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, 2009
Date of reporting period: March 31, 2009
Item 1. Reports to Stockholders.
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[TURNER FUNDS LOGO] SEMI-ANNUAL REPORT
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March 31, 2009
U.S. growth equity funds
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Turner Concentrated Growth Fund
Turner Core Growth Fund
Turner Emerging Growth Fund
Turner Large Cap Growth Fund
Turner Midcap Growth Fund
Turner New Enterprise Fund
Turner Small Cap Growth Fund
International growth equity funds
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Turner International Core Growth Fund
U.S. core equity funds
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Turner Midcap Equity Fund
Turner Quantitative Broad Market Equity Fund
Turner Small Cap Equity Fund
U.S. value equity funds
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Turner Quantitative Large Cap Value Fund
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CONTENTS
2 Letter to shareholders
5 Total returns of Turner Funds
8 Investment review:
Turner Concentrated Growth Fund
9 Investment review:
Turner Core Growth Fund
10 Investment review:
Turner Emerging Growth Fund
11 Investment review:
Turner Large Cap Growth Fund
12 Investment review:
Turner Midcap Growth Fund
13 Investment review:
Turner New Enterprise Fund
14 Investment review:
Turner Small Cap Growth Fund
15 Investment review:
Turner International Core Growth Fund
16 Investment review:
Turner Midcap Equity Fund
17 Investment review:
Turner Quantitative Broad Market Equity Fund
18 Investment review:
Turner Small Cap Equity Fund
19 Investment review:
Turner Quantitative Large Cap Value Fund
20 Financial statements
60 Notes to financial statements
67 Board of Trustees considerations in approving the Advisory Agreements
68 Disclosure of fund expenses
TURNER FUNDS
As of March 31, 2009, the Turner Funds offered a series of 12 mutual funds to
individual and institutional investors. The minimum initial investment for
Institutional Class Shares in a Turner Fund is $250,000 (except for $25,000 for
the Turner Quantitative Large Cap Value Fund) for regular accounts and $100,000
(with the exception of $10,000 for the 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 $14 billion in stock investments as of March 31, 2009.
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 2009 SEMIANNUAL REPORT | 1
LETTER TO SHAREHOLDERS
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TO OUR SHAREHOLDERS
The stock market in the six-month period that ended March 31, 2009, continued
to largely skulk along the bearish path it's been on for much of the decade.
Historically the best-performing asset class, stocks have chronically
underachieved in what's being called "the Terrible 2000s": indeed, stocks are
headed towards the worst decade of performance since market data first began to
be extensively compiled in the 1920s -- worse even than the Great Depression
decade of the 1930s.
For the decade through March 31, 2009, the market, as represented by the S&P
500 Index, is down an annualized 4.7% . In contrast, in the 1930s, when
economic conditions were far, far more bleak than today, large-cap stocks lost
0.1% annualized, according to Ibbotson Associates.
As for the past six months, investor sentiment about this URSUS HORRIBILIS of a
market was at times so direly pessimistic that it called to mind this bit of
black humor by Woody Allen: "We stand here today at a great crossroads. One
fork leads to utter chaos and despair, the other to complete annihilation. Let
us hope we have the wisdom to choose the right one." In fact, the choices for
the market seemed limited mainly to despair and more despair, as stocks wiped
out trillions of dollars of investors' wealth en route to hitting a 12-year low
on March 9. For the entire six-month period, the S&P 500 Index fell 30.54% .
Such a steep loss reflected the continuing fallout from the financial crisis --
all the bad loans and leverage that have devastated the fundamentals of the
financial-services sector -- as well as a recession that has resulted in the
elimination of about 5 million jobs over the past 16 months and an operating
loss (the first ever) for the S&P 500 companies in the fourth quarter.
BEARISHNESS RAMPANT
In one reflection of the chaos, despair, and annihilation roiling the market,
the American Association of Individual Investors reported in March that 55.1%
of those polled were bearish, compared with the average bearish reading of
29.7% . And the Chicago Board of Options Exchange's Market Volatility Index
fluctuated between 40 and 80 -- "a level associated with fear of an economic
depression," said BARRON'S.
Against such a gloomy backdrop, our 12 Turner stock funds in the past six
months recorded losses ranging from 25.83% to 37.66% (SEE TABLE BEGINNING IN
THE NEXT COLUMN). If you have pangs of indigestion from those results, well,
all we can say is that we too are suffering from the same queasy feelings. We
urge our portfolio managers to eat their own cooking -- to invest along with
you in the funds they manage. So if it's any consolation, our stomachs are more
than a little sour from our funds' performance of late.
Even so, we draw some relief from this: six of our 12 funds beat at least one
of their indexes -- the Turner Large Cap Growth Fund and the Turner Small Cap
Growth Fund, which are domestic growth funds; the Turner Quantitative Broad
Market Equity Fund and the Turner Quantitative Large Cap Value Fund, our two
quantitative funds; and the Turner Midcap Equity Fund and the Turner Small Cap
Equity Fund, our two core/value funds.
RESULTS AS A CONTINUUM
In any case, we hasten to point out, as we never tire of doing, that an
investment is best evaluated as a continuum. For convenience's sake, semiannual
reports like this one saw up investment periods into neat, distinct segments,
like manufactured fireplace logs. The problem is that an account of the latest
results tends to focus on the SEPARATENESS of the reporting period rather than
on its CONTINUITY with what has been and what may yet to come.
To us (and, we hope, to you), what matters most is a fund's performance over
the long term. And by that standard, we think our funds have considerable
merit: nine of our 11 funds that are older than 12 months have beaten one or
both of their benchmarks since inception -- an investment record that few other
mutual-fund families can match, a record that we believe confirms the soundness
of our growth, core/value, and quantitative investment processes and the
ability of our teams of portfolio managers. Those teams are headed by me and
seven talented portfolio managers: Tom DiBella, Steve Gold, David Kovacs, Chris
McHugh, Bill McVail, Frank Sustersic, and Mark Turner. We think the proven
effectiveness of our investment processes and our portfolio managers increases
the likelihood that we can continue to replicate good long-term investment
results for you.
Mercifully, bear markets don't last. But fortunately, good portfolio managers
do. Our lead portfolio managers have an average tenure of 13 years at our firm
and more than 23 years of experience on average in the industry. We want them
to continue doing what they do so well for many years to come, long after the
Terrible 2000s are seen for what we think they truly are: an anomaly in the
generally robust long-term performance of stocks.
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TOTAL RETURNS
Six-month period ended March 31, 2009
U.S. GROWTH FUNDS
TURNER CONCENTRATED
GROWTH FUND (TTOPX) (33.39)%
S&P 500 Index * (30.54)
Russell 1000 Growth Index (25.97)
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2 | TURNER FUNDS 2009 SEMIANNUAL REPORT
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March 31, 2009
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TURNER CORE GROWTH FUND,
INSTITUTIONAL CLASS (TTMEX) (27.66)
Russell 1000 Growth Index (25.97)
TURNER EMERGING GROWTH FUND,
INVESTOR CLASS (TMCGX) (37.66)
Russell 2000 Growth Index (34.51)
TURNER LARGE CAP GROWTH FUND,
INSTITUTIONAL CLASS (TSGEX) (25.83)
Russell Top 200 Growth Index (24.47)
Russell 1000 Growth Index (25.97)
TURNER MIDCAP GROWTH FUND,
INVESTOR CLASS (TMGFX) (31.78)
Russell Midcap Growth Index (29.81)
TURNER NEW ENTERPRISE FUND (TBTBX) (31.25)
NASDAQ Composite Index (26.47)
TURNER SMALL CAP GROWTH
FUND (TSCEX) (33.76)
Russell 2000 Growth Index (34.51)
INTERNATIONAL GROWTH FUND
TURNER INTERNATIONAL CORE GROWTH FUND
INSTITUTIONAL CLASS (TICGX) (33.03)
MSCI World Growth ex-U.S. Index (30.22)
U.S. CORE FUNDS
TURNER MIDCAP EQUITY FUND,
INVESTOR CLASS (TMCFX) (30.77)
Russell Midcap Index (33.80)
TURNER QUANTITATIVE BROAD
MARKET EQUITY FUND,
INSTITUTIONAL CLASS (TBMEX) (29.15)
Russell 3000 Index (31.12)
S&P 500 Index (30.54)
TURNER SMALL CAP EQUITY FUND,
INVESTOR CLASS (TSEIX) (35.87)
Russell 2000 Index (37.17)
U.S. VALUE FUND
TURNER QUANTITATIVE LARGE CAP
VALUE FUND,
INSTITUTIONAL CLASS (TLVFX) (34.53)
Russell 1000 Value Index (35.22)
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* Effective September 30, 2009, we intend to remove this benchmark for the
Turner Concentrated Growth Fund, based on our view that the Russell 1000
Growth Index is more appropriate.
(Please call 1.800.224.6312 or visit our Web site at www.turnerinvestments.com
for the most recent month-end performance. For more details on the performance
of each fund during the six-month period, see the INVESTMENT REVIEW beginning
on page 8.)
WILL IT EVER END?
So, when will this grizzly bear of a market finally end?
It's been said that you can get nearly as useful advice about the market's
future direction from your portfolio manager or your barber, but at least the
barber gives you a haircut with the forecast. From personal experience, I can
report that my barber of 23 years, John Dionisi, is free with his own
observations about the latest developments in the market AND he gives a
first-rate haircut to boot. And John Dionisi, in common with anyone who has
more than a casual interest in stocks, thinks the much-anticipated market
bottom can't come soon enough. Like small children on a road trip, people keep
asking, "Are we there yet?" No one -- including us -- knows if we are in fact
there yet. We don't know if the low of the S&P 500 reached on March 9 will in
fact be the low for this market cycle or if the intense rally that followed
will be sustained over the next few months (for the year-to-date through March
31, the S&P 500 Index has lost 10.98%) . All we can say for certain is that
this bear market, as of March 2009, is 16 months old, and the 10 bear markets
that have taken place since 1956 have averaged 15 months. That suggests to us
that this bear market is closer to its end than to its beginning.
At the same time, we DO have strongly positive convictions about the long-term
course of stocks. As bottom-up investors, making forecasts isn't our primary
preoccupation; we focus more on picking good stocks than on top-down data about
the economy or the market. Even so, we ARE compelled to envisage the future to
some degree; our assessment of the economy and the market complements the other
portfolio-management tools we use in selecting stocks. Here's our assessment of
where the market is headed:
We refuse to believe that the next 10 years for stocks will be as painfully
disappointing as the last 10 years. That's because we as investors believe
above all in PROBABILITIES, in making decisions that are THE MOST LIKELY to
produce a constructive result. And based on the probabilities, we think this
decade of dreadful performance by stocks is likely to be the exception that
proves the rule.
We know that in the past seven full decades, stocks have lost money only once,
as noted, in the 1930s. And we know that over rolling 10-year periods, the S&P
500 Index stocks have lost money only three times, in 1929-1938 (a 0.89% loss),
1930-1939 (a 0.05% loss), and 1999-2008 (a 1.38% loss). So we think it's
PROBABLE -- but not guaranteed -- that the stock market will generate a soundly
positive return in the next decade and over most of the 10 overlapping rolling
10-year periods in that decade.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 3
LETTER TO SHAREHOLDERS (continued)
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71% ODDS IN STOCKS
Also, we think it's probable that avoiding the considerable short-term
uncertainty that stocks now pose may prove costly. Our research shows that when
the S&P 500 Index's annualized return for a 10-year period fell to 1% or less,
the next 10 years produced an average cumulative return of 175%, or 10.4% a
year, compared with the 9.6% long-term average total return for the index.
What's more, in the past 83 years, the S&P 500 stocks have made money 71% of
the time annually. So the Terrible 2000s notwithstanding, the odds have favored
stocks. In short, we think it's PROBABLE -- but, again, not guaranteed -- that
stocks will resume their generally upward bias in the years ahead.
As we see it, the stock market could finally break into bullish territory for
good once signs become more evident that the economy is improving. More signs
are in fact materializing. For instance, the recent outperformance of
early-cycle stocks, especially technology stocks, is encouraging, since early
cyclicals have typically heralded a trough in the leading economic indicators
about two quarters in advance. And the federal government is providing stimulus
to the economy that we liken to a gigantic safety net -- a $2-trillion net that
will be altered and broadened even further, if necessary, to help renew
growth.
HOW OUR FUNDS ARE POSITIONED
In anticipation of better days ahead for the economy and the market, we
continue to pick the stocks that our growth, core/value, and quantitative
investment processes indicate have the strongest return potential.
Our eight U.S. and international growth funds, as always, hold shares that in
our estimation offer the greatest prospective earnings power. Our growth funds
have about a 75% weighting in classic growth stocks with strong fundamentals in
industries such as investment management, biotechnology, semiconductors, and
wireless communications. The remaining 25% is invested in early-cycle stocks --
stocks of leaders in industries such as retailing, home construction,
semiconductors, and finance, which have historically been the first to rally
when the market turns bullish.
Our two core/value funds, as always, emphasize stocks of companies with
business momentum or undervalued assets, or both. Their holdings generally have
relatively low price/book ratios, with above-average levels of cash on their
issuers' balance sheets. We think select stocks in these industries, among
others, offer potential gains: regional banking, natural-gas distribution,
property/ casualty insurance, and discount retailing.
Our two quantitative funds are distinguished by their broad diversification,
with holdings that have market characteristics similar to those of the
benchmarks. The funds favor health-care, consumer-staples, and
utilities/communication stocks for their near-term return potential. Conversely,
they are avoiding high-beta stocks, based on our belief that shares with low
volatility stand the best chance of generating extra return in the near term.
As of the first quarter of 2009, you and about 18,900 other individual and
institutional shareholders had accounts in these mutual funds. We realize that
the wealth you entrust to us is irreplaceable, and we take a measure of pride
in how we've been able to enhance our shareholders' wealth in the long run.
Please be assured that we remain committed to doing our level best to generate
more wealth for you (and for us) via the Turner Funds. We thank you for your
patience, a virtue that can be scarce in a bear market as awful as this one. As
we see it, your patience should be rewarded with better results in the stock
market and our funds in the years ahead.
/s/ Bob Turner
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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, 2009, 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 2009 SEMIANNUAL REPORT
PERFORMANCE
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TOTAL RETURNS OF TURNER FUNDS
Through March 31, 2009
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 (33.39)% (1.17)% (49.16)% (20.25)% (9.11)% N/A (5.04)% $ 27.62
S&P 500 Index (30.54) (11.01) (38.09) (13.06) (4.77) n/a (3.75)
Russell 1000 Growth Index (25.97) (4.12) (34.28) (11.28) (4.38) n/a (5.75)
INCEPTION DATE: 6/30/99
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TURNER CORE GROWTH FUND --
INSTITUTIONAL CLASS SHARES (27.66) (1.97) (40.09) (14.01) (3.74) N/A (3.34) 247.50
INVESTOR CLASS SHARES (1) (27.70) (1.97) (40.24) (14.21) N/A N/A (8.89) 188.00
Russell 1000 Growth Index (25.97) (4.12) (34.28) (11.28) (4.38) n/a (4.73)
INCEPTION DATE: 2/28/01
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TURNER EMERGING GROWTH FUND (7) --
INSTITUTIONAL CLASS SHARES (2) N/A N/A N/A N/A N/A N/A (2.07)* 22.50
INVESTOR CLASS SHARES (37.66) (10.07) (41.08) (15.38) (2.37) 14.10 16.42 292.27
Russell 2000 Growth Index (34.51) (9.74) (36.36) (16.20) (5.37) (1.60) (2.12)
INCEPTION DATE: 2/27/98
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TURNER LARGE CAP GROWTH FUND --
INSTITUTIONAL CLASS SHARES (25.83) (1.45) (40.59) (15.89) (7.69) N/A (11.44) 21.77
INVESTOR CLASS SHARES (3) (25.88) (1.46) (40.68) N/A N/A N/A (22.66) 1.12
Russell Top 200 Growth Index (24.47) (4.39) (32.21) (9.78) (4.45) n/a (9.03)
Russell 1000 Growth Index (25.97) (4.12) (34.28) (11.28) (4.38) n/a (8.51)
INCEPTION DATE: 6/14/00
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TURNER MIDCAP GROWTH FUND (7) --
INSTITUTIONAL CLASS SHARES (4) (31.68) (4.28) N/A N/A N/A N/A (48.37)* 94.32
INVESTOR CLASS SHARES (31.78) (4.34) (43.39) (16.42) (4.69) 0.01 6.61 642.54
RETIREMENT CLASS SHARES (5) (31.85) (4.42) (43.54) (16.68) (5.05) N/A 0.01 2.54
Russell Midcap Growth Index (29.81) (3.36) (39.58) (14.89) (3.91) (0.86) 2.82
INCEPTION DATE: 10/1/96
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TURNER FUNDS 2009 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 NEW ENTERPRISE FUND (7) (31.25)% (0.77)% (46.23)% (19.06)% (5.98)% N/A (10.33)% $ 18.66
NASDAQ Composite Index (26.47) (2.78) (32.24) (12.49) (4.43) n/a (9.77)
INCEPTION DATE: 6/30/00
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TURNER SMALL CAP
GROWTH FUND (7) (33.76) (8.80) (37.61) (16.14) (4.58) 0.54% 8.26 169.85
Russell 2000 Growth Index (34.51) (9.74) (36.36) (16.20) (5.37) (1.60) 2.02
INCEPTION DATE: 2/7/94
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TURNER INTERNATIONAL
CORE GROWTH FUND --
INSTITUTIONAL CLASS SHARES (33.03) (8.82) (50.74) N/A N/A N/A (23.23) 2.56
INVESTOR CLASS SHARES (6) N/A (8.82) N/A N/A N/A N/A (10.92)* --
MSCI World Growth ex-U.S. Index (30.22) (11.71) (45.29) n/a n/a n/a (21.60)
INCEPTION DATE: 1/31/07
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TURNER MIDCAP EQUITY FUND --
INSTITUTIONAL CLASS SHARES (30.42) (10.44) (40.26) N/A N/A N/A (24.18) 0.38
INVESTOR CLASS SHARES (30.77) (10.45) (40.66) N/A N/A N/A (24.75) 0.30
Russell Midcap Index (33.80) (8.98) (40.81) n/a n/a n/a (24.50)
INCEPTION DATE: 1/31/07
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TURNER QUANTITATIVE BROAD
MARKET EQUITY FUND --
INSTITUTIONAL CLASS SHARES (29.15) (9.85) N/A N/A N/A N/A (38.15)* 0.38
INVESTOR CLASS SHARES (29.28) (10.00) N/A N/A N/A N/A (38.33)* --
Russell 3000 Index (31.12) (10.08) n/a n/a n/a n/a (37.14)
S&P 500 Index (30.54) (11.01) n/a n/a n/a n/a (36.35)
INCEPTION DATE: 6/30/08
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TURNER SMALL CAP EQUITY FUND (7) --
INSTITUTIONAL CLASS SHARES (2) N/A N/A N/A N/A N/A N/A (4.40)* --
INVESTOR CLASS SHARES (35.87) (13.97) (40.51) (19.90) (7.34) N/A 0.69 23.42
Russell 2000 Index (37.17) (14.95) (37.50) (16.80) (5.24) n/a (0.72)
INCEPTION DATE: 3/4/02
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TURNER QUANTITATIVE
LARGE CAP VALUE FUND --
INSTITUTIONAL CLASS SHARES (34.53) (17.32) (41.57) (13.74) N/A N/A (9.44) 0.59
INVESTOR CLASS SHARES (6) N/A N/A N/A N/A N/A N/A (21.70)* --
Russell 1000 Value Index (35.22) (16.77) (42.42) (15.40) n/a n/a (10.67)
INCEPTION DATE: 10/10/05
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(1) Commenced operations on August 1, 2005.
(2) Commenced operations on February 1, 2009.
(3) Commenced operations on January 31, 2007.
(4) Commenced operations on June 16, 2008.
(5) Commenced operations on September 24, 2001.
(6) Commenced operations on October 31, 2008.
(7) Investing in technology and science companies and small- and mid-
capitalization companies may subject the Funds to specific inherent risks,
including above-average price fluctuations.
* Returns of less than one year are cumulative, and not annualized.
Amounts designated as "--" have been rounded to $0 ($mil).
6 | TURNER FUNDS 2009 SEMIANNUAL REPORT
EXPENSE RATIO+
Gross Net Gross Net
expense expense expense expense
ratio ratio ratio ratio
- ------------------------------ ------- ------- ----------------------------- ------- -------
TURNER CONCENTRATED TURNER INTERNATIONAL CORE
GROWTH FUND GROWTH FUND
Investor Class Shares 1.92% 1.53% Institutional Class Shares 3.05% 1.10%
TURNER CORE GROWTH FUND Investor Class Shares 3.30% 1.35%
Institutional Class Shares 0.91% 0.69% TURNER MIDCAP EQUITY FUND
Investor Class Shares 1.16% 0.94% Institutional Class Shares 16.78% 0.90%
TURNER EMERGING GROWTH FUND Investor Class Shares 17.03% 1.15%
Institutional Class Shares 1.27% 1.15% TURNER QUANTITATIVE BROAD
Investor Class Shares 1.52% 1.40% MARKET EQUITY FUND
TURNER LARGE CAP GROWTH FUND Institutional Class Shares 26.62% 0.64%
Institutional Class Shares 1.09% 0.69% Investor Class Shares 26.87% 0.89%
Investor Class Shares 1.36% 0.94% TURNER SMALL CAP EQUITY FUND
TURNER MIDCAP GROWTH FUND Institutional Class Shares 1.37% 1.20%
Institutional Class Shares 1.03% 0.93% Investor Class Shares 1.62% 1.45%
Investor Class Shares 1.25% 1.18% TURNER QUANTITATIVE LARGE CAP
Retirement Class Shares 1.50% 1.43% VALUE FUND
TURNER NEW ENTERPRISE FUND Institutional Class Shares 6.13% 0.69%
Investor Class Shares 1.90% 1.52% Investor Class Shares 6.38% 0.94%
TURNER SMALL CAP GROWTH FUND
Investor Class Shares 1.51% 1.25%
+ These expense ratios are based on the most recent prospectus and may differ
from those shown in the financial highlights.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 7
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER CONCENTRATED GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2009
[DIAGRAM]
o Ticker symbol TTOPX
MARKET
o CUSIP #87252R862 CAPITALIZATION INVESTMENT STYLE
VALUE GROWTH
o Top five holdings+++ LARGE [ ] [ ] [X]
[ ] [ ] [ ]
(1) QUALCOMM SMALL [ ] [ ] [ ]
(2) Gilead Sciences
(3) BlackRock, Cl A
(4) Monsanto
(5) Toll Brothers
o % in five largest holdings 26.7%+
o Number of holdings 22
o Price/earnings ratio 21.4
o Weighted average market capitalization $19.31 billion
o % of holdings with positive earnings surprises 52.7%
o % of holdings with negative earnings surprises 47.3%
o Net assets $28 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER CONCENTRATED GROWTH FUND:
JUNE 30, 1999-MARCH 31, 2009*
[LINE GRAPH]
6/30/99 SEP 99 SEP 00 SEP 01 SEP 02 SEP 03 SEP 04 SEP 05 SEP 06 SEP 07 SEP 08 MAR 09
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Turner Concentrated
Growth Fund $10,000 $13,990 $27,782 $8,225 $5,754 $8,639 $8,310 $10,138 $10,852 $14,450 $9,067 $6,040
S&P 500 Index $10,000 $ 9,376 $10,621 $7,794 $6,197 $7,709 $8,778 $ 9,853 $10,916 $12,711 $9,918 $6,889
Russell 1000 Growth Index $10,000 $ 9,634 $11,891 $6,464 $5,009 $6,307 $6,781 $ 7,567 $ 8,024 $ 9,577 $7,577 $5,609
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2009)
SIX MONTHS ONE THREE FIVE SINCE
(NOT ANNUALIZED) YEAR YEARS YEARS INCEPTION
- ---------------------------------------------------------------------------------------------
TURNER CONCENTRATED GROWTH FUND (33.39)% (49.16)% (20.25)% (9.11)% (5.04)%
S&P 500 Index (30.54)% (38.09)% (13.06)% (4.77)% (3.75)%
Russell 1000 Growth Index (25.97)% (34.28)% (11.28)% (4.38)% (5.75)%
- ---------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
37.6% Information technology
14.7% Financials
13.0% Consumer discretionary
9.8% Health care
9.7% Materials
6.9% Cash equivalent/short-term investment++
4.2% Telecommunication services
4.1% Energy
MANAGER'S DISCUSSION AND ANALYSIS
Poor results in two major sectors were responsible for the Turner Concentrated
Growth Fund (TTOPX) producing a 33.39% loss in the six-month period ended March
31. That return underperformed the benchmark Russell 1000 Growth Index's 25.97%
decline by 7.42 percentage points.
About 23% of the fund's holdings were concentrated in two sectors, health care
and consumer discretionary, whose returns detracted most from performance. In
those sectors, biotechnology, medical-device, Internet, and consulting stocks
declined sharply. Four of seven sector positions added extra return, with the
information technology and energy sectors adding the most return.
Semiconductor-capital-equipment, industrial-equipment, energy-services, and
natural-gas 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.
+ 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.
8 | TURNER FUNDS 2009 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER CORE GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2009
[DIAGRAM]
o Ticker symbol TTMEX
Institutional Class Shares MARKET
CAPITALIZATION INVESTMENT STYLE
o CUSIP #900297847 VALUE GROWTH
Institutional Class Shares LARGE [ ] [ ] [X]
[ ] [ ] [ ]
o Top five holdings+++ SMALL [ ] [ ] [ ]
(1) International Business
Machines
(2) Gilead Sciences
(3) PepsiCo
(4) QUALCOMM
(5) Apple
o % in five largest holdings 16.3%+
o Number of holdings 73
o Price/earnings ratio 14.7
o Weighted average market capitalization $22.02 billion
o % of holdings with positive earnings surprises 63.5%
o % of holdings with negative earnings surprises 36.5%
o Net assets $247 million, Institutional Class Shares
- --------------------------------------------------------------------------------
GROWTH OF A $250,000 INVESTMENT IN THE TURNER CORE GROWTH FUND, INSTITUTIONAL
CLASS SHARES:
FEBRUARY 28, 2001-MARCH 31, 2009*,**
[LINE GRAPH]
2/28/01 SEP 01 SEP 02 SEP 03 SEP 04 SEP 05 SEP 06 SEP 07 SEP 08 MAR 09
------- ------ ------ ------ ------ -------- -------- -------- -------- ------
Turner Core Growth Fund,
Institutional Class Shares $250,000 $204,500 $157,250 $201,000 $221,000 $273,250 $292,120 $362,237 $262,513 $189,896
Russell 1000 Growth Index $250,000 $194,665 $150,849 $189,943 $204,205 $227,885 $241,639 $288,405 $228,192 $168,933
- -----------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2009)
SIX MONTHS ONE THREE FIVE SINCE
(NOT ANNUALIZED) YEAR YEARS YEARS INCEPTION
- -----------------------------------------------------------------------------------------------------------------------
TURNER CORE GROWTH FUND, INSTITUTIONAL CLASS SHARES (27.66)% (40.09)% (14.01)% (3.74)% (3.34)%**
TURNER CORE GROWTH FUND, INVESTOR CLASS SHARES (27.70)% (40.24)% (14.21)% -- (8.89)%***
Russell 1000 Growth Index (25.97)% (34.28)% (11.28)% (4.38)% (4.73)%**
- -----------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
22.3% Information technology
15.4% Health care
12.5% Energy
11.6% Consumer discretionary
10.5% Financials
9.9% Consumer staples
5.3% Telecommunication services
4.1% Industrials
3.8% Materials
2.7% Cash equivalent/short-term investment++
1.9% Utilities
MANAGER'S DISCUSSION AND ANALYSIS
Underperformance in three major sectors offset some good stock selection in
other sectors for the Turner Core Growth Fund, Institutional Class (TTMEX) in
the six-month period ended March 31. The net result: the fund lost 27.66%,
underperforming the Russell 1000 Growth Index by 1.69 percentage points.
