SEMIANNUAL
REPORT
MARCH 31, 1998
TIP Funds [Logo Omitted]
TRUSTED INSTITUTIONAL PARTNERS
===============================
Turner Growth Equity Fund
===============================
Turner Midcap Growth Fund
===============================
Turner Small Cap Growth Fund
===============================
Turner Ultra Large Cap
Growth Fund
===============================
<PAGE>
CONTENTS
- --------------------------------------------------------------------------------
2 Total Returns and Fund Investment Objectives
3 Letter to Shareholders
6 Financial Statements
TIP FUNDS
- --------------------------------------------------------------------------------
The TIP Funds offer a series of 12 no-load mutual funds to individual and
institutional investors. The minimum initial investment in a TIP Fund for
regular accounts is $2,500 and $2,000 for individual retirement accounts. The
minimum amount for subsequent investments is $500.
Turner Investment Partners, Inc., based in Berwyn, Pennsylvania, serves as
the investment adviser to six of the TIP Funds. The firm, founded in 1990,
invests more than $2.8 billion in equity, fixed-income, and balanced portfolios
on behalf of individuals and institutions. Turner Investment Partners advises
the Turner Growth Equity Fund, the Turner Midcap Growth Fund, the Turner Small
Cap Growth Fund, the Turner Ultra Large Cap Growth Fund, the Turner Fixed Income
Fund, and the TIP Target Select Equity Fund.
Turner also advises three TIP Institutional Funds: the Turner Micro Cap
Growth Fund, the Turner Short Duration Funds-One Year Portfolio, and the Turner
Short Duration Funds-Three Year Portfolio. Separate investment firms manage the
other mutual funds in the TIP Funds family.
SHAREHOLDER SERVICES
- --------------------------------------------------------------------------------
TIP Funds shareholders receive annual and semiannual reports and monthly
account statements. Shareholders who have questions about their accounts may
call a toll-free telephone number, 1-800-224-6312. Or they may write to TIP
Funds, Box 419805, Kansas City, Missouri 64141.
<PAGE>
<TABLE>
<CAPTION>
TOTAL RETURNS*
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Periods ended March 31, 1998
THREE FIVE
SIX ONE YEARS YEARS SINCE
MONTHS YEAR (ANNUALIZED) (ANNUALIZED) INCEPTION**
- ---------------------------------------------------------------------------------------------------------------------------
Turner Growth
Equity Fund 13.03% 51.44% 29.58% 18.71% 18.41%
Turner Midcap
Growth Fund 14.74 66.84 -- -- 39.75
Turner Small Cap
Growth Fund 9.51 58.72 38.62 -- 31.82
Turner Ultra Large
Cap Growth Fund 19.48 55.75 -- -- 39.10
*Past performance cannot guarantee future results. The investment return and principal value of an investment will
fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost.
**The inception dates for each mutual fund are as follows: Turner Growth Equity Fund, March 11, 1992; Turner Midcap
Growth Fund, October 1, 1996; Turner Small Cap Growth Fund, February 7, 1994; and Turner Ultra Large Cap Growth Fund,
February 1, 1997.
</TABLE>
FUND INVESTMENT OBJECTIVES
- --------------------------------------------------------------------------------
THE TURNER GROWTH EQUITY FUND seeks capital appreciation. It invests
primarily in a diversified portfolio of common stocks that, in Turner's opinion,
have strong earnings growth potential. The Fund's economic-sector weightings
approximate the sector weightings of the Russell 1000 Growth Index.
THE TURNER MIDCAP GROWTH FUND seeks capital appreciation. It invests
primarily in a diversified portfolio of common stocks with market
capitalizations between $500 million and $6 billion at the time of purchase that
Turner believes offer strong earnings growth potential. The Fund's
economic-sector weightings approximate the sector weightings of the Russell
Midcap Growth Index.
THE TURNER SMALL CAP GROWTH FUND seeks capital appreciation. It invests
primarily in a diversified portfolio of common stocks with market
capitalizations not exceeding $1 billion that Turner believes offer strong
earnings growth potential. The Fund's economic-sector weightings approximate the
sector weightings of the Russell 2000 Growth Index.
THE TURNER ULTRA LARGE CAP GROWTH FUND seeks capital appreciation. It
invests primarily in a diversified portfolio of common stocks with market
capitalizations exceeding $10 billion at the time of purchase that Turner
believes offer strong earnings growth potential. The Fund's economic-sector
weightings approximate the sector weightings of the Russell Top 200 Growth
Index.
2
<PAGE>
TO OUR SHAREHOLDERS:
- --------------------------------------------------------------------------------
The stock market showed a split personality during the six-month period ended
March 31 -- a sharp drop early on, followed by a powerful rally.
In October, stocks corrected -- and how. A massive sell-off, precipitated
by the ripple effects of Asia's widespread financial problems, ended the S&P 500
Index's unprecedented streak of going 84 consecutive months -- seven full years
- -- without at least a 10% correction. Characteristically, in this age of
immediacy, the correction was accomplished swiftly, in slightly less than three
weeks. Nevertheless, the S&P 500 rebounded to finish the fourth quarter of 1997
with a 2.87% gain.
Then, in 1998's first quarter, the bull market resumed its extraordinary
run, with the S&P 500 sprinting ahead 13.94% -- normally a premium return for a
full year. The S&P 500 recorded 25 new highs in the quarter, as the impact of
Asia's problems on the domestic economy and capital markets proved to be not
nearly as dire as some had feared. Indeed, the renewed vigor of stocks reflected
continuing good economic news (the current expansion turned seven years old in
April, with no recession yet in sight). Altogether, it was the best quarter for
stocks in 11 years.
OUR SIX-MONTH PERFORMANCE: ADMIRABLE
As for our own mutual funds, they turned in generally favorable -- and in
some cases, exceptional -- results versus their indexes over the past six
months:
(Bullet) The Turner Growth Equity Fund gained 13.03%, trailing the
performance of the Russell 1000 Growth Index by 3.87 percentage points.
(Bullet) The Turner Midcap Growth Fund continued its winning ways, with a
return of 14.74% that beat the Russell Midcap Growth Index's results by 5.89
percentage points.
(Bullet) The Turner Small Cap Growth Fund was up 9.50%, a performance
advantage of 6.78 percentage points over the lackluster Russell 2000 Growth
Index.
(Bullet) The Turner Ultra Large Cap Growth Fund earned the highest return
of all, 19.48%, but fell 0.29 percentage points short of equaling the Russell
Top 200 Growth Index's gain.
Also worthy of note in the past 12 months was the elite performance of our
funds versus their peers, as calculated by Lipper Analytical Services. In the
Capital Appreciation Funds category, Growth Equity ranked 38th among 232
competing funds, or in the 16th percentile. Among Mid-Cap Funds, Midcap Growth
ranked second out of 274, or in the first percentile. In the Small-Cap Funds
class, Small Cap Growth scored 17th out of 493, or in the third percentile. And
in the Growth Funds category, Ultra Large Cap ranked 46th of 858, or in the
fifth percentile.
