UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
|
Investment Company Act file number |
811-07527 | |||||||
|
| ||||||||
|
Turner Funds | ||||||||
|
(Exact name of registrant as specified in charter) | ||||||||
|
| ||||||||
|
1205 Westlakes Drive, Suite 100 Berwyn, PA |
|
19312 | ||||||
|
(Address of principal executive offices) |
|
(Zip code) | ||||||
|
| ||||||||
|
Michael P. Malloy Drinker Biddle & Reath LLP One Logan Square, Suite 2000 Philadelphia, PA 19103 | ||||||||
|
(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 |
| ||||||
|
| ||||||||
|
Date of reporting period: |
June 30, 2016 |
| ||||||
Item 1. Schedules of Investments.
Schedule of investments
Turner Medical Sciences Long/Short Fund
June 30, 2016
(Unaudited)
|
|
|
|
|
Value |
| |
|
|
|
Shares |
|
(000) |
| |
|
Common stock-93.0% |
|
|
|
|
| |
|
Biotechnology-33.6% |
|
|
|
|
| |
|
Achillion Pharmaceuticals*^ |
|
283,350 |
|
$ |
2,211 |
|
|
Alexion Pharmaceuticals* |
|
7,700 |
|
899 |
| |
|
Alnylam Pharmaceuticals* |
|
10,370 |
|
575 |
| |
|
Cidara Therapeutics* |
|
27,451 |
|
283 |
| |
|
Coherus Biosciences*^ |
|
117,850 |
|
1,990 |
| |
|
Exact Sciences* |
|
75,280 |
|
922 |
| |
|
Gilead Sciences |
|
14,610 |
|
1,219 |
| |
|
Heron Therapeutics*^ |
|
96,570 |
|
1,743 |
| |
|
Momenta Pharmaceuticals*^ |
|
190,014 |
|
2,053 |
| |
|
Oncomed Pharmaceuticals* |
|
71,240 |
|
877 |
| |
|
Progenics Pharmaceuticals*^ |
|
127,126 |
|
536 |
| |
|
Prothena*^ |
|
20,590 |
|
720 |
| |
|
Raptor Pharmaceuticals*^ |
|
177,530 |
|
953 |
| |
|
Retrophin*^ |
|
90,354 |
|
1,609 |
| |
|
Tesaro*^ |
|
9,690 |
|
814 |
| |
|
Trevena*^ |
|
136,300 |
|
859 |
| |
|
Vascular Biogenics* |
|
178,710 |
|
824 |
| |
|
Total Biotechnology |
|
|
|
19,087 |
| |
|
|
|
|
|
|
| |
|
Health care equipment & supplies-14.1% |
|
|
|
|
| |
|
CONMED^ |
|
45,418 |
|
2,168 |
| |
|
Edwards Lifesciences*^ |
|
19,300 |
|
1,925 |
| |
|
Intuitive Surgical*^ |
|
2,610 |
|
1,726 |
| |
|
St. Jude Medical^ |
|
27,900 |
|
2,176 |
| |
|
Total Health care equipment & supplies |
|
|
|
7,995 |
| |
|
|
|
|
|
|
| |
|
Health care providers & services-3.6% |
|
|
|
|
| |
|
Adeptus Health, Cl A*^ |
|
24,880 |
|
1,285 |
| |
|
BioTelemetry*^ |
|
47,048 |
|
767 |
| |
|
Total Health care providers & services |
|
|
|
2,052 |
| |
|
|
|
|
|
|
| |
|
Pharmaceuticals-41.7% |
|
|
|
|
| |
|
Abbott Laboratories^ |
|
77,490 |
|
3,046 |
| |
|
Aratana Therapeutics*^ |
|
355,490 |
|
2,247 |
| |
|
Bristol-Myers Squibb^ |
|
44,020 |
|
3,239 |
| |
|
Cardiome Pharma(a)*^ |
|
400,000 |
|
2,052 |
| |
|
Flamel Technologies ADR*^ |
|
114,338 |
|
1,228 |
| |
|
GlaxoSmithKline ADR^ |
|
62,100 |
|
2,691 |
| |
|
Horizon Pharma*^ |
|
71,420 |
|
1,176 |
| |
|
Mallinckrodt*^ |
|
18,920 |
|
1,150 |
| |
|
Ocera Therapeutics(a)*^ |
|
139,716 |
|
265 |
| |
|
Paratek Pharmaceuticals* |
|
61,480 |
|
855 |
| |
|
Pfizer^ |
|
77,750 |
|
2,738 |
| |
|
SteadyMed(a)*^ |
|
242,500 |
|
793 |
| |
|
Teligent*^ |
|
321,286 |
|
2,294 |
| |
|
Total Pharmaceuticals |
|
|
|
23,774 |
| |
|
Total Common stock |
|
|
|
52,908 |
| |
|
|
|
|
|
|
| |
|
Warrant-0.0% |
|
|
|
|
| |
|
Biotechnology-0.0% |
|
|
|
|
| |
|
NephroGenex(a)* |
|
65,000 |
|
— |
| |
|
Total Biotechnology |
|
|
|
— |
| |
|
Total Warrant |
|
|
|
— |
| |
|
|
|
|
|
|
| |
|
Cash equivalent - 4.7% |
|
|
|
|
| |
|
BlackRock Liquidity Funds TempCash Portfolio, Dollar Shares, 0.391%‡ |
|
2,665,422 |
|
2,665 |
| |
|
Total Cash equivalent |
|
|
|
2,665 |
| |
|
Total Investments-97.7% |
|
|
|
55,573 |
| |
|
Segregated cash with brokers-86.8% |
|
|
|
49,336 |
| |
|
Securities sold short-(74.6)% |
|
|
|
(42,427 |
) | |
|
|
|
|
|
|
| |
|
Net Other assets (liabilities)-(9.9)% |
|
|
|
(5,616 |
) | |
|
Net Assets-100.0% |
|
|
|
$ |
56,866 |
|
|
|
Amounts designated as “-” have been rounded to $0. |
|
(a) |
These securities have been deemed illiquid by the Adviser and represent 5.47% of Net Assets. |
|
* |
Non-income producing security. |
|
** |
This number is listed in thousands. |
|
^ |
All or a portion of the shares have been committed as collateral for open short positions. |
|
‡ |
Rate shown is the 7-day effective yield as of June 30, 2016. |
|
|
|
|
ADR |
American Depositary Receipt |
|
Cl |
Class |
See accompanying notes to schedules of investments.
