TIP FUNDS
Supplement Dated October 7, 1997
to the Prospectus Dated January 31, 1997
(as Supplemented August 15, 1997)
The Prospectus dated January 31, 1997, as supplemented on August 15, 1997, is
hereby amended by the addition of the following unaudited financial information
for the Turner Ultra Large Cap Growth Fund, Turner Growth Equity Fund, Turner
Midcap Growth Fund and Turner Small Cap Growth Fund for the period ended March
31, 1997.
----------------------------------------
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout the Period-Unaudited:
<TABLE>
<CAPTION>
Ultra Large Cap
Growth Fund (1)
- ----------------------------------------------------------------------------------
02/01/97
to
03/31/97
(unaudited)
- --------------------------------------------------------------------------------
<S> <C>
Net Asset Value, Beginning of Period ............................ $ 10.00
- --------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income (Loss) ............................... 0.01
Net Realized and Unrealized
Gain (Loss) on Investments ................................. (0.59)
- --------------------------------------------------------------------------------
Total From Investment Operations ................................ $ (0.58)
- --------------------------------------------------------------------------------
Less Distributions:
Dividends From Net Investment Income
Distributions from Capital Gains ................................ $ (0.11)
Total Distributions ...................................... $ (0.11)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period .................................. $ 9.42
- --------------------------------------------------------------------------------
Total Return .................................................... (5.80)%
- --------------------------------------------------------------------------------
Ratios and Supplemental Data
Net Assets, End Of Period (000) ................................. $ 304
Ratios Of Expenses To Average Net Assets* ....................... 1.00%
Ratio Of Net Investment Income To
Average Net Assets* ............................................. 0.82%
Ratio Of Expenses To Average Net Assets
(Excluding Waivers and Contributions)* .......................... 39.85%
Ratio Of Net Investment Income to
Average Net Assets (Excluding Waivers and Contributions)* ... (38.03)%
Portfolio Turnover Rate ......................................... 101.53%
Average Commission Rate(2) ...................................... $ 0.0600
================================================================================
</TABLE>
* Annualized
(1) Commenced operations February 1, 1997.
<PAGE>
(2) Average commission rate paid per share for the security purchases and sales
during the period. Presentation of the rate is required for fiscal years
beginning after September 1, 1995.
<PAGE>
FINANCIAL HIGHLIGHTS
The following information for the fiscal period ended March 31, 1997 is
unaudited. The following information for the fiscal year ended September 30,
1996 with respect to the Growth Equity Fund has been audited by Ernst & Young
LLP, the Fund's independent auditors, whose report dated November 1, 1996 was
unqualified. On April 30, 1996, the Growth Equity Fund acquired all of the
assets and liabilities of the Turner Growth Equity Portfolio of The Advisors'
Inner Circle Fund. The information prior to that date relates to the Turner
Growth Equity Portfolio. The financial statements of the Turner Growth Equity
Portfolio of The Advisors' Inner Circle Fund were audited by Arthur Andersen
LLP. The following table should be read in conjunction with the Fund's financial
statements and the notes thereto. Additional performance information is set
forth in the Trust's 1996 Annual Report to Shareholders, which is available upon
request and without charge by calling 1-800-224-6312. All references herein to
the Growth Equity Fund shall be deemed to include the Turner Growth Equity
Portfolio.
For a Share Outstanding Throughout the Period:
<TABLE>
<CAPTION>
Growth Equity Fund
- ------------------------------------------------------------------------------------------------------------------------------------
(unaudited)
10/01/96 11/01/95 11/01/94 11/01/93 11/01/92 03/11/92(1)
to to to to to to
03/31/97 9/30/96 10/31/95 10/31/94 10/31/93 10/31/92
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ........... $17.03 $14.97 $12.46 $13.12 $10.40 $10.00
Income From Investment Operations:
Net Investment Income ..................... (0.01) 0.02 0.10 0.10 0.09 0.03
Net Realized and Unrealized
Gain (Loss) on Investments .............. (0.01) 2.91 2.52 (0.66) 2.72 0.40
- ------------------------------------------------------------------------------------------------------------------------------------
Total From Investment Operations ............... (0.02) 2.93 2.62 (0.56) 2.81 0.43
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends From Net Investment Income ........... -- (0.02) (0.11) (0.10) (0.09) (0.03)
Distributions from Capital Gains ............... (4.59) (0.85) -- -- -- --
Total Distributions ..................... (4.59) (0.87) (0.11) (0.10) (0.09) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period ................. $12.42 $17.03 $14.97 $12.46 $13.12 $10.40
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return ................................... (1.02)% 20.61% 21.15% (4.28)% 27.08% 6.95%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and Supplemental Data
Net Assets, End Of Period (000) ................ $84,803 $96,164 $115,819 $112,959 $53,327 $7,781
Ratios Of Expenses To Average Net Assets ....... 1.05%(2)* 1.06%(2)* 1.03%(2) 0.95% 1.00% 1.44%*
Ratio Of Expenses To Average Net Assets
Excluding Fee Waivers ...................... 1.05%(2)* 1.06%(2)* 1.03%(2) 1.08% 1.52% 2.55%*
Ratio Of Net Investment Income (Loss) To Average
Net Assets ................................. (0.17)%(2)* 0.03%(2)* 0.69%(2) 0.86% 0.80% 0.73%*
Ratio Of Net Investment Income (Loss) to
Average Net Assets Excluding Fee Waivers ... (0.17)%(2)* 0.03%(2)* 0.69%(2) 0.73% 0.28% (0.38)%
Portfolio Turnover Rate ........................ 71.49% 147.79% 177.86% 164.81% 88.35% 205.00%
Average Commission Rate(3) ..................... $0.06 $0.06 -- -- -- --
====================================================================================================================================
====================================================================================================================================
</TABLE>
* Annualized
(1) The Turner Growth Equity Portfolio commenced operations on March 11, 1992.
(2) The Ratios of Expenses to Average Net Assets (with and without waivers) and
Net Investment Income to Average Net Assets do not reflect the use of Advisor's
use of arrangements whereby certain broker-dealers have agreed to pay certain
expenses of the Turner Growth Equity Fund in return for the direction of a
percentage of the Fund's brokerage transactions. As a result of these
arrangements, the Ratio of Expenses to Average Net Assets
<PAGE>
was 0.94% for both the year ended 10/31/95 and the year ended 9/30/96, and the
Ratios of Net Income to Average Net Assets were 0.78% and 0.15% for the same
periods described.
(3) Average commission rate paid per share for security purchases and sales
during the period. Presentation of the rate is required for fiscal years
beginning after September 1, 1995.