LONG-TERM RATINGS: COMMENDABLE
Similarly, our two oldest funds are in the upper percentiles of their
categories for the longest applicable time spans. Growth Equity ranks 34th out
of 86 for the past five years, and Small Cap Growth ranks first of 231 for the
past four years.
In general, during the past six months, our funds did a good job of
avoiding the carnage
3
<PAGE>
caused by Asia's financial crisis. Before the crisis hit, we had already
largely sold semiconductor, semiconductor capital-equipment, and money-center
banking stocks because of their substantial exposure to Asia. For instance,
beginning in late October, the semiconductor-capital equipment stocks in the
producer-durables sector fell as much as 50% from their peak prices. But by then
we had already switched into other producer-durables stocks of companies with
little Asian presence.
By escaping severe losses in the market downturn, our funds thus stood in good
stead to capitalize on the potent upturn that subsequently materialized. Also,
as anticipated, we welcomed the resurgence of growth stocks in the second half
of the period. Indeed, growth stocks out-performed value stocks in all
capitalization segments, from the mega-caps to the small-caps. The broad-based
Russell 3000 Growth Index, for instance, returned 14.83% to outperform the
Russell 3000 Value Index by 3.50 percentage points in the first quarter.
Altogether, for the period as a whole, our investments in the utilities,
consumer-discretionary, consumer-staples, and materials/processing sectors
performed well.
WE LOOK FOR AN UP YEAR
Looking ahead, we think the economic backdrop in 1998 should be conducive
to stock prices in aggregate moving higher. The reason for our positive market
outlook: if the present isn't the best of all possible worlds for U.S. stocks,
it's close. The quality of earnings has never been higher. U.S. corporations
continue to enhance their competitiveness and earnings power with restructuring
programs, acquisitions, and applications of new technology, all of which are in
turn helping to produce returns on equity that are the envy of the world.
Interest rates and inflation are low and stable, a throwback to the 1950s.
Stocks figure to benefit for a long time to come from demand by a mighty
demographic force: baby boomers investing heavily in 40l(k) and Keogh plans and
Individual Retirement Accounts to prepare for retirement. And, as noted, the
long-lived economic expansion continues.
WE SEEK EARNINGS GROWTH
As we deal with market conditions in 1998, the cardinal principle of our
investment approach will remain the same, of course: to seek superior returns by
investing in companies with earnings that meet or exceed expectations. And as
always, our funds remain fully invested, with minimal cash positions and sector
weightings that closely approximate the sector weightings of their indexes. Our
holdings are well diversified, with a maximum weighting in any one stock that's
1.2 times its index weighting and generally 2% or less of total assets.
Briefly, here's the outlook for each of our funds:
In investing for the Turner Growth Equity Fund, we are encouraged by signs
of the market broadening, as the performance premium between large-cap and
smaller-capitalization issues diminishes. That should play to the strengths of
Growth Equity, in which mid-cap and small-cap stocks have historically accounted
for 30-55% of our holdings. Our investments continue to represent solid earnings
prospects --
4
<PAGE>
a consensus forecast of 17.0% earnings growth over the next year by Wall
Street analysts, as calculated by I/B/E/S International. The Russell 1000 Growth
Index, in contrast, has a comparable growth rate of 15.9%.
The Turner Midcap Growth Fund's holdings still offer attractive valuations.
Their ratio of price/earnings multiple to growth rate is 1.11, versus 2.04 for
the large-cap S&P 500 stocks. Moreover, the companies' prospective earnings
power remains formidable, with an I/B/E/S expected growth rate of 25.4% over
the next 12 months. In comparison, the Russell Midcap Growth Index's rate
is 21.0%.
In terms of sheer earnings power, small stocks -- the Turner Small Cap Growth
Fund's province -- are the undisputed champions. Although year-over-year profit
growth for large companies is now sagging, expected growth in earnings per share
of the companies owned in Small Cap Growth remains vibrant: it's expected to
rise by a median 32.3% over the next 12 months, according to I/B/E/S. We
continue to think that as time passes, small-cap companies with earnings
increases of 20% or more will look more and more appealing to investors. And in
terms of valuations, they look appealing: small-cap growth stocks are now
selling at only 1.2 times the trailing 12-month price/earnings multiple of large
stocks (versus an average ratio of 1.6 since 1979).
The Turner Ultra Large Cap Growth Fund, with its focus on the best big
companies, has had a lot going for it lately: share liquidity, powerful brands
that dominate their markets, strong cash flows that have financed record levels
of stock repurchases, a consistently high level of earnings growth, and
popularity among investors. We think the biggest and the best still have a lot
going for them, including attractive earnings prospects. For instance, the
companies we own have an I/B/E/S expected earnings growth rate of 15.1% in the
next 12 months, versus 13.2% for the Russell Top 200 Growth Index.
As always, we remain committed to our mission of delivering superior
investment returns and service to you, our shareholders. And as always, we
welcome your questions or comments.
/S/Signature
Robert E. Turner
CHAIRMAN AND CHIEF INVESTMENT OFFICER
TURNER INVESTMENT PARTNERS, INC.