A 38% position in the financials, consumer discretionary, and health care
sectors were the prime detractors from performance. Insurance, investment,
transaction-processing, Internet, consulting, biotechnology, and medical-device
shares were particularly weak. On the plus side, five of the fund's 10 sector
positions beat their index sectors. Industrials, energy, and materials stocks,
which amounted to a 20% weighting, boosted the fund's results the most. Winners
here included semi- conductor-capital-equipment, industrial-equipment, energy-
services, natural-gas, metals, and mining 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. 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.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 9
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER EMERGING GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2009
[DIAGRAM]
o Ticker symbol TMCGX
Investor Class Shares MARKET
CAPITALIZATION INVESTMENT STYLE
o CUSIP #872524301 VALUE GROWTH
Investor Class Shares LARGE [ ] [ ] [ ]
[ ] [ ] [ ]
o Top five holdings+++ SMALL [ ] [ ] [X]
(1) Deckers Outdoor
(2) Alexion Pharmaceuticals
(3) Ansys
(4) Triumph Group
(5) PharMerica
o % in five largest holdings 14.4%+
o Number of holdings 92
o Price/earnings ratio 11.7
o Weighted average market capitalization $0.68 billion
o % of holdings with positive earnings surprises 75.4%
o % of holdings with negative earnings surprises 22.6%
o Net assets $292 million, Investor Class Shares
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER EMERGING GROWTH FUND,
INVESTOR CLASS SHARES:
FEBRUARY 27, 1998-MARCH 31, 2009*,***
[LINE GRAPH]
SEP 98 SEP 99 SEP 00 SEP 01 SEP 02 SEP 03 SEP 04 SEP 05 SEP 06 SEP 07 SEP 08 MAR 09
------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
Turner Emerging
Growth Fund,
Investor Class
Shares $10,000 $21,346 $48,887 $38,995 $38,947 $50,300 $62,143 $79,483 $83,421 $104,327 $87,549 $54,582
Russell 2000
Growth Index $10,000 $13,263 $17,197 $ 9,873 $8,080 $11,452 $12,817 $15,120 $16,009 $ 19,041 $15,790 $10,340
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31 2009)
SIX MONTHS ONE THREE FIVE TEN SINCE
(NOT ANNUALIZED) YEAR YEARS YEARS YEARS INCEPTION
- ------------------------------------------------------------------------------------------------------------
TURNER EMERGING GROWTH FUND,
INSTITUTIONAL CLASS SHARES -- -- -- -- -- (2.07)%**
TURNER EMERGING GROWTH FUND,
INVESTOR CLASS SHARES (37.66)% (41.08)% (15.38)% (2.37)% 14.10% 16.42%***
Russell 2000 Growth Index (34.51)% (36.36)% (16.20)% (5.37)% (1.60)% (2.12)%***
- ------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
22.4% Health care
17.3% Industrials
14.4% Cash equivalent/short-term investment++
14.2% Consumer discretionary
10.7% Financials
10.5% Information technology
4.7% Energy
3.2% Consumer staples
0.9% Materials
0.9% Telecommunication services
0.8% Utilities
MANAGER'S DISCUSSION AND ANALYSIS
Poor stock selection led to atypically unfavorable performance for the Turner
Emerging Growth Fund, Investor Class (TMCGX) in the six-month period ended March
31. The fund lost 37.66%, a return that lagged its benchmark, the Russell 2000
Growth Index, by 3.15 percentage points -- atypical in that the fund has
produced long-term results that are far above average.
Only one of the fund's 10 sector positions outperformed its corresponding index
sector -- financials, an 11% weighting. In that sector, insurance, investment,
and transaction-processing holdings did relatively well. The primary detractors
from results were the fund's health care, information technology, and energy
holdings, a 38% weighting. Underperformers here included biotechnology,
pharmaceutical, medical-device, semiconductor, data-networking,
telecommunications, and energy-services stocks.
- --------------------------------------------------------------------------------
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than their original cost. The performance in the above graph and table does
not reflect the deduction of taxes the shareholder will pay on fund
distributions or the redemptions of fund shares. Performance of the
Institutional and Investor Class Shares will differ due to differences in
fees.
** The inception date of the Turner Emerging Growth Fund (Institutional Class
Shares) was February 1, 2009. Cumulative return, not annualized.
*** The inception date of the Turner Emerging Growth Fund (Investor Class
Shares) was February 27, 1998. Index returns are based on Investor Class
Shares inception date.
+ 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.
10 | TURNER FUNDS 2009 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER LARGE CAP GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2009
[DIAGRAM]
o Ticker symbol TSGEX
Institutional Class Shares MARKET
CAPITALIZATION INVESTMENT STYLE
o CUSIP #87252R839 VALUE GROWTH
Institutional Class Shares LARGE [ ] [ ] [X]
[ ] [ ] [ ]
o Top five holdings+++ SMALL [ ] [ ] [ ]
(1) QUALCOMM
(2) PepsiCo
(3) International Business Machines
(4) Intel
(5) Google, Cl A
o % in five largest holdings 23.8%+
o Number of holdings 49
o Price/earnings ratio 15.6
o Weighted average market capitalization $31.42 billion
o % of holdings with positive earnings surprises 71.1%
o % of holdings with negative earnings surprises 28.9%
o Net assets $22 million, Institutional Class Shares
- --------------------------------------------------------------------------------
GROWTH OF A $250,000 INVESTMENT IN THE TURNER LARGE CAP GROWTH FUND,
INSTITUTIONAL CLASS SHARES:
JUNE 14, 2000-MARCH 31, 2009*,**
[LINE GRAPH]
6/14/00 SEP 00 SEP 01 SEP 02 SEP 03 SEP 04 SEP 05 SEP 06 SEP 07 SEP 08 MAR 09
------- -------- -------- -------- -------- -------- -------- -------- -------- -------- --------
Turner Large Cap
Growth Fund,
Institutional
Class Shares $250,000 $245,250 $117,500 $ 87,500 $115,506 $120,869 $135,488 $140,090 $170,712 $115,806 $ 85,888
Russell Top 200
Growth Index $250,000 $238,621 $132,933 $101,303 $124,421 $131,799 $142,057 $150,294 $178,362 $143,886 $108,684
Russell 1000
Growth Index $250,000 $242,279 $131,705 $102,060 $128,510 $138,159 $154,180 $163,486 $195,126 $154,388 $114,295
- ----------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2009)
SIX MONTHS ONE THREE FIVE SINCE
(NOT ANNUALIZED) YEAR YEARS YEARS INCEPTION
- ----------------------------------------------------------------------------------------------------------------------
TURNER LARGE CAP GROWTH FUND, INSTITUTIONAL CLASS SHARES (25.83)% (40.59)% (15.89)% (7.69)% (11.44)%**
TURNER LARGE CAP GROWTH FUND, INVESTOR CLASS SHARES (25.88)% (40.68)% -- -- (22.66)%***
Russell Top 200 Growth Index (24.47)% (32.21)% (9.78)% (4.45)% (9.03)%**
Russell 1000 Growth Index (25.97)% (34.28)% (11.28)% (4.38)% (8.51)%**
- ----------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
37.9% Information technology
15.5% Health care
12.6% Consumer staples
9.9% Consumer discretionary
6.9% Energy
4.1% Materials
4.0% Industrials
3.6% Financials
3.5% Telecommunication services
2.0% Cash equivalent/short-term investment++
MANAGER'S DISCUSSION AND ANALYSIS
In the six-month period ended March 31, generally good stock selection aided
the performance of the Turner Large Cap Growth Fund, Institutional Class
(TSGEX). The fund lost 25.83%, which lagged the Russell Top 200 Growth Index by
1.36 percentage points but edged the Russell 1000 Growth Index by 0.14
percentage point. It was the best return of any Turner fund in the period.
Five of the fund's nine sector positions beat their corresponding index
sectors. Providing the most extra return were information-technology and
industrials shares, which accounted for 42% of holdings. Semiconductor,
wireless-communications, data-networking, and semiconductor-capital-equipment
stocks performed especially well. Health care and financials stocks, a 19%
weighting, were the greatest detriment to performance; biotechnology,
medical-device, pharmaceutical, insurance, and investment-management stocks
were significant laggards.
- --------------------------------------------------------------------------------
* 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 2009 SEMIANNUAL REPORT | 11
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER MIDCAP GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2009
[DIAGRAM]
o Ticker symbol TMGFX,
Investor Class Shares MARKET
CAPITALIZATION INVESTMENT STYLE
o CUSIP #900297409, VALUE GROWTH
Investor Class Shares LARGE [ ] [ ] [ ]
[ ] [ ] [X]
o Top five holdings+++ SMALL [ ] [ ] [ ]
(1) Kohl's
(2) McAfee
(3) Northern Trust
(4) Broadcom, Cl A
(5) Darden Restaurants
o % in five largest holdings 9.0%+
o Number of holdings 96
o Price/earnings ratio 15.8
o Weighted average market capitalization $4.71 billion
o % of holdings with positive earnings surprises 68.5%
o % of holdings with negative earnings surprises 31.5%
o Net assets $643 million, Investor Class Shares
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER MIDCAP GROWTH FUND, INVESTOR CLASS
SHARES:
SEPTEMBER 30, 1998-MARCH 31, 2009*,***
[LINE GRAPH]
SEP 98 SEP 99 SEP 00 SEP 01 SEP 02 SEP 03 SEP 04 SEP 05 SEP 06 SEP 07 SEP 08 MAR 09
------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------- -------
Turner Midcap
Growth Fund
Investor Class
Shares $10,000 $18,407 $36,325 $14,895 $11,796 $16,727 $17,968 $22,591 $23,652 $30,569 $22,411 $15,289
Russell Midcap
Growth
Index $10,000 $13,719 $22,002 $10,612 $ 8,967 $12,455 $14,158 $17,482 $18,712 $22,683 $17,091 $11,997
- ------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2009)
SIX MONTHS ONE THREE FIVE TEN SINCE
(NOT ANNUALIZED) YEAR YEARS YEARS YEARS INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------
TURNER MIDCAP GROWTH FUND, INSTITUTIONAL CLASS SHARES (31.68)% -- -- -- -- (48.37)%**
TURNER MIDCAP GROWTH FUND, INVESTOR CLASS SHARES (31.78)% (43.39)% (16.42)% (4.69)% 0.01% 6.61%***
TURNER MIDCAP GROWTH FUND, RETIREMENT CLASS SHARES (31.85)% (43.54)% (16.68)% (5.05)% -- 0.01%****
Russell Midcap Growth Index (29.81)% (39.58)% (14.89)% (3.91)% (0.86)% 2.82%***
- ------------------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
22.0% Information technology
19.6% Consumer discretionary
12.4% Industrials
11.3% Health care
8.1% Energy
6.8% Financials
5.8% Cash equivalent/short-term investment++
5.0% Materials
4.5% Consumer staples
2.5% Telecommunication services
2.0% Utilities
MANAGER'S DISCUSSION AND ANALYSIS
The Turner Midcap Growth Fund, Investor Class (TMGFX) fell 31.78% in the
six-month period ended March 31. The fund underperformed the Russell Midcap
Growth Index's 29.81% loss by 1.97 percentage points.
Good relative returns in two of 10 sectors, consumer staples and financials, an
11% weighting, added value to the fund's results. Food-processing, beverage,
insurance, investment-management, and transaction-processing stocks were notable
contributors. A 31% position in consumer discretionary and health care stocks,
especially in the Internet, gaming, consulting, biotechnology, and
medical-equipment 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
Institutional, Investor and Retirement Class Shares will differ due to
differences in fees.
** The inception date of the Turner Midcap Growth Fund (Institutional Class
Shares) was June 16, 2008. Cumulative return, not annualized.
*** 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.
12 | TURNER FUNDS 2009 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER NEW ENTERPRISE FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2009
[DIAGRAM]
o Ticker symbol TBTBX
MARKET
o CUSIP #87252R797 CAPITALIZATION INVESTMENT STYLE
VALUE GROWTH
o Top five holdings+++ LARGE [ ] [ ] [ ]
[ ] [ ] [X]
(1) Guess? SMALL [ ] [ ] [ ]
(2) QUALCOMM
(3) McAfee
(4) Lam Research
(5) F5 Networks
o % in five largest holdings 24.3%+
o Number of holdings 31
o Price/earnings ratio 16.8
o Weighted average market capitalization $5.52 billion
o % of holdings with positive earnings surprises 57.0%
o % of holdings with negative earnings surprises 43.0%
o Net assets $19 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER NEW ENTERPRISE FUND:
JUNE 30, 2000-MARCH 31, 2009*
[LINE GRAPH]
6/30/00 SEP 00 SEP 01 SEP 02 SEP 03 SEP 04 SEP 05 SEP 06 SEP 07 SEP 08 MAR 09
------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
Turner New Enterprise Fund $10,000 $12,520 $3,290 $2,270 $4,340 $4,520 $5,860 $6,260 $8,720 $5,600 $3,850
NASDAQ Composite Index $10,000 $ 9,264 $3,792 $2,977 $4,557 $4,862 $5,552 $5,876 $7,081 $5,529 $4,065
- ------------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2009)
SIX MONTHS ONE THREE FIVE SINCE
(NOT ANNUALIZED) YEAR YEARS YEARS INCEPTION
- ------------------------------------------------------------------------------------------------------------------------------
TURNER NEW ENTERPRISE FUND (31.25)% (46.23)% (19.06)% (5.98)% (10.33)%
NASDAQ Composite Index (26.47)% (32.24)% (12.49)% (4.43)% (9.77)%
- ------------------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
43.1% Information technology
22.0% Consumer discretionary
9.2% Materials
7.0% Cash equivalent/short-term investment++
4.6% Industrials
4.5% Health care
3.8% Energy
3.8% Financial
2.0% Consumer staples
MANAGER'S DISCUSSION AND ANALYSIS
Substantial underperformance in three principal sectors -- information
technology, health care, and consumer discretionary -- contributed to the
Turner New Enterprise Fund (TBTBX) recording a 31.25% loss in the six months
ended March 31. The fund trailed the NASDAQ Composite Index's 26.47% negative
return by 4.78 percentage points.
Stocks in the three sectors accounted for 70% of the fund's holdings;
weak-performing stocks included semiconductor, data-networking,
wireless-communications, biotechnology, medical-equipment, contract-research,
Internet, and consulting shares. Enhancing performance was a 14% position in the
industrials and materials sectors. Stocks in those sectors that produced good
relative returns included semiconductor-capital-equipment, industrial-equipment,
metals, and mining shares. Four of the fund's eight 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.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 13
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER SMALL CAP GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2009
[DIAGRAM]
o Ticker symbol TSCEX
MARKET
o CUSIP #900297300 CAPITALIZATION INVESTMENT STYLE
VALUE GROWTH
o Top five holdings+++ LARGE [ ] [ ] [ ]
[ ] [ ] [ ]
(1) Myriad Genetics SMALL [ ] [ ] [X]
(2) Alexion Pharmaceuticals
(3) Haemonetics
(4) Omniture
(5) Sybase
o % in five largest holdings 8.1%+
o Number of holdings 108
o Price/earnings ratio 15.8
o Weighted average market capitalization $1.1 billion
o % of holdings with positive earnings surprises 70.0%
o % of holdings with negative earnings surprises 30.0%
o Net assets $170 million
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER SMALL CAP GROWTH FUND:
SEPTEMBER 30, 1998-MARCH 31, 2009*
[LINE GRAPH]
SEP 98 SEP 99 SEP 00 SEP 01 SEP 02 SEP 03 SEP 04 SEP 05 SEP 06 SEP 07 SEP 08 MAR 09
------- ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -------
Turner Small Cap
Growth Fund $10,000 $15,914 $24,838 $12,466 $10,052 $15,039 $16,990 $19,659 $20,846 $26,270 $21,069 $13,955
Russell 2000
Growth Index $10,000 $13,263 $17,197 $ 9,873 $ 8,080 $11,452 $12,817 $15,120 $16,009 $19,041 $15,790 $10,340
- ---------------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2009)
SIX MONTHS ONE THREE FIVE TEN SINCE
(NOT ANNUALIZED) YEAR YEARS YEARS YEARS INCEPTION
- ---------------------------------------------------------------------------------------------------------------------------
TURNER SMALL CAP GROWTH FUND (33.76)% (37.61)% (16.14)% (4.58)% 0.54% 8.26%
Russell 2000 Growth Index (34.51)% (36.36)% (16.20)% (5.37)% (1.60)% 2.02%
- ---------------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
25.5% Information technology
22.3% Health care
14.0% Cash equivalent/short-term investment++
13.8% Consumer discretionary
7.6% Industrials
4.5% Energy
4.4% Financials
2.8% Materials
2.2% Consumer staples
1.9% Telecommunication services
1.0% Utilities
MANAGER'S DISCUSSION AND ANALYSIS
In the bear market that prevailed throughout the six- month period ended March
31, small-cap stocks were the most bearish. The Russell 2000 Growth Index
declined 34.51%. But good stock selection on balance helped the Turner Small Cap
Growth Fund (TSCEX) to make the best of bearish conditions: the fund's 33.76%
loss represented a margin of outperformance of 0.75 percentage point over the
index.
Five of the fund's 10 sector positions beat their index- sector counterparts.
The fund's industrials, energy, and financials stocks, a 17% weighting,
performed best in relative terms. Winners included heavy- equipment,
semiconductor-capital-equipment, energy-services, investment-management, and
transaction-processing stocks. A 48% position in health care and information
technology stocks, particularly biotechnology, contract-research,
wireless-communications, and semiconductor shares, was 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.
14 | TURNER FUNDS 2009 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER INTERNATIONAL CORE GROWTH FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2009
[DIAGRAM]
o Ticker symbol TICGX
Institutional Class Shares MARKET
CAPITALIZATION INVESTMENT STYLE
o CUSIP #900297771 VALUE GROWTH
Institutional Class Shares LARGE [ ] [ ] [X]
[ ] [ ] [ ]
o Top five holdings++ SMALL [ ] [ ] [ ]
(1) Nestle
(2) Roche Holding
(3) BHP Billion
(4) ZTE
(5) CNOOC
o % in five largest holdings 11.8%+
o Number of holdings 70
o Price/earnings ratio 12.5
o Weighted average market capitalization $17.93 billion
o % of holdings with positive earnings surprises N/A
o % of holdings with negative earnings surprises N/A
o Net assets $3 million, Institutional Class Shares
- --------------------------------------------------------------------------------
GROWTH OF A $250,000 INVESTMENT IN THE TURNER INTERNATIONAL CORE GROWTH FUND,
INSTITUTIONAL CLASS SHARES:
JANUARY 31, 2007-MARCH 31, 2009*,**
[LINE GRAPH]
1/31/07 MAR 07 JUN 07 SEP 07 DEC 07 MAR 08 JUN 08 SEP 08 DEC 08 MAR 09
------- ------ ------ ------ ------ ------ ------ ------ ------ -------
Turner International Core
Growth Fund,
Institutional
Class Shares $250,000 $254,500 $274,750 $305,250 $321,073 $286,240 $288,511 $210,515 $154,627 $140,991
MSCI World Growth
ex-U.S. Index $250,000 $260,084 $278,971 $292,634 $292,818 $269,859 $274,208 $211,583 $167,226 $147,646
- --------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2009)
SIX MONTHS ONE SINCE
(NOT ANNUALIZED) YEAR INCEPTION
- --------------------------------------------------------------------------------
TURNER INTERNATIONAL CORE GROWTH FUND,
INSTITUTIONAL CLASS SHARES (33.03)% (50.74)% (23.23)%**
TURNER INTERNATIONAL CORE GROWTH FUND,
INVESTOR CLASS SHARES -- -- (10.92)%***
MSCI World Growth ex-U.S. Index (30.22)% (45.29)% (21.60)%**
- -------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
13.2% Financials
13.0% Materials
11.2% Consumer staples
11.1% Industrials
11.0% Energy
10.9% Health care
10.9% Information technology
8.1% Consumer discretionary
5.3% Utilities
5.0% Telecommunication services
0.3% Cash equivalent
MANAGER'S DISCUSSION AND ANALYSIS
International stock markets generally fared no better than the U.S.
market did in the six months ended March 31, as reflected in the
performance of the Turner International Core Growth Fund,
Institutional Class (TICGX). The fund recorded a loss of 33.03%,
which underperformaned the MSCI World Growth ex-U.S. Index by
2.81 percentage points.
Two of the fund's 10 sector positions beat their corresponding index
sectors. Adding value were holdings in the consumer discretionary
and information technology sectors, which accounted for a 19%
weighting. Internet, education, business-services, semiconductor,
data-networking, and information-services stock performed best.
Conversely, financials and health care shares, which constituted
24% of the portfolio, impaired performance the most. Insurance,
credit-card, investment-management, biotechnology, and medical-equipment
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. Performance of the
Institutional and Investor Class Shares will differ due to differences in
fees.
** The inception date of the Turner International Core Growth Fund
(Institutional Class Shares) was January 31, 2007. Index returns are based
on Institutional Class Shares inception date.
*** The inception date of the Turner International Core Growth Fund (Investor
Class Shares) was October 31, 2008. Cumulative return, not annualized.
+ 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.
Amounts designated as "--" are not applicable.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 15
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER MIDCAP EQUITY FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2009
[DIAGRAM]
o Ticker symbol TMCFX,
Investor Class Shares MARKET
CAPITALIZATION INVESTMENT STYLE
o CUSIP #900297797, VALUE GROWTH
Investor Class Shares LARGE [ ] [ ] [ ]
[ ] [X] [ ]
o Top five holdings++ SMALL [ ] [ ] [ ]
(1) Sybase
(2) Synopsys
(3) BMC Software
(4) O'Reilly Automotive
(5) UGI
o % in five largest holdings 11.0%+
o Number of holdings 76
o Price/earnings ratio 12.4
o Weighted average market capitalization $3.28 billion
o % of holdings with positive earnings surprises 74.1%
o % of holdings with negative earnings surprises 24.5%
o Net assets $0.3 million, Investor Class Shares
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER MIDCAP EQUITY FUND, INVESTOR CLASS
SHARES:
JANUARY 31, 2007-MARCH 31, 2009*
[LINE GRAPH]
1/31/07 MAR 07 JUN 07 SEP 07 DEC 07 MAR 08 JUN 08 SEP 08 DEC 08 MAR 09
------- ------ ------ ------ ------ ------ ------ ------ ------ -------
Turner Midcap Equity Fund
Investor Class Shares $10,000 $10,130 $10,860 $10,610 $10,370 $9,100 $9,250 $7,800 $6,030 $5,400
Russell Midcap Index $10,000 $10,096 $10,631 $10,590 $10,215 $9,196 $9,441 $8,222 $5,980 $5,443
- --------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2009)
SIX MONTHS ONE SINCE
(NOT ANNUALIZED) YEAR INCEPTION
- --------------------------------------------------------------------------------------------------
TURNER MIDCAP EQUITY FUND, INSTITUTIONAL CLASS SHARES (30.42)% (40.26)% (24.18)%
TURNER MIDCAP EQUITY FUND, INVESTOR CLASS SHARES (30.77)% (40.66)% (24.75)%
Russell Midcap Index (33.80)% (40.81)% (24.50)%
- --------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
23.4% Information technology
16.6% Consumer discretionary
12.8% Financials
10.5% Industrials
8.7% Health care
8.0% Utilities
6.8% Energy
4.8% Consumer staples
4.2% Cash equivalent
2.6% Telecommunication services
1.6% Materials
MANAGER'S DISCUSSION AND ANALYSIS
The Turner Midcap Equity Fund, Investor Class (TMCFX) recorded a negative
return, 30.77%, in the six-month period ended March 31. That return markedly
outperformed its benchmark, the Russell Midcap Index, by 3.03 percentage
points.
Good relative returns in the consumer discretionary and information technology
sectors, a 40% weighting, added the most value to the fund's results.
Personal-care, discount-retailing, software and information-services stocks
were notable contributors. Altogether, four of the fund's 10 sector positions
outperformed their corresponding index sectors. In general, growth holdings
produced returns superior to those of value holdings. A 19% position in
health-care, utilities, and telecommunication-services stocks, especially in
the clinical-services, medical-equipment, managed-care, energy-distribution,
and wireless 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.
16 | TURNER FUNDS 2009 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER QUANTITATIVE BROAD MARKET EQUITY FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2009
[DIAGRAM]
o Ticker symbol TBMEX,
Institutional Class Shares MARKET
CAPITALIZATION INVESTMENT STYLE
o CUSIP #900297730, VALUE GROWTH
Institutional Class Shares LARGE [ ] [ ] [X]
[ ] [ ] [ ]
o Top five holdings++ SMALL [ ] [ ] [ ]
(1) Exxon Mobil
(2) International Business Machines
(3) Procter & Gamble
(4) Johnson & Johnson
(5) Microsoft
o % in five largest holdings 12.5%+
o Number of holdings 112
o Price/earnings ratio 12.9
o Weighted average market capitalization $23.41 billion
o % of holdings with positive earnings surprises 68.4%
o % of holdings with negative earnings surprises 31.6%
o Net assets $0.4 million, Institutional Class Shares
- --------------------------------------------------------------------------------
GROWTH OF A $250,000 INVESTMENT IN THE TURNER QUANTITATIVE BROAD MARKET EQUITY
FUND, INSTITUTIONAL CLASS SHARES:
JUNE 30, 2008-MARCH 31, 2009*
[LINE GRAPH]
6/30/08 SEP 08 DEC 08 MAR 08
------- -------- -------- --------
Turner Quantitative Broad Market Equity Fund,
Institutional Class Shares $250,000 $218,250 $171,537 $154,636
Russell 3000 Index $250,000 $228,177 $176,198 $157,160
S&P 500 Index $250,000 $229,075 $178,808 $159,118
- --------------------------------------------------------------------------------------------------------
CUMULATIVE TOTAL RETURNS (PERIODS ENDING MARCH 31, 2009)
SIX SINCE
MONTHS INCEPTION
- --------------------------------------------------------------------------------------------------------
TURNER QUANTITATIVE BROAD MARKET EQUITY FUND, INSTITUTIONAL CLASS SHARES (29.15)% (38.15)%**
TURNER QUANTITATIVE BROAD MARKET EQUITY FUND, INVESTOR CLASS SHARES (29.28)% (38.33)%**
Russell 3000 Index (31.12)% (37.14)%
S&P 500 Index (30.54)% (36.35)%
- --------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
16.6% Information technology
15.6% Health care
12.2% Consumer discretionary
11.7% Energy
10.9% Financials
10.7% Consumer staples
8.3% Industrials
4.9% Utilities
3.6% Materials
3.4% Telecommunication services
2.1% Cash equivalent
MANAGER'S DISCUSSION AND ANALYSIS
In the six-month period ended March 31, the Turner Quantitative Broad Market
Equity Fund, Institutional Class (TBMEX) fell 29.15%. That return, however, was
good enough to outdistance the Russell 3000 Index by 1.97 percentage points and
the S&P 500 Index by 1.39 percentage points.
The fund's proprietary quantitative model selected stocks that did well in
relative terms in six of 10 market sectors. Consumer discretionary and
financials stocks, a 23% weighting, enhanced performance to the greatest degree.
Winners here included discount-retailing, apparel, business-services,
investment-management, financial-transaction-processing, and insurance shares.
Hurting results the most were health care stocks, which represented 16% of the
portfolio; pharmaceutical, medical-equipment, and medical-services 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 redemption of fund shares. The inception date of the
Turner Quantitative Broad Market Equity Fund was June 30, 2008.
Performance of the Institutional and Investor Class Shares will differ
due to the difference in fees.