<PAGE>
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout the Period-Unaudited:
<TABLE>
<CAPTION>
Midcap
Growth Fund(1)
- -----------------------------------------------------------------------------------
10/01/96
to
03/31/97
(unaudited)
- --------------------------------------------------------------------------------
<S> <C>
Net Asset Value, Beginning of Period ........................ $10.00
- --------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income (Loss) ........................... (0.03)
Net Realized and Unrealized
Gain (Loss) on Investments ............................. (0.08)
- --------------------------------------------------------------------------------
Total From Investment Operations ............................ $(0.11)
- --------------------------------------------------------------------------------
Less Distributions:
Dividends From Net Investment Income ........................ --
Distributions from Capital Gains ............................ $(0.11)
Total Distributions .................................. $(0.11)
- --------------------------------------------------------------------------------
Net Asset Value, End of Period .............................. $9.78
- --------------------------------------------------------------------------------
Total Return ................................................ (1.12)%
- --------------------------------------------------------------------------------
Ratios and Supplemental Data
Net Assets, End Of Period (000) ............................. $1,617
Ratios Of Expenses To Average Net Assets .................... 1.25%
Ratio Of Expenses To Average Net Assets
Excluding Fee Waivers ................................... 9.57%
Ratio Of Net Investment Loss To Average
Net Assets .............................................. (0.61)%
Ratio Of Net Investment Loss to
Average Net Assets Excluding Fee Waivers ................ (8.93)%
Portfolio Turnover Rate ..................................... 207.76%
Average Commission Rate(2) .................................. $0.06
================================================================================
</TABLE>
* Annualized
(1) Commenced operations October 1, 1996.
(2) Average commission rate paid per share for security purchases and sales
during the period. Presentation of the rate is required for fiscal years
beginning after September 1, 1995.
<PAGE>
FINANCIAL HIGHLIGHTS
The following information for the fiscal period ended March 31, 1997 is
unaudited. The following information for the fiscal year ended September 30,
1996 with respect to the Small Cap Growth Fund has been audited by Ernst & Young
LLP, the Fund's independent auditors, whose report dated November 1, 1996 was
unqualified. On April 30, 1996, the Small Cap Growth Fund acquired all of the
assets and liabilities of the Turner Small Cap Portfolio of The Advisors' Inner
Circle Fund. The information prior to that date relates to the Turner Small Cap
Portfolio. The financial statements of the Turner Small Cap Portfolio of The
Advisors' Inner Circle Fund were audited by Arthur Andersen LLP. The following
table should be read in conjunction with the Fund's financial statements and the
notes thereto. Additional performance information is set forth in the Trust's
1996 Annual Report to Shareholders, which is available upon request and without
charge by calling 1-800-224-6312. All references herein to the Small Cap Growth
Fund shall be deemed to include the Turner Small Cap Portfolio.
For a Share Outstanding Throughout the Period:
<TABLE>
<CAPTION>
Small Cap
Growth Fund
- ------------------------------------------------------------------------------------------------------------------------------------
(unaudited)
10/01/96 11/01/95 11/01/94 02/07/94(1)
to to to to
03/31/97 9/30/96 10/31/95 10/31/94
====================================================================================================================================
<S> <C> <C> <C> <C>
Net Asset Value, Beginning of Period ..................... $23.13 $16.08 $10.90 $10.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income From Investment Operations:
Net Investment Income (Loss) ........................ (0.10) (0.08) (0.06) (0.02)
Net Realized and Unrealized
Gain (Loss) on Investments .......................... (4.34) 8.17 5.24 0.92
- ------------------------------------------------------------------------------------------------------------------------------------
Total From Investment Operations ......................... (4.44) 8.09 $5.18 .90
- ------------------------------------------------------------------------------------------------------------------------------------
Less Distributions:
Dividends From Net Investment Income ..................... -- -- -- --
Distributions from Capital Gains ......................... (0.51) (1.04) -- --
Total Distributions ............................... (0.51) (1.04) -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period ........................... $18.18 $23.13 $16.08 $10.90
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return ............................................. (19.53)% 52.90% 47.52% 12.35%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios and Supplemental Data
Net Assets, End Of Period (000) .......................... $64,460 $67,425 $13,072 $4,806
Ratios Of Expenses To Average Net Assets ................. 1.25%* 1.25%* 1.25% 1.09%*
Ratio Of Expenses To Average Net Assets
Excluding Fee Waivers ................................ 1.32%* 1.54%* 2.39% 4.32%*
Ratio Of Net Investment Income (Loss) To Average ......... (0.91)%
Net Assets ........................................... * (0.88)%* (0.68)% (0.27)%*
Ratio Of Net Investment Income (Loss) to ................. (0.98)%
Average Net Assets Excluding Fee Waivers ............. * (1.17)%* (1.82)% (3.50)%*
Portfolio Turnover Rate .................................. 65.76% 149.00% 183.49% 173.92%
Average Commission Rate(2) ............................... $0.06 $0.06 -- --
====================================================================================================================================
</TABLE>
* Annualized
(1) The Turner Small Cap Portfolio commenced operations on February 7, 1994.
<PAGE>
(2) Average commission rate paid per share for security purchases and sales
during the period. Presentation of the rate is required for fiscal years
beginning after September 1, 1995.
------------------------------------
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
<PAGE>
TIP FUNDS
Supplement dated October 7, 1997 to
the Statement of Additional Information
dated January 31, 1997
(as supplemented August 15, 1997)
The Statement of Additional Information for the TIP Funds is hereby amended and
supplemented by the following unaudited financial statements of the Turner Ultra
Large Cap Growth Fund, Turner Growth Equity Fund, Turner Midcap Growth Fund and
Turner Small Cap Growth Fund for the period ended March 31, 1997.
<PAGE>
STATEMENT OF NET ASSETS TIP FUNDS
March 31, 1997 (Unaudited)
Market
Value
GROWTH EQUITY FUND Shares (000)
- -------------------------------------------------------
COMMON STOCKS (100.7%)
AIRCRAFT (1.5%)
Allied Signal 8,980 $ 640
Boeing 6,650 656