5
<PAGE>
STATEMENT OF NET ASSETS TIP FUNDS
March 31, 1998 (Unaudited)
Market
TURNER GROWTH Value
EQUITY FUND Shares (000)
- ------------------------------------------------------
COMMON STOCKS (98.0%)
BANKS (1.0%)
SunTrust Banks 12,840 $ 968
-------
BEAUTY PRODUCTS (5.2%)
Colgate-Palmolive 12,150 1,052
Gillette 12,750 1,513
Procter & Gamble 31,380 2,648
-------
5,213
-------
BROADCASTING, NEWSPAPERS, AND ADVERTISING (2.0%)
Chancellor Media, Cl A* 11,070 508
Clear Channel Communications* 8,980 880
Univision Communications* 17,000 633
-------
2,021
-------
CHEMICALS (1.2%)
E.I. duPont de Nemours 11,600 789
Monsanto 9,120 474
-------
1,263
-------
COMMUNICATIONS EQUIPMENT (1.3%)
Ciena* 19,045 812
Reltec* 13,650 484
-------
1,296
-------
COMPUTERS AND SERVICES (16.9%)
America Online* 16,080 1,098
Cadence Design Systems* 22,930 794
CBT Group* 10,620 550
Checkpoint Software* 12,350 564
Cisco Systems* 31,070 2,124
Compuware* 20,910 1,032
Dell Computer* 13,860 939
Documentum* 10,170 550
Electronic Data Systems 20,770 953
Gateway 2000* 15,630 734
ISS Group* 13,080 509
Microsoft* 37,940 3,396
Parametric Technology* 26,240 874
Peoplesoft* 19,600 1,033
Storage Technology* 10,565 804
Sungard Data Systems* 30,500 1,123
-------
17,077
-------
Market
Value
Shares (000)
- -------------------------------------------------------
DRUGS (10.9%)
Bristol-Myers Squibb 18,840 $ 1,965
Merck 25,470 3,270
Pfizer 29,930 2,984
Schering Plough 18,240 1,490
Warner Lambert 7,440 1,267
-------
10,976
-------
ENTERTAINMENT (1.7%)
Walt Disney 16,430 1,754
-------
ENVIRONMENTAL SERVICES (0.7%)
Allied Waste Industries* 30,190 754
-------
FINANCIAL SERVICES (3.9%)
Associates First Capital 9,580 757
Fannie Mae 18,590 1,176
Morgan Stanley, Dean Witter,
Discover 16,770 1,222
Providian Financial 14,290 821
-------
3,976
-------
FOOD, BEVERAGE, AND TOBACCO (4.4%)
Canandaigua Wine, Cl A* 5,320 304
International Home Foods* 35,710 1,187
Interstate Bakeries 19,090 617
Ralston-Ralston Purina Group 7,140 757
Sara Lee 24,960 1,538
-------
4,403
-------
HOUSEHOLD PRODUCTS (8.1%)
Black & Decker 13,920 739
Clorox 11,040 946
Dial 33,040 791
General Electric 65,540 5,649
-------
8,125
-------
INSURANCE (0.6%)
Exel 7,580 587
-------
LEASING AND RENTING (0.8%)
Pitney Bowes 15,230 764
-------
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
STATEMENT OF NET ASSETS TIP FUNDS
March 31, 1998 (Unaudited)
Market
TURNER GROWTH Value
EQUITY FUND (Continued) Shares (000)
- -----------------------------------------------------
MACHINERY (4.7%)
Applied Materials* 19,330 $ 683
Danaher 9,460 718
Emerson Electric 11,160 727
Illinois Tool Works 12,270 794
McDermott International 20,900 863
Tyco International Limited 16,820 919
------
4,704
------
MARINE TRANSPORTATION (0.8%)
Carnival 11,980 836
------
MEDICAL PRODUCTS AND SERVICES (7.3%)
Becton, Dickinson 9,620 655
Beverly Enterprises* 52,890 704
Boston Scientific* 15,070 1,017
Guidant 13,250 972
Health Management
Associates, Cl A* 25,940 743
Medtronic 17,350 900
Tenet Healthcare* 45,290 1,645
Universal Health Services* 13,260 766
------
7,402
------
MISCELLANEOUS BUSINESS SERVICES (2.8%)
Cendant* 32,043 1,270
HBO 25,950 1,567
------
2,837
------
MISCELLANEOUS CONSUMER SERVICES (0.5%)
Stewart Enterprises, Cl A 9,000 501
------
PETROLEUM AND FUEL PRODUCTS (1.5%)
EEX* 78,110 766
Occidental Petroleum 24,310 713
------
1,479
------
PROFESSIONAL SERVICES (0.8%)
Paychex 13,650 787
------
RETAIL (11.0%)
Abercrombie & Fitch, Cl A* 11,660 490
Albertson's 17,280 909
Costco* 18,810 1,004
CVS 10,450 789
Market
Value
Shares (000)
- -------------------------------------------------------
Estee Lauder 7,680 $ 521
General Nutrition* 12,080 480
Home Depot 11,325 764
Kohls* 5,860 479
Kroger* 10,730 496
Lowe's 6,940 487
McDonald's 13,530 812
Office Depot* 17,550 546
Proffitts* 13,640 494
Safeway* 36,800 1,359
Starbucks* 15,950 723
Walgreen 20,390 717
-------
11,070
-------
RUBBER AND PLASTIC (0.5%)
Goodyear Tire & Rubber 6,830 517
-------
SEMICONDUCTORS/INSTRUMENTS (5.1%)
EMC* 26,420 999
Intel 44,440 3,469
Texas Instruments 12,420 672
-------
5,140
-------
SPECIALTY CONSTRUCTION (1.2%)
Masco 11,710 697
United Rentals* 18,310 476
-------
1,173
-------
TELEPHONES AND TELECOMMUNICATION (2.6%)
AT&T 15,080 990
Qwest Communications
International* 19,500 758
WorldCom* 20,020 862
-------
2,610
-------
WHOLESALE (0.5%)
McKesson 8,600 497
-------
TOTAL COMMON STOCKS
(Cost $78,595) 98,730
-------
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
STATEMENT OF NET ASSETS TIP FUNDS
March 31, 1998 (Unaudited)
Face Market
TURNER GROWTH Amount Value
EQUITY FUND (Concluded) (000) (000)
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT (0.4%)
J.P. Morgan
5.25%, dated 03/31/98,
matures 04/01/98,
repurchase price $371,025
(collateralized by GNMA,
9.00%, matures 06/15/16:
market value $378,390) $370,970 $ 371
--------
TOTAL REPURCHASE AGREEMENT
(Cost $371) 371
--------
TOTAL INVESTMENTS (98.4%)
(Cost $78,966) 99,101
--------
OTHER ASSETS AND LIABILITIES, NET (1.6%) 1,646
--------
NET ASSETS
Portfolio Shares (unlimited
authorization -- no par value)
based on 7,669,253 outstanding
shares of beneficial interest 74,406
Net investment loss (165)
Accumulated net realized gain
on investments 6,371
Net unrealized appreciation
on investments 20,135
--------
TOTAL NET ASSETS (100.0%) $100,747
========
Net Asset Value, Offering
and Redemption Price
Per Share $ 13.14
========
*NON-INCOME PRODUCING SECURITY
CL -- CLASS
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
Market
TURNER MIDCAP Value
GROWTH FUND Shares (000)
- ------------------------------------------------------
COMMON STOCKS (97.3%)
AIR TRANSPORTATION (0.9%)
US Airways Group* 2,540 $ 188
-------
APPAREL/TEXTILES (1.8%)
Interface 3,920 163
Ralph Lauren* 6,845 206
-------
369
-------
AUTOMOTIVE (2.1%)
CSK Auto 9,100 205
Federal Mogul 4,027 214
-------
419
-------
BANKS (2.7%)
Dime Bancorp 4,800 144
Sovereign Bancorp 11,000 200
Zions Bancorp 4,030 212
-------
556
-------
BROADCASTING, NEWSPAPERS, AND ADVERTISING (4.0%)
Chancellor Media* 4,090 188
Clear Channel Communications* 1,880 184
Heftel Broadcasting* 3,840 172
Outdoor Systems* 8,071 283
-------
827
-------
BUILDING AND CONSTRUCTION SUPPLIES (1.9%)
Martin Marietta Materials 4,390 190
Southdown 2,840 198
-------
388
-------
CHEMICALS (1.0%)
Avery Dennison 3,840 205
-------