** Cumulative return, not annualized.
+ 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 2009 SEMIANNUAL REPORT | 17
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER SMALL CAP EQUITY FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2009
[DIAGRAM]
o Ticker symbol TSEIX
Investor Class Shares MARKET
CAPITALIZATION INVESTMENT STYLE
o CUSIP #87252R714 VALUE GROWTH
Investor Class Shares LARGE [ ] [ ] [ ]
[ ] [ ] [ ]
o Top five holdings+++ SMALL [ ] [X] [ ]
(1) Sybase
(2) Redwood Trust
(3) Tellabs
(4) MasTec
(5) EPIQ Systems
o % in five largest holdings 7.4%+
o Number of holdings 101
o Price/earnings ratio 13.0
o Weighted average market capitalization $0.97 billion
o % of holdings with positive earnings surprises 69.5%
o % of holdings with negative earnings surprises 30.5%
o Net assets $23 million, Investor Class Shares
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT IN THE TURNER SMALL CAP EQUITY FUND,
INVESTOR CLASS SHARES:
MARCH 4, 2002-MARCH 31, 2009*,***
[LINE GRAPH]
3/4/02 SEP 02 SEP 03 SEP 04 SEP 05 SEP 06 SEP 07 SEP 08 MAR 09
------ ------ ------ ------ ------ ------ ------ ------ --------
Turner Small Cap Equity Fund,
Investor Class Shares $10,000 $9,300 $12,279 $15,318 $17,673 $18,641 $20,521 $16,375 $10,502
Russell 2000 Index $10,000 $7,485 $10,217 $12,135 $14,313 $15,733 $17,675 $15,115 $ 9,498
- ---------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2009)
SIX MONTHS ONE THREE FIVE SINCE
(NOT ANNUALIZED) YEAR YEARS YEARS INCEPTION
- ---------------------------------------------------------------------------------------------------------------------
TURNER SMALL CAP EQUITY FUND, INSTITUTIONAL CLASS SHARES -- -- -- -- (4.40)%**
TURNER SMALL CAP EQUITY FUND, INVESTOR CLASS SHARES (35.87)% (40.51)% (19.90)% (7.34)% 0.69%***
Russell 2000 Index (37.17)% (37.50)% (16.80)% (5.24)% (0.72)%***
- ---------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
[BAR CHART]
23.4% Information technology
16.3% Financials
12.9% Cash equivalent/short-term investment++
11.5% Health care
10.6% Consumer discretionary
6.8% Industrials
5.6% Materials
4.5% Energy
4.2% Utilities
3.4% Consumer staples
0.8% Telecommunication services
MANAGER'S DISCUSSION AND ANALYSIS
In a treacherous market for small-cap stocks, the Turner Small Cap Equity Fund,
Investor Class (TSEIX) lost 35.87% in the six-month period ended March 31. Even
so, that return beat the Russell 2000 Index's 37.17% decline by 1.30 percentage
points.
The fund is invested in both growth and value stocks, and its growth holdings
generally outperformed value holdings during the period. Five of the fund's 10
sector positions beat their corresponding index sectors. The greatest degree of
outperformance was supplied by financials stocks, which represented 16% of the
portfolio. Winners included regional-banking, property/casualty insurance, and
diversified financial-services shares. A 12% position in health care stocks
hurt results the most; clinical-services, managed-care, and medical-equipment
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. Performance of the
Institutional and Investor Class Shares will differ due to differences in
fees.
** The inception date of the Turner Small Cap Equity Fund (Institutional Class
Shares) was February 1, 2009. Cumulative return, not annualized.
*** The inception date of the Turner Small Cap Equity Fund (Investor Class
Shares) was March 4, 2002. Index returns are based on Investor Class
Shares inception date.
+ 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.
18 | TURNER FUNDS 2009 SEMIANNUAL REPORT
INVESTMENT REVIEW
- --------------------------------------------------------------------------------
TURNER QUANTITATIVE LARGE CAP VALUE FUND
- --------------------------------------------------------------------------------
FUND PROFILE
MARCH 31, 2009
[DIAGRAM]
o Ticker symbol TLVFX
Institutional Class Shares MARKET
CAPITALIZATION INVESTMENT STYLE
o CUSIP #900297821 VALUE GROWTH
Institutional Class Shares LARGE [X] [ ] [ ]
[ ] [ ] [ ]
o Top five holdings++ SMALL [ ] [ ] [ ]
(1) Exxon Mobil
(2) Chevron
(3) JPMorgan Chase
(4) General Electric
(5) AT&T
o % in five largest holdings 20.5%+
o Number of holdings 97
o Price/earnings ratio 12.5
o Weighted average market capitalization $27.55 billion
o % of holdings with positive earnings surprises 69.8%
o % of holdings with negative earnings surprises 30.2%
o Net assets $0.6 million, Institutional Class Shares
- --------------------------------------------------------------------------------
GROWTH OF A $25,000 INVESTMENT IN THE TURNER QUANTITATIVE LARGE CAP VALUE
FUND, INSTITUTIONAL CLASS SHARES:
OCTOBER 10, 2005-MARCH 31, 2009*,**
[LINE GRAPH]
10/10/05 MAR 06 SEP 06 MAR 07 SEP 07 MAR 08 SEP 08 MAR 09
-------- ------ ------ ------ ------ ------ ------ -------
Turner Quantitative Large Cap Value Fund,
Institutional Class Shares $25,000 $27,600 $28,730 $31,230 $33,302 $30,314 $27,056 $17,714
Russell 1000 Value Index $25,000 $27,892 $29,802 $32,587 $34,109 $29,330 $26,073 $16,889
- ----------------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (PERIODS ENDING MARCH 31, 2009)
SIX MONTHS ONE THREE SINCE
(NOT ANNUALIZED) YEAR YEARS INCEPTION
- ----------------------------------------------------------------------------------------------------------------------
TURNER QUANTITATIVE LARGE CAP VALUE FUND, INSTITUTIONAL CLASS SHARES (34.53)% (41.57)% (13.74)% (9.44)%**
TURNER QUANTITATIVE LARGE CAP VALUE FUND, INVESTOR CLASS SHARES -- -- -- (21.70)%***
Russell 1000 Value Index (35.22)% (42.42)% (15.40)% (10.67)%**
- ----------------------------------------------------------------------------------------------------------------------
SECTOR WEIGHTINGS+:
19.3% Financials
18.4% Energy
14.6% Health care
10.1% Utilities
9.7% Consumer staples
8.9% Industrials
5.5% Consumer discretionary
4.4% Telecommunication services
4.0% Information technology
3.4% Materials
1.7% Cash equivalent
MANAGER'S DISCUSSION AND ANALYSIS
In the six-month period ended March 31, the Turner Quantitative Large Cap Value
Fund, Institutional Class (TLVFX) fell 34.53%. That return trumped the Russell
1000 Value Index's 35.22% loss by 0.69 percentage point.
The fund's proprietary quantitative model selected stocks that did well in
relative terms in six of 10 market sectors. Consumer-discretionary and materials
stocks, a 9% weighting, enhanced performance to the greatest degree. Winners
here included discount- retailing, apparel, business-services, mining, and
metals shares. Hurting results the most were utilities and telecommunication
services stocks, which represented 15% of the portfolio; electric-utility and
wireless 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. Performance of the
Institutional and Investor Class Shares will differ due to differences in
fees.
** The inception date of the Turner Quantitative Large Cap Value Fund
(Institutional Class Shares) was October 10, 2005. Index returns are based
on Institutional Class Shares inception date.
*** The inception date of the Turner Quantitative Large Cap Value Fund
(Investor Class Shares) was October 31, 2008. Cumulative return, not
annualized.
+ 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.
Amounts designated as "--" are not applicable.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 19
FINANCIAL STATEMENTS
- -----------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER CONCENTRATED GROWTH FUND
March 31, 2009
Value
Shares (000)
- -----------------------------------------------
COMMON STOCK--96.4%+
- -----------------------------------------------
CONSUMER DISCRETIONARY--13.5%
- -----------------------------------------------
Amazon.com* 18,550 $ 1,362
Toll Brothers* 78,180 1,420
Wynn Resorts* # 47,440 947
--------
Total Consumer discretionary 3,729
--------
- -----------------------------------------------
ENERGY--4.3%
- -----------------------------------------------
Weatherford International* 106,540 1,179
--------
Total Energy 1,179
--------
- -----------------------------------------------
FINANCIALS--15.2%
- -----------------------------------------------
BlackRock, Cl A 11,410 1,484
Goldman Sachs Group 13,110 1,390
IntercontinentalExchange* 17,710 1,319
--------
Total Financials 4,193
- -----------------------------------------------
HEALTH CARE--10.1%
- -----------------------------------------------
Celgene* 26,880 1,193
Gilead Sciences* 34,450 1,596
--------
Total Health care 2,789
--------
- -----------------------------------------------
INFORMATION TECHNOLOGY--38.9%
- -----------------------------------------------
Apple* 11,620 1,222
Applied Materials 122,880 1,321
Broadcom, Cl A* 59,220 1,183
Google, Cl A* 3,870 1,347
Lam Research* 54,890 1,250
McAfee* 24,200 811
QUALCOMM 42,390 1,649
Salesforce.com* 22,560 738
Taiwan Semiconductor
Manufacturing 137,600 1,232
--------
Total Information technology 10,753
--------
- -----------------------------------------------
MATERIALS--10.1%
- -----------------------------------------------
Monsanto 17,850 1,483
Nucor 33,910 1,295
--------
Total Materials 2,778
--------
Value
Shares (000)
- -----------------------------------------------
TELECOMMUNICATION SERVICES--4.3%
- -----------------------------------------------
China Mobile ADR 27,440 $ 1,194
--------
Total Telecommunication services 1,194
- -----------------------------------------------
TOTAL COMMON STOCK
(COST $27,309) 26,615
===============================================
- -----------------------------------------------
CASH EQUIVALENT--7.1%
- -----------------------------------------------
BlackRock TempCash Fund
Institutional Shares,
0.693%** (1) 1,962,764 1,963
===============================================
- -----------------------------------------------
TOTAL CASH EQUIVALENT
(COST $1,963) 1,963
===============================================
- -----------------------------------------------
TOTAL INVESTMENTS--103.5%
(COST $29,272) $ 28,578
===============================================
Percentages are based on Net Assets of $27,616.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2009.
*** 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, 2009. The total value of
securities on loan at March 31, 2009, was $909,606. Certain of these
securities may have been sold prior to period end and are included in
receivable for investment securities sold on the Statement of Assets and
Liabilities.
(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 money market 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. A partial position of this security was purchased with cash
collateral received from securities lending. The total value of such
security at March 31, 2009 was $1,033,197.
ADR -- American Depositary Receipt
Cl -- Class
The accompanying notes are an integral part of the financial statements.
20 | TURNER FUNDS 2009 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER CORE GROWTH FUND
March 31, 2009
Value
Shares (000)
- -----------------------------------------------
COMMON STOCK--98.5%
- -----------------------------------------------
CONSUMER DISCRETIONARY--11.7%
- -----------------------------------------------
Amazon.com* 144,070 $ 10,581
Best Buy 120,290 4,566
Cablevision Systems, Cl A 300,725 3,891
Darden Restaurants 66,060 2,263
Guess? 122,630 2,585
Kohl's* 159,170 6,736
Lowe's 265,250 4,841
NVR* 11,708 5,008
Pulte Homes 486,680 5,320
Wynn Resorts* # 117,290 2,342
Yum! Brands 107,550 2,956
--------
Total Consumer discretionary 51,089
--------
- -----------------------------------------------
CONSUMER STAPLES--10.1%
- -----------------------------------------------
Archer-Daniels-Midland 171,430 4,762
Clorox 71,960 3,705
Colgate-Palmolive 110,790 6,534
CVS/Caremark 333,810 9,177
PepsiCo 270,650 13,933
SYSCO 190,530 4,344
Whole Foods Market # 76,712 1,289
--------
Total Consumer staples 43,744
--------
- -----------------------------------------------
ENERGY--12.7%
- -----------------------------------------------
Cameron International* 258,770 5,675
Enbridge 167,740 4,831
Occidental Petroleum 143,930 8,010
Peabody Energy 287,520 7,200
PetroHawk Energy* 237,480 4,567
Petroleo Brasileiro ADR 154,560 4,709
Southwestern Energy* 253,637 7,530
Transocean* 123,920 7,291
Weatherford International* 491,110 5,437
--------
Total Energy 55,250
--------
- -----------------------------------------------
FINANCIALS--10.6%
- -----------------------------------------------
BlackRock, Cl A 75,340 9,797
Goldman Sachs Group 56,990 6,042
IntercontinentalExchange* 54,790 4,080
Marsh & McLennan 175,620 3,557
Northern Trust 155,650 9,311
T. Rowe Price Group 225,820 6,517
Visa, Cl A 126,240 7,019
--------
Total Financials 46,323
--------
Value
Shares (000)
- -----------------------------------------------
HEALTH CARE--15.6%
- -----------------------------------------------
Abbott Laboratories 265,290 $ 12,654
Allergan 70,510 3,367
Baxter International 157,860 8,086
Celgene* 130,090 5,776
DaVita* 82,770 3,638
Express Scripts* 52,170 2,409
Gilead Sciences* 316,590 14,664
Intuitive Surgical* 19,068 1,818
Myriad Genetics* 71,550 3,253
Roche Holding ADR 146,940 5,055
St. Jude Medical* 91,290 3,317
Teva Pharmaceutical
Industries 87,390 3,937
--------
Total Health care 67,974
--------
- -----------------------------------------------
INDUSTRIALS--4.1%
- -----------------------------------------------
First Solar* 34,910 4,632
Robert Half International 193,810 3,456
Union Pacific 119,970 4,932
United Parcel Service, Cl B 100,300 4,937
--------
Total Industrials 17,957
--------
- -----------------------------------------------
INFORMATION TECHNOLOGY--22.5%
- -----------------------------------------------
Adobe Systems* 118,920 2,544
Apple* 122,270 12,853
Applied Materials 669,480 7,197
Broadcom, Cl A* 263,320 5,261
F5 Networks* 98,380 2,061
Google, Cl A* 34,410 11,977
Intel 689,480 10,377
International Business
Machines 173,390 16,800
Lam Research* 288,630 6,572
QUALCOMM 346,000 13,463
Salesforce.com* 78,580 2,572
VeriSign* 128,120 2,417
Western Union 317,520 3,991
--------
Total Information technology 98,085
--------
- -----------------------------------------------
MATERIALS--3.9%
- -----------------------------------------------
BHP Billiton ADR 115,590 5,155
Freeport-McMoRan
Copper & Gold 76,740 2,925
Monsanto 106,140 8,820
--------
Total Materials 16,900
--------
TURNER FUNDS 2009 SEMIANNUAL REPORT | 21
FINANCIAL STATEMENTS
- -----------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER CORE GROWTH FUND
Value
Shares (000)
- -----------------------------------------------
TELECOMMUNICATION SERVICES--5.4%
- -----------------------------------------------
American Tower, Cl A* 190,040 $ 5,783
China Mobile ADR 199,860 8,698
China Unicom Hong Kong ADR 391,630 4,077
MetroPCS Communications* 275,673 4,708
--------
Total Telecommunication services 23,266
--------
- -----------------------------------------------
UTILITIES--1.9%
- -----------------------------------------------
Aqua America 230,190 4,604
Questar 128,600 3,784
--------
Total Utilities 8,388
--------
- -----------------------------------------------
TOTAL COMMON STOCK
(COST $481,702) 428,976
===============================================
- -----------------------------------------------
CASH EQUIVALENT--2.7%
- -----------------------------------------------
BlackRock TempCash Fund
Institutional Shares,
0.693%** (1) 11,844,457 11,844
- -----------------------------------------------
TOTAL CASH EQUIVALENT
(COST $11,844) 11,844
===============================================
- -----------------------------------------------
TOTAL INVESTMENTS--101.2%
(COST $493,546) $440,820
===============================================
Percentages are based on Net Assets of $435,499.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2009.
*** This number has been rounded to the nearest thousand.
# Security fully or partially on loan at March 31, 2009. The total value of
securities on loan at March 31, 2009, was $2,373,092. Certain of these
securities may have been sold prior to period end and are included in
receivable for investment securities sold on the Statement of Assets and
Liabilities.
(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 money market 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. A partial position of this
security was purchased with cash collateral received from securities
lending. The total value of such security at March 31, 2009 was $2,687,865.
ADR -- American Depositary Receipt
Cl -- Class
The accompanying notes are an integral part of the financial statements.
22 | TURNER FUNDS 2009 SEMIANNUAL REPORT
(Unaudited)
- -----------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER EMERGING GROWTH FUND
March 31, 2009
Value
Shares (000)
- -----------------------------------------------
COMMON STOCK--86.1%
- -----------------------------------------------
CONSUMER DISCRETIONARY--15.2%
- -----------------------------------------------
American Public Education* 61,560 $ 2,589
Boyd Gaming 484,110 1,806
Buckle 86,290 2,755
California Pizza Kitchen* 228,970 2,995
Chico's FAS* 345,240 1,854
Citi Trends* 216,110 4,947
Coinstar* 66,130 2,166
Corinthian Colleges* 137,720 2,679
Deckers Outdoor* 262,610 13,929
Genesco* 131,820 2,482
New Oriental Education &
Technology Group ADR* # 54,840 2,756
Red Robin Gourmet Burgers* 165,180 2,912
True Religion Apparel* # 123,970 1,464
Volcom* # 249,980 2,425
--------
Total Consumer discretionary 47,759
--------
- -----------------------------------------------
CONSUMER STAPLES--3.4%
- -----------------------------------------------
Chattem* # 38,430 2,154
Green Mountain
Coffee Roasters* # 68,810 3,303
TreeHouse Foods* 54,830 1,578
United Natural Foods* 198,315 3,762
--------
Total Consumer staples 10,797
--------
- -----------------------------------------------
ENERGY--5.0%
- -----------------------------------------------
Arena Resources* 82,230 2,095
Carrizo Oil & Gas* # 179,648 1,595
Dawson Geophysical* 53,660 724
Lufkin Industries 10,760 408
NATCO Group, Cl A* 136,165 2,578
Penn Virginia 223,510 2,454
Petroleum Development* 47,860 565
Walter Industries 103,280 2,362
Willbros Group* 298,752 2,898
--------
Total Energy 15,679
--------
- -----------------------------------------------
FINANCIALS--6.4%
- -----------------------------------------------
American Physicians Capital 159,990 6,547
City Holding 39,800 1,086
Harleysville Group 116,160 3,695
IBERIABANK 69,070 3,173
Navigators Group* 118,590 5,595
--------
Total Financials 20,096
--------
Value
Shares (000)
- -----------------------------------------------
HEALTH CARE--23.9%
- -----------------------------------------------
Acorda Therapeutics* 363,762 $ 7,206
Air Methods* 241,239 4,079
Alexion Pharmaceuticals* 257,610 9,702
Amedisys* # 97,550 2,682
Auxilium Pharmaceuticals* 176,790 4,901
Catalyst Health Solutions* 124,280 2,463
Cougar Biotechnology* # 21,230 684
Health Net* 268,560 3,889
HMS Holdings* 27,120 892
Icon ADR* 178,240 2,879
Kendle International* 190,670 3,996
LHC Group* 159,230 3,548
MedAssets* 132,810 1,892
Orthofix International* 155,950 2,888
Parexel International* 518,544 5,045
PharMerica* 455,930 7,587
PSS World Medical* 120,840 1,734
Psychiatric Solutions* 140,290 2,207
Wright Medical Group* 146,068 1,903
XenoPort* 259,374 5,021
--------
Total Health care 75,198
--------
- -----------------------------------------------
INDUSTRIALS--18.4%
- -----------------------------------------------
Aerovironment* # 65,390 1,367
Allegiant Travel* 61,080 2,777
American Science &
Engineering 67,759 3,781
Astec Industries* 60,830 1,596
Axsys Technologies* 11,036 464
AZZ* 109,180 2,881
Bucyrus International, Cl A 161,550 2,452
CBIZ* 760,260 5,299
Chart Industries* 101,150 797
CIRCOR International 78,090 1,759
Clean Harbors* 86,420 4,148
Copa Holdings, Cl A 92,420 2,650
Cubic 59,240 1,501
EnPro Industries* 167,400 2,862
ESCO Technologies* 101,760 3,938
Genesee & Wyoming, Cl A* 166,735 3,543
HUB Group, Cl A* 33,884 576
Middleby* # 112,010 3,632
Powell Industries* 90,260 3,187
Robbins & Myers 65,860 999
Triumph Group 200,436 7,657
--------
Total Industrials 57,866
--------
TURNER FUNDS 2009 SEMIANNUAL REPORT | 23
FINANCIAL STATEMENTS
- -----------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER EMERGING GROWTH FUND
Value
Shares (000)
- -----------------------------------------------
INFORMATION TECHNOLOGY--11.1%
- -----------------------------------------------
Actuate* 508,920 $ 1,557
Ansys* 373,640 9,378
Ariba* 634,440 5,539
Cogo Group* 49,490 331
Comtech Telecommunications* 133,165 3,299
Cybersource* 337,706 5,001
DG FastChannel* 138,040 2,591
Hittite Microwave* 83,650 2,610
Kenexa* 68,850 371
Netscout Systems* 45,620 327
Palm* # 327,080 2,819
Quality Systems # 27,560 1,247
--------
Total Information technology 35,070
--------
- -----------------------------------------------
MATERIALS--0.9%
- -----------------------------------------------
Calgon Carbon* 208,580 2,956
--------
Total Materials 2,956
--------
- -----------------------------------------------
TELECOMMUNICATION SERVICES--1.0%
- -----------------------------------------------
NTELOS Holdings 166,590 3,022
--------
Total Telecommunication services 3,022
--------
- -----------------------------------------------
UTILITIES--0.8%
- -----------------------------------------------
Artesian Resources, Cl A 60,815 853
California Water Service
Group 40,932 1,713
--------
Total Utilities 2,566
--------
- -----------------------------------------------
TOTAL COMMON STOCK
(COST $301,864) 271,009
===============================================
- -----------------------------------------------
REGISTERED INVESTMENT COMPANY--5.0%
- -----------------------------------------------
iShares Russell 2000
Growth Index Fund 99,230 4,563
iShares Russell 2000
Index Fund 268,050 11,242
- -----------------------------------------------
TOTAL REGISTERED INVESTMENT
COMPANY (COST $24,901) 15,805
===============================================
Value
Shares (000)
- -----------------------------------------------
CASH EQUIVALENT--15.4%
- -----------------------------------------------
BlackRock TempCash Fund
Institutional Shares,
0.693%** (1) 48,467,997 $ 48,468
- -----------------------------------------------
TOTAL CASH EQUIVALENT
(COST $48,468) 48,468
===============================================
- -----------------------------------------------
TOTAL INVESTMENTS--106.5%
(COST $375,233) $335,282
===============================================
Percentages are based on Net Assets of $314,771.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2009.
*** This number has been rounded to the nearest thousand.
# Security fully or partially on loan at March 31, 2009. The total value of
securities on loan at March 31, 2009, was $20,419,925. Certain of these
securities may have been sold prior to period end and are included in
receivable for investment securities sold on the Statement of Assets and
Liabilities.
(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 money market 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. A partial position of this
security was purchased with cash collateral received from securities
lending. The total value of such security at March 31, 2009 was $21,498,421.
ADR -- American Depositary Receipt
Cl -- Class
The accompanying notes are an integral part of the financial statements.
24 | TURNER FUNDS 2009 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER LARGE CAP GROWTH FUND
March 31, 2009
Value
Shares (000)
- -----------------------------------------------
COMMON STOCK--98.9%+
- -----------------------------------------------
CONSUMER DISCRETIONARY--10.0%
- -----------------------------------------------
Amazon.com* 9,770 $ 717
Best Buy 13,330 506
Kohl's* 9,570 405
Lowe's 23,350 426
Yum! Brands 8,210 226
--------
Total Consumer discretionary 2,280
--------
- -----------------------------------------------
CONSUMER STAPLES--12.7%
- -----------------------------------------------
Archer-Daniels-Midland 9,190 255
Clorox 5,150 265
Colgate-Palmolive 6,690 395
CVS/Caremark 18,010 495
PepsiCo 22,940 1,181
SYSCO 13,820 315
--------
Total Consumer staples 2,906
--------
- -----------------------------------------------
ENERGY--6.9%
- -----------------------------------------------
Occidental Petroleum 7,440 414
Peabody Energy 15,490 388
Petroleo Brasileiro ADR 6,800 207
Southwestern Energy* 8,060 239
Weatherford International* 30,330 336
--------
Total Energy 1,584
--------
- -----------------------------------------------
FINANCIALS--3.6%
- -----------------------------------------------
Goldman Sachs Group 3,000 318
T. Rowe Price Group # 8,830 255
Visa, Cl A 4,680 260
--------
Total Financials 833
--------
- -----------------------------------------------
HEALTH CARE--15.7%
- -----------------------------------------------
Abbott Laboratories 18,430 879
Baxter International 9,960 510
Celgene* 6,910 307
Express Scripts* 4,280 198
Gilead Sciences* 16,270 754
Roche Holding ADR 7,160 246
St. Jude Medical* 9,020 328
Value
Shares (000)
- -----------------------------------------------
Teva Pharmaceutical
Industries 8,130 $ 366
--------
Total Health care 3,588
--------
- -----------------------------------------------
INDUSTRIALS--4.1%
- -----------------------------------------------
First Solar* 1,750 232
Union Pacific 8,910 366
United Parcel Service, Cl B 6,700 330
--------
Total Industrials 928
--------
- -----------------------------------------------
INFORMATION TECHNOLOGY--38.3%
- -----------------------------------------------
Activision Blizzard* 27,580 289
Adobe Systems* 13,280 284
Apple* 7,660 805
Applied Materials 59,850 643
Broadcom, Cl A* 45,200 903
Google, Cl A* 2,615 910
Intel 67,280 1,013
International Business
Machines 11,280 1,093
Juniper Networks* 26,340 397
Kla-Tencor 25,540 511
QUALCOMM 33,110 1,288
Western Union 17,160 216
Xilinx 21,260 407
--------
Total Information technology 8,759
--------
- -----------------------------------------------
MATERIALS--4.1%
- -----------------------------------------------
BHP Billiton ADR 5,070 226
Monsanto 5,760 479
Nucor 6,230 238
--------
Total Materials 943
--------
- -----------------------------------------------
TELECOMMUNICATION SERVICES--3.5%
- -----------------------------------------------
American Tower, Cl A* 14,670 446
China Mobile ADR 8,290 361
--------
Total Telecommunication services 807
--------
- -----------------------------------------------
TOTAL COMMON STOCK
(COST $24,984) 22,628
===============================================
TURNER FUNDS 2009 SEMIANNUAL REPORT | 25
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER LARGE CAP GROWTH FUND
Value
Shares (000)
- -----------------------------------------------
CASH EQUIVALENT--2.0%
- -----------------------------------------------
BlackRock TempCash Fund
Institutional Shares,
0.693%** (1) 456,180 $ 456
- -----------------------------------------------
TOTAL CASH EQUIVALENT
(COST $456) 456
===============================================
- -----------------------------------------------
TOTAL INVESTMENTS--100.9%
(COST $25,440) $ 23,084
===============================================
Percentages are based on Net Assets of $22,889.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2009.
*** 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, 2009. The total value of
securities on loan at March 31, 2009, was $240,856. Certain of these
securities may have been sold prior to period end and are included in
receivable for investment securities sold on the Statement of Assets and
Liabilities.
(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 money market 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. A partial position of this
security was purchased with cash collateral received from securities
lending. The total value of such security at March 31, 2009 was $261,381.
ADR -- American Depositary Receipt
Cl -- Class
The accompanying notes are an integral part of the financial statements.
