547)
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Shares (251) (1,030) (352) 156
- ---------------------------------------------------------------------------------------------------------------------------------
Retirement Class Shares
Issued -- -- -- --
Issued in lieu of cash distributions -- -- -- --
Redeemed -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase in Retirement Class Shares -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions (251) (1,030) (352) 156
=================================================================================================================================
(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 2008 SEMIANNUAL REPORT | 44 & 45
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Realized and
Net asset Net unrealized
value, investment gains
beginning income (losses) on
of period (loss) investments
- ---------------------------------------------------------------------
Turner Concentrated Growth Fund -- Investor Class Shares
- --------------------------------------------------------
2008* $ 10.12 (0.05) (3) (1.75)
2007 $ 7.60 (0.05) (3) 2.57
2006 $ 7.10 (0.08) (3) 0.58
2005 $ 5.82 (0.02) 1.30
2004 $ 6.05 (0.07) (0.16)
2003 $ 4.03 (0.04) 2.06
- -----------------------------------------------------
Turner Core Growth Fund -- Institutional Class Shares
- -----------------------------------------------------
2008* $ 14.39 0.03 (3) (1.82)
2007 $ 11.65 0.02 2.77
2006 $ 10.93 0.06 0.69
2005 (4) $ 8.84 0.02 2.07
2004 $ 8.04 (0.03) 0.83
2003 $ 6.29 (0.03) 1.78
- ------------------------------------------------
Turner Core Growth Fund -- Investor Class Shares
- ------------------------------------------------
2008* $ 14.33 0.02 (3) (1.82)
2007 $ 11.61 0.02 2.73
2006 $ 10.93 0.07 0.64
2005 (2)(4) $ 10.58 -- 0.35
- ----------------------------------------------------
Turner Emerging Growth Fund -- Investor Class Shares
- ----------------------------------------------------
2008* $ 64.06 (0.14) (3) (6.05)
2007 $ 55.97 (0.30) (3) 13.61
2006 $ 56.46 (0.32) (3) 3.02
2005 $ 50.02 (0.46) (3) 13.35
2004 $ 41.38 (0.39) 10.04
2003 $ 32.04 (0.25) 9.59
- -------------------------------------------------------------------
Turner International Core Growth Fund -- Institutional Class Shares
- -------------------------------------------------------------------
2008* $ 12.21 0.06 (3) (0.81)
2007 (5) $ 10.00 0.07 (3) 2.14
- ----------------------------------------------------------
Turner Large Cap Growth Fund -- Institutional Class Shares
- ----------------------------------------------------------
2008* $ 6.78 0.01 (3) (1.05)
2007 $ 5.58 0.01 (3) 1.21
2006 $ 5.41 0.01 (3) 0.17
2005 $ 4.83 0.01 (3) 0.57
2004 $ 4.62 -- 0.21
2003 $ 3.50 -- 1.12
- -----------------------------------------------------
Turner Large Cap Growth Fund -- Investor Class Shares
- -----------------------------------------------------
2008* $ 6.77 --** (3) (1.05)
2007 (5) $ 5.92 0.01 (3) 0.84
- -------------------------------------------------------
Turner Midcap Equity Fund -- Institutional Class Shares
- -------------------------------------------------------
2008* $ 10.68 0.05 (3)(6) (1.54)
2007 (5) $ 10.00 0.04 (3)(6) 0.64
- --------------------------------------------------
Turner Midcap Equity Fund -- Investor Class Shares
- --------------------------------------------------
2008* $ 10.61 (0.01) (3) (1.50)
2007 (5) $ 10.00 (0.02) (3) 0.63
Total Dividends Distributions
from from net from Total
investment investment capital dividends and
operations income gains distributions
- ---------------------------------------------------------------------
Turner Concentrated Growth Fund -- Investor Class Shares
- --------------------------------------------------------
2008* (1.80) -- -- --
2007 2.52 -- -- --
2006 0.50 -- -- --
2005 1.28 -- -- --
2004 (0.23) -- -- --
2003 2.02 -- -- --
- -----------------------------------------------------
Turner Core Growth Fund -- Institutional Class Shares
- -----------------------------------------------------
2008* (1.79) (0.03) -- (0.03)
2007 2.79 (0.05) -- (0.05)
2006 0.75 (0.03) -- (0.03)
2005 (4) 2.09 -- -- --
2004 0.80 -- -- --
2003 1.75 -- -- --
- ------------------------------------------------
Turner Core Growth Fund -- Investor Class Shares
- ------------------------------------------------
2008* (1.80) (0.02) -- (0.02)
2007 2.75 (0.03) -- (0.03)
2006 0.71 (0.03) -- (0.03)
2005 (2)(4) 0.35 -- -- --
- ----------------------------------------------------
Turner Emerging Growth Fund -- Investor Class Shares
- ----------------------------------------------------
2008* (6.19) (0.25) (8.50) (8.75)
2007 13.31 -- (5.22) (5.22)
2006 2.70 -- (3.19) (3.19)
2005 12.89 -- (6.45) (6.45)
2004 9.65 -- (1.01) (1.01)
2003 9.34 -- -- --
- -------------------------------------------------------------------