Schedule of securities sold short
Turner Medical Sciences Long/Short Fund
June 30, 2016
(Unaudited)
|
|
|
|
|
Value |
| |
|
|
|
Shares |
|
(000) |
| |
|
Common stock-24.8% |
|
|
|
|
| |
|
Biotechnology-5.5% |
|
|
|
|
| |
|
AbbVie |
|
23,520 |
|
$ |
1,457 |
|
|
Incyte |
|
5,840 |
|
467 |
| |
|
Intrexon |
|
24,510 |
|
603 |
| |
|
Regeneron Pharmaceuticals |
|
1,730 |
|
604 |
| |
|
Total Biotechnology |
|
|
|
3,131 |
| |
|
Food & staples retailing-1.7% |
|
|
|
|
| |
|
|
|
|
|
|
| |
|
CVS Health |
|
10,350 |
|
991 |
| |
|
Total Food & staples retailing |
|
|
|
991 |
| |
|
|
|
|
|
|
| |
|
Health care equipment & supplies-3.9% |
|
|
|
|
| |
|
Hologic |
|
38,370 |
|
1,328 |
| |
|
Zimmer Biomet Holdings |
|
7,360 |
|
886 |
| |
|
Total Health care equipment & supplies |
|
|
|
2,214 |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
Health care providers & services-4.5% |
|
|
|
|
| |
|
HCA Holdings |
|
9,980 |
|
768 |
| |
|
Laboratory Corp. of America Holdings |
|
5,680 |
|
740 |
| |
|
LifePoint Health |
|
9,620 |
|
629 |
| |
|
Universal Health Services, Cl B |
|
3,250 |
|
436 |
| |
|
Total Health care providers & services |
|
|
|
2,573 |
| |
|
|
|
|
|
|
| |
|
Health care technology-0.9% |
|
|
|
|
| |
|
athenahealth |
|
3,560 |
|
491 |
| |
|
Total Health care technology |
|
|
|
491 |
| |
|
|
|
|
|
|
| |
|
Life sciences tools & services-6.3% |
|
|
|
|
| |
|
ICON |
|
12,040 |
|
843 |
| |
|
Mettler-Toledo International |
|
1,950 |
|
712 |
| |
|
PerkinElmer |
|
21,620 |
|
1,133 |
| |
|
Waters |
|
6,210 |
|
873 |
| |
|
Total Life sciences tools & services |
|
|
|
3,561 |
| |
|
|
|
|
|
|
| |
|
Pharmaceuticals-2.0% |
|
|
|
|
| |
|
Dr. Reddy’s Laboratories ADR |
|
22,750 |
|
1,165 |
| |
|
Total Pharmaceuticals |
|
|
|
1,165 |
| |
|
Total Common stock |
|
|
|
14,126 |
| |
|
|
|
|
|
|
| |
|
Exchange traded funds - 49.8% |
|
|
|
|
| |
|
Health Care Select Sector SPDR Fund |
|
100,340 |
|
7,196 |
| |
|
iShares NASDAQ Biotechnology ETF |
|
25,770 |
|
6,632 |
| |
|
iShares Russell 2000 Growth ETF |
|
68,470 |
|
7,872 |
| |
|
SPDR S&P Biotech ETF |
|
122,040 |
|
6,601 |
| |
|
Total Exchange traded funds |
|
|
|
28,301 |
| |
|
Total Securities sold short-74.6% |
|
|
|
$ |
42,427 |
|
Percentages disclosed are based on total net assets of the Fund at June 30, 2016.
* This number is listed in thousands.
ADR American Depositary Receipt
Cl Class
ETF Exchange Traded Fund
SPDR Standard & Poor’s Depositary Receipt
See accompanying notes to schedules of investments.
Schedule of investments
Turner Titan Long/Short Fund
June 30, 2016
(Unaudited)
|
|
|
|
|
Value |
| |
|
|
|
Shares |
|
(000) |
| |
|
Common stock-89.7%† |
|
|
|
|
| |
|
Consumer discretionary-13.4% |
|
|
|
|
| |
|
2U* |
|
8,810 |
|
$ |
259 |
|
|
Amazon.com*^ |
|
1,520 |
|
1,088 |
| |
|
CBS, Cl B^ |
|
14,320 |
|
780 |
| |
|
Dave & Buster’s Entertainment* |
|
4,380 |
|
205 |
| |
|
Dollar General^ |
|
8,920 |
|
838 |
| |
|
Lowe’s^ |
|
6,400 |
|
507 |
| |
|
Starbucks |
|
7,550 |
|
431 |
| |
|
Wynn Resorts |
|
3,960 |
|
359 |
| |
|
Total Consumer discretionary |
|
|
|
4,467 |
| |
|
|
|
|
|
|
| |
|
Consumer staples-4.5% |
|
|
|
|
| |
|
Constellation Brands, Cl A^ |
|
4,730 |
|
782 |
| |
|
PepsiCo^ |
|
6,700 |
|
710 |
| |
|
Total Consumer staples |
|
|
|
1,492 |
| |
|
|
|
|
|
|
| |
|
Energy-5.6% |
|
|
|
|
| |
|
Antero Resources* |
|
34,320 |
|
892 |
| |
|
Halliburton |
|
9,630 |
|
436 |
| |
|
Whiting Petroleum* |
|
58,520 |
|
542 |
| |
|
Total Energy |
|
|
|
1,870 |
| |
|
|
|
|
|
|
| |
|
Financials-10.0% |
|
|
|
|
| |
|
American Tower |
|
5,000 |
|
568 |
| |
|
Bank of New York Mellon^ |
|
11,020 |
|
428 |
| |
|
CME Group^ |
|
5,280 |
|
514 |
| |
|
Discover Financial Services |
|
7,740 |
|
415 |
| |
|
QTS Realty Trust, Cl A^ |
|
15,320 |
|
858 |
| |
|
SunTrust Banks |
|
7,770 |
|
319 |
| |
|
The Charles Schwab^ |
|
8,800 |
|
223 |
| |
|
Total Financials |
|
|
|
3,325 |
| |
|
|
|
|
|
|
| |
|
Health care-13.5% |
|
|
|
|
| |
|
Abbott Laboratories |
|
6,570 |
|
258 |
| |
|
Alexion Pharmaceuticals* |
|
2,930 |
|
342 |
| |
|
Boston Scientific*^ |
|
30,340 |
|
709 |
| |
|
Bristol-Myers Squibb^ |
|
10,350 |
|
762 |
| |
|
Celgene*^ |
|
7,750 |
|
765 |
| |
|
Oncomed Pharmaceuticals* |
|
20,570 |
|
253 |
| |
|
Prothena* |
|
5,400 |
|
189 |
| |
|
Thermo Fisher Scientific^ |
|
5,090 |
|
752 |
| |
|
UnitedHealth Group, Cl B |
|
2,450 |
|
346 |
| |
|
Vascular Biogenics* |
|
28,290 |
|
130 |
| |
|
Total Health care |
|
|
|
4,506 |
| |
|
|
|
|
|
|
| |
|
Industrials-6.3% |
|
|
|
|
| |
|
Eaton^ |
|
10,090 |
|
603 |
| |
|
Northrop Grumman |
|
1,290 |
|
287 |
| |
|
Raytheon^ |
|
5,360 |
|
728 |
| |
|
Southwest Airlines^ |
|
11,850 |
|
465 |
| |
|
Total Industrials |
|
|
|
2,083 |
| |
|
|
|
|
|
|
| |
|
Information technology-22.8% |
|
|
|
|
| |
|
Alphabet, Cl A*^ |
|
590 |
|
415 |
| |
|
Broadcom^ |
|
4,430 |
|
688 |
| |
|
Citrix Systems* |
|
3,700 |
|
296 |
| |
|
DST Systems |
|
2,990 |
|
348 |
| |
|
Electronic Arts*^ |
|
8,220 |
|
623 |
| |
|
F5 Networks*^ |
|
6,350 |
|
723 |
| |
|
Facebook, Cl A*^ |
|
5,290 |
|
605 |
| |
|
Gigamon* |
|
9,340 |
|
349 |
| |
|
Monolithic Power Systems |
|
5,000 |
|
342 |
| |
|
NXP Semiconductors*^ |
|
8,720 |
|
683 |
| |
|
Salesforce.com*^ |
|
11,110 |
|
881 |
| |
|
ServiceNow* |
|
5,090 |
|
338 |
| |
|
Shopify, Cl A* |
|
8,710 |
|
268 |
| |
|
Vantiv, Cl A*^ |