COMMUNICATIONS EQUIPMENT (2.7%)
Ciena* 4,470 190
Reltec* 5,740 203
Tekelec* 3,650 166
-------
559
-------
COMPUTERS AND SERVICES (15.4%)
Cadence Design Systems* 5,400 187
Cambridge Technology Partners* 2,860 142
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
STATEMENT OF NET ASSETS TIP FUNDS
March 31, 1998 (Unaudited)
Market
TURNER MIDCAP Value
GROWTH FUND (Continued) Shares (000)
- ------------------------------------------------------
CBT Group ADR* 4,080 $ 211
Checkpoint Software* 3,700 169
Compuware* 4,110 203
DST Systems* 2,980 157
Gateway 2000* 4,000 188
Hyperion Software* 3,540 157
Information Management
Resources* 3,800 224
ISS Group Inc* 3,910 152
Network Appliance* 6,750 240
Parametric Technology* 4,400 147
Saville Systems Ireland ADR* 4,480 230
Storage Technology* 2,050 156
Sungard Data Systems* 4,430 163
Teradyne* 5,300 212
Veritas Software* 3,615 214
-------
3,152
-------
CONTAINERS AND PACKAGING (1.8%)
Owens-Illinois* 4,580 198
Sealed Air* 2,670 175
-------
373
-------
ENTERTAINMENT (1.1%)
Bally Total Fitness* 6,790 214
-------
ENVIRONMENTAL SERVICES (2.0%)
Allied Waste Industries* 6,240 156
Newpark Resources* 14,080 257
-------
413
-------
FINANCIAL SERVICES (1.8%)
CMAC Investment 3,000 200
Ocwen Financial* 6,105 169
-------
369
-------
FOOD, BEVERAGE, AND TOBACCO (3.5%)
International Home Foods* 7,870 262
Keebler Foods* 8,060 242
McCormick 6,290 203
-------
707
-------
Market
Value
Shares (000)
- ------------------------------------------------------
HOTELS AND LODGING (1.0%)
Signature Resorts* 10,765 $ 213
-------
HOUSEHOLD PRODUCTS (4.6%)
Black & Decker 4,880 259
Clorox 2,856 245
Dial 12,270 294
Valspar 3,550 139
-------
937
-------
INSURANCE (1.8%)
Ace Limited 5,880 222
Life Re 2,040 150
-------
372
-------
MACHINERY (3.5%)
Danaher 2,340 178
Kennametal 3,880 204
McDermott International 8,230 340
-------
722
-------
MEDICAL PRODUCTS AND SERVICES (10.1%)
Becton, Dickinson 2,550 173
Beverly Enterprises* 16,860 224
ESC Medical Systems* 4,910 172
Health Management
Associates, Cl A* 4,770 136
Healthcare & Retirement* 5,360 230
Patterson Dental* 6,210 192
Sofamor Danek Group* 2,745 234
Sybron International* 7,430 194
Total Renal Care Holdings* 7,930 264
Universal Health Services* 4,361 252
-------
2,071
-------
MISCELLANEOUS BUSINESS SERVICES (3.4%)
BMC Software* 3,190 267
Fiserv* 3,540 224
J.D. Edwards & Company* 6,120 200
-------
691
-------
MISCELLANEOUS CONSUMER SERVICES (1.0%)
Romac International* 7,600 209
-------
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
STATEMENT OF NET ASSETS TIP FUNDS
March 31, 1998 (Unaudited)
Market
TURNER MIDCAP Value
GROWTH FUND (Continued) Shares (000)
- ------------------------------------------------------
MISCELLANEOUS MANUFACTURING (0.7%)
Kaydon 3,670 $ 150
-------
OFFICE FURNITURE AND FIXTURES (0.9%)
Steelcase, Cl A* 4,960 181
-------
PAPER AND PAPER PRODUCTS (0.7%)
Mail-Well* 3,850 146
-------
PETROLEUM REFINING (3.4%)
EEX* 26,730 262
R&B Falcon* 5,870 174
Tosco 7,680 271
-------
707
-------
PROFESSIONAL SERVICES (4.9%)
Caribiner International* 6,330 244
Paychex 3,490 201
Quintiles Transnational* 3,120 150
Robert Half International* 3,630 174
Sylvan Learning Systems* 5,055 238
-------
1,007
-------
RETAIL (11.4%)
Abercrombie & Fitch, Cl A* 4,565 192
Borders Group* 6,135 209
Brylane* 3,460 194
Dollar Tree Stores* 5,385 286
Estee Lauder 3,580 243
General Nutrition* 6,360 253
Office Depot* 6,585 205
Outback Steakhouse* 5,540 217
Proffitts* 4,740 172
Whole Foods Market* 2,750 192
Williams Sonoma* 3,157 183
-------
2,346
-------
SEMICONDUCTORS/INSTRUMENTS (1.6%)
Rambus* 4,190 183
Uniphase* 3,485 147
-------
330
-------
Shares/Face Market
Amount Value
(000) (000)
- ------------------------------------------------------
SPECIALTY CONSTRUCTION (0.7%)
United Rentals* 5,760 $ 150
-------
TELEPHONES AND TELECOMMUNICATION (4.2%)
Advanced Fibre Communication* 4,250 155
Intermedia Communications
of Florida* 1,550 123
McLeodusa, Cl A* 4,250 179
Qwest Communications
International* 5,860 228
Tel-Save Holdings* 7,700 175
-------
860
-------
WHOLESALE (0.7%)
McKesson 2,530 146
-------
TOTAL COMMON STOCKS
(Cost $17,362) 19,977
-------
REPURCHASE AGREEMENT (2.1%)
Morgan Stanley
5.25%, dated 03/31/98,
matures 04/01/98, repurchase
price $423,375 (collateralized
by U.S. Treasury Note, 5.375%,
05/31/98: market
value $434,023) $423,313 423
-------
TOTAL REPURCHASE AGREEMENT
(Cost $423) 423
-------
TOTAL INVESTMENTS (99.4%)
(Cost $17,785) 20,400
-------
OTHER ASSETS AND LIABILITIES, NET (0.6%) 135
-------
The accompanying notes are an integral part of the financial statements.
10
<PAGE>
STATEMENT OF NET ASSETS TIP FUNDS
March 31, 1998 (Unaudited)
Market
TURNER MIDCAP Value
GROWTH FUND (Concluded) (000)
- -----------------------------------------------------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 1,306,329 outstanding
shares of beneficial interest $17,847
Net investment loss (38)
Accumulated net realized gain
on investments 111
Net unrealized appreciation
on investments 2,615
-------
TOTAL NET ASSETS (100.0%) $20,535
=======
Net Asset Value, Offering
and Redemption Price
Per Share $ 15.72
=======
*NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
Market
TURNER SMALL CAP Value
GROWTH FUND Shares (000)
- -------------------------------------------------------
COMMON STOCKS (96.3%)
AGRICULTURE (0.5%)
Agribiotech* 57,570 $ 903
------
AIR TRANSPORTATION (0.6%)
Mesaba Holdings* 32,430 1,020
------
APPAREL/TEXTILES (0.8%)
Interface 34,000 1,413
------
AUTOMOTIVE (0.7%)
Federal Mogul 24,430 1,299
------
BANKS (1.2%)
Astoria Financial 22,970 1,420
Silicon Valley Bancshares* 13,260 810
------
2,230
------
BROADCASTING, NEWSPAPERS, AND ADVERTISING (1.5%)
Heftel Broadcasting, Cl A* 31,460 1,408
Lamar Advertising* 41,130 1,440
------
2,848
------
BUILDING AND CONSTRUCTION SUPPLIES (1.5%)
Martin Marietta Materials 24,740 1,068
Southdown 25,880 1,804
------
2,872
------
CHEMICALS (1.6%)
H.B. Fuller 13,670 819
OM Group 22,490 947
Scotts* 37,280 1,291
------
3,057
------
COMMUNICATIONS EQUIPMENT (3.3%)
Essex International* 33,600 1,327
Inter-Tel 76,600 2,063
Premisys Communications* 53,940 1,547
Tekelec* 25,870 1,174
------
6,111
------
COMPUTERS AND SERVICES (14.1%)
Advantage Learning Systems* 26,650 916
Aspect Development* 36,810 2,020
The accompanying notes are an integral part of the financial statements.