Turner International Core Growth Fund -- Institutional Class Shares
- -------------------------------------------------------------------
2008* (0.75) (0.02) (0.10) (0.12)
2007 (5) 2.21 -- -- --
- ----------------------------------------------------------
Turner Large Cap Growth Fund -- Institutional Class Shares
- ----------------------------------------------------------
2008* (1.04) (0.01) -- (0.01)
2007 1.22 (0.02) -- (0.02)
2006 0.18 (0.01) -- (0.01)
2005 0.58 --** -- --
2004 0.21 --** -- --
2003 1.12 --** -- --
- -----------------------------------------------------
Turner Large Cap Growth Fund -- Investor Class Shares
- -----------------------------------------------------
2008* (1.05) (0.01) -- (0.01)
2007 (5) 0.85 -- -- --
- -------------------------------------------------------
Turner Midcap Equity Fund -- Institutional Class Shares
- -------------------------------------------------------
2008* (1.49) -- -- --
2007 (5) 0.68 -- -- --
- --------------------------------------------------
Turner Midcap Equity Fund -- Investor Class Shares
- --------------------------------------------------
2008* (1.51) -- -- --
2007 (5) 0.61 -- -- --
- --------------------------------------------------------------------------------
Net Ratio of
Net asset assets end net expenses
value, end Total of period to average
of period return (000) net assets++
- ----------------------------------------------------------------
Turner Concentrated Growth Fund -- Investor Class Shares
- --------------------------------------------------------
2008* $ 8.32 (17.79)%+ $ 36,762 1.65%
2007 $ 10.12 33.16% $ 61,401 1.11%
2006 $ 7.60 7.04% $ 38,180 1.59%
2005 $ 7.10 21.99% $ 30,779 1.15%
2004 $ 5.82 (3.80)% $ 39,109 1.42%
2003 $ 6.05 50.12% $ 47,004 1.23%
- -----------------------------------------------------
Turner Core Growth Fund -- Institutional Class Shares
- -----------------------------------------------------
2008* $ 12.57 (12.49)%+ $ 363,782 0.69%
2007 $ 14.39 24.00% $ 237,778 0.68%
2006 $ 11.65 6.91% $ 71,935 0.59%
2005 (4) $ 10.93 23.64% $ 40,857 0.69% (1)
2004 $ 8.84 9.95% $ 5,080 1.25%
2003 $ 8.04 27.82% $ 5,528 1.25%
- ------------------------------------------------
Turner Core Growth Fund -- Investor Class Shares
- ------------------------------------------------
2008* $ 12.51 (12.60)%+ $ 235,015 0.94%
2007 $ 14.33 23.68% $ 37,541 0.94%
2006 $ 11.61 6.52% $ 23,418 0.94%
2005 (2)(4) $ 10.93 3.31%+ $ 1 0.83%
- ----------------------------------------------------
Turner Emerging Growth Fund -- Investor Class Shares
- ----------------------------------------------------
2008* $ 49.12 (11.20)%+ $ 556,421 1.40%
2007 $ 64.06 25.08% $ 638,037 1.40%
2006 $ 55.97 4.95% $ 565,227 1.40%
2005 $ 56.46 27.90% $ 502,108 1.40%
2004 $ 50.02 23.54% $ 366,692 1.40%
2003 $ 41.38 29.15% $ 253,840 1.40%
- -------------------------------------------------------------------
Turner International Core Growth Fund -- Institutional Class Shares
- -------------------------------------------------------------------
2008* $ 11.34 (6.23)%+ $ 4,526 1.10%
2007 (5) $ 12.21 22.10%+ $ 2,409 1.10%
- ----------------------------------------------------------
Turner Large Cap Growth Fund -- Institutional Class Shares
- ----------------------------------------------------------
2008* $ 5.73 (15.32)%+ $ 37,529 0.69%
2007 $ 6.78 21.86% $ 37,814 0.70%
2006 $ 5.58 3.40% $ 19,510 0.75%
2005 $ 5.41 12.09% $ 43,025 0.75%
2004 $ 4.83 4.64% $ 67,991 0.75%
2003 $ 4.62 32.01% $ 79,416 0.75%
- -----------------------------------------------------
Turner Large Cap Growth Fund -- Investor Class Shares
- -----------------------------------------------------
2008* $ 5.71 (15.53)%+ $ 823 0.94%
2007 (5) $ 6.77 14.36%+ $ 87 0.94%
- -------------------------------------------------------
Turner Midcap Equity Fund -- Institutional Class Shares
- -------------------------------------------------------
2008* $ 9.19 (13.95)%+ $ 99 0.90%
2007 (5) $ 10.68 6.80%+ $ -- 0.90%
- --------------------------------------------------
Turner Midcap Equity Fund -- Investor Class Shares
- --------------------------------------------------
2008* $ 9.10 (14.23)%+ $ 483 1.15%
2007 (5) $ 10.61 6.10%+ $ 532 1.15%
Ratio of net
Ratio of total investment
expenses income (loss) Portfolio
to average to average turnover
net assets net assets++ rate+++
- --------------------------------------------------------------
Turner Concentrated Growth Fund -- Investor Class Shares
- --------------------------------------------------------
2008* 1.96% (0.99)% 191.19%
2007 1.46% (0.57)% 219.62%
2006 1.79% (1.01)% 250.81%
2005 1.41% (0.57)% 329.52%
2004 1.57% (0.99)% 498.78%
2003 1.60% (0.90)% 762.18%
- -----------------------------------------------------
Turner Core Growth Fund -- Institutional Class Shares