-------
1,296
-------
AUTOMOTIVE (0.8%)
Harley-Davidson 20,000 678
-------
BANKS (0.9%)
NationsBank 14,000 775
-------
BEAUTY PRODUCTS (3.3%)
Avon Products 11,480 603
Colgate-Palmolive 6,880 685
Procter & Gamble 13,050 1,501
-------
2,789
-------
CHEMICALS (2.5%)
Avery Dennison 10,900 420
E.I. duPont de Nemours 10,190 1,080
Monsanto 16,950 648
-------
2,148
-------
COMMUNICATIONS EQUIPMENT (4.3%)
Andrew* 17,750 641
Ascend Communications* 14,670 598
DSC Communications* 43,010 901
Qualcomm* 8,450 476
Tellabs* 16,780 606
Ultratech Stepper* 17,910 396
-------
3,618
-------
COMPUTERS & SERVICES (0.7%)
Quantum* 16,280 629
-------
DRUGS (10.2%)
Amgen* 18,110 1,012
Bristol-Myers Squibb 23,510 1,387
Eli Lilly 18,240 1,500
Merck 22,200 1,870
Pfizer 15,245 1,282
Sigma Aldrich 24,540 758
Warner Lambert 9,890 856
-------
8,665
-------
Market
Value
Shares (000)
- -------------------------------------------------------
ELECTRICAL SERVICES (0.8%)
AES* 12,000 $ 672
-------
ENTERTAINMENT (1.3%)
Walt Disney 14,510 1,059
-------
ENVIRONMENTAL SERVICES (2.6%)
Republic Industries* 19,810 687
United Waste Systems* 11,140 415
U.S. Filter* 14,940 461
USA Waste Services* 17,900 635
-------
2,198
-------
FINANCIAL SERVICES (1.3%)
Associates First Capital 14,580 627
Household International 5,550 477
-------
1,104
-------
FOOD, BEVERAGE & TOBACCO (7.2%)
Anheuser Busch 21,180 892
Campbell Soup 23,000 1,067
Coca-Cola 40,700 2,274
Conagra 15,880 862
RJR Nabisco 12,000 387
Starbucks* 21,290 631
-------
6,113
-------
GAS/NATURAL GAS (1.0%)
Williams 18,525 824
-------
HOTELS & LODGING (1.0%)
HFS* 14,480 853
-------
HOUSEHOLD PRODUCTS (1.6%)
General Electric 13,970 1,387
-------
INSURANCE (3.0%)
Aetna 7,860 675
American International Group 7,100 833
Nationwide Financial Services* 17,620 454
SunAmerica 15,330 577
-------
2,539
-------
MACHINERY (1.0%)
Applied Materials* 18,230 845
-------
MEASURING DEVICES (0.5%)
KLA Instruments* 11,640 425
-------
<PAGE>
STATEMENT OF NET ASSETS TIP FUNDS
March 31, 1997 (Unaudited)
Market
GROWTH EQUITY FUND Value
(Continued) Shares (000)
- -------------------------------------------------------
MEDICAL PRODUCTS & SERVICES (5.8%)
Becton, Dickinson 15,430 $ 694
Depuy* 25,470 557
Healthsouth Rehabilitation* 57,380 1,097
Medtronic 18,710 1,165
Phycor* 35,680 972
Renal Treatment Centers* 20,570 463
-------
4,948
-------
MISCELLANEOUS BUSINESS SERVICES (13.3%)
Adobe Systems 23,810 955
Altera* 18,740 806
BMC Software* 17,920 827
CUC International* 36,640 824
Electronics for Imaging* 18,190 725
First Data 18,820 638
HBO & Company 25,730 1,222
Microsoft* 23,260 2,133
Remedy* 11,700 448
Sun Microsystems* 60,440 1,745
Teradyne* 17,650 510
Viasoft* 14,660 476
-------
11,309
-------
MISCELLANEOUS CONSUMER SERVICES (1.7%)
Accustaff* 33,490 561
Service International 28,400 845
-------
1,406
-------
PAPER & PAPER PRODUCTS (0.7%)
Kimberly-Clark 6,370 633
-------
PETROLEUM & FUEL PRODUCTS (2.0%)
Flores & Rucks* 15,830 641
Seagull Energy* 30,000 540
United Meridian* 16,340 492
-------
1,673
-------
PETROLEUM REFINING (0.5%)
Abacan Resource* 59,000 465
-------
PROFESSIONAL SERVICES (0.9%)
Paychex 18,250 751
-------
Market
Value
Shares (000)
- -------------------------------------------------------
RETAIL (10.8%)
Borders Group* 28,440 $ 537
Boston Market* 19,630 599
Estee Lauder 13,500 653
General Nutrition* 32,090 650
Home Depot 16,070 860
PepsiCo 46,510 1,517
PetSmart* 20,090 407
Sears Roebuck 21,140 1,062
U.S. Office Products* 17,470 432
Wal-Mart Stores 39,150 1,091
Walgreen 23,440 982
Williams Sonoma* 13,880 399
-------
9,189
-------
RUBBER & PLASTIC (1.0%)
Nike, Cl B 13,060 810
-------
SEMI-CONDUCTORS/INSTRUMENTS (10.2%)
Advanced Micro Devices* 16,810 698
Analog Devices* 50,580 1,138
Intel 12,745 1,773
LSI Logic* 34,830 1,210
Micron Technology 46,250 1,873
National Semiconductor* 42,380 1,165
Texas Instruments 10,650 797
-------
8,654
-------
TELEPHONES & TELECOMMUNICATION (1.4%)
AT&T 17,740 616
WorldCom* 24,000 528
-------
1,144
-------
WHOLESALE (6.9%)
Gillette 14,700 1,068
Johnson & Johnson 24,650 1,303
Motorola 15,770 952
Philip Morris 15,810 1,804
Safeway* 14,810 687
-------
5,814
-------
TOTAL COMMON STOCKS
(Cost $77,289) 85,413
-------
<PAGE>
STATEMENT OF NET ASSETS TIP FUNDS
March 31, 1997 (Unaudited)
Face Market
GROWTH EQUITY FUND Amount Value
(Concluded) (000) (000)
- -------------------------------------------------------
REPURCHASE AGREEMENT (0.2%)
Lehman Brothers
5.58%, dated 03/31/97, matures
04/01/97, repurchase price
$130,006 (collateralized by
U.S. Treasury Bond, par
value 137,894, 6.75%,
matures 08/15/25:
market value $133,586) $130 $ 130
-------
TOTAL REPURCHASE AGREEMENT
(Cost $130) 130
-------
TOTAL INVESTMENTS (100.9%)
(Cost $77,419) 85,543
-------
OTHER ASSETS AND LIABILITIES, NET (-0.9%) (740)
-------
NET ASSETS:
Portfolio Shares (unlimited authorization
-- no par value) based on 6,826,856
outstanding shares of beneficial
interest 71,217
Net investment loss (41)
Accumulated net realized gain
on investments 5,503
Net unrealized appreciation
on investments 8,124
-------
TOTAL NET ASSETS (100.0%) $84,803
=======
Net Asset Value, Offering and Redemption
Price Per Share $ 12.42
=======
* NON-INCOME PRODUCING SECURITY
CL-CLASS
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF NET ASSETS TIP FUNDS
March 31, 1997 (Unaudited)
Market
Value
SMALL CAP FUND Shares (000)
- -------------------------------------------------------
COMMON STOCKS (96.7%)
AIR TRANSPORTATION (1.0%)
Midwest Express* 16,312 $ 618
-------
APPAREL/TEXTILES (1.6%)
Nautica Enterprises* 19,186 482
Tommy Hilfiger* 11,235 587
-------
1,069
-------
BANKS (5.3%)
Astoria Financial 20,470 737
Bank United Corporation, Cl A 25,000 737
Glendale Federal* 35,400 814
TCF Financial 11,980 475
Washington Federal 30,228 688
-------
3,451
-------
BEAUTY PRODUCTS (0.8%)
Alberto-Culver, Cl B 18,810 491
-------
BROADCASTING, NEWSPAPERS &
ADVERTISING (1.5%)
Evergreen Media, Cl A* 18,030 526
Snyder Communications* 18,800 442
-------
968
-------
CHEMICALS (0.4%)
H.B. Fuller 5,040 246
-------
COMMUNICATIONS EQUIPMENT (1.0%)
Ultratech Stepper* 28,769 637
-------
COMPUTERS & SERVICES (2.3%)
Comverse Technology* 13,210 522
Jabil Circuit* 14,100 635
Network Appliance* 9,530 310
-------
1,467
-------
DRUGS (3.4%)
Agouron Pharmaceutical* 4,800 339
Jones Medical Industries 28,150 676
Medicis Pharmaceutical, Cl A* 24,990 743
Parexel International* 18,570 427
-------
2,185
-------
Market
Value
Shares (000)
- -------------------------------------------------------
ENERGY & POWER (2.1%)
Calenergy* 25,856 $ 879
Calpine* 28,280 513
-------
1,392
-------
ENVIRONMENTAL SERVICES (0.9%)
United Waste Systems* 14,940 557
-------
FINANCIAL SERVICES (7.4%)
Amresco 42,600 714
ContiFinancial* 19,367 600
Equitable of Iowa 11,540 577
Hambrecht & Quist* 18,595 311
Imperial Credit Industries* 37,924 763
Metris* 27,820 695
Sirrom Capital 15,930 577
The Money Store 26,571 558
-------
4,795
-------
FOOD, BEVERAGE & TOBACCO (1.3%)
Hudson Foods, Cl A 31,390 490
International Multifoods 17,240 353
-------
843
-------
GAS/NATURAL GAS (0.8%)
Western Gas Resources 28,700 517
-------
HOTELS & LODGING (0.7%)
Signature Resorts* 18,370 432
-------
INSURANCE (6.6%)
CRA Managed Care* 7,920 297