26 | TURNER FUNDS 2009 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER MIDCAP GROWTH FUND
March 31, 2009
Value
Shares (000)
- -----------------------------------------------
COMMON STOCK--99.5%
- -----------------------------------------------
CONSUMER DISCRETIONARY--20.7%
- -----------------------------------------------
Best Buy 235,490 $ 8,939
Cablevision Systems, Cl A 203,996 2,640
Coach* 332,600 5,554
Darden Restaurants 356,156 12,202
Deckers Outdoor* 162,679 8,628
GameStop, Cl A* 409,841 11,484
Guess? 514,832 10,853
ITT Educational Services* 34,281 4,162
Kohl's* 393,294 16,644
Nordstrom 365,210 6,117
priceline.com* 71,950 5,668
Pulte Homes 936,117 10,232
Starwood Hotels & Resorts
Worldwide 530,840 6,742
Toll Brothers* 418,801 7,605
Urban Outfitters* 594,234 9,728
WMS Industries* 386,445 8,081
Wynn Resorts* # 317,815 6,347
Yum! Brands 428,550 11,777
--------
Total Consumer discretionary 153,403
--------
- -----------------------------------------------
CONSUMER STAPLES--4.7%
- -----------------------------------------------
Alberto-Culver, Cl B 314,637 7,114
Brown-Forman, Cl B 129,122 5,014
Clorox 119,787 6,167
Hansen Natural* 198,985 7,163
Whole Foods Market # 572,000 9,609
--------
Total Consumer staples 35,067
--------
- -----------------------------------------------
ENERGY--8.6%
- -----------------------------------------------
Cameron International* 383,829 8,417
Consol Energy 371,846 9,385
Dresser-Rand Group* 310,994 6,873
PetroHawk Energy* 371,060 7,136
Range Resources 234,761 9,663
Southwestern Energy* 344,958 10,242
Weatherford
International* 1,075,670 11,908
--------
Total Energy 63,624
--------
- -----------------------------------------------
FINANCIALS--7.2%
- -----------------------------------------------
AON 141,768 5,787
BlackRock, Cl A 51,176 6,655
Digital Realty Trust # 159,070 5,278
Value
Shares (000)
- -----------------------------------------------
IntercontinentalExchange* 153,171 $ 11,407
Northern Trust 229,390 13,722
T. Rowe Price Group # 356,859 10,299
--------
Total Financials 53,148
--------
- -----------------------------------------------
HEALTH CARE--12.0%
- -----------------------------------------------
Aetna 151,833 3,694
Alexion Pharmaceuticals* 249,997 9,415
Allergan 250,688 11,973
AmerisourceBergen, Cl A 166,974 5,453
DaVita* 144,859 6,366
Express Scripts* 152,332 7,033
Illumina* 307,459 11,450
Intuitive Surgical* 30,642 2,922
Myriad Genetics* 205,762 9,356
Omnicare 156,204 3,825
St. Jude Medical* 296,960 10,789
United Therapeutics* 92,973 6,145
--------
Total Health care 88,421
--------
- -----------------------------------------------
INDUSTRIALS--13.1%
- -----------------------------------------------
Ametek 125,348 3,920
C.H. Robinson Worldwide 201,820 9,205
Continental Airlines, Cl B* 522,223 4,601
Covanta Holding* 269,277 3,525
Cummins 276,830 7,045
Equifax 208,780 5,105
ESCO Technologies* 151,172 5,850
Fastenal # 169,190 5,440
First Solar* 30,905 4,101
Jacobs Engineering Group* 189,788 7,337
Parker Hannifin 218,240 7,416
Precision Castparts 142,012 8,507
Quanta Services* 399,690 8,573
Robert Half International 351,599 6,269
Stericycle* 202,789 9,679
--------
Total Industrials 96,573
--------
- -----------------------------------------------
INFORMATION TECHNOLOGY--23.2%
- -----------------------------------------------
Activision Blizzard* 750,338 7,849
Adobe Systems* 431,615 9,232
Altera 664,401 11,660
ASML Holding NY Shares 214,480 3,756
Atheros Communications* 392,568 5,755
BMC Software* 132,925 4,387
TURNER FUNDS 2009 SEMIANNUAL REPORT | 27
FINANCIAL STATEMENTS
- -----------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER MIDCAP GROWTH FUND
Value
Shares (000)
- -----------------------------------------------
Broadcom, Cl A* 667,591 $ 13,339
Check Point Software
Technologies* 252,600 5,610
F5 Networks* 573,994 12,025
Juniper Networks* 566,144 8,526
Kla-Tencor 437,550 8,751
Lam Research* 391,255 8,909
McAfee* 427,731 14,329
NetApp* 611,150 9,069
Omniture* 437,090 5,765
Paychex 393,850 10,110
PMC - Sierra* 1,153,049 7,356
Salesforce.com* 168,220 5,506
Varian Semiconductor
Equipment Associates* 466,881 10,113
VeriSign* 234,360 4,422
VistaPrint* # 185,363 5,096
--------
Total Information technology 171,565
--------
- -----------------------------------------------
MATERIALS--5.3%
- -----------------------------------------------
Airgas 138,429 4,680
Alcoa 488,570 3,586
CF Industries Holdings 74,860 5,325
Ecolab 216,537 7,520
Martin Marietta Materials 78,664 6,238
Nucor 113,930 4,349
Steel Dynamics 839,250 7,394
--------
Total Materials 39,092
--------
- -----------------------------------------------
TELECOMMUNICATION SERVICES--2.6%
- -----------------------------------------------
American Tower, Cl A* 301,014 9,160
MetroPCS Communications* 604,191 10,319
--------
Total Telecommunication services 19,479
--------
- -----------------------------------------------
UTILITIES--2.1%
- -----------------------------------------------
PPL 353,467 10,148
Questar 182,706 5,377
--------
Total Utilities 15,525
--------
- -----------------------------------------------
TOTAL COMMON STOCK
(COST $830,520) 735,897
===============================================
Value
Shares (000)
- -----------------------------------------------
CASH EQUIVALENT--6.2%
- -----------------------------------------------
BlackRock TempCash Fund
Institutional Shares,
0.693%** (1) 45,481,067 $ 45,481
- -----------------------------------------------
TOTAL CASH EQUIVALENT
(COST $45,481) 45,481
===============================================
- -----------------------------------------------
TOTAL INVESTMENTS--105.7%
(COST $876,001) $ 781,378
===============================================
Percentages are based on Net Assets of $739,398.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2009.
*** This number has been rounded to the nearest thousand.
# Security fully or partially on loan at March 31, 2009. The total value of
securities on loan at March 31, 2009, was $39,028,901. Certain of these
securities may have been sold prior to period end and are included in
receivable for investment securities sold on the Statement of Assets and
Liabilities.
(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 money market 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. A partial position of this
security was purchased with cash collateral received from securities
lending. The total value of such security at March 31, 2009 was $42,047,559.
Cl -- Class
NY -- New York
The accompanying notes are an integral part of the financial statements.
28 | TURNER FUNDS 2009 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER NEW ENTERPRISE FUND
March 31, 2009
Value
Shares (000)
- -----------------------------------------------
COMMON STOCK--99.7%+
- -----------------------------------------------
CONSUMER DISCRETIONARY--23.6%
- -----------------------------------------------
Deckers Outdoor* 13,360 $ 709
DR Horton 48,590 471
Guess? 54,470 1,148
Pulte Homes 41,860 458
Scientific Games, Cl A* 39,890 483
WMS Industries* 31,840 666
Wynn Resorts* # 23,700 473
--------
Total Consumer discretionary 4,408
--------
- -----------------------------------------------
CONSUMER STAPLES--2.1%
- -----------------------------------------------
Whole Foods Market # 23,460 394
--------
Total Consumer staples 394
--------
- -----------------------------------------------
ENERGY--4.1%
- -----------------------------------------------
Consol Energy 12,990 328
Weatherford International* 39,500 437
--------
Total Energy 765
--------
- -----------------------------------------------
FINANCIALS--4.1%
- -----------------------------------------------
IntercontinentalExchange* 10,330 769
--------
Total Financials 769
--------
- -----------------------------------------------
HEALTH CARE--4.8%
- -----------------------------------------------
Gilead Sciences* 8,900 412
Myriad Genetics* 10,560 480
--------
Total Health care 892
--------
- -----------------------------------------------
INDUSTRIALS--5.0%
- -----------------------------------------------
First Solar* 3,500 465
Genco Shipping & Trading # 37,690 465
--------
Total Industrials 930
--------
- -----------------------------------------------
INFORMATION TECHNOLOGY--46.2%
- -----------------------------------------------
Apple* 7,410 779
Atheros Communications* 43,830 643
Corning 48,500 644
F5 Networks* 40,840 856
Google, Cl A* 1,300 452
Juniper Networks* 42,000 632
Lam Research* 38,300 872
McAfee* 28,320 949
QUALCOMM 26,650 1,037
Taiwan Semiconductor
Manufacturing 82,010 734
Value
Shares (000)
- -----------------------------------------------
Varian Semiconductor
Equipment Associates* 21,980 $ 476
Visa, Cl A 9,680 538
--------
Total Information technology 8,612
--------
- -----------------------------------------------
MATERIALS--9.8%
- -----------------------------------------------
CF Industries Holdings 9,410 669
Freeport-McMoRan
Copper & Gold 16,300 621
Steel Dynamics 61,132 539
--------
Total Materials 1,829
--------
- -----------------------------------------------
TOTAL COMMON STOCK
(COST $19,781) 18,599
===============================================
CASH EQUIVALENT--7.5%
- -----------------------------------------------
BlackRock TempCash Fund
Institutional Shares,
0.693%** (1) 1,403,337 1,403
- -----------------------------------------------
TOTAL CASH EQUIVALENT
(COST $1,403) 1,403
===============================================
- -----------------------------------------------
TOTAL INVESTMENTS--107.2%
(COST $21,184) $ 20,002
===============================================
Percentages are based on Net Assets of $18,657.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2009.
*** 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, 2009. The total value of
securities on loan at March 31, 2009, was $1,259,663. Certain of these
securities may have been sold prior to period end and are included in
receivable for investment securities sold on the Statement of Assets and
Liabilities.
(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 money market 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 was purchased
with cash collateral received from securities lending. The total value of
such security at March 31, 2009 was $1,403,337.
Cl -- Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 29
FINANCIAL STATEMENTS
- -----------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER SMALL CAP GROWTH FUND
March 31, 2009
Value
Shares (000)
- -----------------------------------------------
COMMON STOCK--96.8%+
- -----------------------------------------------
CONSUMER DISCRETIONARY--15.5%
- -----------------------------------------------
Aeropostale* 101,860 $ 2,705
Buckle # 77,565 2,477
Capella Education* 25,100 1,330
Centex 196,630 1,475
Collective Brands* 104,835 1,021
Deckers Outdoor* 41,080 2,179
DR Horton 139,630 1,354
Interactive Data 55,710 1,385
J. Crew Group* 97,480 1,285
Life Time Fitness* 96,800 1,216
Scientific Games, Cl A* 136,080 1,648
Texas Roadhouse, Cl A* 205,940 1,963
True Religion Apparel* 145,410 1,717
Wendy's/Arby's Group, Cl A 374,660 1,885
WMS Industries* 127,220 2,660
--------
Total Consumer discretionary 26,300
--------
- -----------------------------------------------
CONSUMER STAPLES--2.5%
- -----------------------------------------------
Chattem* # 12,639 709
Green Mountain Coffee
Roasters* # 47,080 2,260
United Natural Foods* 67,913 1,288
--------
Total Consumer staples 4,257
--------
- -----------------------------------------------
ENERGY--5.0%
- -----------------------------------------------
Arena Resources* 55,700 1,419
Bill Barrett* 30,750 684
CARBO Ceramics 23,130 658
Concho Resources* 69,460 1,777
Core Laboratories 29,580 2,164
Goodrich Petroleum* # 32,930 638
Massey Energy 120,300 1,217
--------
Total Energy 8,557
--------
- -----------------------------------------------
FINANCIALS--4.9%
- -----------------------------------------------
Eaton Vance 78,640 1,797
Greenhill # 24,470 1,807
Home Properties # 34,190 1,048
ProAssurance* 23,880 1,113
Stifel Financial* 41,080 1,779
Tanger Factory Outlet
Centers # 26,910 831
--------
Total Financials 8,375
--------
Value
Shares (000)
- -----------------------------------------------
HEALTH CARE--25.2%
- -----------------------------------------------
Acorda Therapeutics* 91,570 $ 1,814
Alexion Pharmaceuticals* 87,638 3,300
Amedisys* # 68,280 1,877
AMERIGROUP* 78,040 2,149
Auxilium Pharmaceuticals* # 63,250 1,753
CardioNet* 21,950 616
Cougar Biotechnology* # 40,860 1,316
Haemonetics* 58,010 3,195
Icon ADR* 56,062 905
Immucor* 57,640 1,450
Masimo* 22,450 651
Myriad Genetics* 73,580 3,346
NuVasive* 52,360 1,643
Onyx Pharmaceuticals* 42,230 1,206
OSI Pharmaceuticals* 62,930 2,408
Owens & Minor 46,130 1,528
Parexel International* 181,400 1,765
Perrigo 42,510 1,055
Psychiatric Solutions* 75,960 1,195
Thoratec* 95,220 2,446
United Therapeutics* 23,350 1,543
West Pharmaceutical Services 76,130 2,498
Wright Medical Group* 110,940 1,446
XenoPort* 84,670 1,639
--------
Total Health care 42,744
--------
- -----------------------------------------------
INDUSTRIALS--8.6%
- -----------------------------------------------
Aecom Technology* 34,460 899
ESCO Technologies* 44,660 1,728
Genesee & Wyoming, Cl A* 60,020 1,275
Kforce* 179,930 1,265
Mobile Mini* # 109,936 1,266
Navigant Consulting* 100,640 1,315
Tetra Tech* 68,100 1,388
UAL* 162,210 727
Valmont Industries 21,560 1,083
Waste Connections* 58,350 1,500
Watsco # 43,400 1,477
Yingli Green Energy
Holding* # 116,260 700
--------
Total Industrials 14,623
--------
30 | TURNER FUNDS 2009 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
- -----------------------------------------------
INFORMATION TECHNOLOGY--28.7%
- -----------------------------------------------
3PAR* 109,100 $ 717
Ariba* 173,720 1,516
AsiaInfo Holdings* 91,780 1,546
Atheros Communications* 156,830 2,299
comScore* 121,940 1,474
Cybersource* 11,060 164
Cymer* 40,740 907
Diodes* # 91,410 970
F5 Networks* 83,150 1,742
Fairchild Semiconductor
International, Cl A* 321,640 1,200
GSI Commerce* 73,620 964
Itron* 16,380 776
Mantech International, Cl A* 15,840 664
MercadoLibre GDR* 54,730 1,015
Net 1 UEPS Technologies* 95,520 1,453
Netlogic Microsystems* # 45,420 1,248
Novellus Systems* 156,440 2,602
Omniture* 216,607 2,857
Palm* # 200,410 1,727
Plexus* 113,540 1,569
PMC - Sierra* 425,530 2,715
Quality Systems # 14,170 641
Semtech* 136,750 1,826
Sybase* 91,460 2,770
Synaptics* # 76,750 2,054
Teradyne* 384,380 1,684
TiVo* 158,820 1,118
Ultratech* 132,820 1,659
Varian Semiconductor
Equipment Associates* 104,790 2,270
Verigy* 125,370 1,034
VistaPrint* # 76,900 2,114
Vocus* 106,021 1,409
--------
Total Information technology 48,704
--------
- -----------------------------------------------
MATERIALS--3.1%
- -----------------------------------------------
Compass Minerals
International 24,720 1,393
Greif, Cl A 43,460 1,447
Schnitzer Steel Industries,
Cl A 30,160 947
Steel Dynamics 173,930 1,532
--------
Total Materials 5,319
--------
Value
Shares (000)
- -----------------------------------------------
TELECOMMUNICATION SERVICES--2.2%
- -----------------------------------------------
Leap Wireless International* 47,850 $ 1,668
NTELOS Holdings 38,420 697
SBA Communications, Cl A* 56,090 1,307
--------
Total Telecommunication services 3,672
--------
- -----------------------------------------------
UTILITIES--1.1%
- -----------------------------------------------
ITC Holdings 43,440 1,895
--------
Total Utilities 1,895
--------
- -----------------------------------------------
TOTAL COMMON STOCK
(COST $186,035) 164,446
===============================================
- -----------------------------------------------
CASH EQUIVALENT--15.8%
- -----------------------------------------------
BlackRock TempCash Fund
Institutional Shares,
0.693%** (1) 26,873,768 26,874
- -----------------------------------------------
TOTAL CASH EQUIVALENT
(COST $26,874) 26,874
===============================================
- -----------------------------------------------
TOTAL INVESTMENTS--112.6%
(COST $212,909) $191,320
===============================================
Percentages are based on Net Assets of $169,847.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2009.
*** 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, 2009. The total value of
securities on loan at March 31, 2009, was $20,020,121. Certain of these
securities may have been sold prior to period end and are included in
receivable for investment securities sold on the Statement of Assets and
Liabilities.
(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 money market 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. A partial position of this
security was purchased with cash collateral received from securities
lending. The total value of such security at March 31, 2009 was $20,895,120.
ADR -- American Depositary Receipt
Cl -- Class
GDR -- Global Depositary Receipt
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 31
FINANCIAL STATEMENTS
- -----------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER INTERNATIONAL CORE GROWTH FUND
March 31, 2009
Value
Shares (000)
- -----------------------------------------------
COMMON STOCK--97.7%
- -----------------------------------------------
CONSUMER DISCRETIONARY--8.1%
- -----------------------------------------------
China Dongxiang Group 103,924 $ 38
Fast Retailing 310 35
Inditex 1,003 39
New Oriental Education &
Technology Group ADR* 690 35
Panasonic 2,220 24
Parkson Retail Group 36,886 37
--------
Total Consumer discretionary 208
--------
- -----------------------------------------------
CONSUMER STAPLES--11.2%
- -----------------------------------------------
Cadbury 3,720 28
Diageo 3,080 35
Nestle 2,264 76
Reckitt Benckiser Group 1,054 40
Shiseido 2,326 34
Shoppers Drug Mart 1,140 39
Woolworths 1,950 34
--------
Total Consumer staples 286
--------
- -----------------------------------------------
ENERGY--10.9%
- -----------------------------------------------
BG Group 2,730 41
CNOOC 50,680 50
Enbridge 1,360 39
OGX Petroleo e Gas
Participacoes* 100 31
Petroleo Brasileiro 2,960 46
Transocean* 650 38
Weatherford International* 3,170 35
--------
Total Energy 280
--------
- -----------------------------------------------
FINANCIALS--13.1%
- -----------------------------------------------
Admiral Group 3,310 41
Bank of Nova Scotia 1,380 34
Deutsche Boerse 570 34
Industrial & Commercial
Bank of China 95,250 50
Intesa Sanpaolo 12,078 33
Julius Baer Holding 1,588 39
Mitsubishi UFJ Financial Group 8,410 41
Mitsui Fudosan 2,340 25
Itau Unibanco Banco Multiplo 3,650 40
--------
Total Financials 337
--------
Value
Shares (000)
- -----------------------------------------------
HEALTH CARE--10.9%
- -----------------------------------------------
Astellas Pharma 940 $ 29
AstraZeneca 880 31
CSL 1,770 40
GlaxoSmithKline 2,440 38
Icon ADR* 1,120 18
Roche Holding 470 64
SSL International 4,910 32
Teva Pharmaceutical Industries 580 26
--------
Total Health care 278
--------
- -----------------------------------------------
INDUSTRIALS--11.1%
- -----------------------------------------------
Alstom 730 38
East Japan Railway 670 35
Experian 5,447 34
Kuehne + Nagel International 693 40
Kurita Water Industries 1,100 21
Ryanair Holdings* 6,059 23
Siemens 450 26
Tyco International 2,070 40
Vestas Wind Systems* 629 28
--------
Total Industrials 285
--------
- -----------------------------------------------
INFORMATION TECHNOLOGY--10.9%
- -----------------------------------------------
Acer 12,000 18
ASML Holding 2,730 48
Autonomy* 2,010 38
Nintendo 134 38
Samsung Electronics 120 50
Taiwan Semiconductor
Manufacturing 4,100 37
ZTE, Cl H 12,620 51
--------
Total Information technology 280
--------
- -----------------------------------------------
MATERIALS--13.0%
- -----------------------------------------------
Air Liquide 500 41
Anhui Conch Cement, Cl H 6,980 38
BHP Billiton 2,700 60
Cia Vale do Rio Doce 2,500 34
CRH 1,560 34
Potash Corp. of Saskatchewan 401 32
Rexam 6,410 25
Syngenta 200 40
Wacker Chemie 330 28
--------
Total Materials 332
--------
32 TURNER FUNDS 2009 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER INTERNATIONAL CORE GROWTH FUND
Value
Shares (000)
- -----------------------------------------------
TELECOMMUNICATION SERVICES--5.0%
- -----------------------------------------------
China Mobile 4,933 $ 43
China Unicom Hong Kong 37,000 40
Rogers Communications, Cl B 2,010 46
--------
Total Telecommunication services 129
--------
- -----------------------------------------------
UTILITIES--3.5%
- -----------------------------------------------
Iberdrola Renovables* 8,704 36
International Power 6,691 20
Tokyo Gas 9,300 33
--------
Total Utilities 89
--------
- -----------------------------------------------
TOTAL COMMON STOCK
(COST $3,011) 2,504
===============================================
- -----------------------------------------------
PREFERRED STOCK--1.8%
- -----------------------------------------------
UTILITIES--1.8%
- -----------------------------------------------
Cia Energetica de Minas
Gerais 3,160 46
--------
Total Utilities 46
--------
- -----------------------------------------------
TOTAL PREFERRED STOCK
(COST $68) 46
===============================================
- -----------------------------------------------
CASH EQUIVALENT--0.3%
- -----------------------------------------------
BlackRock TempCash Fund
Institutional Shares,
0.693%** 6,739 7
- -----------------------------------------------
TOTAL CASH EQUIVALENT
(COST $7) 7
===============================================
- -----------------------------------------------
TOTAL INVESTMENTS--99.8%
(COST $3,086) $ 2,557
===============================================
Percentages are based on Net Assets of $2,561.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2009.
*** This number has been rounded to the nearest thousand.
ADR -- American Depositary Receipt
Cl -- Class
- --------------------------------------------------------------------------------
COUNTRY ALLOCATION AS OF 3/31/09+
- --------------------------------------------------------------------------------
United Kingdom 14.4%
Switzerland 13.2
Japan 12.3
Brazil 7.7
Canada 7.5
China 5.4
Australia 5.2
Hong Kong 5.2
Cayman Islands 4.3
Ireland 4.3
Germany 3.4
France 3.1
Spain 2.9
Taiwan 2.1
South Korea 1.9
Netherlands 1.9
United States 1.8
Italy 1.3
Denmark 1.1
Israel 1.0
- --------------------------------------------------------------------------------
+ Percentages are based on total investments.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 33
FINANCIAL STATEMENTS
- -----------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER MIDCAP EQUITY FUND
March 31, 2009
Value
Shares (000)
- -----------------------------------------------
COMMON STOCK--93.3%
- -----------------------------------------------
CONSUMER DISCRETIONARY--16.7%
- -----------------------------------------------
Abercrombie & Fitch, Cl A 350 $ 8
Aeropostale* 330 9
Burger King Holdings 515 12
Dollar Tree* 185 8
Family Dollar Stores 402 13
H&R Block 705 13
Magna International, Cl A 293 8
NVR* 10 4
O'Reilly Automotive* 395 14
PetSmart 497 10
priceline.com* 65 5
Wendy's/Arby's Group, Cl A 1,890 10
--------
Total Consumer discretionary 114
--------
- -----------------------------------------------
CONSUMER STAPLES--4.8%
- -----------------------------------------------
Alberto-Culver, Cl B 375 8
Church & Dwight 172 9
JM Smucker 235 9
Ralcorp Holdings* 121 7
--------
Total Consumer staples 33
--------
- -----------------------------------------------
ENERGY--6.9%
- -----------------------------------------------
FMC Technologies* 265 8
NuStar Energy 250 12
PetroHawk Energy* 430 8
Plains All American Pipeline 255 9
Range Resources 233 10
--------
Total Energy 47
--------
- -----------------------------------------------
FINANCIALS--10.0%
- -----------------------------------------------
Arch Capital Group* 172 9
Commerce Bancshares 153 6
Digital Realty Trust 300 10
Douglas Emmett 540 4
First Horizon National 660 7
HCC Insurance Holdings 260 7
Keycorp 665 5
New York Community Bancorp 675 7
People's United Financial 340 6
WR Berkley 312 7
--------
Total Financials 68
--------
Value
Shares (000)
- -----------------------------------------------
HEALTH CARE--8.7%
- -----------------------------------------------
Cephalon* 188 $ 13
Forest Laboratories* 405 9
Inverness Medical Innovations* 185 5
King Pharmaceuticals* 685 5
Omnicare 500 12
Sepracor* 535 8
Teleflex 202 8
--------
Total Health care 60
--------
- -----------------------------------------------
INDUSTRIALS--10.5%
- -----------------------------------------------
Aecom Technology* 320 8
Ametek 336 10
Brink's 250 7
Flowserve 120 7
FTI Consulting* 85 4
McDermott International* 505 7
Precision Castparts 60 4
Quanta Services* 295 6
Roper Industries 230 10
URS* 230 9
--------
Total Industrials 72
--------
- -----------------------------------------------
INFORMATION TECHNOLOGY--23.4%
- -----------------------------------------------
Akamai Technologies* 425 8
Alliance Data Systems* 153 6
BMC Software* 425 14
Electronic Arts* 525 10
Fiserv* 235 9
Global Payments 260 9
Hewitt Associates, Cl A* 350 10
IAC* 525 8
Itron* 75 4
McAfee* 405 14
MEMC Electronic Materials* 500 8
NetApp* 575 8
Netease.com ADR* 200 5
Sybase* 590 18
Synopsys* 785 16
Teradata* 385 6
Western Digital* 394 8
--------
Total Information technology 161
--------
34 | TURNER FUNDS 2009 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER MIDCAP EQUITY FUND
Value
Shares (000)
- -----------------------------------------------
MATERIALS--1.6%
- -----------------------------------------------
Martin Marietta Materials 74 $ 6
Silgan Holdings 100 5
--------
Total Materials 11
--------
- -----------------------------------------------
TELECOMMUNICATION SERVICES--2.6%
- -----------------------------------------------
Leap Wireless International* 135 5
SBA Communications, Cl A* 565 13
--------
Total Telecommunication services 18
--------
- -----------------------------------------------
UTILITIES--8.1%
- -----------------------------------------------
CMS Energy 670 8
DPL 595 13
NSTAR 410 13
UGI 580 14
Wisconsin Energy 175 7
--------
Total Utilities 55
--------
- -----------------------------------------------
TOTAL COMMON STOCK
(COST $648) 639
===============================================
REGISTERED INVESTMENT COMPANY--2.9%
- -----------------------------------------------
iShares Russell Midcap Index
Fund 360 20
- -----------------------------------------------
TOTAL REGISTERED INVESTMENT
COMPANY (COST $23) 20
===============================================
- -----------------------------------------------
CASH EQUIVALENT--4.2%
- -----------------------------------------------
BlackRock TempCash Fund
Institutional Shares,
0.693%** 29,409 29
- -----------------------------------------------
TOTAL CASH EQUIVALENT
(COST $29) 29
===============================================
- -----------------------------------------------
TOTAL INVESTMENTS--100.4%
(COST $700) $ 688
===============================================
Percentages are based on Net Assets of $685.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2009.