- -----------------------------------------------------
2008* 0.94% 0.50% 108.58%
2007 1.06% 0.42% 102.71%
2006 1.20% 0.77% 123.67%
2005 (4) 1.60% 0.46% 136.36%
2004 1.97% (0.27)% 104.00%
2003 2.14% (0.34)% 187.00%
- ------------------------------------------------
Turner Core Growth Fund -- Investor Class Shares
- ------------------------------------------------
2008* 1.19% 0.24% 108.58%
2007 1.31% 0.15% 102.71%
2006 1.43% 0.23% 123.67%
2005 (2)(4) 2.50% 0.33% 136.36%
- ----------------------------------------------------
Turner Emerging Growth Fund -- Investor Class Shares
- ----------------------------------------------------
2008* 1.49% (0.50)% 31.35%
2007 1.48% (0.50)% 87.53%
2006 1.44% (0.57)% 77.87%
2005 1.44% (0.90)% 73.50%
2004 1.42% (0.85)% 122.45%
2003 1.44% (0.81)% 147.77%
- --------------------------------------------------------------------
Turner International Core Growth Fund -- Institutional Class Shares
- --------------------------------------------------------------------
2008* 2.94% 1.06% 118.93%
2007 (5) 4.63% 0.99% 111.08%
- -----------------------------------------------------------
Turner Large Cap Growth Fund -- Institutional Class Shares
- -----------------------------------------------------------
2008* 1.07% 0.26% 107.63%
2007 1.23% 0.23% 118.85%
2006 1.16% 0.26% 194.17%
2005 1.10% 0.16% 154.66%
2004 0.94% 0.11% 165.94%
2003 0.97% 0.03% 201.35%
- -----------------------------------------------------
Turner Large Cap Growth Fund -- Investor Class Shares
- -----------------------------------------------------
2008* 1.36% 0.03% 107.63%
2007 (5) 1.51% 0.13% 118.85%
- -------------------------------------------------------
Turner Midcap Equity Fund -- Institutional Class Shares
- -------------------------------------------------------
2008* 16.55% 1.05% 77.07%
2007 (5) 31.25% 0.60% 97.57%
- --------------------------------------------------
Turner Midcap Equity Fund -- Investor Class Shares
- --------------------------------------------------
2008* 16.32% (0.50)% 77.07%
2007 (5) 22.26% (0.26)% 97.57%
* For the six-month period ended March 31, 2008, 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, as applicable.
(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) 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.
(5) Commenced operations on January 31, 2007. All ratios for the period have
been annualized.
(6) The amount shown for a share outstanding throughout the period does not
accord with the aggregate net losses on investments for the period because
of the sales and repurchases of fund shares in relation to fluctuating
market value of the investments of the Fund.
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 2008 SEMIANNUAL REPORT | 46 & 47
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Net asset Net Realized and Total
value, investment unrealized from
beginning income gains (losses) investment
of period (loss) on investments operations
- --------------------------------------------------------------------------
Turner Midcap Growth Fund -- Investor Class Shares
- --------------------------------------------------
2008* $35.71 (0.06) (1) (4.10) (4.16)
2007 $27.63 (0.20) (1) 8.28 8.08
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
- ----------------------------------------------------
Turner Midcap Growth Fund -- Retirement Class Shares
- ----------------------------------------------------
2008* $34.74 (0.10) (1) (3.98) (4.08)
2007 $26.96 (0.30) (1) 8.08 7.78
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
- ---------------------------------------------------
Turner New Enterprise Fund -- Investor Class Shares
- ---------------------------------------------------
2008* $ 8.72 (0.03) (1) (1.53) (1.56)
2007 $ 6.26 (0.07) (1) 2.53 2.46
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
- ----------------------------------------------------------------------
Turner Quantitative Large Cap Value Fund -- Institutional Class Shares
- ----------------------------------------------------------------------
2008* $12.86 0.08 (1) (1.07) (0.99)
2007 $11.44 0.14 (1) 1.65 1.79
2006 (3) $10.00 0.16 (1) 1.33 1.49
- -----------------------------------------------------
Turner Small Cap Equity Fund -- Investor Class Shares
- -----------------------------------------------------
2008* $17.31 (0.04) (1) (2.07) (2.11)
2007 $16.94 (0.12) (1) 1.79 1.67
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
2003 $ 9.30 (0.02) 3.00 2.98
- -----------------------------------------------------
Turner Small Cap Growth Fund -- Investor Class Shares
- -----------------------------------------------------
2008* $32.98 (0.08) (1) (4.82) (4.90)
2007 $26.17 (0.20) (1) 7.01 6.81
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
Dividends Distributions Tax
from net from Return Total
