N-CSRS 1 turner_ncsrs.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------- FORM N-CSR -------- CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-07527 Turner Funds (Exact name of registrant as specified in charter) -------- 1205 Westlakes Drive, Suite 100 Berwyn, PA 19312 (Address of principal executive offices) (Zip code) Turner Funds P.O. Box 219805 Kansas City, MO 64121-9805 (Name and address of agent for service) Registrant's telephone number, including area code: 1-800-224-6312 Date of fiscal year end: September 30, 2009 Date of reporting period: March 31, 2009 Item 1. Reports to Stockholders. -------------------------------------------------------------------------------- [TURNER FUNDS LOGO] SEMI-ANNUAL REPORT -------------------------------------------------------------------------------- March 31, 2009 U.S. growth equity funds ------------------------ 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 --------------------------------- Turner International Core Growth Fund U.S. core equity funds ---------------------- Turner Midcap Equity Fund Turner Quantitative Broad Market Equity Fund Turner Small Cap Equity Fund U.S. value equity funds ----------------------- Turner Quantitative Large Cap Value Fund -------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------- 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. -------------------------------------------------------------------------------- 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) -------------------------------------------------------------------------------- 2 | TURNER FUNDS 2009 SEMIANNUAL REPORT -------------------------------------------------------------------------------- March 31, 2009 -------------------------------------------------------------------------------- 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) -------------------------------------------------------------------------------- * 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) -------------------------------------------------------------------------------- 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 ------------------------------ 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 -------------------------------------------------------------------------------- 4 | TURNER FUNDS 2009 SEMIANNUAL REPORT PERFORMANCE -------------------------------------------------------------------------------- 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) ------------------------------------------------------------------------------------------------------------- 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 ------------------------------------------------------------------------------------------------------------- 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 ------------------------------------------------------------------------------------------------------------- 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 ------------------------------------------------------------------------------------------------------------- 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 ------------------------------------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------------------------------------
TURNER FUNDS 2009 SEMIANNUAL REPORT | 5
PERFORMANCE (continued) ------------------------------------------------------------------------------------------------------------- Year (Annualized) Total Six to One Three Five Ten Since net assets Fund name/index months date year years years years inception ($mil) ------------------------------------------------------------------------------------------------------------- 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 ------------------------------------------------------------------------------------------------------------- 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 ------------------------------------------------------------------------------------------------------------- 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 ------------------------------------------------------------------------------------------------------------- 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 ------------------------------------------------------------------------------------------------------------- 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 ------------------------------------------------------------------------------------------------------------- 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 ------------------------------------------------------------------------------------------------------------- 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 -------------------------------------------------------------------------------------------------------------
(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 THIS PAGE WAS INTENTIONALLY LEFT BLANK 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