Everest Reinsurance Holdings 21,750 639
Executive Risk 14,120 655
HCC Insurance Holdings 25,970 636
Penn Treaty American* 13,560 353
Protective Life 12,800 538
Total Renal Care Holdings* 21,257 646
Western National 21,220 496
-------
4,260
-------
<PAGE>
STATEMENT OF NET ASSETS TIP FUNDS
March 31, 1997 (Unaudited)
Market
SMALL CAP FUND Value
(Continued) Shares (000)
- -------------------------------------------------------
LEASING & RENTING (0.8%)
Prime Service* 25,770 $ 490
-------
MACHINERY (2.7%)
CFM Technologies* 10,840 321
Lam Research* 16,860 569
SPX 18,760 851
-------
1,741
-------
MEASURING DEVICES (0.9%)
Waters* 22,403 599
-------
MEDICAL PRODUCTS & SERVICES (2.1%)
ESC Medical Systems* 13,050 330
National Surgery Centers* 23,128 671
Universal Health Services* 9,780 322
-------
1,323
-------
METALS & MINING (0.7%)
Titanium Metals* 18,800 477
-------
MISCELLANEOUS BUSINESS SERVICES (13.7%)
Advanced Technologies
Laboratories* 16,350 484
Apac Teleservices* 15,722 409
Aspen Technology* 18,992 518
Cambridge Technology Partners* 20,400 472
Cognex* 32,190 612
Concord EFS* 32,819 615
Forte Software* 14,950 344
HNC Software* 12,926 338
Keane* 16,200 533
National Data 14,944 529
National Techteam* 22,020 341
PMT Services* 45,672 502
Remedy* 12,600 482
Sapient* 11,500 368
Sitel* 33,024 442
Sykes Enterprises* 9,295 303
Viasoft* 16,940 551
Vincam Group* 14,400 394
Wind River Systems* 25,695 607
-------
8,844
-------
MISCELLANEOUS CONSUMER SERVICES (0.7%)
Sunrise Assisted Living* 16,800 470
-------
Market
Value
Shares (000)
- -------------------------------------------------------
MISCELLANEOUS MANUFACTURING (4.4%)
Chicago Miniature Lamp* 20,920 $ 411
Kaydon 11,560 484
RMI Titanium* 27,600 569
Samsonite* 13,750 595
Southdown 13,910 476
Triumph Group* 13,310 334
-------
2,869
-------
PAPER & PAPER PRODUCTS (3.0%)
American Pad & Paper* 18,470 277
Buckeye Cellulose* 15,942 474
Fort Howard* 19,663 612
Shorewood Packaging* 29,360 547
-------
1,910
-------
PETROLEUM & FUEL PRODUCTS (6.7%)
Flores & Rucks* 17,480 708
Global Industries* 45,900 981
KN Energy 15,330 606
Pride Petroleum Service* 37,650 781
Seagull Energy* 37,560 676
United Meridian* 19,465 586
-------
4,338
-------
PETROLEUM REFINING (0.7%)
Polymer Group* 32,340 429
-------
PROFESSIONAL SERVICES (2.5%)
Accustaff* 28,967 485
Administaff* 20,260 337
Billing Information Concepts* 19,820 476
Caribiner International* 6,220 291
-------
1,589
-------
RAILROADS (0.6%)
Coach USA* 13,000 377
-------
RETAIL (3.4%)
Borders Group* 29,800 562
Einstein/Noah Bagel* 18,900 475
Fine Host* 14,200 334
Quality Food Centers* 8,551 359
Williams Sonoma* 15,560 447
-------
2,177
-------
<PAGE>
STATEMENT OF NET ASSETS TIP FUNDS
March 31, 1997 (Unaudited)
Market
SMALL CAP FUND Value
(Concluded) Shares (000)
- -------------------------------------------------------
RUBBER & PLASTIC (1.0%)
Sealed Air* 15,403 $ 633
-------
SEMI-CONDUCTORS/INSTRUMENTS (5.2%)
Alliance Semiconductor* 41,160 334
BMC Industries 20,130 569
Novellus Systems* 8,650 597
Read-Rite* 18,340 463
Sanmina* 11,000 492
Sierra Semiconductor* 21,900 353
Silicon Valley Group* 24,970 537
-------
3,345
-------
SPECIALTY MACHINERY (0.9%)
U.S. Filter* 18,565 573
-------
STEEL & STEEL WORKS (0.9%)
Steel Dynamics* 33,650 589
-------
TECHNOLOGY, GENERAL (1.2%)
Tel-Save Holdings* 54,150 785
-------
TELEPHONES & TELECOMMUNICATION (2.8%)
ACC* 20,245 450
Brooks Fiber Properties* 26,410 472
Intermedia Communications
of Florida* 30,263 503
Mcleod* 23,150 411
-------
1,836
-------
TESTING LABORATORIES (0.9%)
Quintiles Transnational* 10,618 572
-------
WHOLESALE (3.8%)
Applied Analytical Industries* 17,350 338
Inacom* 11,860 270
Kent Electronics* 19,010 437
North Face* 32,270 536
U.S. Office Products* 17,210 426
Watsco 16,840 429
-------
2,436
-------
TOTAL COMMON STOCKS
(Cost $66,524) 62,330
-------
Face Market
Amount Value
(000) (000)
- -------------------------------------------------------
REPURCHASE AGREEMENT (3.0%)
Lehman Brothers
5.58%, dated 03/31/97, matures
04/01/97, repurchase price
$1,903,884 (collateralized by
U.S. Treasury Bond, par value
$2,019,124, 6.75%, matures
08/15/25: market value
$1,956,316) $ 1,904 $ 1,904
-------
TOTAL REPURCHASE AGREEMENT
(Cost $1,904) 1,904
-------
TOTAL INVESTMENTS (99.7%)
(Cost $68,428) 64,234
-------
OTHER ASSETS AND LIABILITIES, NET (0.3%) 226
-------
NET ASSETS:
Portfolio Shares (unlimited authorization
-- no par value) based on 3,546,490
outstanding shares of beneficial
interest 71,480
Net investment loss (332)
Accumulated net realized loss
on investments (2,494)
Net unrealized depreciation
on investments (4,194)
-------
TOTAL NET ASSETS (100.0%) $64,460
=======
Net Asset Value, Offering and Redemption
Price Per Share $ 18.18
=======
* NON-INCOME PRODUCING SECURITY
CL-CLASS
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF NET ASSETS TIP FUNDS
March 31, 1997 (Unaudited)
Market
Value
MIDCAP FUND Shares (000)
- -------------------------------------------------------
COMMON STOCKS (97.6%)
AGRICULTURE (0.9%)
Pioneer Hi Bred International 245 $ 15
-------
APPAREL/TEXTILES (1.3%)
Tommy Hilfiger* 400 21
-------
AUTOMOTIVE (2.7%)
Harley-Davidson 490 17
Federal Mogul 1,090 27
-------
44
-------
BANKS (1.5%)
Washington Mutual 490 24
-------
BEAUTY PRODUCTS (1.4%)
Avon Products 420 22
-------
BROADCASTING, NEWSPAPERS
& ADVERTISING (1.1%)
Clear Channel Communications* 410 18
-------
CHEMICALS (1.1%)
Avery Dennison 475 18
-------
COMMUNICATIONS EQUIPMENT (6.0%)
Andrew* 445 16
Ascend Communications* 360 15
DSC Communications* 980 20
Qualcomm* 420 24
Tellabs* 610 22
-------
97
-------
COMPUTERS & SERVICES (1.2%)
Quantum* 480 19
-------
DRUGS (2.3%)
Agouron Pharmaceutical* 240 17
Sigma Aldrich 640 20
-------
37
-------
ELECTRICAL SERVICES (1.5%)
AES* 430 24
-------
ENVIRONMENTAL SERVICES (6.0%)
Republic Industries* 780 27
United Waste Systems* 640 24
U.S. Filter* 750 23
USA Waste Services* 660 23
-------
97
-------
Market
Value
Shares (000)
- -------------------------------------------------------
FINANCIAL SERVICES (3.1%)
Green Tree Financial 700 $ 24
Household International 310 27
-------
51
-------
HOTELS & LODGING (1.4%)
HFS* 370 22
-------
INSURANCE (3.0%)
Nationwide Financial Services* 950 24
SunAmerica 650 24
-------
48
-------
MACHINERY (1.5%)
Applied Materials* 530 25
-------
MEASURING DEVICES (1.6%)
KLA Instruments* 700 26
-------
MEDICAL PRODUCTS & SERVICES (7.4%)
Becton, Dickinson 430 19
Dentsply International 400 20
Health Management
Associates, Cl A* 860 20
Healthsouth Rehabilitation* 950 18
Phycor* 730 20
Universal Health Services* 665 22
-------
119
-------
MISCELLANEOUS BUSINESS SERVICES (14.5%)
Adobe Systems 430 17
Altera* 410 18
BMC Software* 480 22
Compuware* 270 17
CUC International* 830 19
Electronics for Imaging* 580 23
HBO & Company 370 18
McAfee Associates* 450 20
Remedy* 500 19
Teradyne* 865 25
Viasoft* 630 20
Wind River Systems* 670 16
-------
234
-------
<PAGE>
STATEMENT OF NET ASSETS TIP FUNDS
March 31, 1997 (Unaudited)
Market
MIDCAP FUND Value
(Concluded) Shares (000)
- -------------------------------------------------------
MISCELLANEOUS CONSUMER SERVICES (2.5%)
Accustaff* 975 $ 16
Service International 820 24
-------
40
-------
MISCELLANEOUS MANUFACTURING (3.4%)