investment capital of dividends and
income gains Capital distributions
- --------------------------------------------------------------------------
Turner Midcap Growth Fund -- Investor Class Shares
- --------------------------------------------------
2008* -- -- -- --
2007 -- -- -- --
2006 -- -- -- --
2005 -- -- -- --
2004 -- -- -- --
2003 -- -- -- --
- ----------------------------------------------------
Turner Midcap Growth Fund -- Retirement Class Shares
- ----------------------------------------------------
2008* -- -- -- --
2007 -- -- -- --
2006 -- -- -- --
2005 -- -- -- --
2004 -- -- -- --
2003 -- -- -- --
- ---------------------------------------------------
Turner New Enterprise Fund -- Investor Class Shares
- ---------------------------------------------------
2008* -- -- -- --
2007 -- -- -- --
2006 -- -- -- --
2005 -- -- -- --
2004 -- -- -- --
2003 -- -- -- --
- ----------------------------------------------------------------------
Turner Quantitative Large Cap Value Fund -- Institutional Class Shares
- ----------------------------------------------------------------------
2008* (0.12) (1.70) -- (1.82)
2007 (0.15) (0.22) -- (0.37)
2006 (3) (0.05) -- -- (0.05)
- -----------------------------------------------------
Turner Small Cap Equity Fund -- Investor Class Shares
- -----------------------------------------------------
2008* -- (2.77) -- (2.77)
2007 -- (1.30) -- (1.30)
2006 -- -- -- --
2005 -- -- -- --
2004 -- (1.23) (0.05) (1.28)
2003 (0.01) -- -- (0.01)
- -----------------------------------------------------
Turner Small Cap Growth Fund -- Investor Class Shares
- -----------------------------------------------------
2008* -- -- -- --
2007 -- -- -- --
2006 -- -- -- --
2005 -- -- -- --
2004 -- -- -- --
2003 -- -- -- --
- --------------------------------------------------------------------------------
Net Ratio of
Net asset assets end net expenses
value, end Total of period to average
of period return (000) net assets++
- -----------------------------------------------------------------------------
Turner Midcap Growth Fund -- Investor Class Shares
- --------------------------------------------------
2008* $31.55 (11.65)%+ $1,254,113 1.18%
2007 $35.71 29.24% $1,340,172 1.18%
2006 $27.63 4.70% $1,113,201 1.18%
2005 $26.39 25.73% $ 955,730 1.20%
2004 $20.99 7.42% $ 857,899 1.16%
2003 $19.54 41.80% $ 773,788 1.15%
- ----------------------------------------------------
Turner Midcap Growth Fund -- Retirement Class Shares
- ----------------------------------------------------
2008* $30.66 (11.74)%+ $ 6,155 1.43%
2007 $34.74 28.86% $ 6,212 1.49%
2006 $26.96 4.13% $ 2,444 1.68%
2005 $25.89 25.13% $ 1,833 1.70%
2004 $20.69 6.87% $ 1,395 1.66%
2003 $19.36 41.11% $ 423 1.65%
- ---------------------------------------------------
Turner New Enterprise Fund -- Investor Class Shares
- ---------------------------------------------------
2008* $ 7.16 (17.89)%+ $ 56,051 1.54%
2007 $ 8.72 39.30% $ 70,145 1.27%
2006 $ 6.26 6.83% $ 24,040 1.61%
2005 $ 5.86 29.65% $ 9,144 1.36%
2004 $ 4.52 4.15% $ 10,805 1.18%
2003 $ 4.34 91.19% $ 13,468 1.16%
- ----------------------------------------------------------------------
Turner Quantitative Large Cap Value Fund -- Institutional Class Shares
- ----------------------------------------------------------------------
2008* $10.05 (8.97)%+ $ 855 0.69%
2007 $12.86 15.91% $ 835 0.65%
2006 (3) $11.44 14.92%+ $ 580 0.59%
- -----------------------------------------------------
Turner Small Cap Equity Fund -- Investor Class Shares
- -----------------------------------------------------
2008* $12.43 (13.97)%+ $ 43,741 1.45%
2007 $17.31 10.14% $ 65,292 1.36%
2006 $16.94 5.48% $ 81,340 1.24%
2005 $16.06 15.37% $ 67,713 1.43%
2004 $13.92 24.75% $ 29,171 1.35%
2003 $12.27 32.04% $ 12,557 1.32%
- -----------------------------------------------------
Turner Small Cap Growth Fund -- Investor Class Shares
- -----------------------------------------------------
2008* $28.08 (14.86)%+ $ 260,834 1.25%
2007 $32.98 26.02% $ 317,930 1.25%
2006 $26.17 6.04% $ 248,271 1.25%
2005 $24.68 15.71% $ 257,149 1.25%
2004 $21.33 12.98% $ 237,213 1.25%
2003 $18.88 49.60% $ 192,791 1.25%
Ratio of net
Ratio of total investment
expenses income (loss) Portfolio
to average to average turnover
net assets net assets++ rate+++
- ----------------------------------------------------------------------
Turner Midcap Growth Fund -- Investor Class Shares
- --------------------------------------------------
2008* 1.24% (0.38)% 75.69%
2007 1.24% (0.63)% 155.27%
2006 1.18% (0.30)% 134.55%
2005 1.20% (0.78)% 151.63%
2004 1.16% (0.84)% 167.17%
2003 1.18% (0.87)% 208.80%
- ----------------------------------------------------
Turner Midcap Growth Fund -- Retirement Class Shares
- ----------------------------------------------------
2008* 1.49% (0.64)% 75.69%