|
6,400 |
|
362 |
| |
|
Western Digital |
|
6,000 |
|
284 |
| |
|
Yelp* |
|
11,300 |
|
343 |
| |
|
Total Information technology |
|
|
|
7,548 |
| |
|
|
|
|
|
|
| |
|
Materials-13.6% |
|
|
|
|
| |
|
AngloGold Ashanti ADR* |
|
29,790 |
|
538 |
| |
|
Barrick Gold ADR |
|
48,480 |
|
1,034 |
| |
|
Chemtura* |
|
15,870 |
|
419 |
| |
|
Kinross Gold* |
|
165,760 |
|
811 |
| |
|
Newmont Mining |
|
26,390 |
|
1,032 |
| |
|
Summit Materials, Cl A* |
|
33,510 |
|
686 |
| |
|
Total Materials |
|
|
|
4,520 |
| |
|
Total Common stock |
|
|
|
29,811 |
| |
|
|
|
|
|
|
| |
|
Warrant-0.0% |
|
|
|
|
| |
|
Financials-0.0% |
|
|
|
|
| |
|
Atlas Mara(a)* |
|
472,160 |
|
9 |
| |
|
Total Financials |
|
|
|
9 |
| |
|
Total Warrant |
|
|
|
9 |
| |
|
|
|
|
|
|
| |
|
Cash equivalent - 7.9% |
|
|
|
|
| |
|
BlackRock Liquidity Funds TempCash Portfolio, Dollar Shares, 0.391%‡ |
|
2,626,798 |
|
2,627 |
| |
|
|
|
|
|
|
| |
|
Total Cash equivalent |
|
|
|
2,627 |
| |
|
Total Investments-97.6% |
|
|
|
32,447 |
| |
|
|
|
|
|
|
| |
|
Segregated cash with brokers-71.2% |
|
|
|
23,693 |
| |
|
Securities sold short-(88.6)% |
|
|
|
(29,454 |
) | |
|
|
|
|
|
|
| |
|
Net Other assets (liabilities)-19.8% |
|
|
|
6,569 |
| |
|
Net Assets-100.0% |
|
|
|
$ |
33,255 |
|
(a) These securities have been deemed illiquid by the Adviser and represent 0.03% of Net Assets.
* Non-income producing security.
** This number is listed in thousands.
^ All or a portion of the shares have been committed as collateral for open short positions.
† More narrow industries are utilized for compliance purposes, whereas broad sectors are utilized for reporting purposes.
‡ Rate shown is the 7-day effective yield as of June 30, 2016.
ADR American Depositary Receipt
Cl Class
See accompanying notes to schedules of investments.
Schedule of securities sold short
Turner Titan Long/Short Fund
June 30, 2016
(Unaudited)
|
|
|
|
|
Value |
| |
|
|
|
Shares |
|
(000) |
| |
|
Common stock-58.0% |
|
|
|
|
| |
|
Consumer discretionary-13.8% |
|
|
|
|
| |
|
BorgWarner |
|
9,960 |
|
$ |
294 |
|
|
Buffalo Wild Wings |
|
1,500 |
|
208 |
| |
|
CarMax |
|
8,370 |
|
410 |
| |
|
Carnival, Cl A |
|
11,200 |
|
496 |
| |
|
Discovery Communications, Cl A |
|
10,000 |
|
252 |
| |
|
Hanesbrands |
|
8,500 |
|
214 |
| |
|
Marriott International, Cl A |
|
6,100 |
|
405 |
| |
|
O’Reilly Automotive |
|
1,590 |
|
431 |
| |
|
Priceline Group |
|
400 |
|
500 |
| |
|
Tesla Motors |
|
2,200 |
|
467 |
| |
|
Tiffany |
|
3,870 |
|
235 |
| |
|
TripAdvisor |
|
4,720 |
|
303 |
| |
|
VF |
|
6,300 |
|
387 |
| |
|
Total Consumer discretionary |
|
|
|
4,602 |
| |
|
|
|
|
|
|
| |
|
Energy-11.4% |
|
|
|
|
| |
|
Apache |
|
13,760 |
|
766 |
| |
|
Continental Resources |
|
14,200 |
|
643 |
| |
|
Denbury Resources |
|
131,200 |
|
471 |
| |
|
Marathon Petroleum |
|
7,500 |
|
285 |
| |
|
Patterson-UTI Energy |
|
45,950 |
|
979 |
| |
|
Range Resources |
|
14,970 |
|
646 |
| |
|
Total Energy |
|
|
|
3,790 |
| |
|
|
|
|
|
|
| |
|
Financials-2.7% |
|
|
|
|
| |
|
American Express |
|
5,200 |
|
316 |
| |
|
Franklin Resources |
|
10,000 |
|
333 |
| |
|
State Street |
|
4,500 |
|
243 |
| |
|
Total Financials |
|
|
|
892 |
| |
|
|
|
|
|
|
| |
|
Health care-1.5% |
|
|
|
|
| |
|
Express Scripts Holdings |
|
4,500 |
|
342 |
| |
|
Varian Medical Systems |
|
2,000 |
|
164 |
| |
|
Total Health care |
|
|
|
506 |
| |
|
|
|
|
|
|
| |
|
Industrials-14.6% |
|
|
|
|
| |
|
3M |
|
3,450 |
|
604 |
| |
|
AGCO |
|
14,420 |
|
680 |
| |
|
Applied Industrial Technologies |
|
15,390 |
|
695 |
| |
|
General Electric |
|
8,220 |
|
259 |
| |
|
Heartland Express |
|
14,370 |
|
250 |
| |
|
J.B. Hunt Transport Services |
|
8,490 |
|
687 |
| |
|
Kennametal |
|
20,370 |
|
450 |
| |
|
Roper Technologies |
|
1,750 |
|
298 |
| |
|
Swift Transportation |
|
21,110 |
|
325 |
| |
|
Textron |
|
7,000 |
|
256 |
| |
|
Valmont Industries |
|
2,430 |
|
329 |
| |
|
Total Industrials |
|
|
|
4,833 |
| |
|
|
|
|
|
|
| |
|
Information technology-8.8% |
|
|
|
|
| |
|
Akamai Technologies |
|
5,620 |
|
314 |
| |
|
Alibaba Group Holding ADR |
|
6,080 |
|
484 |
| |
|
CDW Corp. of Delaware |
|
7,100 |
|
285 |
| |
|
Check Point Software Technologies |
|
5,500 |
|
438 |
| |
|
Cognizant Technology Solutions, Cl A |
|
4,000 |
|
229 |
| |
|
Intel |
|
18,590 |
|
610 |
| |
|
Linear Technology |
|
7,360 |
|
342 |
| |
|
Oclaro |
|
47,220 |
|
230 |
| |
|
Total Information technology |
|
|
|
2,932 |
| |
|
|
|
|
|
|
| |
|
Materials-4.0% |
|
|
|
|
| |
|
Compass Minerals International |
|
9,980 |
|
741 |
| |
|
PolyOne |
|
16,780 |
|
591 |
| |
|
Total Materials |
|
|
|
|
1,332 |
|
|
|
|
|
|
|
| |
|
Telecommunication services-1.2% |
|
|
|
|
| |
|
SBA Communications, Cl A |
|
3,600 |
|
389 |
| |
|
Total Telecommunication services |
|
|
|
389 |
| |
|
Total Common stock (Proceeds $19,770)* |
|
|
|
19,276 |
| |
|
|
|
|
|
|
| |
|
Exchange traded funds-30.6% |
|
|
|
|
| |
|
iShares Russell 1000 Growth ETF |
|
30,550 |
|
3,066 |
| |
|
SPDR S&P 500 ETF Trust |
|
24,310 |
|
5,094 |
| |
|
SPDR S&P Bank ETF |
|
33,150 |
|
1,010 |
| |
|
SPDR S&P Oil & Gas Exploration & Production ETF |
|
28,960 |
|
1,008 |
| |
|
Total Exchange traded funds |
|
|
|
10,178 |
| |
|
Total Securities sold short-88.6% |
|
|
|
$ |
29,454 |
|
Percentages disclosed are based on total net assets of the Fund at June 30, 2016.