*** This number has been rounded to the nearest thousand.
ADR -- American Depositary Receipt
Cl -- Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 35
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER QUANTITATIVE BROAD MARKET EQUITY FUND
March 31, 2009
Value
Shares (000)
- -----------------------------------------------
COMMON STOCK--97.6%
- -----------------------------------------------
CONSUMER DISCRETIONARY--12.2%
- -----------------------------------------------
Amazon.com* 30 $2
Best Buy 120 5
Burger King Holdings 116 3
Comcast, Cl A 198 3
Darden Restaurants 117 4
DR Horton 250 2
GameStop, Cl A* 97 3
Hasbro 75 2
Kohl's* 80 3
Lowe's 130 2
McDonald's 71 4
Pulte Homes 360 4
Staples 182 3
Starbucks* 180 2
Time Warner 76 1
Time Warner Cable, Cl A 19 1
VF 3 3
--------
Total Consumer discretionary 47
--------
- -----------------------------------------------
CONSUMER STAPLES--10.6%
- -----------------------------------------------
Altria Group 110 2
Archer-Daniels-Midland 131 4
Coca-Cola 128 6
Colgate-Palmolive 61 3
Energizer Holdings* 30 1
Hormel Foods 60 2
Kraft Foods, Cl A 84 2
PepsiCo 76 4
Philip Morris International 100 3
Procter & Gamble 165 8
Wal-Mart Stores 112 6
--------
Total Consumer staples 41
--------
- -----------------------------------------------
ENERGY--11.6%
- -----------------------------------------------
Chevron 84 6
ConocoPhillips 83 3
ENSCO International 78 2
Exxon Mobil 271 18
Occidental Petroleum 40 2
Peabody Energy 93 2
Pride International* 113 2
Schlumberger 60 2
Value
Shares (000)
- -----------------------------------------------
Southwestern Energy* 100 $ 3
Transocean* 27 2
Valero Energy 143 3
--------
Total Energy 45
--------
- -----------------------------------------------
FINANCIALS--10.9%
- -----------------------------------------------
Alleghany* 10 3
Bank of New York Mellon 80 2
BlackRock, Cl A 28 4
Cincinnati Financial 107 2
Goldman Sachs Group 37 4
IntercontinentalExchange* 68 5
JPMorgan Chase 126 3
Loews 132 3
Odyssey Re Holdings 70 3
Old Republic International 251 3
T. Rowe Price Group 121 3
Travelers 63 3
Visa, Cl A 70 4
--------
Total Financials 42
--------
- -----------------------------------------------
HEALTH CARE--15.5%
- -----------------------------------------------
Abbott Laboratories 61 3
AmerisourceBergen, Cl A 90 3
Amgen* 69 3
Bristol-Myers Squibb 107 2
Cephalon* 40 3
Covance* 90 3
CR Bard 30 2
Endo Pharmaceuticals Holdings* 170 3
Express Scripts* 40 2
Gilead Sciences* 44 2
Johnson & Johnson 131 7
Laboratory Corp. of
America Holdings* 60 4
Medco Health Solutions* 70 3
Merck 114 3
Mylan* 260 3
Pharmaceutical Product
Development 140 3
Quest Diagnostics 76 4
St. Jude Medical* 99 4
Wyeth 80 3
--------
Total Health care 60
--------
36 | TURNER FUNDS 2009 SEMIANNUAL REPORT
(Unaudited)
- -----------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER QUANTITATIVE BROAD MARKET EQUITY FUND
Value
Shares (000)
- -----------------------------------------------
INDUSTRIALS--8.3%
- -----------------------------------------------
Burlington Northern Santa Fe 60 $ 4
General Electric 387 4
Goodrich 110 4
Illinois Tool Works 100 3
L-3 Communications
Holdings 30 2
Pall 150 3
Quanta Services* 121 3
United Parcel Service, Cl B 93 4
United Technologies 40 2
URS* 85 3
--------
Total Industrials 32
--------
- -----------------------------------------------
INFORMATION TECHNOLOGY--16.6%
- -----------------------------------------------
Activision Blizzard* 274 3
Affiliated Computer Services,
Cl A* 30 1
Apple* 42 4
Broadcom, Cl A* 200 4
Cisco Systems* 307 5
EMC* 220 3
Fidelity National Information
Services 242 4
Google, Cl A* 10 3
Harris 43 1
Intel 302 5
International Business Machines 81 8
Microsoft 357 7
Nuance Communications* 229 2
Oracle 218 4
QUALCOMM 95 4
Salesforce.com* 90 3
Xilinx 153 3
--------
Total Information technology 64
--------
- -----------------------------------------------
MATERIALS--3.6%
- -----------------------------------------------
BHP Billiton ADR 94 4
Freeport-McMoRan
Copper & Gold 133 5
Monsanto 35 3
Newmont Mining 40 2
--------
Total Materials 14
--------
Value
Shares (000)
- -----------------------------------------------
TELECOMMUNICATION SERVICES--3.4%
- -----------------------------------------------
American Tower, Cl A* 120 $ 4
AT&T 187 5
Verizon Communications 154 4
--------
Total Telecommunication services 13
--------
- -----------------------------------------------
UTILITIES--4.9%
- -----------------------------------------------
AES* 380 2
DPL 170 4
Northeast Utilities 120 3
PPL 110 3
SCANA 90 3
Sempra Energy 90 4
--------
Total Utilities 19
--------
- -----------------------------------------------
TOTAL COMMON STOCK
(COST $384) 377
===============================================
- -----------------------------------------------
CASH EQUIVALENT--2.1%
- -----------------------------------------------
BlackRock TempCash Fund
Institutional Shares,
0.693%** 7,577 8
- -----------------------------------------------
TOTAL CASH EQUIVALENT
(COST $8) 8
===============================================
- -----------------------------------------------
TOTAL INVESTMENTS--99.7%
(COST $392) $ 385
===============================================
Percentages are based on Net Assets of $386.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2009.
*** This number has been rounded to the nearest thousand.
ADR -- American Depositary Receipt
Cl -- Class
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 37
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER SMALL CAP EQUITY FUND
March 31, 2009
Value
Shares (000)
- -----------------------------------------------
COMMON STOCK--97.1%
- -----------------------------------------------
CONSUMER DISCRETIONARY--11.8%
- -----------------------------------------------
99 Cents Only Stores* 31,380 $ 290
Aaron Rents 6,760 180
American Public Education* 6,680 281
Bally Technologies* 9,000 166
Buckle 5,190 166
Buffalo Wild Wings* # 6,960 254
Carter's* 9,870 186
Coinstar* 4,930 161
Fossil* 3,230 51
LKQ* 16,810 240
Penn National Gaming* 11,330 274
PetMed Express* 14,880 245
Tractor Supply* 7,660 276
--------
Total Consumer discretionary 2,770
--------
- -----------------------------------------------
CONSUMER STAPLES--3.8%
- -----------------------------------------------
Green Mountain Coffee
Roasters* # 6,820 327
TreeHouse Foods* 11,210 323
Whole Foods Market # 14,540 244
--------
Total Consumer staples 894
--------
- -----------------------------------------------
ENERGY--5.0%
- -----------------------------------------------
Alpha Natural Resources* 6,800 121
Core Laboratories 2,800 205
Linn Energy LLC 21,660 323
Nordic American Tanker
Shipping # 4,220 123
Southern Union 17,210 262
Unit* 6,650 139
--------
Total Energy 1,173
--------
- -----------------------------------------------
FINANCIALS--18.1%
- -----------------------------------------------
Allied World Assurance
Holdings 5,260 200
First Commonwealth
Financial 27,840 247
Glacier Bancorp # 19,400 305
Greenhill # 3,060 226
Investors Bancorp* 13,920 118
IPC Holdings 8,850 239
Knight Capital Group, Cl A* 15,570 229
Lazard, Cl A 5,770 170
Omega Healthcare Investors 19,030 268
Potlatch 11,720 272
Value
Shares (000)
- -----------------------------------------------
ProAssurance* 5,641 $ 263
Prosperity Bancshares 11,200 306
Redwood Trust 23,960 368
Signature Bank* 10,270 290
Tanger Factory Outlet
Centers # 7,860 243
Tower Group 11,120 274
Validus Holdings 9,820 232
--------
Total Financials 4,250
--------
- -----------------------------------------------
HEALTH CARE--12.9%
- -----------------------------------------------
Acorda Therapeutics* 6,800 135
CardioNet* 7,890 221
Chemed 6,380 248
Cooper 12,620 334
Emergency Medical
Services, Cl A* # 5,530 174
Health Net* 15,020 218
InterMune* # 5,680 93
Invacare 11,210 180
Masimo* 6,230 181
Onyx Pharmaceuticals* 6,740 192
Par Pharmaceutical* 11,050 105
Psychiatric Solutions* 11,370 179
Sepracor* 18,020 264
SonoSite* 11,870 212
STERIS 11,790 274
--------
Total Health care 3,010
--------
- -----------------------------------------------
INDUSTRIALS--7.6%
- -----------------------------------------------
Aegean Marine
Petroleum Network 16,130 270
Astec Industries* 7,920 208
Badger Meter # 9,700 280
EMCOR Group* 7,820 134
MasTec* 29,990 363
Perini* 11,780 145
SYKES Enterprises* 13,120 218
Triumph Group 4,460 170
--------
Total Industrials 1,788
--------
- -----------------------------------------------
INFORMATION TECHNOLOGY--26.1%
- -----------------------------------------------
Ariba* 28,040 245
Bankrate* 6,260 156
Blackboard* 10,820 344
CSG Systems International* 14,580 208
EPIQ Systems* 19,760 356
38 | TURNER FUNDS 2009 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER SMALL CAP EQUITY FUND
Value
Shares (000)
- -----------------------------------------------
Exar* 31,750 $ 198
Formfactor* 7,900 142
Harmonic* 27,990 182
j2 Global Communications* 9,560 209
JDS Uniphase* 66,920 218
MAXIMUS 7,650 305
MercadoLibre GDR* # 17,610 327
Metavante Technologies* 15,870 317
NCR* 14,500 115
Neutral Tandem* 9,430 232
Nice Systems ADR* 7,030 175
Quality Systems # 3,690 167
Quest Software* 23,850 303
Semtech* 21,370 285
Sigma Designs* 10,350 129
Sybase* 15,440 468
Tellabs* 80,200 367
Teradyne* 62,370 273
Valueclick* 27,980 238
Zoran* 16,620 146
--------
Total Information technology 6,105
--------
- -----------------------------------------------
MATERIALS--6.3%
- -----------------------------------------------
Calgon Carbon* 22,870 324
Kaiser Aluminum 8,860 205
OM Group* 17,270 334
Rock-Tenn, Cl A 9,890 268
Sensient Technologies 6,190 145
Texas Industries # 7,800 195
--------
Total Materials 1,471
--------
- -----------------------------------------------
TELECOMMUNICATION SERVICES--0.9%
- -----------------------------------------------
Syniverse Holdings* 13,140 207
--------
Total Telecommunication services 207
--------
- -----------------------------------------------
UTILITIES--4.6%
- -----------------------------------------------
Avista 16,330 225
New Jersey Resources 4,215 143
Portland General Electric 12,760 224
South Jersey Industries 7,330 257
Southwest Gas 5,810 122
Unisource Energy 4,070 115
--------
Total Utilities 1,086
--------
- -----------------------------------------------
TOTAL COMMON STOCK
(COST $22,913) 22,754
===============================================
Value
Shares (000)
- -----------------------------------------------
CASH EQUIVALENT--14.4%
- -----------------------------------------------
BlackRock TempCash Fund
Institutional Shares,
0.693%** (1) 3,363,053 $ 3,363
- -----------------------------------------------
TOTAL CASH EQUIVALENT
(COST $3,363) 3,363
===============================================
- -----------------------------------------------
TOTAL INVESTMENTS--111.5%
(COST $26,276) $ 26,117
===============================================
Percentages are based on Net Assets of $23,420.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2009.
*** This number has been rounded to the nearest thousand.
# Security fully or partially on loan at March 31, 2009. The total value
of securities on loan at March 31, 2009, was $2,633,451. Certain of
these securities may have been sold prior to period end and are
included in receivable for investment securities sold on the Statement
of Assets and Liabilities.
(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 money market 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. A partial position of this security was purchased with cash
collateral received from securities lending. The total value of such
security at March 31, 2009 was $2,760,760.
ADR -- American Depositary Receipt
Cl -- Class
GDR -- Global Depositary Receipt
LLC -- Limited Liability Company
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 39
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER QUANTITATIVE LARGE CAP VALUE FUND
March 31, 2009
Value
Shares (000)
- -----------------------------------------------
COMMON STOCK--98.1%
- -----------------------------------------------
CONSUMER DISCRETIONARY--5.5%
- -----------------------------------------------
Apollo Group, Cl A* 50 $ 4
AutoZone* 20 3
Family Dollar Stores 150 5
H&R Block 180 3
Home Depot 150 4
McDonald's 50 3
Ross Stores 120 4
Tim Hortons 150 4
Walt Disney 170 3
--------
Total Consumer discretionary 33
--------
- -----------------------------------------------
CONSUMER STAPLES--9.7%
- -----------------------------------------------
Altria Group 290 5
Archer-Daniels-Midland 120 3
Avon Products 200 4
Coca-Cola 140 6
Colgate-Palmolive 70 4
Constellation Brands, Cl A* 230 3
Energizer Holdings* 90 4
Lorillard 80 5
PepsiCo 140 7
Procter & Gamble 210 10
Wal-Mart Stores 130 7
--------
Total Consumer staples 58
--------
- -----------------------------------------------
ENERGY--18.4%
- -----------------------------------------------
Anadarko Petroleum 90 4
Apache 70 4
Boardwalk Pipeline Partners 160 4
Chevron 400 27
ConocoPhillips 250 10
Energy Transfer Partners LP 200 7
Exxon Mobil 800 54
--------
Total Energy 110
--------
- -----------------------------------------------
FINANCIALS--19.3%
- -----------------------------------------------
AON 120 5
Bank of America 1,290 9
Bank of New York Mellon 240 7
BlackRock, Cl A 40 5
Chubb 120 5
Franklin Resources 80 4
Goldman Sachs Group 60 6
Value
Shares (000)
- -----------------------------------------------
IntercontinentalExchange* 80 $ 6
JPMorgan Chase 540 14
Loews 180 4
Marsh & McLennan 200 4
MetLife 80 2
Moody's 170 4
Odyssey Re Holdings 100 4
PNC Financial Services Group 140 4
State Street 130 4
TD Ameritrade Holding* 280 4
Travelers 120 5
Unum Group 300 4
Visa, Cl A 80 4
Vornado Realty Trust 80 3
Wells Fargo 600 8
--------
Total Financials 115
--------
- -----------------------------------------------
HEALTH CARE--14.6%
- -----------------------------------------------
AmerisourceBergen, Cl A 210 7
Amgen* 170 8
Bristol-Myers Squibb 380 8
Cephalon* 80 5
Covidien 120 4
Eli Lilly 160 5
Endo Pharmaceuticals Holdings* 370 7
Gilead Sciences* 140 7
Johnson & Johnson 230 12
Merck 140 4
Watson Pharmaceuticals* 240 8
Wyeth 280 12
--------
Total Health care 87
--------
- -----------------------------------------------
INDUSTRIALS--8.9%
- -----------------------------------------------
Burlington Northern Santa Fe 80 5
Dun & Bradstreet 50 4
First Solar* 30 4
General Electric 1,380 14
ITT 140 6
JB Hunt Transport Services 180 4
Lockheed Martin 70 5
Pall 200 4
United Technologies 100 4
Waste Management 120 3
--------
Total Industrials 53
--------
40 | TURNER FUNDS 2009 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER QUANTITATIVE LARGE CAP VALUE FUND
Value
Shares (000)
- -----------------------------------------------
INFORMATION TECHNOLOGY--4.0%
- -----------------------------------------------
BMC Software* 170 $ 5
CA 4 4
Hewitt Associates, Cl A* 100 3
International Business Machines 40 4
Mastercard, Cl A 30 5
Symantec* 210 3
--------
Total Information technology 24
--------
- -----------------------------------------------
MATERIALS--3.3%
- -----------------------------------------------
Ball 90 4
FMC 50 2
Freeport-McMoRan
Copper & Gold 160 6
Monsanto 60 5
Nucor 70 3
--------
Total Materials 20
--------
- -----------------------------------------------
TELECOMMUNICATION SERVICES--4.4%
- -----------------------------------------------
American Tower, Cl A* 150 4
AT&T 510 13
Verizon Communications 290 9
--------
Total Telecommunication services 26
--------
- -----------------------------------------------
UTILITIES--10.0%
- -----------------------------------------------
Ameren 270 6
American Water Works 320 6
Aqua America 310 6
DPL 230 5
Exelon 60 3
FPL Group 130 7
Integrys Energy Group 110 3
PG&E 150 6
PPL 200 6
Sempra Energy 140 6
Wisconsin Energy 140 6
--------
Total Utilities 60
--------
- -----------------------------------------------
TOTAL COMMON STOCK
(COST $645) 586
===============================================
Value
Shares (000)
- -----------------------------------------------
CASH EQUIVALENT--1.7%
- -----------------------------------------------
BlackRock TempCash Fund
Institutional Shares,
0.693%** 10,220 $ 10
- -----------------------------------------------
TOTAL CASH EQUIVALENT
(COST $10) 10
===============================================
- -----------------------------------------------
TOTAL INVESTMENTS--99.8%
(COST $655) $ 596
===============================================
Percentages are based on Net Assets of $597.***
* Non-income producing security.
** Rate shown is the 7-day effective yield as of March 31, 2009.
*** This number has been rounded to the nearest thousand.
Cl -- Class
LP -- Limited Partnership
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 41
THIS PAGE WAS INTENTIONALLY LEFT BLANK
42 | TURNER FUNDS 2009 SEMIANNUAL REPORT
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (000)
March 31, 2009
Turner Turner Turner
Concentrated Core Growth Emerging
Growth Fund Fund Growth Fund
- -------------------------------------------------------------------------------------------------------------------------
Assets:
- -------------------------------------------------------------------------------------------------------------------------
Investment securities, at cost $ 29,272 $ 493,546 $ 375,233
=========================================================================================================================
Investment securities, at value $ 28,578* $ 440,820* $ 335,282*
Receivable for capital shares sold 82 285 261
Receivable from investment adviser 1 -- --
Receivable for investment securities sold -- -- 1,378
Prepaid expenses 7 39 66
Receivable for dividend income 15 207 183
- -------------------------------------------------------------------------------------------------------------------------
Total assets 28,683 441,351 337,170
=========================================================================================================================
Liabilities:
Obligation to return securities lending collateral 1,033 2,688 21,498
Payable for capital shares redeemed 6 164 117
Payable due to shareholder servicing 6 72 60
Payable due to administrator 3 52 38
Payable due to chief compliance officer 1 10 8
Payable for investment securities purchased -- 2,606 374
Payable due to investment adviser -- 124 204
Other accrued expenses 18 136 100
- -------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,067 5,852 22,399
- -------------------------------------------------------------------------------------------------------------------------
Net assets $ 27,616 $ 435,499 $ 314,771
=========================================================================================================================
*Includes market value of securities on loan $ 910 $ 2,373 $ 20,420
=========================================================================================================================
Net assets:
Portfolio capital of Institutional Class Shares $ -- $ 436,266 $ 20,568
Portfolio capital of Investor Class Shares 207,056 346,665 445,463
Undistributed net investment income/
(Distributions in excess of net investment income) 76 664 (13,840)
Accumulated net realized loss on investments (178,822) (295,370) (97,469)
Net unrealized depreciation on investments (694) (52,726) (39,951)
- -------------------------------------------------------------------------------------------------------------------------
Net assets $ 27,616 $ 435,499 $ 314,771
=========================================================================================================================
Outstanding shares of beneficial interest (1)
Institutional Class Shares (2) -- 33,094,150 807,547
- -------------------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Investor Class Shares (2) 6,532,317 25,247,195 10,493,648
- -------------------------------------------------------------------------------------------------------------------------
Net Assets -- Institutional Class Shares (2) $ -- $247,498,485 $ 22,501,832
- -------------------------------------------------------------------------------------------------------------------------
Net Assets -- Investor Class Shares (2) $ 27,615,700 $188,000,334 $292,268,980
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Institutional Class Shares $ -- $ 7.48 $ 27.86
- -------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Investor Class Shares $ 4.23 $ 7.45 $ 27.85
=========================================================================================================================
(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 2009 SEMIANNUAL REPORT | 43
FINANCIAL STATEMENTS
- -----------------------------------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (000)
March 31, 2009
Turner Turner
Large Cap Midcap
Growth Fund Growth Fund
- -----------------------------------------------------------------------------------------------------------
Assets:
- -----------------------------------------------------------------------------------------------------------
Investment securities, at cost $ 25,440 $ 876,001
Foreign currency, at cost -- --
- -----------------------------------------------------------------------------------------------------------
Investment securities, at value $ 23,084* $ 781,378*
Foreign currency, at value -- --
Receivable for capital shares sold 45 3,064
Receivable from investment adviser 1 --
Receivable for investment securities sold 66 --
Prepaid expenses 13 61
Receivable for dividend income 13 575
- -----------------------------------------------------------------------------------------------------------
Total assets 23,222 785,078
===========================================================================================================
Liabilities:
Obligation to return securities lending collateral 261 42,048
Payable for capital shares redeemed 50 644
Payable due to shareholder servicing -- 129
Payable due to administrator 3 89
Payable due to chief compliance officer 1 18
Payable for investment securities purchased -- 2,162
Payable to custodian -- --
Payable due to investment adviser -- 343
Payable due to distributor -- 18
Other accrued expenses 18 229
- -----------------------------------------------------------------------------------------------------------
Total liabilities 333 45,680
- -----------------------------------------------------------------------------------------------------------
Net assets $ 22,889 $ 739,398
===========================================================================================================
*Includes market value of securities on loan $ 241 $ 39,029
===========================================================================================================
Net assets:
Portfolio capital of Institutional Class Shares $ 52,549 $ 161,670
Portfolio capital of Investor Class Shares 1,521 1,268,567
Portfolio capital of Retirement Class Shares -- 4,505
Undistributed net investment income/(Accumulated net investment loss)/
(Distributions in excess of net investment income) 48 (248)
Accumulated net realized loss on investments
and foreign currency transactions (28,873) (600,473)
Net unrealized depreciation on investments (2,356) (94,623)
Net unrealized depreciation on foreign currencies and translation
of other assets and liabilities denominated in foreign currencies -- --
- -----------------------------------------------------------------------------------------------------------
Net assets $ 22,889 $ 739,398
===========================================================================================================
Outstanding shares of beneficial interest (1)
Institutional Class Shares (2) 6,425,908 5,270,002
- -----------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Investor Class Shares (2) 331,633 35,974,373
- -----------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Retirement Class Shares (2) -- 146,807
- -----------------------------------------------------------------------------------------------------------
Net Assets -- Institutional Class Shares (2) $21,769,272 $ 94,319,755
- -----------------------------------------------------------------------------------------------------------
Net Assets -- Investor Class Shares (2) $ 1,119,441 $642,536,370
- -----------------------------------------------------------------------------------------------------------
Net Assets -- Retirement Class Shares (2) $ -- $ 2,541,422
- -----------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Institutional Class Shares $ 3.39 $ 17.90
- -----------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Investor Class Shares $ 3.38 $ 17.86
- -----------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Retirement Class Shares $ -- $ 17.31
===========================================================================================================
(Unaudited)
- --------------------------------------------------------------------------------
Turner Turner Turner
New Enterprise Small Cap International
Fund Growth Fund Core Growth Fund
- ----------------------------------------------------------------------------------------------------------------------------
Assets:
- ----------------------------------------------------------------------------------------------------------------------------
Investment securities, at cost $ 21,184 $ 212,909 $ 3,086
Foreign currency, at cost -- -- 1
- ----------------------------------------------------------------------------------------------------------------------------
Investment securities, at value $ 20,002* $ 191,320* $ 2,557
Foreign currency, at value -- -- 1
Receivable for capital shares sold 8 142 --
Receivable from investment adviser 6 -- --
Receivable for investment securities sold 95 975 --
Prepaid expenses 6 17 11
Receivable for dividend income 14 134 15
- ----------------------------------------------------------------------------------------------------------------------------
Total assets 20,131 192,588 2,584
============================================================================================================================
Liabilities:
Obligation to return securities lending collateral 1,403 20,895 --
Payable for capital shares redeemed 15 49 --
Payable due to shareholder servicing 3 34 --
Payable due to administrator 2 20 --
Payable due to chief compliance officer -- 4 --
Payable for investment securities purchased -- 1,588 --
Payable to custodian 30 -- --
Payable due to investment adviser -- 92 3
Payable due to distributor -- -- --
Other accrued expenses 21 59 20
- ----------------------------------------------------------------------------------------------------------------------------
Total liabilities 1,474 22,741 23
- ----------------------------------------------------------------------------------------------------------------------------
Net assets $ 18,657 $ 169,847 $ 2,561
============================================================================================================================
*Includes market value of securities on loan $ 1,260 $ 20,020 $ --
============================================================================================================================
Net assets:
Portfolio capital of Institutional Class Shares $ -- $ -- $ 4,819
Portfolio capital of Investor Class Shares 55,105 317,145 --
Portfolio capital of Retirement Class Shares -- -- --
Undistributed net investment income/(Accumulated net investment loss)/
(Distributions in excess of net investment income) 58 (145) (12)
Accumulated net realized loss on investments
and foreign currency transactions (35,324) (125,564) (1,716)
Net unrealized depreciation on investments (1,182) (21,589) (529)
Net unrealized depreciation on foreign currencies and translation
of other assets and liabilities denominated in foreign currencies -- -- (1)
- ----------------------------------------------------------------------------------------------------------------------------
Net assets $ 18,657 $ 169,847 $ 2,561
============================================================================================================================
Outstanding shares of beneficial interest (1)
Institutional Class Shares (2) -- -- 467,136
- ----------------------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Investor Class Shares (2) 4,843,855 9,692,888 32
- ----------------------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Retirement Class Shares (2) -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Net Assets -- Institutional Class Shares (2) $ -- $ -- $2,560,558
- ----------------------------------------------------------------------------------------------------------------------------
Net Assets -- Investor Class Shares (2) $18,657,326 $169,846,859 $ 178
- ----------------------------------------------------------------------------------------------------------------------------
Net Assets -- Retirement Class Shares (2) $ -- $ -- $ --
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Institutional Class Shares $ -- $ -- $ 5.48
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Investor Class Shares $ 3.85 $ 17.52 $ 5.48+
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Retirement Class Shares $ -- $ -- $ --
============================================================================================================================
Turner Turner Turner
Midcap Quantitative Broad Small Cap
Equity Fund Market Equity Fund Equity Fund
- ----------------------------------------------------------------------------------------------------------------------------
Assets:
- ----------------------------------------------------------------------------------------------------------------------------
Investment securities, at cost $ 700 $ 392 $ 26,276
Foreign currency, at cost -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Investment securities, at value $ 688 $ 385 $ 26,117*
Foreign currency, at value -- -- --
Receivable for capital shares sold -- -- 5
Receivable from investment adviser -- 7 --
Receivable for investment securities sold 24 -- 767
Prepaid expenses 20 6 36
Receivable for dividend income -- 1 27
- ----------------------------------------------------------------------------------------------------------------------------
Total assets 732 399 26,952
============================================================================================================================
Liabilities:
-- -- 2,761
Obligation to return securities lending collateral -- -- 16
Payable for capital shares redeemed -- -- 5
Payable due to shareholder servicing -- -- 3
Payable due to administrator -- -- 1
Payable due to chief compliance officer 28 -- 702
Payable for investment securities purchased -- -- --
Payable to custodian 5 -- 7
Payable due to investment adviser -- -- --
Payable due to distributor -- -- --
Other accrued expenses 14 13 37
- ----------------------------------------------------------------------------------------------------------------------------
Total liabilities 47 13 3,532
- ----------------------------------------------------------------------------------------------------------------------------
Net assets $ 685 $ 386 $ 23,420
============================================================================================================================
*Includes market value of securities on loan $ -- $ -- $ 2,633
============================================================================================================================
Net assets:
Portfolio capital of Institutional Class Shares $ 438 $ 616 $ --
Portfolio capital of Investor Class Shares 583 3 38,792
Portfolio capital of Retirement Class Shares -- -- --
Undistributed net investment income/(Accumulated net investment loss)/
(Distributions in excess of net investment income) -- 3 40
Accumulated net realized loss on investments
and foreign currency transactions (324) (229) (15,253)
Net unrealized depreciation on investments (12) (7) (159)
Net unrealized depreciation on foreign currencies and translation
of other assets and liabilities denominated in foreign currencies -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Net assets $ 685 $ 386 $ 23,420
============================================================================================================================
Outstanding shares of beneficial interest (1)
Institutional Class Shares (2) 69,188 62,701 38
- ----------------------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Investor Class Shares (2) 56,484 276 3,168,539
- ----------------------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Retirement Class Shares (2) -- -- --
- ----------------------------------------------------------------------------------------------------------------------------
Net Assets -- Institutional Class Shares (2) $ 379,973 $ 384,084 $ 284
- ----------------------------------------------------------------------------------------------------------------------------
Net Assets -- Investor Class Shares (2) $ 304,904 $ 1,689 $23,419,643
- ----------------------------------------------------------------------------------------------------------------------------
Net Assets -- Retirement Class Shares (2) $ -- $ -- $ --
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Institutional Class Shares $ 5.49 $ 6.13 $ 7.39+
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Investor Class Shares $ 5.40 $ 6.12 $ 7.39
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Retirement Class Shares $ -- $ -- $ --
============================================================================================================================
Turner
Quantitative Large
Cap Value Fund
- --------------------------------------------------------------------------------------------
Assets:
- --------------------------------------------------------------------------------------------
Investment securities, at cost $ 655
Foreign currency, at cost --
- --------------------------------------------------------------------------------------------
Investment securities, at value $ 596
Foreign currency, at value --
Receivable for capital shares sold --
Receivable from investment adviser --
Receivable for investment securities sold --
Prepaid expenses 8
Receivable for dividend income 1
- --------------------------------------------------------------------------------------------
Total assets 605
============================================================================================
Liabilities:
--
Obligation to return securities lending collateral --
Payable for capital shares redeemed --
Payable due to shareholder servicing --
Payable due to administrator --
Payable due to chief compliance officer --
Payable for investment securities purchased --
Payable to custodian 1
Payable due to investment adviser --
Payable due to distributor --
Other accrued expenses 7
- --------------------------------------------------------------------------------------------
Total liabilities 8
- --------------------------------------------------------------------------------------------
Net assets $ 597
============================================================================================
*Includes market value of securities on loan $ --
============================================================================================
Net assets:
Portfolio capital of Institutional Class Shares $ 1,018
Portfolio capital of Investor Class Shares 3
Portfolio capital of Retirement Class Shares --
Undistributed net investment income/(Accumulated net investment loss)/
(Distributions in excess of net investment income) 5
Accumulated net realized loss on investments
and foreign currency transactions (370)
Net unrealized depreciation on investments (59)
Net unrealized depreciation on foreign currencies and translation
of other assets and liabilities denominated in foreign currencies --
- --------------------------------------------------------------------------------------------
Net assets $ 597
============================================================================================
Outstanding shares of beneficial interest (1)
Institutional Class Shares (2) 103,536
- --------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Investor Class Shares (2) 584
- --------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest (1)
Retirement Class Shares (2) --
- --------------------------------------------------------------------------------------------
Net Assets -- Institutional Class Shares (2) $593,166
- --------------------------------------------------------------------------------------------
Net Assets -- Investor Class Shares (2) $ 3,344
- --------------------------------------------------------------------------------------------
Net Assets -- Retirement Class Shares (2) $ --
- --------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Institutional Class Shares $ 5.73
- --------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share -- Investor Class Shares $ 5.73
- --------------------------------------------------------------------------------------------
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.