RMI Titanium* 860 18
Reynolds Metals 260 16
Samsonite* 495 21
-------
55
-------
PAPER & PAPER PRODUCTS (1.2%)
Fort Howard* 620 19
-------
PETROLEUM & FUEL PRODUCTS (5.6%)
Flores & Rucks* 780 32
Global Industries* 1,390 30
Louisiana Land & Exploration 610 29
-------
91
-------
PETROLEUM REFINING (1.6%)
Abacan Resource* 3,290 26
-------
PROFESSIONAL SERVICES (1.3%)
Paychex 500 21
-------
RETAIL (12.0%)
Borders Group* 1,030 19
Boston Market* 610 19
Estee Lauder 490 24
General Nutrition* 1,030 21
Kroger* 380 19
PetSmart* 865 17
Rite Aid 450 19
Starbucks* 650 19
U.S. Office Products* 580 14
Williams Sonoma* 805 23
-------
194
-------
SEMI-CONDUCTORS/INSTRUMENTS (7.9%)
Advanced Micro Devices* 400 17
Analog Devices* 750 17
LSI Logic* 620 22
Micron Technology 650 26
National Semiconductor* 765 21
Novellus Systems* 370 25
-------
128
-------
Market
Value
Shares (000)
- -------------------------------------------------------
STEEL & STEEL WORKS (1.2%)
Steel Dynamics* 1,150 $ 20
-------
WHOLESALE (1.4%)
Amerisource Health* 525 23
-------
TOTAL COMMON STOCKS
(Cost $1,647) 1,578
-------
TOTAL INVESTMENTS (97.6%)
(Cost $1,647) 1,578
-------
OTHER ASSETS AND LIABILITIES, NET (2.4%) 39
-------
NET ASSETS:
Portfolio Shares (unlimited authorization
-- no par value) based on 165,277
outstanding shares of beneficial
interest 1,637
Net investment loss (5)
Accumulated net realized gain
on investments 54
Net unrealized depreciation
on investments (69)
-------
TOTAL NET ASSETS (100.0%) $ 1,617
=======
Net Asset Value, Offering and Redemption
Price Per Share $ 9.78
=======
* NON-INCOME PRODUCING SECURITY
CL-CLASS
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
SCHEDULE OF INVESTMENTS TIP FUNDS
March 31, 1997 (Unaudited)
Market
Value
ULTRA LARGE CAP FUND Shares (000)
- -------------------------------------------------------
COMMON STOCKS (88.8%)
AIRCRAFT (2.6%)
Allied Signal 77 $ 5
Boeing 34 3
-------
8
-------
BANKS (1.7%)
Citicorp 42 5
-------
BEAUTY PRODUCTS (3.6%)
Colgate-Palmolive 33 3
Procter & Gamble 69 8
-------
11
-------
CHEMICALS (1.3%)
Monsanto 101 4
-------
COMMUNICATIONS EQUIPMENT (2.0%)
Ascend Communications* 154 6
-------
DRUGS (13.1%)
Amgen* 116 6
Bristol-Myers Squibb 105 6
Eli Lilly 81 7
Merck 154 13
Pfizer 92 8
-------
40
-------
ENTERTAINMENT (2.0%)
Walt Disney 84 6
-------
FOOD, BEVERAGE & TOBACCO (8.6%)
Coca-Cola 233 13
Conagra 111 6
RJR Nabisco 218 7
-------
26
-------
HOTELS & LODGING (1.3%)
HFS* 66 4
-------
HOUSEHOLD PRODUCTS (2.6%)
General Electric 82 8
-------
INSURANCE (1.7%)
American International Group 40 5
-------
Market
Value
Shares (000)
- -------------------------------------------------------
MACHINERY (3.0%)
Applied Materials* 76 $ 3
Minnesota Mining & Manufacturing 72 6
-------
9
-------
MEDICAL PRODUCTS & SERVICES (2.6%)
Medtronic 132 8
-------
MISCELLANEOUS BUSINESS SERVICES (10.2%)
CUC International* 202 5
First Data 171 6
Microsoft* 153 14
Sun Microsystems* 211 6
-------
31
-------
MISCELLANEOUS CONSUMER SERVICES (1.6%)
Service International 154 5
-------
PAPER & PAPER PRODUCTS (1.3%)
Kimberly-Clark 40 4
-------
PETROLEUM REFINING (0.3%)
Unocal 36 1
-------
RETAIL (6.6%)
Home Depot 73 4
PepsiCo 286 9
Wal-Mart Stores 235 7
-------
20
-------
RUBBER & PLASTIC (1.3%)
Nike, Cl B 62 4
-------
SEMI-CONDUCTORS/INSTRUMENTS (10.2%)
Intel 116 16
Micron Technology 219 9
Texas Instruments 74 6
-------
31
-------
<PAGE>
SCHEDULE OF INVESTMENTS TIP FUNDS
March 31, 1997 (Unaudited)
Market
ULTRA LARGE CAP FUND Value
(Concluded) Shares (000)
- -------------------------------------------------------
TELEPHONES & TELECOMMUNICATION (4.3%)
AT&T 161 $ 6
Sprint 62 3
WorldCom* 181 4
-------
13
-------
WHOLESALE (6.9%)
Gillette 108 8
Johnson & Johnson 159 8
Philip Morris 42 5
-------
21
-------
TOTAL COMMON STOCKS
(Cost $288) 270
-------
TOTAL INVESTMENTS (88.8%)
(Cost $288) $ 270
=======
* NON-INCOME PRODUCING SECURITY
CL-CLASS
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF ASSETS & LIABILITIES TIP FUNDS
March 31, 1997 (Unaudited)
ULTRA
LARGE CAP
FUND
(000)
- --------------------------------------------------------------------------------
Assets:
Investment Securities (Cost $288)................................... $ 270
Capital Shares Sold................................................. 15
Other Assets ....................................................... 45
- --------------------------------------------------------------------------------
Total Assets...................................................... 330
- --------------------------------------------------------------------------------
Liabilities:
Accrued Expenses Payable ........................................... 4
Capital Shares Redeemed............................................. 2
Other Liabilities................................................... 20
- --------------------------------------------------------------------------------
Total Liabilities................................................. 26
- --------------------------------------------------------------------------------
Net Assets:
Portfolio shares (unlimited authorization--
no par value) based on 32,254 outstanding
shares of beneficial interest ..................................... 325
Accumulated net realized loss on investments ........................ (3)
Net unrealized depreciation on investments .......................... (18)
- --------------------------------------------------------------------------------
Net Assets ................................................... $ 304
================================================================================
Net Asset Value, Offering Price
and Redemption Price Per Share .................................... $9.42
================================================================================
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS TIP FUNDS
(Unaudited)
GROWTH EQUITY SMALL CAP MIDCAP ULTRA LARGE
FUND FUND FUND CAP FUND
------------------------------------------------------------------------------
FOR THE SIX FOR THE SIX FOR THE FOR THE
MONTH PERIOD MONTH PERIOD PERIOD PERIOD
ENDED 3/31/97 ENDED 3/31/97 ENDED 3/31/97(1) ENDED 3/31/97(2)
(000) (000) (000) (000)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income:
Dividends ....................................... $ 380 $ 71 $ 2 $ 1
Interest ........................................ 33 55 3 --
- ---------------------------------------------------------------------------------------------------------------------------
Total Investment Income........................ 413 126 5 1
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ........................ 352 367 6 1
Investment Advisory Fee Waiver .................. -- (28) (31) (1)
Contributions by Advisor......................... -- -- -- (9)
Administrator Fees .............................. 55 44 37 12
Administrator Fee Waiver.......................... -- -- (37) (12)
Custodian Fees .................................. 7 15 7 1
Transfer Agent Fees ............................. 9 8 6 2
Professional Fees ............................... 20 14 5 1
Trustee Fees .................................... 5 2 1 --
Registration Fees ............................... 27 21 11 5
Pricing Fees .................................... 1 1 -- --