* This number is listed in thousands.
ADR American Depositary Receipt
Cl Class
ETF Exchange Traded Fund
SPDR Standard & Poor’s Depositary Receipt
See accompanying notes to schedules of investments.
Schedule of investments
Turner SMID Cap Growth Opportunities Fund
June 30, 2016
(Unaudited)
|
|
|
|
|
Value |
| |
|
|
|
Shares |
|
(000) |
| |
|
Common stock-76.5%† |
|
|
|
|
| |
|
Consumer discretionary-9.7% |
|
|
|
|
| |
|
Burlington Stores* |
|
27,000 |
|
$ |
1,801 |
|
|
Five Below* |
|
24,000 |
|
1,114 |
| |
|
Texas Roadhouse |
|
35,000 |
|
1,596 |
| |
|
The Tile Shop Holdings* |
|
65,000 |
|
1,292 |
| |
|
Total Consumer discretionary |
|
|
|
5,803 |
| |
|
|
|
|
|
|
| |
|
Energy-5.0% |
|
|
|
|
| |
|
Helmerich & Payne |
|
20,000 |
|
1,343 |
| |
|
Rice Midstream Partners LP |
|
23,000 |
|
470 |
| |
|
Rsp Permian*^ |
|
35,000 |
|
1,221 |
| |
|
Total Energy |
|
|
|
3,034 |
| |
|
|
|
|
|
|
| |
|
Financials-3.6% |
|
|
|
|
| |
|
Franklin Financial Network* |
|
25,000 |
|
784 |
| |
|
Physicians Realty Trust |
|
66,000 |
|
1,387 |
| |
|
Total Financials |
|
|
|
2,171 |
| |
|
|
|
|
|
|
| |
|
Health care-18.8% |
|
|
|
|
| |
|
ABIOMED* |
|
20,000 |
|
2,186 |
| |
|
AMN Healthcare Services* |
|
39,000 |
|
1,559 |
| |
|
Anika Therapeutics* |
|
30,000 |
|
1,610 |
| |
|
Intuitive Surgical* |
|
3,500 |
|
2,315 |
| |
|
Ligand Pharmaceuticals, Cl B*^ |
|
20,000 |
|
2,384 |
| |
|
Prestige Brands Holdings* |
|
23,000 |
|
1,274 |
| |
|
Total Health care |
|
|
|
11,328 |
| |
|
|
|
|
|
|
| |
|
Industrials-10.3% |
|
|
|
|
| |
|
Beacon Roofing Supply* |
|
37,000 |
|
1,682 |
| |
|
Fortune Brands Home & Security |
|
25,000 |
|
1,449 |
| |
|
Huntington Ingalls Industries |
|
12,000 |
|
2,017 |
| |
|
Kar Auction Services |
|
25,000 |
|
1,044 |
| |
|
Total Industrials |
|
|
|
6,192 |
| |
|
|
|
|
|
|
| |
|
Information technology-27.4% |
|
|
|
|
| |
|
Acacia Communications*^ |
|
5,000 |
|
200 |
| |
|
Alarm.com Holding*^ |
|
70,000 |
|
1,794 |
| |
|
Exlservice Holdings* |
|
20,000 |
|
1,048 |
| |
|
Gigamon* |
|
40,000 |
|
1,496 |
| |
|
Inphi* |
|
17,000 |
|
545 |
| |
|
Lam Research |
|
17,000 |
|
1,429 |
| |
|
Lumentum Holdings* |
|
5,000 |
|
121 |
| |
|
MaxLinear, Cl A* |
|
39,000 |
|
701 |
| |
|
Mercury Systems* |
|
60,000 |
|
1,492 |
| |
|
Mobileye*^ |
|
29,000 |
|
1,338 |
| |
|
Monolithic Power Systems |
|
20,000 |
|
1,366 |
| |
|
Shopify, Cl A* |
|
45,000 |
|
1,384 |
| |
|
Ubiquiti Networks* |
|
28,000 |
|
1,082 |
| |
|
Ultratech* |
|
55,000 |
|
1,263 |
| |
|
Universal Display* |
|
18,000 |
|
1,220 |
| |
|
Total Information technology |
|
|
|
16,479 |
| |
|
|
|
|
|
|
| |
|
Materials-1.7% |
|
|
|
|
| |
|
Agnico Eagle Mines^ |
|
19,000 |
|
1,017 |
| |
|
Total Materials |
|
|
|
1,017 |
| |
|
Total Common stock |
|
|
|
46,024 |
| |
|
|
|
|
|
|
| |
|
Cash equivalent - 32.9% |
|
|
|
|
| |
|
BlackRock Liquidity Funds TempCash Portfolio, Dollar Shares, 0.391%‡ |
|
19,766,455 |
|
19,766 |
| |
|
|
|
|
|
|
| |
|
Total Cash equivalent |
|
|
|
19,766 |
| |
|
Total Investments-109.4% |
|
|
|
65,790 |
| |
|
|
|
|
|
|
| |
|
Net Other assets (liabilities)-(9.4)% |
|
|
|
(5,674 |
) | |
|
Net Assets-100.0% |
|
|
|
$ |
60,116 |
|
* Non-income producing security.
** This number is listed in thousands.
^ Security fully or partially on loan at June 30, 2016. The total value of securities on loan at June 30, 2016 was $7,091**. Certain of these securities may have been sold prior to period end.
† More narrow industries are utilized for compliance purposes, whereas broad sectors are utilized for reporting purposes.
‡ Rate shown is the 7-day effective yield as of June 30, 2016.
Cl Class
LP Limited Partnership
See accompanying notes to schedules of investments.