+ Difference in net asset value recalculation and net asset value stated is
caused by rounding differences.
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 2009 SEMIANNUAL REPORT | 44 & 45
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (000)
Turner Turner Turner
Concentrated Core Growth Emerging
Growth Fund Fund Growth Fund
----------------------------------------------------------------
10/1/08 thru 10/1/08 thru 10/1/08 thru
3/31/09 3/31/09 3/31/09
- --------------------------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 176 $ 3,090 $ 738
Securities lending 5 135 447
Foreign taxes withheld -- (14) --
- --------------------------------------------------------------------------------------------------------------------------
Total Investment income 181 3,211 1,185
- --------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 68 1,326 1,698
Shareholder service fees (1) 37 234 421
Shareholder service fees (2) -- -- --
Distribution fees (2) -- -- --
Administrator fees 22 331 254
Chief compliance officer fees 1 20 15
Transfer agent fees 28 99 50
Registration fees 10 29 17
Custodian fees 7 41 37
Professional fees 6 84 65
Printing fees 4 59 44
Trustees' fees 2 27 20
Insurance and other fees 3 39 33
- --------------------------------------------------------------------------------------------------------------------------
Total expenses 188 2,289 2,654
Less:
Investment advisory fee waiver (68) (531) (279)
Fees paid indirectly (3) (1) -- (1)
Reimbursement of other operating expenses (14) -- --
- --------------------------------------------------------------------------------------------------------------------------
Net expenses 105 1,758 2,374
- --------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) 76 1,453 (1,189)
- --------------------------------------------------------------------------------------------------------------------------
Net realized loss from securities sold (18,202) (172,960) (109,665)
Net realized loss on foreign currency transactions -- -- --
Net change in unrealized appreciation
(depreciation) on investments 3,699 (778) (87,356)
- --------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized loss on
investments and foreign currencies (14,503) (173,738) (197,021)
- --------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting
from operations $(14,427) $(172,285) $(198,210)
==========================================================================================================================
(Unaudited)
- --------------------------------------------------------------------------------
Turner Turner Turner
Large Cap Midcap New Enterprise
Growth Fund Growth Fund Fund
- -------------------------------------------------------------------------------------------------------
10/1/08 thru 10/1/08 thru 10/1/08 thru
3/31/09 3/31/09 3/31/09
- -------------------------------------------------------------------------------------------------------
Investment income:
Dividend $ 191 $ 3,446 $ 63
Securities lending 2 730 22
Foreign taxes withheld -- (9) (1)
- -------------------------------------------------------------------------------------------------------
Total Investment income 193 4,167 84
- -------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 70 2,879 3
Shareholder service fees (1) 1 838 24
Shareholder service fees (2) -- 4 --
Distribution fees (2) -- 4 --
Administrator fees 18 574 14
Chief compliance officer fees 1 35 1
Transfer agent fees 29 233 27
Registration fees 13 39 10
Custodian fees 10 49 6
Professional fees 4 147 4
Printing fees 3 105 2
Trustees' fees 1 46 1
Insurance and other fees 3 72 2
- -------------------------------------------------------------------------------------------------------
Total expenses 153 5,025 94
Less:
Investment advisory fee waiver (70) (606) (3)
Fees paid indirectly (3) -- (4) (2)
Reimbursement of other operation expenses (1) -- (63)
- -------------------------------------------------------------------------------------------------------
Net expenses 82 4,415 26
- -------------------------------------------------------------------------------------------------------
Net investment income (loss) 111 (248) 58
- -------------------------------------------------------------------------------------------------------
Net realized loss from securities sold (7,502) (306,591) (11,632)
Net realized loss on foreign currency transactions -- -- --
Net change in unrealized appreciation
(depreciation) on investments (492) (52,145) 1,699
- -------------------------------------------------------------------------------------------------------
Net realized and unrealized loss on
investments and foreign currencies (7,994) (358,736) (9,933)
- -------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting
from operations $(7,883) $(358,984) $(9,875)
- -------------------------------------------------------------------------------------------------------
Turner
Turner International Turner
Small Cap Core Growth Midcap
Growth Fund Fund Equity Fund
- --------------------------------------------------------------------------------------------------------
10/1/08 thru 10/1/08 thru 10/1/08 thru
3/31/09 3/31/09 3/31/09
- --------------------------------------------------------------------------------------------------------
Investment income:
Dividend $ 520 $ 28 $ 3
Securities lending 449 -- --
Foreign taxes withheld (1) (3) --
- --------------------------------------------------------------------------------------------------------
Total Investment income 968 25 3
- --------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 891 10 2
Shareholder service fees (1) 223 -- 1
Shareholder service fees (2) -- -- --
Distribution fees (2) -- -- --
Administrator fees 133 2 --
Chief compliance officer fees 8 -- --
Transfer agent fees 32 25 27
Registration fees 12 6 13
Custodian fees 32 18 6
Professional fees 34 1 --
Printing fees 24 1 --
Trustees' fees 11 -- --
Insurance and other fees 15 1 2
- --------------------------------------------------------------------------------------------------------
Total expenses 1,415 64 51
Less:
Investment advisory fee waiver (301) (10) (2)
Fees paid indirectly (3) (1) -- --
Reimbursement of other operating expenses -- (43) (46)
- --------------------------------------------------------------------------------------------------------
Net expenses 1,113 11 3
- --------------------------------------------------------------------------------------------------------
Net investment income (loss) (145) 14 --
- --------------------------------------------------------------------------------------------------------
Net realized loss from securities sold (58,761) (1,131) (192)
Net realized loss on foreign currency transactions -- (6) --
Net change in unrealized appreciation
(depreciation) on investments (27,185) 46 14
- --------------------------------------------------------------------------------------------------------
Net realized and unrealized loss on
investments and foreign currencies (85,946) (1,091) (178)
- --------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting
from operations $(86,091) $(1,077) $(178)
- --------------------------------------------------------------------------------------------------------
(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 2009 SEMIANNUAL REPORT | 46 & 47
FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS (000)
Turner Turner
Quantitative Turner Quantitative
Broad Market Small Cap Large Cap
Equity Fund Equity Fund Value Fund
---------------------------------------------------
10/1/08 thru 10/1/08 thru 10/1/08 thru
3/31/09 3/31/09 3/31/09
- --------------------------------------------------------------------------------------------------------------
Investment Income:
Dividend $ 6 $ 159 $ 10
Securities lending -- 55 --
Foreign taxes withheld -- -- --
- --------------------------------------------------------------------------------------------------------------
Total Investment income 6 214 10
- --------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 1 115 2
Shareholder service fees (1) -- 30 --
Administrator fees -- 18 --
Chief compliance officer fees -- 1 --
Transfer agent fees 27 19 25
Registration fees 3 9 7
Custodian fees 10 29 4
Professional fees -- 5 --
Printing fees 2 3 1
Trustees' fees -- 1 --
Insurance and other fees -- 3 1
- --------------------------------------------------------------------------------------------------------------
Total expenses 43 233 40
Less:
Investment advisory fee waiver (1) (59) (2)
Fees paid indirectly (2) -- -- --
Reimbursement of other operating expenses (41) -- (36)
- --------------------------------------------------------------------------------------------------------------
Net expenses 1 174 2
- --------------------------------------------------------------------------------------------------------------
Net investment income 5 40 8
- --------------------------------------------------------------------------------------------------------------
Net realized loss from securities sold (192) (9,856) (233)
Net change in unrealized appreciation
(depreciation) on investments 29 (749) (53)
- --------------------------------------------------------------------------------------------------------------
Net realized and unrealized loss on investments (163) (10,605) (286)
- --------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting
from operations $(158) $(10,565) $(278)
- --------------------------------------------------------------------------------------------------------------
(1) Attributable to Investor Class Shares only.
(2) 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.
48 | TURNER FUNDS 2009 SEMIANNUAL REPORT
FINANCIAL STATEMENTS
- ------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (000)
Turner Concentrated
Growth Fund
10/1/08 thru year ended
3/31/09 (unaudited) 9/30/08
-------------------------------------
Investment activities:
Net investment income (loss) $ 76 $ (452)
Net realized loss from securities sold (18,202) (11,806)
Net change in unrealized appreciation (depreciation)
on investments 3,699 (13,283)
- ------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from
operations (14,427) (25,541)
- ------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Institutional Class Shares -- --
Investor Class Shares -- --
- ------------------------------------------------------------------------------------------------
Total dividends and distributions -- --
- ------------------------------------------------------------------------------------------------
Capital share transactions:
Institutional Class Shares
Proceeds from shares issued -- --
Proceeds from shares issued in lieu of cash distributions -- --
Cost of shares redeemed -- --
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Institutional
Class Shares transactions -- --
- ------------------------------------------------------------------------------------------------
Investor Class Shares
Proceeds from shares issued 7,326 53,335
Proceeds from shares issued in lieu of cash
distributions -- --
Cost of shares redeemed (7,864) (46,614)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor Class
Shares transactions (538) 6,721
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital
share transactions (538) 6,721
- ------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (14,965) (18,820)
- ------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 42,581 61,401
- ------------------------------------------------------------------------------------------------
End of period $ 27,616 $ 42,581
================================================================================================
Undistributed net investment income $ 76 $ --
================================================================================================
Shares issued and redeemed:
Institutional Class Shares
Issued -- --
Issued in lieu of cash distributions -- --
Redeemed -- --
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in Institutional Class Shares -- --
- ------------------------------------------------------------------------------------------------
Investor Class Shares
Issued 1,631 5,908
Issued in lieu of cash distributions -- --
Redeemed (1,804) (5,270)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Shares (173) 638
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions (173) 638
================================================================================================
Turner Core
Growth Fund
-----------------------------------
10/1/08 thru year ended
3/31/09 (unaudited) 9/30/08
-----------------------------------
Investment activities:
Net investment income (loss) $ 1,453 $ 1,850
Net realized loss from securities sold (172,960) (118,054)
Net change in unrealized appreciation (depreciation)
on investments (778) (100,153)
- ------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from
operations (172,285) (216,357)
- ------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Institutional Class Shares (1,661) (612)
Investor Class Shares (647) (273)
- ------------------------------------------------------------------------------------------------
Total dividends and distributions (2,308) (885)
- ------------------------------------------------------------------------------------------------
Capital share transactions:
Institutional Class Shares
Proceeds from shares issued 56,081 315,619
Proceeds from shares issued in lieu of cash distributions 1,393 503
Cost of shares redeemed (67,668) (69,452)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Institutional
Class Shares transactions (10,194) 246,670
- ------------------------------------------------------------------------------------------------
Investor Class Shares
Proceeds from shares issued 30,763 377,978
Proceeds from shares issued in lieu of cash
distributions 587 271
Cost of shares redeemed (31,839) (62,221)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor Class
Shares transactions (489) 316,028
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital
share transactions (10,683) 562,698
- ------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (185,276) 345,456
- ------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 620,775 275,319
- ------------------------------------------------------------------------------------------------
End of period $ 435,499 $ 620,775
================================================================================================
Undistributed net investment income $ 664 $ 1,519
================================================================================================
Shares issued and redeemed:
Institutional Class Shares
Issued 7,355 23,511
Issued in lieu of cash distributions 185 33
Redeemed (9,047) (5,465)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in Institutional Class Shares (1,507) 18,079
- ------------------------------------------------------------------------------------------------
Investor Class Shares
Issued 4,109 27,457
Issued in lieu of cash distributions 78 18
Redeemed (4,146) (4,889)
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Shares 41 22,586
- ------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions (1,466) 40,665
================================================================================================
Amounts designated as "--" are either not applicable, $0, have been rounded to
$0 or are zero shares.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 49
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (000)
Turner Emerging
Growth Fund
------------------------------------------------
10/1/08 thru year ended
3/31/09 (unaudited) 9/30/08
- --------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (1,189) $ (3,958)
Net realized gain (loss) from securities sold (109,665) 33,323
Net change in unrealized appreciation (depreciation) on investments (87,356) (132,601)
- --------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations (198,210) (103,236)
- --------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Institutional Class Shares -- --
Investor Class Shares (12,445) (2,912)
Retirement Class Shares -- --
Realized capital gains
Institutional Class Shares -- --
Investor Class Shares -- (84,525)
Retirement Class Shares -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (12,445) (87,437)
- --------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Institutional Class Shares
Proceeds from shares issued 21,104 --
Proceeds from shares issued in lieu of cash distributions -- --
Cost of shares redeemed (536) --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Institutional Class Shares transactions 20,568 --
- --------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Proceeds from shares issued 50,006 97,413
Proceeds from shares issued in lieu of cash distributions 12,367 86,908
Cost of shares redeemed (87,093) (102,107)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor Class Shares transactions (24,720) 82,214
- --------------------------------------------------------------------------------------------------------------------------------
Retirement Class Shares
Proceeds from shares issued -- --
Proceeds from shares issued in lieu of cash distributions -- --
Cost of shares redeemed -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Retirement Class Shares transactions -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share transactions (4,152) 82,214
- --------------------------------------------------------------------------------------------------------------------------------
Total decrease in net assets (214,807) (108,459)
- --------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 529,578 638,037
- --------------------------------------------------------------------------------------------------------------------------------
End of period $ 314,771 $ 529,578
================================================================================================================================
Undistributed net investment income/
(Distributions in excess of net investment income)/
(Accumulated net investment loss) $ (13,840) $ (206)
================================================================================================================================
Shares issued and redeemed:
Institutional Class Shares
Issued 829 --
Issued in lieu of cash distributions -- --
Redeemed (21) --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in Institutional Class Shares 808 --
- --------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Issued 12,854 1,807
Issued in lieu of cash distributions 411 1,563
Redeemed (14,180) (1,920)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Shares (915) 1,450
- --------------------------------------------------------------------------------------------------------------------------------
Retirement Class Shares
Issued -- --
Issued in lieu of cash distributions -- --
Redeemed -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Retirement Class Shares -- --
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions (107) 1,450
================================================================================================================================
Turner Large Cap
Growth Fund
- ------------------------------------------------------------------------------------------------------------
10/1/08 thru year ended
3/31/09 (unaudited) 9/30/08
- ------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ 111 $ 82
Net realized gain (loss) from securities sold (7,502) (5,825)
Net change in unrealized appreciation (depreciation) on investments (492) (8,429)
- ------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations (7,883) (14,172)
- ------------------------------------------------------------------------------------------------------------
Dividends and distribution to shareholders:
Net investment income
Institutional Class Shares (96) (89)
Investor Class Shares (2) --
Retirement Class Shares -- --
Realized capital gains -- --
Institutional Class Shares -- --
Investor Class Shares -- --
Retirement Class Shares -- --
- ------------------------------------------------------------------------------------------------------------
Total dividends and distributions (98) (89)
- ------------------------------------------------------------------------------------------------------------
Capital share transaction:
Institutional Class Shares
Proceeds from shares issued 4,976 18,638
Proceeds from shares issued in lieu of cash distributions 78 75
Cost of shares redeemed (4,458) (13,516)
- ------------------------------------------------------------------------------------------------------------
Net increase in net assets from Institutional Class Shares transactions 596 5,197
- ------------------------------------------------------------------------------------------------------------
Investor Class Shares
Proceeds from shares issued 696 931
Proceeds from shares issued in lieu of cash distributions 2 --
Cost of shares redeemed (61) (131)
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor Class Shares transactions 637 800
- ------------------------------------------------------------------------------------------------------------
Retirement Class Shares
Proceeds from shares issued -- --
Proceeds from shares issued in lieu of cash distributions -- --
Cost of shares redeemed -- --
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Retirement Class Shares transactions -- --
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share transactions 1,233 5,997
- ------------------------------------------------------------------------------------------------------------
Total decrease in net assets (6,748) (8,264)
- ------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 29,637 37,901
- ------------------------------------------------------------------------------------------------------------
End of period $ 22,889 $ 29,637
============================================================================================================
Undistributed net investment income/
(Distributions in excess of net investment income/
(Accumulated net investment loss) $ 48 $ 35
============================================================================================================
Shares issued and redeemed:
Institutional Class Shares
Issued 1,424 2,996
Issued in lieu of cash distributions 23 11
Redeemed (1,333) (2,270)
- ------------------------------------------------------------------------------------------------------------
Net increase in Institutional Class Shares 114 737
- ------------------------------------------------------------------------------------------------------------
Investor Class Shares
Issued 204 156
Issued in lieu of cash distributions -- --
Redeemed (17) (24)
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Sharess 187 132
- ------------------------------------------------------------------------------------------------------------
Retirement Class Shares
Issued -- --
Issued in lieu of cash distributions -- --
Redeemed -- --
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Retirement Class Shares -- --
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares transactions 301 869
============================================================================================================
Turner Midcap
Growth Fund
- -----------------------------------------------------------------------------------------------------------
10/1/08 thru year ended
3/31/09 (unaudited) 9/30/08
- -----------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (248) $ (5,777)
Net realized gain (loss) from securities sold (306,591)+ (9,460)
Net change in unrealized appreciation (depreciation) on investments (52,145) (385,739)
- -----------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations (358,984) (400,976)
- -----------------------------------------------------------------------------------------------------------
Dividends and distribution 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 transaction:
Institutional Class Shares
Proceeds from shares issued 26,492 165,302
Proceeds from shares issued in lieu of cash distributions -- --
Cost of shares redeemed (26,261) (3,189)
- -----------------------------------------------------------------------------------------------------------
Net increase in net assets from Institutional Class Shares transactions 231 162,113
- -----------------------------------------------------------------------------------------------------------
Investor Class Shares
Proceeds from shares issued 137,282 473,324
Proceeds from shares issued in lieu of cash distributions -- --
Cost of shares redeemed (175,253)+ (444,668)
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor Class Shares transactions (37,971) 28,656
- -----------------------------------------------------------------------------------------------------------
Retirement Class Shares
Proceeds from shares issued 907 3,515
Proceeds from shares issued in lieu of cash distributions -- --
Cost of shares redeemed (2,565) (1,912)
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Retirement Class Shares transactions (1,658) 1,603
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share transactions (39,398) 192,372
- -----------------------------------------------------------------------------------------------------------
Total decrease in net assets (398,382) (208,604)
- -----------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 1,137,780 1,346,384
- -----------------------------------------------------------------------------------------------------------
End of period $ 739,398 $1,137,780
===========================================================================================================
Undistributed net investment income/
(Distributions in excess of net investment income/
(Accumulated net investment loss) $ (248) $ --
===========================================================================================================
Shares issued and redeemed:
Institutional Class Shares
Issued 1,414 5,354
Issued in lieu of cash distributions -- --
Redeemed (1,390) (108)
- -----------------------------------------------------------------------------------------------------------
Net increase in Institutional Class Shares 24 5,246
- -----------------------------------------------------------------------------------------------------------
Investor Class Shares
Issued 7,488 14,256
Issued in lieu of cash distributions -- --
Redeemed (9,503)+ (13,798)
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Sharess (2,015) 458
- -----------------------------------------------------------------------------------------------------------
Retirement Class Shares
Issued 52 110
Issued in lieu of cash distributions -- --
Redeemed (133) (61)
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) in Retirement Class Shares (81) 49
- -----------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares transactions (2,072) 5,753
===========================================================================================================
Turner New
Enterprise Fund
- --------------------------------------------------------------------------------------------------------------
10/1/08 thru year ended
3/31/09 (unaudited) 9/30/08
- --------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ 58 $ (583)
Net realized gain (loss) from securities sold (11,632) (13,706)
Net change in unrealized appreciation (depreciation) on investments 1,699 (13,004)
- --------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations (9,875) (27,293)
- --------------------------------------------------------------------------------------------------------------
Dividends and distribution 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 transaction:
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 4,021 59,670
Proceeds from shares issued in lieu of cash distributions -- --
Cost of shares redeemed (8,248) (69,763)
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor Class Shares transactions (4,227) (10,093)
- --------------------------------------------------------------------------------------------------------------
Retirement Class Shares
Proceeds from shares issued -- --
Proceeds from shares issued in lieu of cash distributions -- --
Coast of shares redeemed -- --
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Retirement Class Shares transactions -- --
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share transactions (4,227) (10,093)
- --------------------------------------------------------------------------------------------------------------
Total decrease in net assets (14,102) (37,386)
- --------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 32,759 70,145
- --------------------------------------------------------------------------------------------------------------
End of period $ 18,657 $ 32,759
==============================================================================================================
Undistributed net investment income/
(Distributions in excess of net investment income/
(Accumulated net investment loss) $ 58 $ --
==============================================================================================================
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 1,034 7,008
Issued in lieu of cash distributions -- --
Redeemed (2,042) (9,203)
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Sharess (1,008) (2,195)
- --------------------------------------------------------------------------------------------------------------
Retirement Class Shares
Issued -- --
Issued in lieu of cash distributions -- --
Redeemed -- --
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Retirement Class Shares -- --
- --------------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares transactions (1,008) (2,195)
==============================================================================================================
Turner Small Cap
Growth Fund
- ----------------------------------------------------------------------------------------------------------
10/1/08 thru year ended
3/31/09 (unaudited) 9/30/08
- ----------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ (145) $ (1,416)
Net realized gain (loss) from securities sold (58,761) (13,030)
Net change in unrealized appreciation (depreciation) on investments (27,185) (47,793)
- ----------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations (86,091) (62,239)
- ----------------------------------------------------------------------------------------------------------
Dividends and distribution 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 transaction:
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 31,494 63,454
Proceeds from shares issued in lieu of cash distributions -- --
Cost of shares redeemed (24,990) (69,711)
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor Class Shares transactions 6,504 (6,257)
- ----------------------------------------------------------------------------------------------------------
Retirement Class Shares
Proceeds from shares issued -- --
Proceeds from shares issued in lieu of cash distributions -- --
Coast of shares redeemed -- --
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Retirement Class Shares transactions -- --
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share transactions 6,504 (6,257)
- ----------------------------------------------------------------------------------------------------------
Total decrease in net assets (79,587) (68,496)
- ----------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 249,434 317,930
- ----------------------------------------------------------------------------------------------------------
End of period $169,847 $ 249,434
==========================================================================================================
Undistributed net investment income/
(Distributions in excess of net investment income/
(Accumulated net investment loss) $ (145) $ --
==========================================================================================================
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 1,620 2,086
Issued in lieu of cash distributions -- --
Redeemed (1,356) (2,298)
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Sharess 264 (212)
- ----------------------------------------------------------------------------------------------------------
Retirement Class Shares
Issued -- --
Issued in lieu of cash distributions -- --
Redeemed -- --
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease) in Retirement Class Shares -- --
- ----------------------------------------------------------------------------------------------------------
Net increase (decrease) in shares transactions 264 (212)
==========================================================================================================
+ Includes realized gains or redemptions as a result of an in-kind transaction
(see Note 11 in Notes to Financial Statements).