Printing Expense ................................ 10 8 2 --
Amortization of Deferred Organizational Costs ... 4 4 2 --
Insurance and Other Fees ........................ 2 2 1 1
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses ................................ 492 458 10 1
Directed Brokerage ............................ (38) -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
Net Expenses ................................ 454 458 10 1
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Loss ....................... (41) (332) (5) --
- ---------------------------------------------------------------------------------------------------------------------------
Net Realized Gain (Loss) From Securities Sold ... 7,499 (2,493) 72 (3)
Net Unrealized Depreciation
of Investment Securities ...................... (8,456) (12,857) (119) (18)
- ---------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Loss
on Investments .............................. (957) (15,350) (47) (21)
- ---------------------------------------------------------------------------------------------------------------------------
Net Decrease in Net Assets Resulting
From Operations .............................. $ (998) $(15,682) $ (52) $(21)
===========================================================================================================================
(1) Commenced operations on October 1, 1996.
(2) Commenced operations on February 1, 1997.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
</TABLE>
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS TIP FUNDS
(Unaudited)
<TABLE>
<CAPTION>
GROWTH EQUITY
FUND
------------------------
FOR THE
SIX MONTH ELEVEN MONTH
PERIOD ENDED PERIOD ENDED
3/31/97 9/30/96
(000) (000)
- ---------------------------------------------------------------------------------------
Investment Activities:
<S> <C> <C>
Net Investment Income (Loss) ........................ $ (41) $ 129
Net Realized Gain (Loss) on Securities Sold ......... 7,499 21,978
Excess Market Value Over Book Value of Securities
Distributed Upon Redemption of Shares ............. -- --
Net Unrealized Appreciation (Depreciation) of
Investment Securities ............................. (8,456) (3,868)
- ---------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
from Operations ................................. (998) 18,239
- ---------------------------------------------------------------------------------------
Distributions to Shareholders:
Net Investment Income ............................... -- (132)
Realized Capital Gain ............................... (23,871) (5,807)
- ---------------------------------------------------------------------------------------
Total Distributions ............................... (23,871) (5,939)
- ---------------------------------------------------------------------------------------
Capital Share Transactions:
Proceeds from Shares Issued ......................... 17,069 14,623
Proceeds from Shares Issued in Lieu of
Cash Distributions ................................ 23,565 5,650
Cost of Shares Redeemed ............................. (27,126) (52,228)
- ---------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Capital Share Transactions ...................... 13,508 (31,955)
- ---------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets............ (11,361) (19,655)
- ---------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ............................... 96,164 115,819
Excess Market Value Over Book Value of Securities
Received in In-Kind Subscriptions................ -- --
- ---------------------------------------------------------------------------------------
End of Period ..................................... $84,803 $ 96,164
=======================================================================================
Shares Issued and Redeemed:
Issued .............................................. 1,195 946
Issued in Lieu of Cash Distributions ................ 1,832 394
Redeemed ............................................ (1,847) (3,428)
- ---------------------------------------------------------------------------------------
Net Increase (Decrease) in Share Transactions ..... 1,180 (2,088)
- ---------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP MIDCAP ULTRA LARGE
FUND FUND CAP FUND
------------------------ ----------- -----------
FOR THE FOR THE FOR THE
SIX MONTH ELEVEN MONTH PERIOD PERIOD
PERIOD ENDED PERIOD ENDED ENDED ENDED
3/31/97 9/30/96 3/31/97(1) 3/31/97(2)
(000) (000) (000) (000)
- ------------------------------------------------------------------------------------------------------------------------
Investment Activities:
<S> <C> <C> <C> <C>
Net Investment Income (Loss) ........................ $ (332) $ (245) $ (5) --
Net Realized Gain (Loss) on Securities Sold ......... (2,493) 1,936 72 $ (3)
Excess Market Value Over Book Value of Securities
Distributed Upon Redemption of Shares ............. -- 1,924 -- --
Net Unrealized Appreciation (Depreciation) of
Investment Securities ............................. (12,857) 5,659 (119) (18)
- ------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Net Assets Resulting
from Operations ................................. (15,682) 9,274 (52) (21)
- ------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
Net Investment Income ............................... -- -- -- --
Realized Capital Gain ............................... (1,689) (925) (18) --
- ------------------------------------------------------------------------------------------------------------------------
Total Distributions ............................... (1,689) (925) (18) --
- ------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Proceeds from Shares Issued ......................... 46,678 66,572 2,665 450
Proceeds from Shares Issued in Lieu of
Cash Distributions ................................ 1,339 904 17 --
Cost of Shares Redeemed ............................. (33,611) (21,472) (1,045) (125)
- ------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Capital Share Transactions ...................... 14,406 46,004 1,637 325
- ------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets............ (2,965) 54,353 1,567 304
- ------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ............................... 67,425 13,072 -- --
Excess Market Value Over Book Value of Securities
Received in In-Kind Subscriptions................ -- -- 50(3) --
- ------------------------------------------------------------------------------------------------------------------------
End of Period ..................................... $64,460 $67,425 $1,617 $304
========================================================================================================================
Shares Issued and Redeemed:
Issued .............................................. 2,126 3,120 263 45
Issued in Lieu of Cash Distributions ................ 62 55 2 --
Redeemed ............................................ (1,556) (1,073) (100) (13)
- ------------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Share Transactions ..... 632 2,102 165 32
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The Turner Midcap Fund commenced operations on October 1, 1996.