Schedule of investments
Turner Midcap Growth Fund
June 30, 2016
(Unaudited)
|
|
|
|
|
Value |
| |
|
|
|
Shares |
|
(000) |
| |
|
Common stock-96.8%† |
|
|
|
|
| |
|
Consumer discretionary-22.7% |
|
|
|
|
| |
|
Aramark |
|
108,520 |
|
$ |
3,627 |
|
|
AutoZone* |
|
3,950 |
|
3,136 |
| |
|
CBS, Cl B |
|
72,330 |
|
3,937 |
| |
|
lululemon athletica* |
|
38,110 |
|
2,815 |
| |
|
Mohawk Industries* |
|
11,490 |
|
2,180 |
| |
|
Newell Rubbermaid |
|
69,880 |
|
3,394 |
| |
|
The Walt Disney |
|
24,720 |
|
2,418 |
| |
|
Ulta Salon, Cosmetics & Fragrance* |
|
13,050 |
|
3,180 |
| |
|
Wynn Resorts^ |
|
26,240 |
|
2,378 |
| |
|
Total Consumer discretionary |
|
|
|
27,065 |
| |
|
|
|
|
|
|
| |
|
Consumer staples-7.4% |
|
|
|
|
| |
|
Casey’s General Stores |
|
13,690 |
|
1,800 |
| |
|
Constellation Brands, Cl A |
|
19,100 |
|
3,159 |
| |
|
Monster Beverage* |
|
24,410 |
|
3,923 |
| |
|
Total Consumer staples |
|
|
|
8,882 |
| |
|
|
|
|
|
|
| |
|
Energy-4.0% |
|
|
|
|
| |
|
Antero Resources* |
|
69,120 |
|
1,796 |
| |
|
Pioneer Natural Resources |
|
19,720 |
|
2,982 |
| |
|
Total Energy |
|
|
|
4,778 |
| |
|
|
|
|
|
|
| |
|
Financials-3.4% |
|
|
|
|
| |
|
Intercontinental Exchange Group |
|
15,660 |
|
4,008 |
| |
|
Total Financials |
|
|
|
4,008 |
| |
|
|
|
|
|
|
| |
|
Health care-17.1% |
|
|
|
|
| |
|
Achillion Pharmaceuticals*^ |
|
381,930 |
|
2,979 |
| |
|
Boston Scientific* |
|
148,560 |
|
3,472 |
| |
|
CONMED |
|
61,750 |
|
2,947 |
| |
|
Edwards Lifesciences* |
|
26,400 |
|
2,633 |
| |
|
Intuitive Surgical* |
|
7,010 |
|
4,636 |
| |
|
Ligand Pharmaceuticals, Cl B*^ |
|
18,140 |
|
2,164 |
| |
|
Prothena*^ |
|
46,220 |
|
1,616 |
| |
|
Total Health care |
|
|
|
20,447 |
| |
|
|
|
|
|
|
| |
|
Industrials-5.1% |
|
|
|
|
| |
|
Fortune Brands Home & Security |
|
49,120 |
|
2,847 |
| |
|
Southwest Airlines |
|
82,360 |
|
3,230 |
| |
|
Total Industrials |
|
|
|
6,077 |
| |
|
|
|
|
|
|
| |
|
Information technology-32.6% |
|
|
|
|
| |
|
Broadcom |
|
30,330 |
|
4,714 |
| |
|
Cavium*^ |
|
69,334 |
|
2,676 |
| |
|
Electronic Arts* |
|
42,640 |
|
3,230 |
| |
|
Facebook, Cl A* |
|
34,640 |
|
3,959 |
| |
|
Fiserv* |
|
13,880 |
|
1,509 |
| |
|
Lam Research |
|
39,350 |
|
3,308 |
| |
|
Monolithic Power Systems |
|
53,030 |
|
3,623 |
| |
|
NXP Semiconductors* |
|
34,250 |
|
2,683 |
| |
|
Proofpoint* |
|
42,470 |
|
2,679 |
| |
|
Salesforce.com* |
|
53,740 |
|
4,267 |
| |
|
Shopify, Cl A* |
|
104,780 |
|
3,223 |
| |
|
Vantiv, Cl A* |
|
52,100 |
|
2,949 |
| |
|
Total Information technology |
|
|
|
38,820 |
| |
|
|
|
|
|
|
| |
|
Materials-2.7% |
|
|
|
|
| |
|
PPG Industries |
|
30,820 |
|
3,210 |
| |
|
Total Materials |
|
|
|
|
3,210 |
|
|
|
|
|
|
|
| |
|
Telecommunication services-1.8% |
|
|
|
|
| |
|
Zayo Group Holdings* |
|
75,140 |
|
2,099 |
| |
|
Total Telecommunication services |
|
|
|
2,099 |
| |
|
Total Common stock |
|
|
|
115,386 |
| |
|
|
|
|
|
|
| |
|
Cash equivalent - 12.8% |
|
|
|
|
| |
|
BlackRock Liquidity Funds TempCash Portfolio, Dollar Shares, 0.391%‡ |
|
15,326,800 |
|
15,327 |
| |
|
|
|
|
|
|
| |
|
Total Cash equivalent |
|
|
|
15,327 |
| |
|
Total Investments-109.6% |
|
|
|
130,713 |
| |
|
|
|
|
|
|
| |
|
Net Other assets (liabilities)-(9.6)% |
|
|
|
(11,425 |
) | |
|
Net Assets-100.0% |
|
|
|
$ |
119,288 |
|
* Non-income producing security.
** This number is listed in thousands.
^ Security fully or partially on loan at June 30, 2016. The total value of securities on loan at June 30, 2016 was $8,629**. Certain of these securities may have been sold prior to period end.
† More narrow industries are utilized for compliance purposes, whereas broad sectors are utilized for reporting purposes.
‡ Rate shown is the 7-day effective yield as of June 30, 2016.
Cl Class
See accompanying notes to schedules of investments.