Amounts designated as "--" are either not applicable, $0, have been rounded to
$0 or are zero shares.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 50 & 51
FINANCIAL STATEMENTS
- -----------------------------------------------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (000)
Turner International
Core Growth Fund
--------------------------------------------------
10/1/08 thru year ended
3/31/09 (unaudited) 9/30/08
- -----------------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ 14 $ 45
Net realized loss from securities sold (1,131) (517)
Net realized loss on foreign currency transactions (6) (28)
Net change in unrealized appreciation (depreciation) on investments 46 (979)
Net change in unrealized depreciation on foreign currencies and translation
of other assets and liabilities denominated in foreign currencies -- (1)
- -----------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations (1,077) (1,480)
- -----------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Institutional Class Shares (42) (5)
Investor Class Shares -- --
Realized capital gains
Institutional Class Shares -- (28)
Investor Class Shares -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (42) (33)
- -----------------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Institutional Class Shares
Proceeds from shares issued 433 4,955
Proceeds from shares issued in lieu of cash distributions 42 33
Cost of shares redeemed (130) (2,549)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Institutional Class Shares transactions 345 2,439
- -----------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Proceeds from shares issued -- --
Proceeds from shares issued in lieu of cash distributions -- --
Cost of shares redeemed -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor Class Shares transactions -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share transactions 345 2,439
- -----------------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (774) 926
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 3,335 2,409
- -----------------------------------------------------------------------------------------------------------------------------------
End of period $ 2,561 $ 3,335
===================================================================================================================================
Undistributed net investment income/
(Distributions in excess of net investment income) $ (12) $ 16
===================================================================================================================================
Shares issued and redeemed:
Institutional Class Shares
Issued 77 427
Issued in lieu of cash distributions 7 3
Redeemed (17) (227)
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in Institutional Class Shares 67 203
- -----------------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Issued -- --
Issued in lieu of cash distributions -- --
Redeemed -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Shares -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions 67 203
===================================================================================================================================
- ---------------------------------------------------------------------------------------------------------------------
Turner
Turner Midcap
Equity Fund
- ---------------------------------------------------------------------------------------------------------------------
10/1/08 thru year ended
3/31/09 (unaudited) 9/30/08
- ---------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ -- $ (1)
Net realiized loss from securities sold (192) (111)
Net realized loss on foreign currency transactions -- --
Net change in unrealized appreciation (depreciation) on investments 14 (52)
Net change in unrealized depreciation on foreign currencies and translation
of other assets and liabilities denominated in foreign currencies -- --
- ---------------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations (178) (164)
- ---------------------------------------------------------------------------------------------------------------------
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 492 100
Proceeds from shares issued in lieu of cash distributions -- --
Cost of shares redeemed (154) --
- ---------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Institutional Class Shares transactions 338 100
- ---------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Proceeds from shares issued 84 185
Proceeds from shares issued in lieu of cash distributions -- --
Cost of shares redeemed (73) (139)
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor Class Shares transactions 11 46
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share transactions 349 146
- ---------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets 171 (18)
- ---------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 514 532
- ---------------------------------------------------------------------------------------------------------------------
End of period $ 685 $ 514
=====================================================================================================================
Undistributed net investment income/
(Distributions in excess of net investment income) $ -- $ --
=====================================================================================================================
Shares issued and redeemed:
Institutional Class Shares
Issued 86 11
Issued in lieu of cash distributions -- --
Redeemed (28) --
- ---------------------------------------------------------------------------------------------------------------------
Net increase in Institutional Class Shares 58 11
- ---------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Issued 14 19
Issued in lieu of cash distributions -- --
Redeemed (13) (14)
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Shares 1 5
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions 59 16
=====================================================================================================================
- ------------------------------------------------------------------------------------------------------------------------
Turner Quantitative Broad
Market Equity Fund
- ------------------------------------------------------------------------------------------------------------------------
10/1/08 thru 6/30/08(1) thru
3/31/09 (unaudited) 9/30/08
- ------------------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ 5 $ 2
Net realiized loss from securities sold (192) (37)
Net realized loss on foreign currency transactions -- --
Net change in unrealized appreciation (depreciation) on investments 29 (36)
Net change in unrealized depreciation on foreign currencies and translation
of other assets and liabilities denominated in foreign currencies -- --
- ------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations (158) (71)
- ------------------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Institutional Class Shares (4) --
Investor Class Shares -- --
Realized capital gains
Institutional Class Shares -- --
Investor Class Shares -- --
- ------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions (4) --
- ------------------------------------------------------------------------------------------------------------------------
Capital share transactions:
Institutional Class Shares
Proceeds from shares issued -- 612
Proceeds from shares issued in lieu of cash distributions 4 --
Cost of shares redeemed -- --
- ------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from Institutional Class Shares transactions 4 612
- ------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Proceeds from shares issued -- 3
Proceeds from shares issued in lieu of cash distributions -- --
Cost of shares redeemed -- --
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor Class Shares transactions -- 3
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share transactions 4 615
- ------------------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (158) 544
- ------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 544 --
- ------------------------------------------------------------------------------------------------------------------------
End of period $ 386 $ 544
========================================================================================================================
Undistributed net investment income/
(Distributions in excess of net investment income) $ 3 $ 2
========================================================================================================================
Shares issued and redeemed:
Institutional Class Shares
Issued -- 62
Issued in lieu of cash distributions 1 --
Redeemed -- --
- ------------------------------------------------------------------------------------------------------------------------
Net increase in Institutional Class Shares 1 62
- ------------------------------------------------------------------------------------------------------------------------
Investor Class Shares
Issued -- --
Issued in lieu of cash distributions -- --
Redeemed -- --
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Shares -- --
- ------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions 1 62
========================================================================================================================
- ---------------------------------------------------------------------------------------------------------------
Turner Small Cap
Equity Fund
- ---------------------------------------------------------------------------------------------------------------
10/1/08 thru year ended
3/31/09 (unaudited) 9/30/08
- ---------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ 40 $ (219)
Net realiized loss from securities sold (9,856) (4,329)
Net realized loss on foreign currency transactions -- --
Net change in unrealized appreciation (depreciation) on investments (749) (4,794)
Net change in unrealized depreciation on foreign currencies and translation
of other assets and liabilities denominated in foreign currencies -- --
- ---------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations (10,565) (9,342)
- ---------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Institutional Class Shares -- --
Investor Class Shares -- --
Realized capital gains
Institutional Class Shares -- --
Investor Class Shares (17) (9,517)
- ---------------------------------------------------------------------------------------------------------------
Total dividends and distributions (17) (9,517)
- ---------------------------------------------------------------------------------------------------------------
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 13,380 6,597
Proceeds from shares issued in lieu of cash distributions 15 9,456
Cost of shares redeemed (3,601) (38,278)
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor Class Shares transactions 9,794 (22,225)
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share transactions 9,794 (22,225)
- ---------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (788) (41,084)
- ---------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 24,208 65,292
- ---------------------------------------------------------------------------------------------------------------
End of period $ 23,420 $24,208
===============================================================================================================
Undistributed net investment income/
(Distributions in excess of net investment income) $ 23 $ --
===============================================================================================================
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 1,514 497
Issued in lieu of cash distributions 2 676
Redeemed (447) (2,844)
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Shares 1,069 (1,671)
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions 1,069 (1,671)
===============================================================================================================
- ---------------------------------------------------------------------------------------------------------------
Turner Quantitative
Large Cap Value Fund
- ---------------------------------------------------------------------------------------------------------------
10/1/08 thru year ended
3/31/09 (unaudited) 9/30/08
- ---------------------------------------------------------------------------------------------------------------
Investment activities:
Net investment income (loss) $ 8 $ 14
Net realiized loss from securities sold (233) (108)
Net realized loss on foreign currency transactions -- --
Net change in unrealized appreciation (depreciation) on investments (53) (80)
Net change in unrealized depreciation on foreign currencies and translaction
of other assets and liabilities denominated in foreign currencies -- --
- ---------------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from operations (278) (174)
- ---------------------------------------------------------------------------------------------------------------
Dividends and distributions to shareholders:
Net investment income
Institutional Class Shares (14) (8)
Investor Class Shares -- --
Realized capital gains
Institutional Class Shares -- (110)
Investor Class Shares -- --
- ---------------------------------------------------------------------------------------------------------------
Total dividends and distributions (14) (118)
- ---------------------------------------------------------------------------------------------------------------
Capital share transactions:
Institutional Class Shares
Proceeds from shares issued 109 102
Proceeds from shares issued in lieu of cash distributions 14 118
Cost of shares redeemed -- --
- ---------------------------------------------------------------------------------------------------------------
Net increase in net assets from Institutional Class Shares transactions 123 220
- ---------------------------------------------------------------------------------------------------------------
Investor Class Shares
Proceeds from shares issued 3 --
Proceeds from shares issued in lieu of cash distributions -- --
Cost of shares redeemed -- --
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Investor Class Shares transactions 3 --
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from capital share transactions 126 220
- ---------------------------------------------------------------------------------------------------------------
Total increase (decrease) in net assets (166) (72)
- ---------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 763 835
- ---------------------------------------------------------------------------------------------------------------
End of period $ 597 $ 763
===============================================================================================================
Undistributed net investment income/
(Distributions in excess of net investment income) $ 5 $ 11
===============================================================================================================
Shares issued and redeemed:
Institutional Class Shares
Issued 17 9
Issued in lieu of cash distributions 2 11
Redeemed -- --
- ---------------------------------------------------------------------------------------------------------------
Net increase in Institutional Class Shares 19 20
- ---------------------------------------------------------------------------------------------------------------
Investor Class Shares
Issued 1 --
Issued in lieu of cash distributions -- --
Redeemed -- --
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in Investor Class Shares 1 --
- ---------------------------------------------------------------------------------------------------------------
Net increase (decrease) in share transactions 20 20
===============================================================================================================
(1) Commencement of Operations.
Amounts designated as "--" are either not applicable, $0, have been rounded to
$0 or are zero shares.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 52 & 53
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Net asset Net Realized and Total Dividends Distributions
value, investment unrealized from from net from Total
beginning income gains (losses) investment investment capital dividends and
of period (loss) on investments operations income gains distributions
- -----------------------------------------------------------------------------------------------------------------------
Turner Concentrated Growth Fund -- Investor Class Shares
- --------------------------------------------------------
2009* $ 6.35 0.01 (1) (2.13) (2.12) -- -- --
2008 $10.12 (0.07) (1) (3.70) (3.77) -- -- --
2007 $ 7.60 (0.05) (1) 2.57 2.52 -- -- --
2006 $ 7.10 (0.08) (1) 0.58 0.50 -- -- --
2005 $ 5.82 (0.02) 1.30 1.28 -- -- --
2004 $ 6.05 (0.07) (0.16) (0.23) -- -- --
- -----------------------------------------------------
Turner Core Growth Fund -- Institutional Class Shares
- -----------------------------------------------------
2009* $10.41 0.03 (1) (2.91) (2.88) (0.05) -- (0.05)
2008 $14.39 0.06 (1) (4.01) (3.95) (0.03) -- (0.03)
2007 $11.65 0.02 2.77 2.79 (0.05) -- (0.05)
2006 $10.93 0.06 0.69 0.75 (0.03) -- (0.03)
2005 (2) $ 8.84 0.02 2.07 2.09 -- -- --
2004 $ 8.04 (0.03) 0.83 0.80 -- -- --
- ------------------------------------------------
Turner Core Growth Fund -- Investor Class Shares
- ------------------------------------------------
2009* $10.34 0.10 (1) (2.96) (2.86) (0.03) -- (0.03)
2008 $14.33 0.02 (1) (3.99) (3.97) (0.02) -- (0.02)
2007 $11.61 0.02 2.73 2.75 (0.03) -- (0.03)
2006 $10.93 0.07 0.64 0.71 (0.03) -- (0.03)
2005 (2)(4) $10.58 -- 0.35 0.35 -- -- --
- ---------------------------------------------------------
Turner Emerging Growth Fund -- Institutional Class Shares
- ---------------------------------------------------------
2009*(5) $28.45 -- (0.59) (0.59) -- -- --
- ----------------------------------------------------
Turner Emerging Growth Fund -- Investor Class Shares
- ----------------------------------------------------
2009* $46.42 (0.11) (1) (17.28) (17.39) -- (1.18) (1.18)
2008 $64.06 (0.35) (1) (8.54) (8.89) (0.25) (8.50) (8.75)
2007 $55.97 (0.30) (1) 13.61 13.31 -- (5.22) (5.22)
2006 $56.46 (0.32) (1) 3.02 2.70 -- (3.19) (3.19)
2005 $50.02 (0.46) (1) 13.35 12.89 -- (6.45) (6.45)
2004 $41.38 (0.39) 10.04 9.65 -- (1.01) (1.01)
- ----------------------------------------------------------
Turner Large Cap Growth Fund -- Institutional Class Shares
- ----------------------------------------------------------------
2009* $ 4.59 0.02 (1) (1.21) (1.19) (0.01) -- (0.01)
2008 $ 6.78 0.01 (1) (2.19) (2.18) (0.01) -- (0.01)
2007 $ 5.58 0.01 (1) 1.21 1.22 (0.02) -- (0.02)
2006 $ 5.41 0.01 (1) 0.17 0.18 (0.01) -- (0.01)
2005 $ 4.83 0.01 (1) 0.57 0.58 --** -- --
2004 $ 4.62 -- 0.21 0.21 --** -- --
- -----------------------------------------------------
Turner Large Cap Growth Fund -- Investor Class Shares
- -----------------------------------------------------
2009* $ 4.57 0.01 (1) (1.20) (1.18) (0.01) -- (0.01)
2008 $ 6.77 -- ** (2.19) (2.19) (0.01) -- (0.01)
2007 (6) $ 5.92 0.01 (1) 0.84 0.85 -- -- --
Ratio of net
Net Ratio of Ratio of total investment
Net asset assets end net expenses expenses income (loss) Portfolio
value, end Total of period to average to average to average turnover
of period return (000) net assets++ net assets net assets++ rate+++
- ------------------------------------------------------------------------------------------------------------------
Turner Concentrated Growth Fund--Investor Class Shares
- -------------------------------------------------------
2009* $ 4.23 (33.39)%+ $ 27,616 0.71% 1.28% 0.52% 121%
2008 $ 6.35 (37.25)% $ 42,581 1.53% 1.91% (0.83)% 348%
2007 $10.12 33.16% $ 61,401 1.11% 1.46% (0.57)% 220%
2006 $ 7.60 7.04% $ 38,180 1.59% 1.79% (1.01)% 251%
2005 $ 7.10 21.99% $ 30,779 1.15% 1.41% (0.57)% 330%
2004 $ 5.82 (3.80)% $ 39,109 1.42% 1.57% (0.99)% 499%
- ---------------------------------------------------
Turner Core Growth Fund--institutional Class Shares
- ---------------------------------------------------
2009* $ 7.48 (27.66)%+ $247,499 0.69% 0.93% 0.76% 79%
2008 $10.41 (27.53)% $360,083 0.69% 0.90% 0.42% 200%
2007 $14.39 24.00% $237,778 0.68% 1.06% 0.42% 103%
2006 $11.65 6.91% $ 71,935 0.59% 1.20% 0.77% 124%
2005(2) $10.93 23.64% $ 40,857 0.69% (3) 1.60% 0.46% 136%
2004 $ 8.84 9.95% $ 5,080 1.25% 1.97% (0.27)% 104%
- ------------------------------------------------
Turner Core Growth Fund -- Investor Class Shares
- ------------------------------------------------
2009* $ 7.45 (27.70)%+ $188,000 0.94% 1.18% 0.51% 79%
2008 $10.34 (27.76)% $260,692 0.94% 1.15% 0.15% 200%
2007 $14.33 23.68% $ 37,541 0.94% 1.31% 0.15% 103%
2006 $11.61 6.52% $ 23,418 0.94% 1.43% 0.23% 124%
2005(2)(4) $10.93 3.31%+ $ 1 0.83% 2.50% 0.33% 136%
- -------------------------------------------------------
Turner Emerging Growth Fund--Institutional Class Shares
- -------------------------------------------------------
2009*(5) $27.86 (2.07)%+ $ 22,502 1.15% 1.37% (0.08)% 38%
- --------------------------------------------------
Turner Emerging Growth Fund--Investor Class Shares
- --------------------------------------------------
2009* $27.85 (37.66)%+ $292,269 1.40% 1.56% (0.70)% 38%
2008 $46.42 (16.08)% $529,578 1.40% 1.49% (0.66)% 71%
2007 $64.06 25.08% $638,037 1.40% 1.48% (0.50)% 88%
2006 $55.97 4.95% $565,227 1.40% 1.44% (0.57)% 78%
2005 $56.46 27.90% $502,108 1.40% 1.44% (0.90)% 74%
2004 $50.02 23.54% $366,692 1.40% 1.42% (0.85)% 122%
- --------------------------------------------------------
Turner Large Cap Growth Fund--Institutional Class Shares
- --------------------------------------------------------
2009* $ 3.39 (25.83)%+ $ 21,770 0.69% 1.30% 0.96% 70%
2008 $ 4.59 (32.16)% $ 28,975 0.69% 1.09% 0.21% 213%
2007 $ 6.78 21.86% $ 37,814 0.70% 1.23% 0.23% 119%
2006 $ 5.58 3.40% $ 19,510 0.75% 1.16% 0.26% 194%
2005 $ 5.41 12.09% $ 43,025 0.75% 1.10% 0.16% 155%
2004 $ 4.83 4.64% $ 67,991 0.75% 0.94% 0.11% 166%
- --------------------------------------------------
Turner Large Cap Growth Fund--Investor Class Share
- --------------------------------------------------
2009* $ 3.38 (25.88)%+ $ 1,119 0.94% 1.56% 0.68% 70%
2008 $ 4.57 (32.40)% $ 662 0.94% 1.36% (0.05)% 213%
2007(6) $ 6.77 14.36%+ $ 87 0.94% 1.51% 0.13% 119%
* For the six-month period ended March 31, 2009, 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.
Excluding fees paid indirectly, the ratio of net expenses to average net
assets would have been 1.54% and 0.72% for the Concentrated Growth Fund
for the periods ended September 30, 2008 and March 31, 2009, respectively.
+++ Excludes effect of in-kind transfers and mergers, as applicable.
(1) Based on average shares outstanding.
(2) 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.
(3) 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%.
(4) Commenced operations on August 1, 2005. All ratios for the period have been
annualized.
(5) Commenced operations on February 1, 2009. All ratios for the period have
been annualized.
(6) Commenced operations on January 31, 2007. All ratios for the period have
been annualized.
Amounts designated as "--" are either $0, not applicable or have been rounded
to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 54 & 55
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Net asset Net Realized and Total Dividends Distributions
value, investment unrealized from from net from Total
beginning income gains (losses) investment investment capital dividends and
of period (loss) on investments operations income gains distributions
- -----------------------------------------------------------------------------------------------------------------------
Turner Midcap Growth Fund -- Institutional Class Shares
- -------------------------------------------------------
2009* $26.20 0.01 (2)(3) (8.31) (8.30) -- -- --
2008 (1) $34.67 (0.01)(2) (8.46) (8.47) -- -- --
- --------------------------------------------------
Turner Midcap Growth Fund -- Investor Class Shares
- --------------------------------------------------
2009* $26.18 (0.01) (2) (8.31) (8.32) -- -- --
2008 $35.71 (0.14) (2) (9.39) (9.53) -- -- --
2007 $27.63 (0.20) (2) 8.28 8.08 -- -- --
2006 $26.39 (0.08) (2) 1.32 1.24 -- -- --
2005 $20.99 (0.19) (2) 5.59 5.40 -- -- --
2004 $19.54 (0.18) (2) 1.63 1.45 -- -- --
- ----------------------------------------------------
Turner Midcap Growth Fund -- Retirement Class Shares
- ----------------------------------------------------
2009* $25.40 (0.03) (2) (8.06) (8.09) -- -- --
2008 $34.74 (0.22) (2) (9.12) (9.34) -- -- --
2007 $26.96 (0.30) (2) 8.08 7.78 -- -- --
2006 $25.89 (0.23) (2) 1.30 1.07 -- -- --
2005 $20.69 (0.30) (2) 5.50 5.20 -- -- --
2004 $19.36 (0.28) (2) 1.61 1.33 -- -- --
- ---------------------------------------------------
Turner New Enterprise Fund -- Investor Class Shares
- ---------------------------------------------------
2009* $ 5.60 0.01 (2) (1.76) (1.75) -- -- --
2008 $ 8.72 (0.07) (2) (3.05) (3.12) -- -- --
2007 $ 6.26 (0.07) (2) 2.53 2.46 -- -- --
2006 $ 5.86 (0.07) (2) 0.47 (3) 0.40 -- -- --
2005 $ 4.52 (0.03) 1.37 1.34 -- -- --
2004 $ 4.34 (0.06) 0.24 (3) 0.18 -- -- --
- -----------------------------------------------------
Turner Small Cap Growth Fund -- Investor Class Shares
- -----------------------------------------------------
2009* $26.45 (0.01) (2) (8.92) (8.93) -- -- --
2008 $32.98 (0.15) (2) (6.38) (6.53) -- -- --
2007 $26.17 (0.20) (2) 7.01 6.81 -- -- --
2006 $24.68 (0.21) (2) 1.70 1.49 -- -- --
2005 $21.33 (0.01) 3.36 3.35 -- -- --
2004 $18.88 (0.19) 2.64 2.45 -- -- --
- -------------------------------------------------------------------
Turner International Core Growth Fund -- Institutional Class Shares
- -------------------------------------------------------------------
2009* $ 8.34 0.03 (2) (2.78) (2.75) (0.11) -- (0.11)
2008 $12.21 0.12 (2) (3.87) (3.75) (0.02) (0.10) (0.12)
2007 (4) $10.00 0.07 (2) 2.14 2.21 -- -- --
- --------------------------------------------------------------
Turner International Core Growth Fund -- Investor Class Shares
- --------------------------------------------------------------
2009*(5) $ 6.27 0.03 (2) (0.71) (0.68) (0.11) -- (0.11)
Ratio of net
Net Ratio of Ratio of total investment
Net asset assets end net expenses expenses income (loss) Portfolio
value, end Total of period to average to average to average turnover
of period return (000) net assets++ net assets net assets++ rate+++
- ------------------------------------------------------------------------------------------------------------------
Turner Midcap Growth Fund--Institutional Class Shares
- -----------------------------------------------------
2009* $17.90 (31.68)%+ $ 94,320 0.93% 1.09% 0.16% 68%
2008(1) $26.20 (24.43)%+ $ 137,451 0.93% 1.03% (0.09)% 157%
- ------------------------------------------------
Turner Midcap Growth Fund--Investor Class Shares
- ------------------------------------------------
2009* $17.86 (31.78)%+ $ 642,536 1.18% 1.34% (0.09)% 68%
2008 $26.18 (26.69)% $ 994,545 1.18% 1.25% (0.44)% 157%
2007 $35.71 29.24% $1,340,172 1.18% 1.24% (0.63)% 155%
2006 $27.63 4.70% $1,113,201 1.18% 1.18% (0.30)% 135%
2005 $26.39 25.73% $ 955,730 1.20% 1.20% (0.78)% 152%
2004 $20.99 7.42% $ 857,899 1.16% 1.16% (0.84)% 167%
- --------------------------------------------------
Turner Midcap Growth Fund--Retirement Class Shares
- --------------------------------------------------
2009* $17.31 (31.85)%+ $ 2,542 1.43% 1.58% (0.35)% 68%
2008 $25.40 (26.89)% $ 5,784 1.43% 1.50% (0.69)% 157%
2007 $34.74 28.86% $ 6,212 1.49% 1.56% (0.98)% 155%
2006 $26.96 4.13% $ 2,444 1.68% 1.68% (0.83)% 135%
2005 $25.89 25.13% $ 1,833 1.70% 1.70% (1.28)% 152%
2004 $20.69 6.87% $ 1,395 1.66% 1.66% (1.35)% 167%
- -------------------------------------------------
Turner New Enterprise Fund--Investor Class Shares
- -------------------------------------------------
2009* $ 3.85 (31.25)%+ $ 18,657 0.28% 1.00% 0.60% 120%
2008 $ 5.60 (35.78)% $ 32,759 1.52% 1.90% (0.89)% 323%
2007 $ 8.72 39.30% $ 70,145 1.27% 1.73% (0.98)% 173%
2006 $ 6.26 6.83% $ 24,040 1.61% 2.06% (1.02)% 235%
2005 $ 5.86 29.65% $ 9,144 1.36% 1.87% (1.14)% 227%
2004 $ 4.52 4.15% $ 10,805 1.18% 1.51% (0.83)% 382%
- ---------------------------------------------------
Turner Small Cap Growth Fund--Investor Class Shares
- ---------------------------------------------------
2009* $17.52 (33.76)%+ $ 169,847 1.25% 1.58% (0.16)% 57%
2008 $26.45 (19.80)% $ 249,434 1.25% 1.51% (0.48)% 141%
2007 $32.98 26.02% $ 317,930 1.25% 1.48% (0.65)% 134%
2006 $26.17 6.04% $ 248,271 1.25% 1.42% (0.79)% 154%
2005 $24.68 15.71% $ 257,149 1.25% 1.44% (0.91)% 153%
2004 $21.33 12.98% $ 237,213 1.25% 1.41% (0.95)% 151%
- ------------------------------------------------------------------
Turner International Core Growth Fund--Institutional Class Shares
- ------------------------------------------------------------------
2009* $ 5.48 (33.03)%+ $ 2,561 1.10% 5.58% 1.02% 77%
2008 $ 8.34 (31.04)% $ 3,335 1.10% 3.05% 1.10% 245%
2007(4) $12.21 22.10%+ $ 2,409 1.10% 4.63% 0.99% 111%
- ------------------------------------------------------------
Turner International Core Growth Fund--Investor Class Shares
- ------------------------------------------------------------
2009*(5) $ 5.48 (10.92)%+ $ -- 1.35% 5.84% 1.37% 77%
* For the six-month period ended March 31, 2009, 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.
Excluding fees paid indirectly, the ratio of net expenses to average net
assets would have been 0.94%, 1.54%, 1.26%, and 1.11% for the Midcap
Growth Fund, Institutional Class Shares, the New Enterprise Fund, the
Small Cap Growth Fund and the International Core Growth Fund, respectively,
for the year ended September 30, 2008. The ratio of net expenses to
average net assets would have been 0.29% for New Enterprise Fund for the
period ended March 31, 2009.
+++ Excludes effect of in-kind transfers and mergers, as applicable.
(1) Commenced operations on June 16, 2008. All ratios for the period have been
annualized.
(2) Based on average shares outstanding.
(3) 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.
(4) Commenced operations on January 31, 2007. All ratios for the period have
been annualized.
(5) Commenced operations on October 31, 2008. All ratios for the period have
been annualized.
Amounts designated as "--" are either $0, not applicable or have been rounded
to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 56 & 57
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
Net asset Net Realized and Total Dividends Distributions Tax
value, investment unrealized from from net from Return Total
beginning income gains (losses) investment investment capital of dividends and
of period (loss) on investments operations income gains Capital distributions
- ----------------------------------------------------------------------------------------------------------------------------------
Turner Midcap Equity Fund -- Institutional Class Shares
- -------------------------------------------------------
2009* $ 7.89 -- (2.40) (2.40) -- -- -- --
2008 $10.68 0.01 (1)(2) (2.80) (2.79) -- -- -- --
2007 (3) $10.00 0.04 (1)(2) 0.64 0.68 -- -- -- --
- --------------------------------------------------
Turner Midcap Equity Fund -- Investor Class Shares
- --------------------------------------------------
2009* $ 7.80 -- (2.40) (2.40) -- -- -- --
2008 $10.61 (0.03) (1) (2.78) (2.81) -- -- -- --
2007 (3) $10.00 (0.02) (1) 0.63 0.61 -- -- -- --
- --------------------------------------------------------------------------
Turner Quantitative Broad Market Equity Fund -- Institutional Class Shares
- --------------------------------------------------------------------------
2009* $ 8.73 0.07 (1) (2.61) (2.54) (0.06) -- -- (0.06)
2008 (4) $10.00 0.04 (1) (1.31) (1.27) -- -- -- --
- ---------------------------------------------------------------------
Turner Quantitative Broad Market Equity Fund -- Investor Class Shares
- ---------------------------------------------------------------------
2009* $ 8.72 0.06 (1) (2.61) (2.55) (0.05) -- -- (0.05)
2008 (4) $10.00 0.03 (1) (1.31) (1.28) -- -- -- --
- ----------------------------------------------------------
Turner Small Cap Equity Fund -- Institutional Class Shares
- ----------------------------------------------------------
2009* (5) $ 7.73 -- (0.34) (0.34) -- -- -- --
- -----------------------------------------------------
Turner Small Cap Equity Fund -- Investor Class Shares
- -----------------------------------------------------
2009* $11.53 0.01 (1) (4.14) (4.13) -- (0.01) -- (0.01)
2008 $17.31 (0.06) (1) (2.95) (3.01) -- (2.77) -- (2.77)
2007 $16.94 (0.12) (1) 1.79 1.67 -- (1.30) -- (1.30)
2006 $16.06 (0.07) (1) 0.95 0.88 -- -- -- --
2005 $13.92 (0.11) (1) 2.25 2.14 -- -- -- --
2004 $12.27 (0.02) 2.95 2.93 -- (1.23) (0.05) (1.28)
- ----------------------------------------------------------------------
Turner Quantitative Large Cap Value Fund -- Institutional Class Shares
- ----------------------------------------------------------------------
2009* $ 8.97 0.09 (1) (3.16) (3.07) (0.17) -- -- (0.17)
2008 $12.86 0.16 (1) (2.23) (2.07) (0.12) (1.70) -- (1.82)
2007 $11.44 0.14 (1) 1.65 1.79 (0.15) (0.22) -- (0.37)
2006 (6) $10.00 0.16 (1) 1.33 1.49 (0.05) -- -- (0.05)
- -----------------------------------------------------------------
Turner Quantitative Large Cap Value Fund -- Investor Class Shares
- -----------------------------------------------------------------
2009*(7) $ 7.50 -- (1.60) (1.60) (0.17) -- -- (0.17)
Ratio of net
Net Ratio of Ratio of total investment
Net asset assets end net expenses expenses income (loss) Portfolio
value, end Total of period to average to average to average turnover
of period return (000) net assets++ net assets net assets++ rate+++
- ------------------------------------------------------------------------------------------------------------------
Turner Micap Equity Fund -- Institutional Class Shares
- ------------------------------------------------------
2009* $ 5.49 (30.42)%+ $ 380 0.90% 17.40% 0.13% 142%
2008 $ 7.89 (26.12)% $ 85 0.90% 17.32% 0.09% 168%
2007(3) $10.68 6.80%+ $ -- 0.90% 31.25% 0.60% 98%
- -------------------------------------------------
Turner Midcap Equity Fund -- Investor Class Share
- -------------------------------------------------
2009* $ 5.40 (30.77)%+ $ 305 1.15% 23.51% 0.07% 142%
2008 $ 7.80 (26.48)% $ 429 1.15% 17.02% (0.32)% 168%
2007(3) $10.61 6.10%+ $ 532 1.15% 22.26% (0.26)% 98%
- --------------------------------------------------------------------------
Turner Quantitative Broad Market Equity Fund -- Institutional Class Shares
- --------------------------------------------------------------------------
2009* $ 6.13 (29.15)%+ $ 384 0.64% 21.32% 2.12% 161%
2008(4) $ 8.73 (12.70)%+ $ 542 0.64% 17.95% 1.60% 118%
- ---------------------------------------------------------------------
Turner Quantitative Broad Market Equity Fund -- Investor Class Shares
- ---------------------------------------------------------------------
2009* $ 6.12 (29.28)%+ $ 2 0.89% 21.58% 1.91% 161%
2008(4) $ 8.72 (12.80)%+ $ 2 0.89% 16.99% 1.28% 118%
- ----------------------------------------------------------
Turner Small Cap Equity Fund -- Institutional Class Shares
- ----------------------------------------------------------
2009*(5) $ 7.39 (4.40)%+ $ -- 1.20% 2.00% 0.11% 123%
- -----------------------------------------------------
Turner Small Cap Equity Fund -- Investor Class Shares
- -----------------------------------------------------
2009* $ 7.39 (35.87)%+ $23,420 1.45% 1.94% 0.32% 123%
2008 $11.53 (20.20)% $24,208 1.45% 1.62% (0.48)% 168%
2007 $17.31 10.14% $65,292 1.36% 1.59% (0.70)% 157%
2006 $16.94 5.48% $81,340 1.24% 1.70% (0.39)% 143%
2005 $16.06 15.37% $67,713 1.43% 1.67% (0.71)% 170%
2004 $13.92 24.75% $29,171 1.35% 1.94% (0.25)% 222%
- ----------------------------------------------------------------------
Turner Quantitative Large Cap Value Fund -- Institutional Class Shares
- ----------------------------------------------------------------------
2009* $ 5.73 (34.53)%+ $ 593 0.69% 13.12% 2.73% 90%
2008 $ 8.97 (18.76)% $ 763 0.69% 6.13% 1.54% 181%
2007 $12.86 15.91% $ 835 0.65% 5.25% 1.15% 271%
2006(6) $11.44 14.92%+ $ 580 0.59% 7.71% 1.52% 252%
- -----------------------------------------------------------------
Turner Quantitative Large Cap Value Fund -- Investor Class Shares
- -----------------------------------------------------------------
2009*(7) $ 5.73 (21.70)%+ $ 4 0.94% 15.91% 0.18% 90%
* For the six-month period ended March 31, 2009, 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.