2007 1.56% (0.98)% 155.27%
2006 1.68% (0.83)% 134.55%
2005 1.70% (1.28)% 151.63%
2004 1.66% (1.35)% 167.17%
2003 1.68% (1.36)% 208.80%
- ---------------------------------------------------
Turner New Enterprise Fund -- Investor Class Shares
- ---------------------------------------------------
2008* 1.87% (0.82)% 163.56%
2007 1.73% (0.98)% 173.48%
2006 2.06% (1.02)% 234.62%
2005 1.87% (1.14)% 226.82%
2004 1.51% (0.83)% 382.08%
2003 1.99% (0.95)% 451.37%
- ----------------------------------------------------------------------
Turner Quantitative Large Cap Value Fund -- Institutional Class Shares
- ----------------------------------------------------------------------
2008* 6.17% 1.51% 106.77%
2007 5.25% 1.15% 270.76%
2006 (3) 7.71% 1.52% 251.67%
- -----------------------------------------------------
Turner Small Cap Equity Fund -- Investor Class Shares
- -----------------------------------------------------
2008* 1.60% (0.53)% 74.87%
2007 1.59% (0.70)% 156.55%
2006 1.70% (0.39)% 143.43%
2005 1.67% (0.71)% 170.22%
2004 1.94% (0.25)% 221.99%
2003 2.05% (0.26)% 287.39%
- -----------------------------------------------------
Turner Small Cap Growth Fund -- Investor Class Shares
- -----------------------------------------------------
2008* 1.51% (0.50)% 70.76%
2007 1.48% (0.65)% 134.34%
2006 1.42% (0.79)% 154.27%
2005 1.44% (0.91)% 152.96%
2004 1.41% (0.95)% 151.02%
2003 1.41% (0.79)% 187.95%
* For the six-month period ended March 31, 2008, 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, as applicable.
(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 October 10, 2005. All ratios for the period have
been annualized.
Amounts designated as "--" are either $0, or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2008 SEMIANNUAL REPORT | 48 & 49
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
March 31, 2008
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, 2008. 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
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 Quantitative Large Cap Value Fund (the "Quantitative Large
Cap Value Fund" (formerly the Turner Large Cap Value 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 Quantitative 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.
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; 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.
50 | TURNER FUNDS 2008 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
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 Statements 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.
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.
TURNER FUNDS 2008 SEMIANNUAL REPORT | 51
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 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, DISTRIBUTION AND TRANSFER AGENT
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, 2008, SEI was paid $570,527 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 Funds may earn cash management credits which can be used to offset transfer
agent expenses. During the six months ended March 31, 2008, the following Funds
earned cash management credits which were used to offset transfer agent
expenses. These amounts are labeled as "Fees Paid Indirectly" on the Statements
of Operations.
AMOUNT
--------
Concentrated Growth Fund $ 7,704
Core Growth Fund 1,168
Emerging Growth Fund 8,324
International Core Growth Fund 155
Large Cap Growth Fund 527
Midcap Equity Fund 209
Midcap Growth Fund 25,764
New Enterprise Fund 11,578
Quantitative Large Cap Value Fund 195
Small Cap Equity Fund 1,314
Small Cap Growth Fund 11,798
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 contractually 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 through January 31, 2009.
52 | TURNER FUNDS 2008 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
Accordingly, the advisory fee and expense caps for certain Funds are as follows:
ADVISORY FEES TOTAL EXPENSE CAP(8)
-------------- --------------------
Core Growth Fund 0.60%(9) 0.69%(1)(3)
Emerging Growth Fund 1.00 1.40
International Core Growth Fund 0.85 1.10
Large Cap Growth Fund 0.60 0.69(1)(4)
Midcap Equity Fund 0.75 0.90(1)
Midcap Growth Fund 0.75 1.18(2)(6)
Quantitative Large Cap Value Fund 0.60 0.69(5)
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, MIDCAP GROWTH FUND, QUANTITATIVE LARGE CAP VALUE FUND, AND
THE SMALL CAP GROWTH FUND FROM EXCEEDING 0.69%, 1.40%, 1.10%, 0.69%,
1.18%, 0.69%, AND 1.25%, RESPECTIVELY, THROUGH JANUARY 31, 2009. TURNER
INVESTMENT MANAGEMENT LLC HAS CONTRACTUALLY AGREED TO WAIVE FUND EXPENSES
TO KEEP THE NET TOTAL OPERATING EXPENSES FOR THE MIDCAP EQUITY FUND AND
THE SMALL CAP EQUITY FUND FROM EXCEEDING 0.90% AND 1.45%, RESPECTIVELY,
THROUGH JANUARY 31, 2009.
(9) PRIOR TO FEBRUARY 1, 2008, THE ADVISORY FEE FOR THE FUND WAS 0.75%.