Schedule of investments
Turner Small Cap Growth Fund
June 30, 2016
(Unaudited)
|
|
|
|
|
Value |
| |
|
|
|
Shares |
|
(000) |
| |
|
Common stock-101.5%† |
|
|
|
|
| |
|
Consumer discretionary-8.8% |
|
|
|
|
| |
|
Duluth Holdings, Cl A* |
|
25,000 |
|
$ |
612 |
|
|
Jack In The Box |
|
11,000 |
|
945 |
| |
|
LGI Homes* |
|
18,000 |
|
575 |
| |
|
Pinnacle Entertainment* |
|
75,000 |
|
831 |
| |
|
TAL Education Group ADR* |
|
6,000 |
|
372 |
| |
|
Total Consumer discretionary |
|
|
|
3,335 |
| |
|
|
|
|
|
|
| |
|
Consumer staples-2.5% |
|
|
|
|
| |
|
Amplify Snack Brands*^ |
|
64,000 |
|
944 |
| |
|
Total Consumer staples |
|
|
|
944 |
| |
|
|
|
|
|
|
| |
|
Energy-3.8% |
|
|
|
|
| |
|
Parsley Energy, Cl A* |
|
24,000 |
|
649 |
| |
|
US Silica Holdings |
|
23,000 |
|
793 |
| |
|
Total Energy |
|
|
|
1,442 |
| |
|
|
|
|
|
|
| |
|
Financials-4.0% |
|
|
|
|
| |
|
CyrusOne |
|
18,000 |
|
1,001 |
| |
|
Home BancShares |
|
26,000 |
|
515 |
| |
|
Total Financials |
|
|
|
1,516 |
| |
|
|
|
|
|
|
| |
|
Health care-26.7% |
|
|
|
|
| |
|
ABIOMED* |
|
14,000 |
|
1,530 |
| |
|
Achillion Pharmaceuticals*^ |
|
95,000 |
|
741 |
| |
|
Anika Therapeutics* |
|
15,000 |
|
805 |
| |
|
Cantel Medical |
|
11,000 |
|
756 |
| |
|
Cerus* |
|
60,000 |
|
374 |
| |
|
Cynosure, Cl A* |
|
20,000 |
|
973 |
| |
|
Genmark Diagnostics* |
|
25,000 |
|
218 |
| |
|
Ligand Pharmaceuticals, Cl B*^ |
|
11,000 |
|
1,312 |
| |
|
Masimo* |
|
22,000 |
|
1,155 |
| |
|
NuVasive* |
|
18,000 |
|
1,075 |
| |
|
Repligen* |
|
45,000 |
|
1,231 |
| |
|
Total Health care |
|
|
|
10,170 |
| |
|
|
|
|
|
|
| |
|
Industrials-5.1% |
|
|
|
|
| |
|
Insperity |
|
8,000 |
|
618 |
| |
|
John Bean Technologies |
|
11,000 |
|
674 |
| |
|
Masonite International* |
|
10,000 |
|
661 |
| |
|
Total Industrials |
|
|
|
1,953 |
| |
|
|
|
|
|
|
| |
|
Information technology-45.8% |
|
|
|
|
| |
|
Alarm.com Holding*^ |
|
35,000 |
|
897 |
| |
|
CUI Global*^ |
|
217,000 |
|
1,096 |
| |
|
Digimarc*^ |
|
77,000 |
|
2,460 |
| |
|
Ellie Mae* |
|
10,000 |
|
917 |
| |
|
Five9* |
|
50,000 |
|
595 |
| |
|
Gigamon* |
|
30,000 |
|
1,122 |
| |
|
Grubhub* |
|
8,000 |
|
249 |
| |
|
HubSpot*^ |
|
19,000 |
|
825 |
| |
|
Methode Electronics |
|
28,500 |
|
976 |
| |
|
Paycom Software*^ |
|
22,000 |
|
951 |
| |
|
Proofpoint* |
|
17,000 |
|
1,073 |
| |
|
Remark Media(a)* |
|
445,000 |
|
1,886 |
| |
|
Shopify, Cl A* |
|
53,000 |
|
1,630 |
| |
|
Ultratech* |
|
40,000 |
|
919 |
| |
|
Universal Display* |
|
17,000 |
|
1,153 |
| |
|
Weibo ADR* |
|
24,000 |
|
682 |
| |
|
Total Information technology |
|
|
|
17,431 |
| |
|
|
|
|
|
|
| |
|
Materials-4.8% |
|
|
|
|
| |
|
Berry Plastics Group* |
|
21,000 |
|
816 |
| |
|
Senomyx*^ |
|
370,000 |
|
1,017 |
| |
|
Total Materials |
|
|
|
1,833 |
| |
|
Total Common stock |
|
|
|
38,624 |
| |
|
|
|
|
|
|
| |
|
Cash equivalent - 24.3% |
|
|
|
|
| |
|
BlackRock Liquidity Funds TempCash Portfolio, Dollar Shares, 0.391%‡ |
|
9,261,261 |
|
9,261 |
| |
|
|
|
|
|
|
| |
|
Total Cash equivalent |
|
|
|
9,261 |
| |
|
Total Investments-125.8% |
|
|
|
47,885 |
| |
|
|
|
|
|
|
| |
|
Net Other assets (liabilities)-(25.8)% |
|
|
|
(9,832 |
) | |
|
Net Assets-100.0% |
|
|
|
$ |
38,053 |
|
(a) These securities have been deemed illiquid by the Adviser and represent 4.96% of Net Assets.
* Non-income producing security.
** This number is listed in thousands.
^ Security fully or partially on loan at June 30, 2016. The total value of securities on loan at June 30, 2016 was $9,078**. Certain of these securities may have been sold prior to period end.
† More narrow industries are utilized for compliance purposes, whereas broad sectors are utilized for reporting purposes.
‡ Rate shown is the 7-day effective yield as of June 30, 2016.
ADR American Depositary Receipt
Cl Class
See accompanying notes to schedules of investments.
Notes to Schedules of Investments
June 30, 2016 (Unaudited)
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. The Trust meets the definition as an investment company and follows the accounting and reporting guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946, “Financial Services - Investment Companies.” The funds included herein are Turner Medical Sciences Long/Short Fund (“Medical Sciences Long/Short Fund”), Turner Titan Long/Short Fund (“Titan Long/Short Fund,” formerly Turner Spectrum Fund and subsequently Turner Titan II Fund), Turner SMID Cap Growth Opportunities Fund (“SMID Cap Growth Opportunities Fund”, formerly Turner Emerging Growth Fund), Turner Midcap Growth Fund (“Midcap Growth Fund”), and Turner Small Cap Growth Fund (“Small Cap Growth Fund”), each a “Fund” and collectively the “Funds.”
Each Fund is registered as a diversified portfolio of the Trust.
The Funds are registered to offer different classes of shares: Institutional Class Shares, Investor Class Shares, Retirement Class Shares, Class C Shares, or a combination of the four. The assets of each Fund are segregated, and a shareholder’s interest is limited to the Fund in which shares are held. The Funds’ prospectuses provide a description of each Fund’s investment objectives, policies and strategies along with information on the classes of shares currently being offered.
2. Significant accounting policies:
The following is a summary of the significant accounting policies followed by the Funds in the preparation of the Schedules of investments and the Schedules of securities sold short.
Use of estimates — The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts. Actual results could differ from those estimates.
Security valuation — In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, fair value is defined as the price that a Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal or most advantageous market.
The Trust has a three-tier fair value hierarchy that is dependent upon the various “inputs” used to determine the value of the Funds’ investments. These inputs are summarized in the three broad levels listed below:
Level 1 — quoted prices in active markets for identical investments
Notes to Schedules of Investments
June 30, 2016 (Unaudited)
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)
Securities listed on a securities exchange, market or automated quotation system for which quotations are readily available (except for securities traded on NASDAQ), including American Depository Receipts (“ADRs”), 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 long positions and the most recent quoted ask price for short positions. For securities traded on NASDAQ, the NASDAQ Official Closing Price is 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. To the extent these securities are valued at the last sales price or NASDAQ Official Closing Price, they are categorized as Level 1 in the fair value hierarchy.
Investments in other open-end investment companies are valued at net asset value. These valuations are typically categorized as Level 1 in the fair value hierarchy.
If a security price cannot be obtained from an independent, third-party pricing agent, the Funds seek to obtain bid and ask prices from two broker-dealers who make a market in the security and determine the average of the two. In this situation, valuations are typically categorized as a Level 2 in the fair value hierarchy.