11
<PAGE>
STATEMENT OF NET ASSETS TIP FUNDS
March 31, 1998 (Unaudited)
Market
TURNER SMALL CAP Value
GROWTH FUND (Continued) Shares (000)
- -------------------------------------------------------
Checkpoint Software* 28,930 $ 1,322
Computer Horizons* 25,600 1,286
CSG Systems International* 25,930 1,173
Discreet Logic* 61,590 1,005
Documentum* 38,380 2,077
FileNet* 27,500 1,344
Hyperion Software* 34,600 1,531
Legato Systems* 26,400 1,568
Lycos* 29,700 1,314
Mercury Interactive* 58,700 2,143
Network Appliance* 58,030 2,060
Saville Systems Ireland ADR* 36,700 1,881
Systems & Computers
Technology* 21,820 900
Verisign* 30,400 1,338
Veritas Software* 25,770 1,524
Visual Networks* 42,960 1,117
-------
26,519
-------
CONTAINERS AND PACKAGING (0.5%)
Ivex Packaging* 40,240 986
-------
DRUGS (2.2%)
Medicis Pharmaceutical, Cl A* 43,180 1,884
Parexel International* 71,070 2,221
-------
4,105
-------
ENTERTAINMENT (0.8%)
Bally Total Fitness* 45,950 1,447
-------
ENVIRONMENTAL SERVICES (1.7%)
American Disposal Services* 38,180 1,441
Casella Waste Systems, Cl A* 34,190 904
Newpark Resources* 47,650 870
-------
3,215
-------
FINANCIAL SERVICES (3.7%)
Amresco 27,800 910
CMAC Investment 16,100 1,075
Enhance Financial
Services Group 14,100 979
Metris* 31,070 1,352
Ocwen Financial* 34,300 952
Market
Value
Shares (000)
- ------------------------------------------------------
Sirrom Capital 25,200 $ 758
Waddell & Reed
Financial, Cl A* 37,960 987
-------
7,013
-------
FOOD, BEVERAGE, AND TOBACCO (2.2%)
American Italian Pasta* 36,830 1,330
Michael Foods 46,670 1,248
Suiza Foods* 26,211 1,612
-------
4,190
-------
HOTELS AND LODGING (0.5%)
Signature Resorts* 45,705 903
-------
HOUSEHOLD FURNITURE AND FIXTURES (0.8%)
Ethan Allen Interiors 23,670 1,414
-------
INSURANCE (4.2%)
Amerus Life Holdings, Cl A 22,600 732
ESG Re Limited* 39,130 1,017
Executive Risk 15,720 1,120
Fidelity National Financial 27,357 1,005
Life Re 13,360 985
Mutual Risk Management 44,460 1,506
Policy Management Systems* 8,620 692
Vesta Insurance Group 15,800 847
-------
7,904
-------
MACHINERY (6.6%)
Applied Power, Cl A 47,440 1,826
Cooper* 46,600 1,978
Dril-Quip* 19,020 618
Kuhlman 32,280 1,572
Lam Research* 49,300 1,387
Magnetek* 53,640 1,009
Pentair 29,990 1,342
PRI Automation* 49,300 1,291
SPX 17,820 1,360
-------
12,383
-------
MEDICAL PRODUCTS AND SERVICES (10.0%)
Alternative Living Services* 52,530 1,740
Coast Dental Services* 52,970 1,490
The accompanying notes are an integral part of the financial statements.
12
<PAGE>
STATEMENT OF NET ASSETS TIP FUNDS
March 31, 1998 (Unaudited)
Market
TURNER SMALL CAP Value
GROWTH FUND (Continued) Shares (000)
- -------------------------------------------------------
Concentra Managed Care* 28,127 $ 865
ESC Medical Systems* 49,550 1,740
Hanger Orthopedic Group* 57,020 959
Minimed* 18,720 828
Osteotech* 60,100 1,555
Province Healthcare* 45,760 1,201
Renal Care Group* 38,630 1,468
Sofamor Danek Group* 24,270 2,069
Theragenics* 24,980 1,591
Total Renal Care Holdings* 1 --
Universal Health Services* 43,480 2,511
Wesley Jessen* 24,500 805
-------
18,822
-------
MISCELLANEOUS BUSINESS SERVICES (6.0%)
ATL Ultrasound* 31,330 1,594
Excite* 43,660 2,224
Genesys Telecom Labs* 43,420 1,650
Information Management
Resources* 18,750 1,104
Iss Group* 23,980 932
Medical Manager* 53,400 1,549
Vincam Group* 42,350 1,228
Walter Industries* 47,740 1,020
-------
11,301
-------
MISCELLANEOUS CONSUMER SERVICES (2.2%)
Romac International* 62,510 1,719
Steiner Leisure Limited* 27,600 1,402
Sunrise Assisted Living* 22,800 1,020
-------
4,141
-------
MISCELLANEOUS MANUFACTURING (2.5%)
Chicago Miniature Lamp* 50,280 1,955
Compx International* 34,230 800
Hexcel* 31,000 853
Kaydon 26,420 1,080
-------
4,688
-------
PAPER AND PAPER PRODUCTS (1.1%)
Earthgrains 20,840 921
Mail-Well* 32,020 1,213
-------
2,134
-------
Market
Value
Shares (000)
- ------------------------------------------------------
PETROLEUM AND FUEL PRODUCTS (3.9%)
EEX* 98,120$ 963
Global Industries* 128,040 2,609
Ocean Energy* 64,092 1,510
Pride International* 55,350 1,321
St. Mary Land & Exploration 23,460 897
-------
7,300
-------
PROFESSIONAL SERVICES (1.8%)
Caribiner International* 36,800 1,417
Education Management* 30,040 1,021
International Network Services* 35,200 1,030
-------
3,468
-------
RAILROADS (0.6%)
Coach USA* 25,700 1,118
-------
REAL ESTATE (1.1%)
Lasalle Partners* 23,430 761
Trammell Crow* 45,350 1,292
-------
2,053
-------
RETAIL (8.1%)
Brylane* 29,390 1,648
CDnow* 40,150 964
Dollar Tree Stores* 31,830 1,691
Dominick's Supermarkets* 19,000 865
Finish Line, Cl A* 63,880 1,517
Goodys Family Clothing* 36,000 1,593
Just for Feet* 73,900 1,506
Linens N Things* 29,860 1,640
Papa John's International* 38,100 1,462
Williams Sonoma* 39,560 2,290
-------
15,176
-------
SEMICONDUCTORS/INSTRUMENTS (2.1%)
Applied Micro Circuits 44,160 994
MMC Networks* 51,950 1,071
Rambus* 22,050 965
SIPEX* 30,370 1,002
-------
4,032
-------
The accompanying notes are an integral part of the financial statements.