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, 2008, the Funds' advisory fees, before
waivers, were adjusted in accordance with the policy described above:
NET
BASE ADVISER
ADVISER PERFORMANCE FEE BEFORE
FEE ADJUSTMENT WAIVERS
--------- ----------- -----------
Concentrated Growth Fund $ 314,773 $ 84,037 $ 398,810
New Enterprise Fund 451,759 78,114 529,873
6. REDEMPTION FEES:
Sales or exchanges out of the Core Growth Fund, New Enterprise Fund,
Quantitative Large Cap Value 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, 2008 were as follows
(000):
PURCHASES SALES
(000) (000)
---------- ----------
Concentrated Growth Fund $ 102,044 $ 115,020
Core Growth Fund 925,646 518,435
Emerging Growth Fund 166,795 184,354
International Core Growth Fund 6,882 4,535
Large Cap Growth Fund 49,380 42,474
Midcap Equity Fund 524 408
Midcap Growth Fund 1,066,422 989,035
New Enterprise Fund 143,765 124,585
Quantitative Large Cap Value Fund 994 889
Small Cap Equity Fund 38,080 53,254
Small Cap Growth Fund 205,742 215,505
TURNER FUNDS 2008 SEMIANNUAL REPORT | 53
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.
The amounts of dividends from net investment income and distributions from 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 and timing of dividends from net investment income and distributions
from net realized gains distributed during the fiscal year may differ from the
year that the income or realized gains (losses) were recorded by the Funds. 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, 2007 and September 30, 2006 were as follows (000):
ORDINARY LONG-TERM
INCOME CAPITAL GAIN TOTAL
-------- ------------ --------
Core Growth Fund
2007 $ 496 $ -- $ 496
2006 163 -- 163
Emerging Growth Fund
2007 $ -- $ 50,964 $ 50,964
2006 8,774 20,741 29,515
Large Cap Growth Fund
2007 $ 66 $ -- $ 66
2006 109 -- 109
Quantitative Large Cap Value Fund
2007 $ 21 $ -- $ 21
2006* 2 -- 2
Small Cap Equity Fund
2007 $ 128 $ 5,573 $ 5,701
2006 -- -- --
* PERIOD FROM INCEPTION OCTOBER 10, 2005 THROUGH SEPTEMBER 30, 2006.
As of September 30, 2007, the components of distributable earnings (accumulated
losses) on a tax basis were as follows (000):
TOTAL
DISTRIBUTABLE
UNDISTRIBUTED UNDISTRIBUTED CAPITAL POST- OTHER EARNINGS
ORDINARY LONG-TERM LOSS OCTOBER UNREALIZED TEMPORARY (ACCUMULATED
INCOME CAPITAL GAIN CARRYFORWARD LOSSES APPRECIATION DIFFERENCES LOSSES)
------------- ------------- ------------ ------- ------------ ----------- -------------
Concentrated Growth Fund $ -- $ -- $(148,814) $ -- $ 8,890 $ 6 $ (139,918)
Core Growth Fund 530 -- (2,605) (1,111) 47,589 -- 44,403
Emerging Growth Fund 2,911 67,356 -- -- 179,208 481 249,956
International Core Growth Fund 4 -- -- (31) 401 -- 374
Large Cap Growth Fund 41 -- (15,534) -- 6,553 1 (8,939)
Midcap Equity Fund -- -- -- (19) 24 -- 5
Midcap Growth Fund -- -- (284,254) -- 343,070 202 59,018
New Enterprise Fund -- -- (9,902) -- 10,040 27 165
Quantitative Large Cap Value Fund 46 40 -- -- 74 -- 160
Small Cap Equity Fund 3,122 5,838 -- -- 5,096 13 14,069
Small Cap Growth Fund -- -- (53,609) -- 53,282 343 16
Post-October losses represent losses realized on investment transactions from
November 1, 2006 through September 30, 2007 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.
54 | TURNER FUNDS 2008 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
At September 30, 2007, 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 2015 TOTAL
------- --------- --------- ----- ------ ----- ---------
Concentrated Growth Fund $ 3,435 $ 132,529 $ 12,850 $ -- $ -- $ -- $ 148,814
Core Growth Fund -- -- 1,578 -- 200 827 2,605
Large Cap Growth Fund -- 396 15,138 -- -- -- 15,534
Midcap Growth Fund -- 154,754 129,500 -- -- -- 284,254
New Enterprise Fund -- 9,269 386 247 -- -- 9,902
Small Cap Growth Fund -- 27,615 25,994 -- -- -- 53,609
During the year ended September 30, 2007, the Concentrated Growth Fund, Large
Cap Growth Fund, Midcap Growth Fund, New Enterprise Fund, and the Small Cap
Growth Fund utilized capital loss carryforwards of $7,618,820, $718,537,
$132,793,380, $2,181,351, $38,612,061 respectively, to offset capital gains.