Securities for which market prices are not “readily available” are valued in accordance with Fair Value Procedures established by the Board of Trustees. The Funds’ Fair Value Procedures are implemented through a Fair Value Committee (the “Committee”) designated by the Board. 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. Depending on the source or relative significance of the valuation inputs, these securities may be categorized as Level 2 or Level 3 in the fair value hierarchy.
Notes to Schedules of Investments
June 30, 2016 (Unaudited)
For securities that principally trade on a foreign market or exchange, a significant gap in time can exist between the time of a particular security’s last trade and the time at which a Fund calculates its net asset value. The closing prices of such securities may no longer reflect their market value at the time a 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 a Fund calculates net asset value. A Significant Event may relate to a single issuer or to an entire market sector.
In the event that Turner Investments, L.P. (the “Adviser”) believes that the fair values provided by a third party fair valuation vendor are not reliable, or believes that a foreign security held by a Fund should be fair valued for any other reason, the Adviser shall contact the Sub-administrator, Citi Fund Services, Ohio, Inc., and request that a meeting of the Committee be held. Depending on the source or relative significance of the valuation inputs, these securities may be categorized as Level 2 or Level 3 in the fair value hierarchy.
For the period ended June 30, 2016, there were no Level 3 investments for which significant unobservable inputs were used to determine fair value.
The following table is a summary of inputs used to value the Funds’ investments as of June 30, 2016. The breakdown, by sub-category, of the “common stock” category is disclosed in the Schedule of investments and Schedule of securities sold short for each Fund, as applicable.
|
|
|
Level 1 (000) |
|
Level 2 (000) |
|
Total (000) |
| |||
|
|
|
|
|
|
|
|
| |||
|
Medical Sciences Long/Short Fund |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
| |||
|
Investments in Securities |
|
|
|
|
|
|
| |||
|
Common stock |
|
$ |
52,908 |
|
$ |
— |
|
$ |
52,908 |
|
|
Cash equivalent |
|
2,665 |
|
— |
|
2,665 |
| |||
|
Warrant |
|
— |
|
— |
* |
— |
* | |||
|
Total Investments in securities |
|
$ |
55,573 |
|
$ |
— |
|
$ |
55,573 |
|
|
|
|
|
|
|
|
|
| |||
|
Securities Sold Short |
|
|
|
|
|
|
| |||
|
Common stock |
|
$ |
14,126 |
|
$ |
— |
|
$ |
14,126 |
|
|
Exchange traded funds |
|
28,301 |
|
— |
|
28,301 |
| |||
|
Total Securities sold short |
|
$ |
42,427 |
|
$ |
— |
|
$ |
42,427 |
|
|
|
|
|
|
|
|
|
| |||
|
Titan Long/Short Fund |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
| |||
|
Investments in Securities |
|
|
|
|
|
|
| |||
|
Common stock |
|
$ |
29,811 |
|
$ |
— |
|
$ |
29,811 |
|
|
Cash equivalent |
|
2,627 |
|
— |
|
2,627 |
| |||
|
Warrant |
|
9 |
|
— |
|
9 |
| |||
|
Total Investments in securities |
|
$ |
32,447 |
|
$ |
— |
|
$ |
32,447 |
|
Notes to Schedules of Investments
June 30, 2016 (Unaudited)
|
|
|
Level 1 (000) |
|
Level 2 (000) |
|
Total (000) |
| |||
|
|
|
|
|
|
|
|
| |||
|
Securities Sold Short |
|
|
|
|
|
|
| |||
|
Common stock |
|
$ |
19,276 |
|
$ |
— |
|
$ |
19,276 |
|
|
Exchange traded funds |
|
10,178 |
|
— |
|
10,178 |
| |||
|
Total Securities sold short |
|
$ |
29,454 |
|
$ |
— |
|
$ |
29,454 |
|
|
|
|
|
|
|
|
|
| |||
|
SMID Cap Growth Opportunities Fund |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
| |||
|
Investments in Securities |
|
|
|
|
|
|
| |||
|
Common stock |
|
$ |
46,024 |
|
$ |
— |
|
$ |
46,024 |
|
|
Cash equivalent |
|
19,766 |
|
— |
|
19,766 |
| |||
|
Total Investments in securities |
|
$ |
65,790 |
|
$ |
— |
|
$ |
65,790 |
|
|
|
|
|
|
|
|
|
| |||
|
Midcap Growth Fund |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
| |||
|
Investments in Securities |
|
|
|
|
|
|
| |||
|
Common stock |
|
$ |
115,386 |
|
$ |
— |
|
$ |
115,386 |
|
|
Cash equivalent |
|
15,327 |
|
— |
|
15,327 |
| |||
|
Total Investments in securities |
|
$ |
130,713 |
|
$ |
— |
|
$ |
130,713 |
|
|
|
|
|
|
|
|
|
| |||
|
Small Cap Growth Fund |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
| |||
|
Investments in Securities |
|
|
|
|
|
|
| |||
|
Common stock |
|
$ |
38,624 |
|
$ |
— |
|
$ |
38,624 |
|
|
Cash equivalent |
|
9,261 |
|
— |
|
9,261 |
| |||
|
Total Investments in securities |
|
$ |
47,885 |
|
$ |
— |
|
$ |
47,885 |
|
*Represents interest in securities that were determined to have a value of zero at June 30, 2016.
For each Fund there were no transfers between the Levels as of June 30, 2016 based on the input Levels assigned at September 30, 2015.
Security transactions — Security transactions are accounted for on the date the security is purchased or sold (trade date).
Securities sold short — Consistent with each Fund’s investment objectives, the Funds may engage in short sales. Short sales are transactions under which a Fund sells a security it does not own. To complete such a transaction, the Fund must borrow the security to make delivery to the buyer. The Fund is then obligated to replace the security borrowed by purchasing the security at the market price at the time of the replacement. The price at such time may be more or less than the price at which the security was sold by the Fund. Until the security is replaced, the Fund is required to pay the lender amounts equal to any dividends that accrue during the period of the loan. Dividends declared on open short positions are recorded on ex-date and shown as an expense for financial reporting purposes. To borrow the security, the Fund also may be required to pay a fee, which is shown as an expense for financial reporting purposes.
Notes to Schedules of Investments
June 30, 2016 (Unaudited)
The proceeds of the short sale are retained by the broker, to the extent necessary to meet margin requirements, until the short position is closed out. A gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, will be recognized upon the close of a short sale.
Until a Fund closes its short position or replaces the borrowed security, the Fund will: (a) maintain a segregated account containing cash or liquid securities at such a level that (i) the amount deposited in the account plus the amount deposited with the brokers as collateral will equal the current value of the security sold short; and (ii) the amount deposited in the segregated account plus the amount deposited with the broker as collateral will not be less than the market value of the security at the time the security was sold short, or (b) otherwise cover the short positions. The Medical Sciences Long/Short Fund and Titan Long/Short Fund engaged in short sales during the period ended June 30, 2016.
Foreign currency translation — The books and records of the Funds 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 Funds do 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.
3. Loans of portfolio securities:
The Funds may lend securities in their portfolios 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 based on the previous day’s market value of the securities loaned, marked-to-market daily. Any collateral shortfalls are adjusted the next business day. Cash collateral received is invested in the Dollar Shares of the BlackRock Liquidity Funds TempCash, 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 the projected lending activity.