13
<PAGE>
STATEMENT OF NET ASSETS TIP FUNDS
March 31, 1998 (Unaudited)
Shares/Face Market
TURNER SMALL CAP Amount Value
GROWTH FUND (Concluded) (000) (000)
- ------------------------------------------------------
SPECIALTY CONSTRUCTION (1.0%)
Iteq* 62,360 $ 889
United Rentals* 40,030 1,041
--------
1,930
--------
TELEPHONES AND TELECOMMUNICATION (3.8%)
ICG Communications* 33,590 1,251
Intermedia Communications
of Florida* 21,413 1,705
Metromedia Fiber
Network, Cl A* 49,760 1,673
Smartalk Teleservices* 48,760 1,557
Tel-Save Holdings* 45,080 1,026
--------
7,212
--------
TRUCKING (0.5%)
Wabash National 32,900 954
--------
WHOLESALE (2.6%)
Central Garden & Pet* 40,090 1,566
JLK Direct Distribution, Cl A* 25,720 982
North Face* 53,170 1,289
Pentacon* 70,500 987
--------
4,824
--------
TOTAL COMMON STOCKS
(Cost $141,126) 180,985
--------
REPURCHASE AGREEMENT (1.7%)
J.P. Morgan
6.05%, dated 03/31/98,
matures 04/01/98, repurchase
price $3,286,955
(collateralized by GNMA, 9.00%,
matures 05/15/16-11/15/16:total
market value $3,362,131) $3,286,402 3,286
--------
TOTAL REPURCHASE AGREEMENT
(Cost $3,286) 3,286
--------
Market
Value
(000)
- ------------------------------------------------------
TOTAL INVESTMENTS (98.0%)
(Cost $144,412) $184,271
--------
OTHER ASSETS AND LIABILITIES, NET (2.0%) 3,758
--------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 6,639,516 outstanding
shares of beneficial interest 146,476
Net investment loss (781)
Accumulated net realized gain
on investments 2,475
Net unrealized appreciation
on investments 39,859
--------
TOTAL NET ASSETS (100.0%) $188,029
========
Net Asset Value, Offering
and Redemption Price
Per Share $ 28.32
========
*NON-INCOME PRODUCING SECURITY
ADR -- AMERICAN DEPOSITORY RECEIPT
CL -- CLASS
GNMA -- GOVERNMENT NATIONAL MORTGAGE ASSOCIATION
The accompanying notes are an integral part of the financial statements.
14
<PAGE>
STATEMENT OF NET ASSETS TIP FUNDS
March 31, 1998 (Unaudited)
Market
TURNER ULTRA LARGE CAP Value
GROWTH FUND Shares (000)
- -----------------------------------------------------
COMMON STOCKS (97.7%)
AIR TRANSPORTATION (1.1%)
AMR* 115 $ 17
--------
BANKS (2.0%)
Chase Manhattan Bank 235 32
--------
BEAUTY PRODUCTS (6.8%)
Gillette 392 47
Procter & Gamble 702 59
--------
106
--------
CHEMICALS (1.4%)
Monsanto 430 22
--------
COMMUNICATIONS EQUIPMENT (4.0%)
Lucent Technologies 240 31
Tellabs* 460 31
--------
62
--------
COMPUTERS AND SERVICES (11.7%)
Cisco Systems* 700 48
Computer Associates 400 23
Dell Computer* 510 35
Microsoft* 865 77
--------
183
--------
DRUGS (19.2%)
Bristol-Myers Squibb 567 59
Eli Lilly 572 34
Merck 540 69
Pfizer 663 66
Schering Plough 530 43
Warner Lambert 170 29
--------
300
--------
ENTERTAINMENT (2.0%)
Walt Disney 294 31
--------
FINANCIAL SERVICES (4.5%)
American Express 327 30
Fannie Mae 635 40
--------
70
--------
Market
Value
Shares (000)
- ------------------------------------------------------
FOOD, BEVERAGE, AND TOBACCO (7.9%)
Coca-Cola 960 $ 74
Philip Morris 1,209 50
--------
124
--------
HOUSEHOLD PRODUCTS (4.9%)
General Electric 890 77
--------
MACHINERY (5.4%)
Applied Materials* 885 31
Emerson Electric 425 28
Tyco International Limited 475 26
--------
85
--------
MEDICAL PRODUCTS AND SERVICES (3.1%)
Boston Scientific* 250 17
Tenet Healthcare* 855 31
--------
48
--------
MISCELLANEOUS BUSINESS SERVICES (2.2%)
Cendant* 855 34
--------
PROFESSIONAL SERVICES (1.0%)
Halliburton 290 15
--------
RETAIL (9.4%)
Gap 222 10
Home Depot 399 27
McDonald's 375 23
PepsiCo 783 33
Safeway* 883 33
Wal-Mart Stores 437 22
--------
148
--------
SEMICONDUCTORS/INSTRUMENTS (9.6%)
EMC* 850 32
Intel 1,105 86
Texas Instruments 610 33
--------
151
--------
TELEPHONES AND TELECOMMUNICATION (1.5%)
WorldCom* 550 24
--------
TOTAL COMMON STOCKS
(Cost $1,340) 1,529
--------
The accompanying notes are an integral part of the financial statements.
15
<PAGE>
STATEMENT OF NET ASSETS TIP FUNDS
March 31, 1998 (Unaudited)
Face Market
TURNER ULTRA LARGE CAP Amount Value
GROWTH FUND (Concluded) (000) (000)
- ------------------------------------------------------
REPURCHASE AGREEMENT (0.3%)
Morgan Stanley
5.25%, dated 03/31/98,
matures 04/01/98, repurchase
price $4,311 (collateralized by
U.S. Treasury Note, 5.375%,
05/31/98, market
value $4,419) $4 $ 4
--------
TOTAL REPURCHASE AGREEMENT
(Cost $4) 4
--------
TOTAL INVESTMENTS (98.0%)
(Cost $1,344) 1,533
--------
OTHER ASSETS AND LIABILITIES, NET (2.0%) 32
--------
NET ASSETS:
Portfolio Shares (unlimited
authorization -- no par value)
based on 116,124 outstanding
shares of beneficial interest 1,358
Accumulated net realized gain
on investments 18
Net unrealized appreciation
on investments 189
--------
TOTAL NET ASSETS (100.0%) $ 1,565
========
Net Asset Value, Offering and
Redemption Price
Per Share $ 13.47
========
*NON-INCOME PRODUCING SECURITY
The accompanying notes are an integral part of the financial statements.