At March 31, 2008, 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
TAX UNREALIZED UNREALIZED APPRECIATION
FUND COST APPRECIATION DEPRECIATION (DEPRECIATION)
- ---- ----------- ------------ ------------ --------------
Concentrated Growth Fund $ 34,644 $ 3,473 $ (1,333) $ 2,140
Core Growth Fund 601,893 41,696 (24,304) 17,392
Emerging Growth Fund 498,971 142,114 (30,845) 111,269
International Core Growth Fund 4,340 384 (161) 223
Large Cap Growth Fund 36,166 3,692 (1,224) 2,468
Midcap Equity Fund 582 29 (31) (2)
Midcap Growth Fund 1,159,484 219,120 (43,148) 175,972
New Enterprise Fund 58,780 4,636 (2,759) 1,877
Quantitative Large Cap Value Fund 854 42 (44) (2)
Small Cap Equity Fund 46,187 3,017 (1,784) 1,233
Small Cap Growth Fund 267,330 39,093 (10,305) 28,788
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 Morgan Stanley. Unless otherwise
agreed, security loans, made pursuant to the Lending Agreement are required at
all times to be secured by collateral equal to at least 100% of the market value
of the securities loaned. Cash collateral received is invested pursuant to the
terms of the Lending Agreement in the BlackRock TempCash Fund, Institutional
Shares, 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.
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
TURNER FUNDS 2008 SEMIANNUAL REPORT | 55
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
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. Based on its
analysis, management has determined that the adoption of FIN 48 will not have a
material impact to the Funds' financial statements upon adoption. The
International Core Growth Fund and the Midcap Equity Fund adopted FIN 48 and
management has determined that the adoption of FIN 48 did not have a material
impact to the financial statements of the International Core Growth Fund and the
Midcap Equity Fund, respectively. However, management's conclusions regarding
FIN 48 may be subject to review and adjustment at a later date based on factors
including, but not limited to, further implementation guidance expected from the
FASB, and on-going analyses of and changes to tax laws, regulations and
interpretations thereof.
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, 2008 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.
56 | TURNER FUNDS 2008 SEMIANNUAL REPORT
BOARD OF TRUSTEES CONSIDERATIONS IN APPROVING THE ADVISORY AGREEMENTS
(Unaudited)
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BOARD OF TRUSTEES CONSIDERATIONS IN APPROVING THE ADVISORY AGREEMENTS
On February 21, 2008, the Board of Trustees (the "Board" or "Trustees") of the
Turner Funds (the "Funds" or "Trust") held a meeting to decide whether to renew
the advisory agreements (the "Advisory Agreements") with Turner Investment
Partners, Inc. and Turner Investment Management LLC (collectively, the
"Adviser") for the upcoming year (and whether to approve the Advisory Agreement
with respect to two new Funds). In preparation for the meeting, the Board
requested and reviewed a wide variety of information from the Adviser. The
information described, among other things: the Adviser's business; its
organizational structure and personnel; the Funds' performance; and advisory
fees and expenses paid by the Funds for the fiscal year ended September 30,
2007. At the meeting, representatives of the Adviser discussed, and answered
Board members' questions about, among other things, a chart of advisory fees
received by the Adviser for the various Funds; a schedule of the commissions
paid to the Trust's top 10 brokers; a soft dollar commission usage report for
the fiscal year ended September 30, 2007; the Adviser's Form ADVs; and an
Adviser profitability report for the fiscal year ended September 30, 2007.
The Board, including all of the independent Trustees, considered, 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 (except with respect to the new Funds,
where the peer groups were selected by the Adviser); (4) the expense ratios of
the Funds, with expense waivers, as compared to expense ratios for relevant
Morningstar peer groups (or selected peer groups with respect to the new Funds);
(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, 2007; (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.
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 most cases
performance was higher than the median); the advisory fees were generally
competitive (in most cases they were above the median); and the gross and net
total expense ratios of the Funds were generally competitive. 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. With respect to the new Funds, the Trustees
considered the viability of the proposed strategies, the Adviser's experience,
qualifications and track record in managing those strategies in limited
partnership vehicles and the length of that record as well as the quality of
that performance. The Trustees also considered the proposed fees for the new
Funds, as compared to those of their competitors, including both the net and
total expense ratios. They discussed the need for establishment of prime
brokerage arrangements for the new Turner Core Growth 130/30 Fund with the
Funds' service providers and considered the Adviser's experience in handling
similar prime brokerage arrangements with respect to the limited partnerships,
as well as the assurances they received that, although not technically required,
the Funds' CCO would periodically review these arrangements.
Based on the Board's deliberations and its evaluation of the information
described above, the Trustees, including all of the independent Trustees,
unanimously: (a) agreed to renew the Advisory Agreements for another year (and
approve the Advisory Agreement with respect to two new Funds) and (b) determined
that the compensation payable by the Trust's Funds under the Advisory Agreements
is fair and reasonable.