In the event of bankruptcy of the borrower, realization/retention of the collateral may be subject to legal proceedings.
Securities lending transactions are entered into by each Fund under a Master Securities Lending Agreement (“MSLA”) which permits the Funds, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset amounts payable by the Funds to the same counterparty against amounts to be received and create one single net payment due to or from the Funds.
Notes to Schedules of Investments
June 30, 2016 (Unaudited)
The following Funds had securities on loan and had invested cash collateral, subject to offset under a MSLA, with the following values as of June 30, 2016:
|
Fund |
|
Value of |
|
Value of |
|
Net Amount |
| ||
|
SMID Cap Growth Opportunities Fund |
|
$ |
7,091 |
|
$ |
7,084 |
|
7 |
|
|
Midcap Growth Fund |
|
8,629 |
|
8,629 |
|
— |
| ||
|
Small Cap Growth Fund |
|
9,078 |
|
9,078 |
|
— |
| ||
*The actual value of collateral received may be in excess of the amounts shown in the table. The table only reflects collateral amounts up to the amount of the value of securities on loan as disclosed in the Schedule of investments.
4. Concentration/risks:
Certain Funds invest a high percentage of their assets in specific market sectors in order to achieve a potentially greater investment return. As a result, these Funds may be more susceptible to positive or negative economic, political, and regulatory developments in a particular market sector of the market and may experience the effect of this increased volatility on the Fund’s net asset value and a magnified effect on the Fund’s total return.
Governments of some developing countries exercise substantial influence over many aspects of the private sector. In some countries, the government owns or controls many companies, including the largest companies in the country. As such, government actions in the future could have a significant effect on economic conditions in developing countries in these regions, which could affect private sector companies, the Fund and the value of its securities. Furthermore, certain developing countries are among the largest debtors to commercial banks and foreign governments. Trading in debt obligations issued or guaranteed by such governments or their agencies and instrumentalities involves a high degree of risk.
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.
5. Federal tax information:
At June 30, 2016, the total cost of securities for Federal income tax purposes and the aggregate gross unrealized appreciation and depreciation for the investments held by each Fund, excluding securities sold short, were as follows:
|
|
|
Federal |
|
Unrealized |
|
Unrealized |
|
Net unrealized |
| ||||
|
Medical Sciences Long/Short Fund |
|
$ |
52,456 |
|
$ |
7,901 |
|
$ |
(4,784 |
) |
$ |
3,117 |
|
|
Titan Long/Short Fund |
|
30,839 |
|
2,868 |
|
(1,260 |
) |
1,608 |
| ||||
|
SMID Cap Growth Opportunities Fund |
|
61,565 |
|
4,914 |
|
(689 |
) |
4,225 |
| ||||
|
Midcap Growth Fund |
|
116,478 |
|
16,652 |
|
(2,417 |
) |
14,235 |
| ||||
|
Small Cap Growth Fund |
|
44,707 |
|
5,665 |
|
(2,487 |
) |
3,178 |
| ||||
Notes to Schedules of Investments
June 30, 2016 (Unaudited)
6. Subsequent Events:
The Trust has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the Schedules of investments were issued.
The Adviser has entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Turner Investment Holdings L.P. (“TIH”) by which TIH has agreed to acquire, directly and indirectly, all of the outstanding equity interests of the Adviser through a merger transaction. The transactions contemplated by the Merger Agreement (the “Acquisition”) resulted in a change of control of Turner effective as of the closing of the Acquisition (the “Closing”). The Closing was subject to certain conditions and took place on August 18, 2016. Turner Investments LLC (“New Turner”) has succeeded to the investment adviser registration of Turner and has succeeded Turner as the investment adviser to each of the Funds.
Pursuant to the terms of the current investment advisory agreement between Turner and the Trust, on behalf of each of the Funds, the Acquisition is considered an assignment of the investment advisory agreement, and will result in its automatic termination. On June 10, 2016, the Board of Trustees of the Trust approved an interim advisory agreement and a new investment advisory agreement with New Turner, on behalf of each of the Funds. The new investment advisory agreement contains substantially similar terms as the current investment advisory agreement with Turner, including identical advisory fees. As of the Closing, New Turner provides investment advisory services to each Fund pursuant to the interim advisory agreement. New Turner will also provide investment advisory services to each Fund pursuant to the new advisory agreement, provided that such advisory agreement is approved by Fund shareholders. The interim advisory agreement became effective with respect to each Fund upon the Closing. The interim advisory agreement provides that, for up to 150 days following the date of the Closing, New Turner will act as investment adviser to each Fund on substantially the same terms and with the identical fee structure as the current investment advisory agreement until the new advisory agreement is approved by shareholders.
A special meeting of shareholders of the Funds will be held at which shareholders will be asked to consider and approve the new investment advisory agreement. Shareholders of record of each Fund as of the record date will be entitled to vote and should expect to receive a proxy statement providing more information about the new investment advisory agreement.
Based on this evaluation, other than the event noted above, no additional disclosures and/or adjustments were required as of June 30, 2016.
THE SCHEDULES OF INVESTMENTS SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL STATEMENTS AND NOTES TO FINANCIAL STATEMENTS WHICH ARE INCLUDED IN THE FUNDS’ SEMIANNUAL REPORT OR AUDITED ANNUAL REPORT. THESE REPORTS INCLUDE ADDITIONAL INFORMATION ABOUT CERTAIN SECURITY TYPES INVESTED IN BY THE FUNDS.
Item 2. Controls and Procedures.
(a) The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosures controls and procedures are adequately designed and are operating effectively to ensure that information required to be disclosed by the registrant on Form N-Q is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.
(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 (17 CFR 270.30a-3(d))) that occurred during the registrant’s most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3. Exhibits.
(a) A separate certification for the principal executive officer and principal financial officer of the registrant as required by Rule 30(a)-2(a) under the Act (17 CFR 270.30a-2(a)), are filed herewith.
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/ Robert E. Turner |
| ||
|
|
|
Robert E. Turner, President (Principal Executive Officer) | |||
|
|
| ||||
|
Date: |
August 26, 2016 |
| |||
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/ Robert E. Turner |
| ||
|
|
|
Robert E. Turner, President (Principal Executive Officer) | |||
|
|
| ||||
|
Date: |
August 26, 2016 |
| |||
|
By (Signature and Title) |
|
/s/ Joel B. Engle |
| ||
|
|
|
Joel B. Engle, Controller and Chief Financial Officer (Principal Financial Officer) | |||
|
|
| ||||
|
Date: |
August 26, 2016 |
| |||
Exhibit-99.CERT
CERTIFICATIONS
I, Robert E. Turner, certify that:
1. I have reviewed this report on Form N-Q of Turner Funds (the “registrant”);
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
August 26, 2016 |
|
/s/ Robert E. Turner |
|
Date |
|
Robert E. Turner |
|
|
|
President (Principal Executive Officer) |
CERTIFICATIONS
I, Joel B. Engle, certify that:
1. I have reviewed this report on Form N-Q of Turner Funds (the “registrant”);
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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August 26, 2016 |
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/s/ Joel B. Engle |
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Date |
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Joel B. Engle |
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Controller and Chief Financial Officer (Principal Financial Officer) |