16
<PAGE>
STATEMENT OF OPERATIONS (000) TIP FUNDS
(Unaudited)
<TABLE>
<CAPTION>
TURNER GROWTH TURNER MIDCAP TURNER SMALL TURNER ULTRA
EQUITY GROWTH CAP LARGE CAP
FUND FUND GROWTH FUND GROWTH FUND
-------------- -------------- ------------- --------------
FOR THE SIX- FOR THE SIX- FOR THE SIX- FOR THE SIX-
MONTH PERIOD MONTH PERIOD MONTH PERIOD MONTH PERIOD
ENDED 3/31/98 ENDED 3/31/98(1) ENDED 3/31/98 ENDED 3/31/98(2)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income:
Dividends ............................ $ 264 $ 19 $ 111 $ 4
Interest ............................. 41 20 96 1
- ---------------------------------------------------------------------------------------------------------------------------
Total Investment Income............. 305 39 207 5
- ---------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment Advisory Fees ............. 352 46 791 4
Investment Advisory Fee Waiver ....... (45) (33) (76) (4)
Reimbursements by Advisor............. -- -- -- (41)
Administrator Fees ................... 54 19 86 12
Custodian Fees ....................... 7 5 5 4
Transfer Agent Fees .................. 30 9 61 8
Professional Fees .................... 40 8 64 3
Trustee Fees ......................... 3 1 4 --
Registration Fees .................... 31 14 38 14
Pricing Fees ......................... 1 -- 1 --
Printing Fees ........................ 20 5 30 2
Amortization of Deferred
Organizational Costs ............... 2 6 2 2
Insurance and Other Fees ............. (6) 1 3 1
- ---------------------------------------------------------------------------------------------------------------------------
Total Expenses ..................... 489 81 1,009 5
Directed Brokerage ................. (19) (4) (21) --
- ---------------------------------------------------------------------------------------------------------------------------
Net Expenses ..................... 470 77 988 5
- ---------------------------------------------------------------------------------------------------------------------------
Net Investment Loss ............ (165) (38) (781) --
- ---------------------------------------------------------------------------------------------------------------------------
Net Realized Gain From
Securities Sold .................... 11,250 111 4,396 17
Net Unrealized Appreciation
of Investment Securities ........... 489 2,281 12,798 175
- ---------------------------------------------------------------------------------------------------------------------------
Net Realized and Unrealized Gain
on Investments ................... 11,739 2,392 17,194 192
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
From Operations ................... $11,574 $2,354 $16,413 $192
===========================================================================================================================
<FN>
(1) The Turner Midcap Growth Fund began operations on October 1, 1996.
(2) The Turner Ultra Large Cap Growth Fund began operations on February 1, 1997.
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.
17
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000) TIP FUNDS
(Unaudited)
<TABLE>
<CAPTION>
TURNER GROWTH
EQUITY FUND
--------------------------
FOR THE
SIX-MONTH TWELVE-MONTH
PERIOD ENDED PERIOD ENDED
3/31/98 9/30/97
- ---------------------------------------------------------------------------------------------------------------------------
Investment Activities:
<S> <C> <C>
Net Investment Income (Loss) .............................................. $ (165) $ (187)
Net Realized Gain on Securities Sold ...................................... 11,250 23,807
Net Unrealized Appreciation of
Investment Securities ................................................... 489 3,066
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
from Operations ....................................................... 11,574 26,686
- ---------------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
Net Investment Income ..................................................... -- --
Realized Capital Gain ..................................................... (26,503) (23,871)
- ---------------------------------------------------------------------------------------------------------------------------
Total Distributions ..................................................... (26,503) (23,871)
- ---------------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Proceeds from Shares Issued ............................................... 8,670 32,378
Proceeds from Shares Issued in Lieu of
Cash Distributions ...................................................... 25,911 23,565
Cost of Shares Redeemed ................................................... (18,495) (55,332)
- ---------------------------------------------------------------------------------------------------------------------------
Increase in Net Assets From
Capital Share Transactions ............................................ 16,086 611
- ---------------------------------------------------------------------------------------------------------------------------
Total Increase in Net Assets ............................................ 1,157 3,426
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period ..................................................... 99,590 96,164
Excess of Market Value Over Book Value of
Securities Received in In-Kind Subscriptions ........................... -- --
- ---------------------------------------------------------------------------------------------------------------------------
End of Period ........................................................... $ 100,747 $99,590
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
Shares Issued and Redeemed
Issued .................................................................... 600 2,198
Issued in Lieu of Cash Distributions ...................................... 2,320 1,832
Redeemed .................................................................. (1,237) (3,691)
- ---------------------------------------------------------------------------------------------------------------------------
Net Increase in Share Transactions ....................................... 1,683 339
- ---------------------------------------------------------------------------------------------------------------------------
<FN>
(1) The Turner Midcap Growth Fund began operations on October 1, 1996.
(2) The Turner Ultra Large Cap Growth Fund began operations on February 1, 1997.
(3) During 1997, the Fund received securities in-kind with unrealized appreciation
approximating $50.
(4) Includes undistributed net investment income of $1 as of September 30, 1997.
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.
18
<TABLE>
<CAPTION>
TURNER MIDCAP TURNER SMALL CAP TURNER ULTRA LARGE
GROWTH FUND GROWTH FUND CAP GROWTH FUND
- ------------------------- ----------------------------------- -----------------------------------
FOR THE FOR THE FOR THE
SIX-MONTH TWELVE-MONTH SIX-MONTH TWELVE-MONTH SIX-MONTH EIGHT-MONTH
PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED PERIOD ENDED
3/31/98 9/30/97(1) 3/31/98 9/30/97 3/31/98 9/30/97(2)
==========================================================================================================
<S> <C> <C> <C> <C> <C>
$ (38) $ (11) $ (781) $ (707) $ -- $ 1
111 387 4,396 754 17 74
2,281 284 12,798 18,398 175 14
- -------------------------------------------------------------------------------------------------------
2,354 660 16,413 18,445 192 89
- -------------------------------------------------------------------------------------------------------
-- -- -- -- (1) --
(358) (18) (2,669) (1,689) (73) --
- -------------------------------------------------------------------------------------------------------
(358) (18) (2,669) (1,689) (74) --
- -------------------------------------------------------------------------------------------------------
15,255 6,106 54,657 134,196 765 766
320 17 2,289 1,340 73 --
(2,181) (1,670) (36,123) (66,255) (92) (154)
- ------------------------------------------------------------------------------------------------------
13,394 4,453 20,823 69,281 746 612
- ------------------------------------------------------------------------------------------------------
15,390 5,095 34,567 86,037 864 701
- ------------------------------------------------------------------------------------------------------
5,145 -- 153,462 67,425 701 --
-- 50(3) -- -- -- --
- ------------------------------------------------------------------------------------------------------
$ 20,535 $5,145(4) $188,029 $153,462 $1,565 $701
- ------------------------------------------------------------------------------------------------------
1,069 518 2,156 5,861 60 72
24 2 99 62 6 --
(149) (158) (1,438) (3,015) (7) (15)
- ------------------------------------------------------------------------------------------------------
944 362 817 2,908 59 57
- ------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of the financial statements.