(2) The Turner Ultra Large Cap Fund commenced operations on February 1, 1997.
(3) During 1997, the Fund received securities in-kind with unrealized
appreciation approximating $50,000.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS TIP FUNDS
For a Share Outstanding Throughout each Period (Unaudited)
<TABLE>
<CAPTION>
Realized Dis-
and tri- Ratio of Net
Net Unrealized bu- Investment Ratio of Net
Asset Gains tions Dis- Net Net Ratio Income Ratio of Investment
Value Net or from tribu- Asset Assets of (Loss) Expenses Income (Loss)
Begin- Invest-(Losses) Net tions Value End Expenses to to Average to Average Port- Average
ning ment on Invest- from End of to Average Net Assets Net Assets folio Com-
of Income Invest- ments Capital of Total Period Average Net (Excluding (Excluding Turnover mission
Period (Loss) ments Income Gains Period Return(5) (000) Assets Assets Waivers) Waivers) Rate Rate(6)
------ ----- ----- ------- ----- ------ --------- ----- ------- ------- ------- ----------- ------- -------
- ------------------
GROWTH EQUITY FUND
- ------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1997 $17.03 (0.01) (0.01) -- (4.59) $12.42 (1.02)% $ 84,803 1.05%+* (0.17)%+* 1.05%+* (0.17)%+* 71.49% $0.0600
1996 $14.97 0.02 2.91 (0.02) (0.85) $17.03 20.61% $ 96,164 1.06%+* 0.03%+* 1.06%+* 0.03%+* 147.79% $0.0600
1995 $12.46 0.10 2.52 (0.11) -- $14.97 21.15% $115,819 1.03% 0.69% 1.03% 0.69% 177.86% n/a
1994 $13.12 0.10 (0.66) (0.10) -- $12.46 (4.28)% $112,959 0.95% 0.86% 1.08% 0.73% 164.81% n/a
1993 $10.40 0.09 2.72 (0.09) -- $13.12 27.08% $ 53,327 1.00% 0.80% 1.52% 0.28% 88.35% n/a
1992(1) $10.00 0.03 0.40 (0.03) -- $10.40 6.95% $ 7,781 1.44%* 0.73%* 2.55%* (0.38)%* 205.00% n/a
- --------------
SMALL CAP FUND
- --------------
1997 $23.13 (0.10) (4.34) -- (0.51) $18.18 (19.53)% $ 64,460 1.25%* (0.91)%* 1.32%* (0.98)%* 65.76% $0.0600
1996 $16.08 (0.08) 8.17 -- (1.04) $23.13 52.90% $ 67,425 1.25%* (0.88)%* 1.54%* (1.17)%* 149.00% $0.0600
1995 $10.90 (0.06) 5.24 -- -- $16.08 47.52% $ 13,072 1.25% (0.68)% 2.39% (1.82)% 183.49% n/a
1994(2) $10.00 (0.02) 0.92 -- -- $10.90 12.35% $ 4,806 1.09%* (0.27)%* 4.32%* (3.50)%* 173.92% n/a
- -----------
MIDCAP FUND
- -----------
1997(3) $10.00 (0.03) (0.08) -- (0.11) $9.78 (1.12)% $ 1,617 1.25%* (0.61)%* 9.57%* (8.93)%* 207.76% $0.0600
- --------------------
ULTRA LARGE CAP FUND
- --------------------
1997(4) $10.00 0.01 (0.59) -- -- $9.42 (5.80)% $ 304 1.00%* 0.82%* 39.85%* (38.03)%* 101.53% $0.0600
<FN>
* Annualized
(1) The Turner Growth Equity Fund commenced operations on March 11, 1992.
(2) The Turner Small Cap Fund commenced operations on February 7, 1994.
(3) The Turner Midcap Fund commenced operations on October 1, 1996.
(4) The Turner Ultra Large Cap Fund commenced operations on February 1, 1997.
(5) Returns are for the period indicated and have not been annualized.
(6) Average commission rate paid per share for security purchases and sales during the period. Presentation of the rate
is only required for fiscal years beginning after September 1, 1995.
+ The Ratios of Expenses to Average Net Assets and Net Investment Income to Average Net Assets do not reflect the
Advisor's use of arrangements whereby certain broker-dealers have agreed to pay certain expenses of the Turner Growth Equity
Fund in return for the direction of a percentage of the Fund's brokerage transactions. As a result of these
arrangements, the Ratio of Expenses to Average Net Assets was 0.94% for the eleven month period ended 9/30/96 and
0.97% for the six month period ended 3/31/97, and the Ratios of Net Investment Income (Loss) to Average Net Assets
were 0.15% and (0.09)% for the same periods described.
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS TIP FUNDS
March 31, 1997 (Unaudited)
1. ORGANIZATION:
TIP FUNDS (the "Trust") a Massachusetts' business trust, is registered under the
Investment Company Act of 1940, as amended, as a diversified open-end management
investment company with five funds: the Turner Small Cap Fund (the "Small Cap
Fund"), the Turner Growth Equity Fund (the "Growth Equity Fund"), the Turner
Midcap Fund (the "Midcap Fund"), the Turner Ultra Large Cap Fund (the "Ultra
Large Cap Fund") and the Turner Fixed Income Fund (the "Fixed Income Fund").
These statements relate only to the Small Cap, Growth Equity, Midcap, and Ultra
Large Cap Funds (the "Funds"). 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.