Excluding fees paid indirectly, the ratio of net expenses to average net
assets would have been 0.95%, 1.20%, 0.66%, 0.91%, and 0.72% for the Midcap
Equity Fund, Institutional Class Shares, Midcap Equity Fund, Investor
Class Shares, Quantitative Broad Market Equity Fund, Institutional Class
Shares, Quantitative Broad Market Equity Fund, Investor Class Shares, and
the Quantitative Large Cap Value Fund, Institutional Class Shares,
respectively, for the year ended September 30, 2008. The ratio of net
expenses to average net assets would have been 0.91%, 1.16%, 0.91%,
0.70%, and 0.95% for the Midcap Equity Fund, Institutional Class Shares,
Midcap Equity Fund, Investor Class Shares, Quantitative Broad Market
Equity Fund, Institutional Class Shares, Quantitative Broad Market Equity
Fund, Investor Class Shares, Quantitative Large Cap Value
Fund, Institutional Class Shares, and the Quantitative Large Cap Value
Fund, Investor Class Shares, respec- tively, for the period ended March
31, 2009.
+++ 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 January 31, 2007. All ratios for the period have
been annualized.
(4) Commenced operations on June 30, 2008. All ratios for the period have been
annualized.
(5) Commenced operations on February 1, 2009. All ratios for the period have
been annualized.
(6) Commenced operations on October 10, 2005. All ratios for the period have
been annualized.
(7) Commenced operations on October 31, 2008. All ratios for the period have
been annualized.
Amounts designated as "--" are either $0, not applicable or have been rounded
to $0.
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 58 & 59
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
March 31, 2009
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 twelve active portfolios as of March 31, 2009. 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 Large Cap Growth Fund (the "Large Cap Growth Fund"), the
Turner Midcap Growth Fund (the "Midcap Growth Fund"), the Turner New Enterprise
Fund (the "New Enterprise Fund"), Turner Small Cap Growth Fund (the "Small Cap
Growth Fund"), the Turner International Core Growth Fund (the "International
Core Growth Fund"), the Turner Midcap Equity Fund (the "Midcap Equity Fund"),
the Turner Quantitative Broad Market Equity Fund (the "Quantitative Broad
Market Equity Fund"), the Turner Small Cap Equity Fund (the "Small Cap Equity
Fund"), and the Turner Quantitative Large Cap Value Fund (the "Quantitative
Large Cap Value Fund"), each a "Fund" and collectively the "Funds." The
Quantitative Broad Market Equity Fund commenced operations on June 30, 2008.
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.
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.
Effective March 1, 2008, the Small Cap Equity Fund was reopened to new
investors and existing shareholders.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of the significant accounting policies followed by
the Funds.
USE OF ESTIMATES--The preparation of financial statements in conformity with
U.S. generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities 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.
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
60 | TURNER FUNDS 2009 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
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.
Financial Accounting Standards Board Statement of Financial Accounting
Standards No. 157, Fair Value Measurements ("FAS 157"), is effective for a
fund's financial statements issued after December 31, 2007. In accordance with
FAS 157, fair value is defined as the price that a fund would receive upon
selling an investment in a timely transaction to an independent buyer in the
principal or most advantageous market of the investment. FAS 157 established a
three-tier hierarchy to maximize the use of the observable market data and
minimize the use of unobservable inputs and to establish classification of the
fair value measurements for disclosure purposes. Inputs refer broadly to the
assumptions that market participants would use in pricing an asset or
liability. Inputs may be observable or unobservable. Observable inputs are
inputs that reflect the assumptions market participants would use in pricing
the asset or liability developed based on market data obtained from sources
independent of the reporting entity. Unobservable inputs are inputs that
reflect the reporting entity's own assumptions about the assumptions market
participants would use in pricing the asset or liability developed based on
the best information available in the circumstances.
The three-tier hierarchy of inputs is summarized in the three broad Levels
listed below:
Level 1 -- quoted prices in active markets for identical investments
Level 2 -- other significant observable inputs (including quoted prices for
similar investments, interest rates, prepayment speeds, credit risks, etc.)
Level 3 -- significant unobservable inputs (including a fund's own assumptions
in determining the fair value of investments)
The valuation techniques used by the Funds to measure fair value in accordance
with FAS 157 during the period ended March 31, 2009 maximized the use of
observable inputs and minimized the use of unobservable inputs.
The following is a summary of the inputs used as of March 31, 2009 in valuing
the Funds' investments in accordance with FAS 157 carried at value (000):
INVESTMENTS IN SECURITIES LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
- ------------------------- -------- ------- --------- --------
Turner Concentrated
Growth Fund $ 28,578 $ -- $ -- $ 28,578
Turner Core Growth Fund 440,820 -- -- 440,820
Turner Emerging
Growth Fund 335,282 -- -- 335,282
Turner Large Cap
Growth Fund 23,084 -- -- 23,084
Turner Midcap
Growth Fund 781,378 -- -- 781,378
Turner New
Enterprise Fund 20,002 -- -- 20,002
Turner Small Cap
Growth Fund 191,320 -- -- 191,320
Turner International
Core Growth Fund 2,557 -- -- 2,557
Turner Midcap Equity Fund 688 -- -- 688
Turner Quantitative Broad
Market Equity Fund 385 -- -- 385
Turner Small Cap
Equity Fund 26,117 -- -- 26,117
Turner Quantitative
Large Cap Value Fund 596 -- -- 596
TURNER FUNDS 2009 SEMIANNUAL REPORT | 61
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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 in 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.
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.
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. 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, 2009, SEI was paid $496,623 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
twenty-five basis points (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 Growth Fund, New Enterprise
Fund, Small Cap Growth Fund, International Core Growth Fund, Midcap Equity
Fund, Quantitative Broad Market Equity Fund, Small Cap Equity Fund and
Quantitative Large Cap Value 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, 2009, the following
Funds
62 | TURNER FUNDS 2009 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
earned cash management credits which were used to off-
set transfer agent expenses. These amounts are labeled as
"Fees Paid Indirectly" on the Statements of Operations.
AMOUNT
-----
Concentrated Growth Fund $1,108
Core Growth Fund 262
Emerging Growth Fund 1,176
Large Cap Growth Fund 89
Midcap Growth Fund 4,112
New Enterprise Fund 1,599
Small Cap Growth Fund 1,340
International Core Growth Fund 45
Midcap Equity Fund 35
Quantitative Broad Market Equity Fund 37
Small Cap Equity Fund 180
Quantitative Large Cap Value Fund 39
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 calcu-
lated 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 aver-
age daily net assets of each Fund, except the
Concentrated Growth Fund and New Enterprise Fund, on
an annualized basis through certain dates as disclosed in
the following table:
ADVISORY EXPENSE DATE
FEE CAP (THROUGH)
-------- ------- ----------------
Core Growth Fund
INSTITUTIONAL CLASS 0.60%* 0.69% January 31, 2010
INVESTOR CLASS 0.60%* 0.94% January 31, 2010
Emerging Growth Fund
INSTITUTIONAL CLASS 1.00% 1.15% January 31, 2010
INVESTOR CLASS 1.00% 1.40% January 31, 2010
Large Cap Growth Fund
INSTITUTIONAL CLASS 0.60% 0.69% January 31, 2010
INVESTOR CLASS 0.60% 0.94% January 31, 2010
Midcap Growth Fund
INSTITUTIONAL CLASS 0.75% 0.93% January 31, 2010
INVESTOR CLASS 0.75% 1.18% January 31, 2010
RETIREMENT CLASS 0.75% 1.43% January 31, 2010
Small Cap Growth Fund
INVESTOR CLASS 1.00% 1.25% January 31, 2010
International Core
Growth Fund
INSTITUTIONAL CLASS 0.85% 1.10% January 31, 2010
INVESTOR CLASS 0.85% 1.35% January 31, 2010
Midcap Equity Fund
INSTITUTIONAL CLASS 0.75% 0.90% January 31, 2010
INVESTOR CLASS 0.75% 1.15% January 31, 2010
Quantitative Broad Market
Equity Fund
INSTITUTIONAL CLASS 0.50% 0.64% January 31, 2010
INVESTOR CLASS 0.50% 0.89% January 31, 2010
Small Cap Equity Fund
INSTITUTIONAL CLASS 0.95% 1.20% January 31, 2010
INVESTOR CLASS 0.95% 1.45% January 31, 2010
Quantitative Large Cap
Value Fund
INSTITUTIONAL CLASS 0.60% 0.69% January 31, 2010
INVESTOR CLASS 0.60% 0.94% January 31, 2010
* PRIOR TO FEBRUARY 1, 2008, THE ADVISORY FEE FOR THE CORE GROWTH
FUND WAS 0.75%.
For the remaining Funds, the Concentrated Growth Fund
and the New Enterprise Fund, the advisory fee is com-
prised 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 perfor-
mance benchmark. The Fund's base fee (1.10% for both
the Concentrated Growth Fund and the New Enterprise
Fund) 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
TURNER FUNDS 2009 SEMIANNUAL REPORT | 63
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
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, 2009, the Funds' advisory fees, before
waivers, were adjusted in accordance with the policy described above:
BASE NET ADVISER
ADVISER PERFORMANCE FEE BEFORE
FEE ADJUSTMENT WAIVERS
-------- ----------- -----------
Concentrated Growth Fund $162,167 $ (93,960) $68,207
New Enterprise Fund 104,258 (101,134) 3,124
6. REDEMPTION FEES:
Sales or exchanges out of the Core Growth Fund, New Enterprise Fund, Small Cap
Equity Fund and the Quantitative Large Cap Value 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, 2009 were as follows
(000):
PURCHASES (000) SALES (000)
-------------- -----------
Concentrated Growth Fund $ 36,588 $ 37,556
Core Growth Fund 364,067 372,923
Emerging Growth Fund 159,810 117,227
Large Cap Growth Fund 18,131 16,711
Midcap Growth Fund 543,865 557,321
New Enterprise Fund 24,475 28,512
Small Cap Growth Fund 112,782 105,117
International Core Growth Fund 2,264 1,928
Midcap Equity Fund 1,003 666
Quantitative Broad Market Equity Fund 675 674
Small Cap Equity Fund 39,063 28,721
Quantitative Large Cap Value Fund 679 567
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, 2008 and September 30, 2007 were as follows (000):
ORDINARY LONG-TERM
INCOME CAPITAL GAIN TOTAL
-------- ------------ -----
Core Growth Fund
2008 $ 885 $ -- $ 885
2007 496 -- 496
Emerging Growth Fund
2008 $2,910 $84,527 $87,437
2007 -- 50,964 50,964
Large Cap Growth Fund
2008 $ 89 $ -- $ 89
2007 66 -- 66
International Core
Growth Fund
2008 $ 33 $ -- $ 33
2007 -- -- --
Small Cap Equity Fund
2008 $3,123 $ 6,394 $ 9,517
2007 128 5,573 5,701
Quantitative Large
Cap Value Fund
2008 $ 76 $ 42 $ 118
2007 21 -- 21
64 | TURNER FUNDS 2009 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
As of September 30, 2008, the components of distributable earnings (accumulated
losses) on a tax basis were as follows (000):
TOTAL
POST- DISTRIBUTABLE
UNDISTRIBUTED UNDISTRIBUTED CAPITAL POST- OCTOBER UNREALIZED OTHER EARNINGS
ORDINARY LONG-TERM LOSS OCTOBER CURRENCY APPRECIATION TEMPORARY (ACCUMULATED
INCOME CAPITAL GAIN CARRYFORWARD LOSSES LOSSES (DEPRECIATION) DIFFERENCES LOSSES)
------------- ------------- ------------ ------- ------- ------------- ---------- -------------
Concentrated
Growth Fund $ -- $ -- $(148,986) $ (11,634) $ -- $ (4,393) $ -- $(165,013)
Core Growth Fund 1,519 -- (1,346) (117,791) -- (55,221) -- (172,839)
Emerging Growth Fund -- 12,444 -- -- -- 47,157 (206) 59,395
Large Cap Growth Fund 34 -- (15,594) (5,748) -- (1,892) -- (23,200)
Midcap Growth Fund -- -- (256,451) (31,433) -- (48,476) -- (336,360)
New Enterprise Fund -- -- (8,815) (14,271) -- (3,487) -- (26,573)
Small Cap Growth Fund -- -- (51,190) (15,278) -- 5,261 -- (61,207)
International Core
Growth Fund 42 -- -- (556) (26) (599) -- (1,139)
Midcap Equity Fund -- -- (25) (91) -- (42) -- (158)
Quantitative Broad
Market Equity Fund 2 -- -- (37) -- (36) -- (71)
Small Cap Equity Fund 17 -- -- (5,170) -- 363 -- (4,790)
Quantitative Large Cap
Value Fund 11 -- -- (118) -- (25) -- (132)
Post-October losses represent losses realized on investment transactions from
November 1, 2007 through September 30, 2008 that, in accordance with Federal
income tax regulations, a Fund may elect to defer and treat as having arisen in
the following year. For Federal income tax purposes, capital loss carryforwards
may be carried forward and applied against future capital gains.
At September 30, 2008, 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 2012 2014 2015 2016 TOTAL
------ -------- ------- ------ ---- ---- ---- --------
Concentrated Growth Fund $3,435 $132,529 $12,850 $ -- $ -- $ -- $172 $148,986
Core Growth Fund -- -- 318 -- 201 827 -- 1,346
Large Cap Growth Fund -- 396 15,137 -- -- -- 61 15,594
Midcap Growth Fund -- 126,952 129,499 -- -- -- -- 256,451
New Enterprise Fund -- 8,182 386 247 -- -- -- 8,815
Small Cap Growth Fund -- 25,196 25,994 -- -- -- -- 51,190
Midcap Equity Fund -- -- -- -- -- -- 25 25
During the year ended September 30, 2008, the Core Growth Fund, Midcap Growth
Fund, New Enterprise Fund, and Small Cap Growth Fund utilized capital loss
carryforwards of $1,259,274, $27,801,581, $881,890, and $2,396,475,
respectively, to offset capital gains.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 65
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- --------------------------------------------------------------------------------
At March 31, 2009, the total cost of securities for Federal income tax purposes
and the aggregate gross unrealized appreciation and depreciation for the
investments held by the Funds were as follows (000):
NET UNREALIZED
FEDERAL UNREALIZED UNREALIZED APPRECIATION
FUND TAX COST APPRECIATION DEPRECIATION (DEPRECIATION)
- ---- -------- ------------ ------------ ---------------
Concentrated Growth Fund $ 29,501 $ 2,988 $ (3,911) $ (923)
Core Growth Fund 497,198 24,394 (80,772) (56,378)
Emerging Growth Fund 381,418 28,642 (74,778) (46,136)
Large Cap Growth Fund 25,707 1,761 (4,384) (2,623)
Midcap Growth Fund 883,315 53,026 (154,963) (101,937)
New Enterprise Fund 22,084 1,245 (3,327) (2,082)
Small Cap Growth Fund 213,824 12,834 (35,338) (22,504)
International Core Growth Fund 3,086 89 (618) (529)
Midcap Equity Fund 719 30 (61) (31)
Quantitative Broad Market Equity Fund 392 26 (33) (7)
Small Cap Equity Fund 26,685 1,506 (2,074) (568)
Quantitative Large Cap Value Fund 682 23 (109) (86)
Management has analyzed the Funds' tax position taken on Federal income tax
returns for all open tax years and has concluded that as of March 31, 2009, no
provision for income tax would be required in the Funds' financial statements.
The Funds' Federal and State income and Federal excise tax returns for tax
years for which the applicable statutes of limitations have not expired are
subject to examination by the Internal Revenue Service and state department of
revenue.
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 in the
BlackRock TempCash Fund, Institutional Shares, a money market 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. IN-KIND TRANSACTION:
During the six-months ended March 31, 2009, the Midcap Growth Fund distributed
securities in lieu of cash for a shareholder redemption. The shareholder
received a pro-rata portion of the Fund's holdings. The value of the redemption
was as follows:
DATE REDEMPTION SECURITIES CASH REALIZED LOSS FUND SHARES REDEEMED
- ---- ---------- ---------- ------- ------------- --------------------
12/22/08 $8,209,938 $8,167,796 $42,142 $3,254,486 458,074
This transaction was completed pursuant to procedures adopted by the Board.
These procedures are designed to minimize or eliminate any adverse tax
implications to the Funds and its shareholders.
12. OTHER MATTERS:
Due to volatility in the equity markets, the market value of some of the Funds'
holdings may currently be lower than shown in the Schedules of Investments
("SOI"). The values shown in the SOIs were the market values as of March 31,
2009 and do not reflect any market events after March 31, 2009.
66 | TURNER FUNDS 2009 SEMIANNUAL REPORT
BOARD OF TRUSTEES CONSIDERATIONS IN APPROVING THE ADVISORY AGREEMENTS
(Unaudited)
- --------------------------------------------------------------------------------
BOARD OF TRUSTEES CONSIDERATIONS IN APPROVING THE ADVISORY AGREEMENTS
On February 20, 2009, 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 a new Fund, the Turner Spectrum Fund). 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, personnel and operations; advisory
services; the Funds' performance; compliance; advisory fees and expenses paid
by the Funds for the fiscal year ended September 30, 2008; and information on
trading. 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, 2008; the Adviser's Form ADVs; and an
Adviser profitability report for the fiscal year ended September 30, 2008.
The Board, including all of the independent Trustees, considered (including to
the extent relevant, with respect to the proposed Turner Spectrum Fund), among
other things: (1) the nature, extent and quality of the services provided by the
Adviser; (2) the performance of the existing Funds over the past one, three,
five and ten years, where applicable, versus each Fund's respective Morningstar
category and peer group; (3) the contractual and actual compensation to be paid
under the agreements as compared to the compensation paid to relevant
Morningstar peer groups; (4) the expense ratios of the Funds, with expense
waivers, as compared to expense ratios for relevant Morningstar peer groups; (5)
the qualifications of the Adviser's personnel, portfolio management capabilities
and investment methodology; (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 existing
Fund for the year ended September 30, 2008; (9) "fall out" bene- fits 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 Advisory Agreements: the
recent performance of the existing Funds was, in most cases, lower than the
median (although the longer-term performance, where applicable, was in many
instances above the median); the advisory fees were generally competitive (half
of the existing Funds' advisory fees were above the median while the other half
were below the median, and the Spectrum Fund advisory fees were at the median);
and the gross and net total expense ratios of the Funds were generally
competitive (in most cases the gross and net total expense ratios were below
the median). The independent Trustees also concluded that: they were satisfied
with the quality of services provided by the Adviser in advising the existing
Funds; the profits earned by the Adviser seemed reasonable in light of the
nature, extent and quality of the services provided to each existing Fund; and
that each Fund was not large enough to attain significant economies of scale.
With respect to the Spectrum Fund, the Trustees considered, among other things,
the viability of the proposed strategy, the Adviser's experience,
qualifications and track record in managing that strategy in a limited
partnership vehicle and the length of that record as well as the quality of
that performance. The Trustees also considered the proposed fees for the
Spectrum Fund, as compared to those of its competitors, including both the net
and total expense ratios. They discussed the need for establishment of prime
brokerage arrangements for the Spectrum Fund with Goldman Sachs & Co. and the
Funds' custodian and considered the Adviser's experience in handling similar
prime brokerage 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 the Spectrum Fund) and (b)
determined that the compensation payable by the Trust's Funds under the
Advisory Agreements is fair and reasonable.
TURNER FUNDS 2009 SEMIANNUAL REPORT | 67
DISCLOSURE OF FUND EXPENSES
- --------------------------------------------------------------------------------
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 and on the next page 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
10/1/08 3/31/09 RATIOS PERIOD*
- --------------------------------------------------------------------------------
Turner Concentrated Growth Fund -- Investor Class Shares
- --------------------------------------------------------------------------------
Actual Fund Return $1,000.00 $666.10 0.71% $2.95
Hypothetical
5% Return 1,000.00 1,021.39 0.71 3.58
- --------------------------------------------------------------------------------
Turner Core Growth Fund -- Institutional Class Shares
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 723.40 0.69 2.96
Hypothetical
5% Return 1,000.00 1,021.49 0.69 3.48
- --------------------------------------------------------------------------------
Turner Core Growth Fund -- Investor Class Shares
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 723.00 0.94 4.04
Hypothetical
5% Return 1,000.00 1,020.24 0.94 4.73
- --------------------------------------------------------------------------------
Turner Emerging Growth Fund -- Institutional Class Shares
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 976.20 1.15 1.81**
Hypothetical
5% Return 1,000.00 1,019.20 1.15 5.79
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/1/08 3/31/09 RATIOS PERIOD*
- ----------------------------------------------------------------------------------
Turner Emerging Growth Fund -- Investor Class Shares
- ----------------------------------------------------------------------------------
Actual Fund Return $1,000.00 $ 623.40 1.40% $5.67
Hypothetical
5% Return 1,000.00 1,017.95 1.40 7.04
- ----------------------------------------------------------------------------------
Turner Large Cap Growth Fund -- Institutional Class Shares
- ----------------------------------------------------------------------------------
Actual Fund Return 1,000.00 741.70 0.69 3.00
Hypothetical
5% Return 1,000.00 1,021.49 0.69 3.48
- ----------------------------------------------------------------------------------
Turner Large Cap Growth Fund -- Investor Class Shares
- ----------------------------------------------------------------------------------
Actual Fund Return 1,000.00 741.20 0.94 4.08
Hypothetical
5% Return 1,000.00 1,020.24 0.94 4.73
- ----------------------------------------------------------------------------------
Turner Midcap Growth Fund -- Institutional Class Shares
- ----------------------------------------------------------------------------------
Actual Fund Return 1,000.00 683.20 0.93 3.90
Hypothetical
5% Return 1,000.00 1,020.29 0.93 4.68
- ----------------------------------------------------------------------------------
68 | TURNER FUNDS 2009 SEMIANNUAL REPORT
(Unaudited)
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/1/08 3/31/09 RATIOS PERIOD*
- --------------------------------------------------------------------------------
Turner Midcap Growth Fund -- Investor Class Shares
- --------------------------------------------------------------------------------
Actual Fund Return $1,000.00 $ 682.20 1.18% $4.95
Hypothetical
5% Return 1,000.00 1,019.05 1.18 5.94
- --------------------------------------------------------------------------------
Turner Midcap Growth Fund -- Retirement Class Shares
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 681.50 1.43 5.99
Hypothetical
5% Return 1,000.00 1,017.80 1.43 7.19
- --------------------------------------------------------------------------------
Turner New Enterprise Fund -- Investor Class Shares
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 687.50 0.28 1.18
Hypothetical
5% Return 1,000.00 1,023.54 0.28 1.41
- --------------------------------------------------------------------------------
Turner Small Cap Growth Fund -- Investor Class Shares
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 662.40 1.25 5.18
Hypothetical
5% Return 1,000.00 1,018.70 1.25 6.29
- --------------------------------------------------------------------------------
Turner International Core Growth Fund --
Institutional Class Shares
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 669.70 1.10 4.58
Hypothetical
5% Return 1,000.00 1,019.45 1.10 5.54
- --------------------------------------------------------------------------------
Turner International Core Growth Fund --
Investor Class Shares
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 890.80 1.35 5.31***
Hypothetical
5% Return 1,000.00 1,018.20 1.35 6.79
- --------------------------------------------------------------------------------
Turner Midcap Equity Fund -- Institutional Class Shares
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 695.80 0.90 3.81
Hypothetical
5% Return 1,000.00 1,020.44 0.90 4.53
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
10/1/08 3/31/09 RATIOS PERIOD*
- --------------------------------------------------------------------------------
Turner Midcap Equity Fund -- Investor Class Shares
- --------------------------------------------------------------------------------
Actual Fund Return $1,000.00 $ 692.30 1.15% $4.85
Hypothetical
5% Return 1,000.00 1,019.20 1.15 5.79
- --------------------------------------------------------------------------------
Turner Quantitative Broad Market Equity Fund --
Institutional Class Shares
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 708.50 0.64 2.73
Hypothetical
5% Return 1,000.00 1,021.74 0.64 3.23
- --------------------------------------------------------------------------------
Turner Quantitative Broad Market Equity Fund --
Investor Class Shares
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 707.20 0.89 3.79
Hypothetical
5% Return 1,000.00 1,020.49 0.89 4.48
- --------------------------------------------------------------------------------
Turner Small Cap Equity Fund -- Institutional Class Shares
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 948.70 1.20 1.86**
Hypothetical
5% Return 1,000.00 1,018.95 1.20 6.04
- --------------------------------------------------------------------------------
Turner Small Cap Equity Fund -- Investor Class Shares
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 641.30 1.45 5.93
Hypothetical
5% Return 1,000.00 1,017.70 1.45 7.29
- --------------------------------------------------------------------------------
Turner Quantitative Large Cap Value Fund --
Institutional Class Shares
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 654.70 0.69 2.85
Hypothetical
5% Return 1,000.00 1,021.49 0.69 3.48
- --------------------------------------------------------------------------------
Turner Quantitative Large Cap Value Fund -- Investor Class Shares
- --------------------------------------------------------------------------------
Actual Fund Return 1,000.00 783.00 0.94 3.49***
Hypothetical
5% Return 1,000.00 1,020.24 0.94 4.73
- --------------------------------------------------------------------------------
* Unless otherwise indicated, expenses are equal to the Fund's annualized
expense ratio multiplied by the average account value over the period,
multiplied by 182/365 (to reflect the one-half year period from 10/1/08 -
3/31/09.)
** Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 58/365 (to reflect the
period from inception to date, 2/1/09 - 3/31/09.)
*** Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 152/365 (to reflect the
period from inception to date, 10/31/08 - 3/31/09.)
TURNER FUNDS 2009 SEMIANNUAL REPORT | 69
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70 | TURNER FUNDS 2009 SEMIANNUAL REPORT
THIS PAGE WAS INTENTIONALLY LEFT BLANK
TURNER FUNDS 2009 SEMIANNUAL REPORT | 71
TURNER FUNDS
TURNER FUNDS' TRUSTEES
ALFRED C. SALVATO
Chief Investment Officer & Treasurer
Thomas Jefferson University
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, 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; (ii) on the Commission's website at
http://www.sec.gov; and (iii) without charge by calling 1.800.224.6312.
72 | TURNER FUNDS 2009 SEMIANNUAL REPORT
TURNER FUNDS
P.O. Box 219805
Kansas City, Missouri 64121-9805
Telephone: 1.800.224.6312
Email: mutualfunds@turnerinvestments.com
Web Site:www.turnerinvestments.com
TUR-SA-002-0503
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 and CEO
Date: June 5, 2009
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title) /s/ Thomas R. Trala, Jr.
------------------------------
Thomas R. Trala, Jr.,
President and CEO
Date: June 5, 2009
By (Signature and Title) /s/ Michael Lawson
------------------------------
Michael Lawson,
Controller and CFO
Date: June 5, 2009