TURNER FUNDS 2008 SEMIANNUAL REPORT | 57
DISCLOSURE OF FUND EXPENSES (Unaudited)
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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
10/1/07 3/31/08 RATIOS PERIOD*
- ---------------------------------------------------------------------------------------------------------------------------------
Turner Concentrated Growth Fund -- Investor Class Shares
- ---------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return $ 1,000.00 $ 822.10 1.65% $ 7.52
Hypothetical
5% Return 1,000.00 1,016.75 1.65 8.32
- ---------------------------------------------------------------------------------------------------------------------------------
Turner Core Growth Fund -- Institutional Class Shares
- ---------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 875.10 0.69 3.23
Hypothetical
5% Return 1,000.00 1,021.55 0.69 3.49
- ---------------------------------------------------------------------------------------------------------------------------------
Turner Core Growth Fund -- Investor Class Shares
- ---------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 874.00 0.94 4.40
Hypothetical
5% Return 1,000.00 1,020.30 0.94 4.75
- ---------------------------------------------------------------------------------------------------------------------------------
Turner Emerging Growth Fund -- Investor Class Shares
- ---------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 888.00 1.40 6.61
Hypothetical
5% Return 1,000.00 1,018.00 1.40 7.06
- ---------------------------------------------------------------------------------------------------------------------------------
Turner International Core Growth Fund -- Institutional Class Shares
- ---------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 937.70 1.10 5.33
Hypothetical
5% Return 1,000.00 1,019.50 1.10 5.55
- ---------------------------------------------------------------------------------------------------------------------------------
Turner Large Cap Growth Fund -- Institutional Class Shares
- ---------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 846.80 0.69 3.19
Hypothetical
5% Return 1,000.00 1,021.55 0.69 3.49
- ---------------------------------------------------------------------------------------------------------------------------------
Turner Large Cap Growth Fund -- Investor Class Shares
- ---------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 844.70 0.94 4.34
Hypothetical
5% Return 1,000.00 1,020.30 0.94 4.75
- ---------------------------------------------------------------------------------------------------------------------------------
Turner Midcap Equity Fund -- Institutional Class Shares
- ---------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 860.50 0.90 4.19
Hypothetical
5% Return 1,000.00 1,020.50 0.90 4.55
- ---------------------------------------------------------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/1/07 3/31/08 RATIOS PERIOD*
- ---------------------------------------------------------------------------------------------------------------------------------
Turner Midcap Equity Fund -- Investor Class Shares
- ---------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return $ 1,000.00 $ 857.70 1.15% $ 5.34
Hypothetical
5% Return 1,000.00 1,019.25 1.15 5.81
- ---------------------------------------------------------------------------------------------------------------------------------
Turner Midcap Growth Fund -- Investor Class Shares
- ---------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 883.50 1.18 5.56
Hypothetical
5% Return 1,000.00 1,019.10 1.18 5.96
- ---------------------------------------------------------------------------------------------------------------------------------
Turner Midcap Growth Fund -- Retirement Class Shares
- ---------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 882.60 1.43 6.73
Hypothetical
5% Return 1,000.00 1,017.85 1.43 7.21
- ---------------------------------------------------------------------------------------------------------------------------------
Turner New Enterprise Fund -- Investor Class Shares
- ---------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 821.10 1.54 7.01
Hypothetical
5% Return 1,000.00 1,017.30 1.54 7.77
- ---------------------------------------------------------------------------------------------------------------------------------
Turner Quantitative Large Cap Value Fund -- Institutional Class Shares
- ---------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 910.30 0.69 3.30
Hypothetical
5% Return 1,000.00 1,021.55 0.69 3.49
- ---------------------------------------------------------------------------------------------------------------------------------
Turner Small Cap Equity Fund -- Investor Class Shares
- ---------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 860.30 1.45 6.74
Hypothetical
5% Return 1,000.00 1,017.75 1.45 7.31
- ---------------------------------------------------------------------------------------------------------------------------------
Turner Small Cap Growth Fund -- Investor Class Shares
- ---------------------------------------------------------------------------------------------------------------------------------
Actual Fund Return 1,000.00 851.40 1.25 5.79
Hypothetical
5% Return 1,000.00 1,018.75 1.25 6.31
- ---------------------------------------------------------------------------------------------------------------------------------
* Expenses are equal to the Fund's annualized expense ratio multiplied by
the average account value over the period, multiplied by 183/366 (to
reflect the one-half year period from 10/1/07 - 3/31/08)
58 | TURNER FUNDS 2008 SEMIANNUAL REPORT
THIS PAGE WAS INTENTIONALLY LEFT BLANK
TURNER FUNDS 2008 SEMIANNUAL REPORT | 59
- --------------------------------------------------------------------------------
TURNER FUNDS
TURNER FUNDS' TRUSTEES
ALFRED C. SALVATO
Treasurer
Thomas Jefferson University Health Care Pension Fund
JANET F. SANSONE
Chief Management Officer
Office of The Public Printer of the United States
ROBERT E. TURNER
Chairman and Chief Investment Officer
Turner Investment Partners, Inc.
DR. JOHN T. WHOLIHAN
Professor and Dean Emeritus, 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.
60 | TURNER FUNDS 2008 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-002-0502
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.
ITEM 6. INVESTMENTS.
Schedule of Investments is included as part of the report to shareholders filed
under Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT 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, 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 changes in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) of the Investment Company Act of 1940)
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, 2008
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, 2008
By (Signature and Title) /s/ Michael Lawson
--------------------------------------------
Michael Lawson, Controller and CFO
Date: June 6, 2008