On April 19, 1996, the shareholders of the Advisors' Inner Circle Turner Small
Cap Fund and the Advisors' Inner Circle Growth Equity Fund (the Advisors' Inner
Circle Trust) and together "the Turner Funds" voted to approve a tax-free
reorganization of the Turner Funds through a transfer of all the assets and
liabilities of the Turner Funds to the Turner Small Cap and Turner Growth Equity
Funds' portfolios. In connection with the reorganization, the Funds have changed
their fiscal year end from October 31, 1996 to September 30, 1996.
On February 21, 1997 the Board of Trustees of Turner Funds voted to change the
name of the Trust to TIP Funds.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of the significant accounting policies followed by
the Funds.
SECURITY VALUATION -- Investments in equity securities which are traded on
a national exchange (or reported on the NASDAQ national market system) are
stated at the last quoted sales price if readily available for such equity
securities on each business day; other equity securities traded in the
over-the-counter market and listed equity securities for which no sale was
reported on that date are stated at the last quoted bid price. Debt obligations
exceeding sixty days to maturity for which market quotations are readily
available are valued at the most recently quoted bid price. Debt obligations
with sixty days or less remaining until maturity may be valued at their
amortized cost, which approximates market value.
FEDERAL INCOME TAXES -- It is each Fund's intention to qualify as a regulated
investment company by complying with the appropriate provisions of the
Internal Revenue Code of 1986, as amended. Accordingly, no provision for Federal
income taxes is required.
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, and interest income is
recognized on the accrual basis. 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.
NET ASSET VALUE PER SHARE -- The net asset value per share of each Fund is
calculated on each business day, by dividing the total value of the Fund's
assets, less liabilities, by the number of shares outstanding.
REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase
agreements are held by the custodian bank until the respective agreements
mature. Provisions
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) TIP FUNDS
March 31, 1997 (Unaudited)
of the repurchase agreements ensure that the market value of the collateral,
including accrued interest thereon, is sufficient in the event of default of the
counterparty. If the counterparty defaults and the value of the collateral
declines or if the counterparty enters an insolvency proceeding, realization of
the collateral by the Funds may be delayed or limited.
OTHER -- Expenses that are directly related to one of the Funds are charged to
that Fund. Other operating expenses of the Trust are prorated to the Funds on
the basis of relative daily net assets.
Distributions from net investment income are declared and paid to Shareholders
on a quarterly basis. Any net realized capital gains on sales of securities are
distributed to Shareholders at least annually.
Dividends from net investment income and distributions from net realized capital
gains are determined in accordance with U.S. Federal income tax regulations,
which may differ from those amounts determined under generally accepted
accounting principals. These book/tax differences are either temporary or
permanent in nature. To the extent these differences are permanent, they are
charged or credited to paid-in-capital or accumulated net realized gain, as
appropriate, in the period that the differences arise.
The preparation of financial statements in conformity with 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 income and expenses during the reported period. Actual
results could differ from those estimates.
3. TRANSACTIONS WITH AFFILIATES:
Certain officers of the Trust are also officers of SEI Fund Resources (the
"Administrator") and/or SEI Financial Services Company (the "Distributor"). Such
officers are paid no fees by the Trust for serving as officers and trustees of
the Trust.
4. ADMINISTRATION, SHAREHOLDER SERVICING AND DISTRIBUTION AGREEMENTS:
The TIP Trust and the Administrator are parties to an agreement under which the
Administrator provides management and administrative services for an annual fee
of .12% of the average daily net assets of each of the Funds up to $75 million,
.10% on the next $75 million, .09% on the next $150 million, .08% on the next
$300 million and .075% of such assets in excess on $600 million. During fiscal
1997, the Administrator has voluntarily waived a portion of its fee.
The Growth Equity Fund had directed certain portfolio trades to brokers who paid
a portion of its expenses. For the six month period ended March 31, 1997, the
Growth Equity Fund's expenses were reduced by $37,549 under this arrangement.
DST Systems, Inc., (the "Transfer Agent") serves as the transfer agent and
dividend disbursing agent for the Funds under a transfer agency agreement with
the Trust.
The Trust and the Distributor are parties to a Distribution Agreement dated
April 30, 1996. The Distributor receives no fees for its distribution services
under this agreement.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONCLUDED) TIP FUNDS
March 31, 1997 (Unaudited)
5. INVESTMENT ADVISORY AND CUSTODIAN AGREEMENTS:
The Trust and Turner Investment Partners, Inc. (the "Adviser") are parties to an
Investment Advisory Agreement dated April 30, 1996, under which the Adviser
receives an annual fee equal to .75% of the average daily net assets of the
Ultra Large Cap, Growth Equity and Midcap Funds, 1.00% of those of the Small Cap
Fund and .50% of those of the Fixed Income Fund. The Adviser has voluntarily
agreed to waive all or a portion of its fees and to reimburse expenses of the
Ultra Large Cap, Growth Equity, Midcap, Small Cap and Fixed Income Funds in
order to limit their total operating expenses (as a percentage of average daily
net assets on an annualized basis) to not more than 1.00%, 1.00%, 1.25%, 1.25%
and 0.75%, respectively. Fee waivers and expense reimbursements are voluntary
and may be terminated at any time.
CoreStates Bank, N.A. acts as custodian (the "Custodian") for the Funds. Fees of
the Custodian are being paid on the basis of the net assets of the Funds. The
Custodian plays no role in determining the investment policies of the Funds or
which securities are to be purchased or sold in the Funds.
6. INVESTMENT TRANSACTIONS:
The cost of security purchases and the proceeds from security sales, other than
short-term investments, for the six month period ended March 31, 1997 are as
follows:
ULTRA
GROWTH SMALL LARGE
EQUITY CAP MIDCAP CAP
FUND FUND FUND FUND
(000) (000) (000) (000)
- ------------------------------------------------------
Purchases
Government -- -- -- --
Other $66,030 $57,850 $ 4,183 $ 519
Sales
Government -- -- -- --
Other $75,934 $46,413 $ 3,048 $ 228
At March 31, 1997, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes was not materially
different from amounts reported for financial reporting purposes. The aggregate
gross unrealized appreciation and depreciation for securities held by the Funds
at March 31, 1997, are as follows:
ULTRA
GROWTH SMALL LARGE
EQUITY CAP MIDCAP CAP
FUND FUND FUND FUND
(000) (000) (000) (000)
- ------------------------------------------------------
Aggregate gross
unrealized
appreciation $11,773 $ 4,077 $ 55 $ 3
Aggregate gross
unrealized
depreciation (3,649) (8,271) (124) (21)
- ------------------------------------------------------
Net unrealized
appreciation
(depreciation) $ 8,124 $(4,194) $(69) $(18)
======================================================
7. IN-KIND TRANSFER OF SECURITIES
During the period ended March 31, 1997, the Turner Midcap Fund issued shares of
beneficial interest in exchange for portfolio securities at their current value
from certain accounts managed by Turner Investment Partners, Inc.:
VALUE OF
SHARES SECURITIES UNREALIZED
ISSUED RECEIVED APPRECIATION
------ ---------- ------------
Midcap Fund 48,958 $489,579 $49,743
The historical tax basis of the securities exchanged for shares of beneficial
interest of the portfolio was recorded in the books of the Midcap Fund and
included the unrealized appreciation shown above.
---------------------
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