19
For a Share Outstanding Throughout Each Period
<TABLE>
<CAPTION>
Net Realized and Net Net
Asset Net Unrealized Distributions Distributions Asset Assets Ratio
Value Investment Gains or from Net from Value End of Expenses
Beginning Income (Losses) on Investment Capital End Total of Period to Average
of Period (Loss) Investments Income Gains of Period Return(5) (000) Net Assets
---------- -------- ------------ ---------- ---------- --------- ---------- --------- ------------
- -------------------
GROWTH EQUITY FUND
- -------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1998 $16.64 (0.01) 1.33 -- (4.82) $13.14 13.03% $100,747 1.00%+*
1997 $17.03 (0.03) 4.23 -- (4.59) $16.64 32.61% $ 99,590 1.02%+
1996 (7) $14.97 0.02 2.91 (0.02) (0.85) $17.03 20.61% $ 96,164 1.06%+*
1995 $12.46 0.10 2.52 (0.11) -- $14.97 21.15% $115,819 1.03%+
1994 $13.12 0.10 (0.66) (0.10) -- $12.46 (4.28)% $112,959 0.95%
1993 $10.40 0.09 2.72 (0.09) -- $13.12 27.08% $ 53,327 1.00%
1992 (1) $10.00 0.03 0.40 (0.03) -- $10.40 6.95% $ 7,781 1.44%*
- -------------------
MIDCAP GROWTH FUND
- -------------------
1998 $14.22 (0.01) 2.01 -- (0.50) $15.72 14.74% $ 20,530 1.25%+*
1997 (2) $10.00 (0.03) 4.36 -- (0.11) $14.22 43.77% $ 5,145 1.25%
- ----------------------
SMALL CAP GROWTH FUND
- ----------------------
1998 $26.35 (0.10) 2.50 -- (0.43) $28.32 9.51% $188,029 1.25%+*
1997 $23.13 (0.07) 3.80 -- (0.51) $26.35 16.64% $153,462 1.24%
1996 (7) $16.08 (0.08) 8.17 -- (1.04) $23.13 52.90% $ 67,425 1.25%*
1995 $10.90 (0.06) 5.24 -- -- $16.08 47.52% $ 13,072 1.25%
1994 (3) $10.00 (0.02) 0.92 -- -- $10.90 12.35% $ 4,806 1.09%*
- ---------------------------
ULTRA LARGE CAP GROWTH FUND
- ---------------------------
1998 $12.28 -- 2.21 -- (1.02) $13.47 19.48% $ 1,565 1.00%*
1997 (4) $10.00 0.01 2.27 -- -- $12.28 22.80% $ 701 1.00%*
</TABLE>
Ratio of Net
Ratio of Net Ratio of Investment
Investment Expenses Income (Loss)
Income to Average to Average
(Loss) Net Assets Net Assets Portfolio Average
to Average (Excluding (Excluding Turnover Commission
Net Assets Waivers) Waivers) Rate
------------- ---------- ------------ -------- ----------
- -------------------
GROWTH EQUITY FUND
- -------------------
1998 (0.35)%+* 1.10%+* (0.45)%+* 119.83% $0.0600
1997 (0.25)%+ 1.05%+ (0.28)%+ 178.21% $0.0600
1996 (7) 0.03%+* 1.06%+* 0.03%+* 147.79% $0.0600
1995 0.69%+ 1.03%+ 0.69%+ 177.86% n/a
1994 0.86% 1.08% 0.73% 164.81% n/a
1993 0.80% 1.52% 0.28% 88.35% n/a
1992 (1) 0.73%* 2.55%* (0.38)%* 205.00% n/a
- -------------------
MIDCAP GROWTH FUND
- -------------------
1998 (0.61)%+* 1.79%+* (1.15)%+* 132.78% $0.0600
1997 (2) (0.62)% 7.96% (7.33)% 348.29% $0.0600
- ----------------------
SMALL CAP GROWTH FUND
- ----------------------
1998 (0.99)%+* 1.34%+* (1.08)%+* 76.96% $0.0600
1997 (0.84)% 1.33% (0.93)% 130.68% $0.0600
1996 (7) (0.88)%* 1.54%* (1.17)%* 149.00% $0.0600
1995 (0.68)% 2.39% (1.82)% 183.49% n/a
1994 (3) (0.27)%* 4.32%* (3.50)%* 173.92% n/a
- ---------------------------
ULTRA LARGE CAP GROWTH FUND
- ---------------------------
1998 (0.06)%* 10.41%* (9.47)%* 102.25% $0.0600
1997 (4) 0.20%* 26.45%* (25.25)%* 346.47% $0.0600
* Annualized
(1) The Turner Growth Equity Fund began operations on March 11, 1992.
(2) The Turner Midcap Growth Fund began operations on October 1, 1996.
(3) The Turner Small Cap Growth Fund began operations on February 7, 1994.
(4) The Turner Ultra Large Cap Growth Fund began 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.
(7) On April 19, 1996, the Board of Trustees of the Turner Funds voted to
approve a tax-free reorganization of the Turner Funds. In connection with
the reorganization, the Funds changed their fiscal year end from October 31
to September 30, effective September 30, 1996.
+ 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, the Turner Midcap Growth Fund and the Turner Small Cap
Growth Fund in return for the direction of a percentage of the Fund's
brokerage transactions. For the Turner Growth Equity Fund, these
arrangements reduced the Ratio of Expenses to Average Net Assets to 1.04%
(1.14% excluding waivers) for the six month period ended March 31, 1998,
0.96% for the year ended September 30, 1997, 0.94% for the eleven month
period ended September 30, 1996 and 0.94% for the year ended October 31,
1995 and the Ratios of Net Investment Income (Loss) to Average Net Assets to
(0.39%) ((0.49%) excluding waivers), (0.19%), 0.15% and 0.78% for the same
periods described. For the Turner Midcap Growth Fund and the Turner Small
Cap Growth Fund these arrangements reduced the Ratio of Expenses to Average
Net Assets to 1.32% (1.86% excluding waivers) and 1.28% (1.37% excluding
waivers), respectively for the six month period ended March 31, 1998 and the
Ratio of Net Investment Income (Loss) to Average Net Assets to (0.68%)
((1.22%) excluding waivers) and (1.02%) ((1.11%) excluding waivers),
respectively for the same period above.
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
20
<PAGE>
NOTES TO FINANCIAL STATEMENTS TIP FUNDS
March 31, 1998 (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 12 funds. The financial statements included herein are
those of the Turner Growth Equity Fund (the "Growth Equity Fund"), the Turner
Midcap Growth Fund (the "Midcap Growth Fund"), the Turner Small Cap Growth Fund
(the "Small Cap Growth Fund"), and the Turner Ultra Large Cap Growth Fund (the
"Ultra Large Cap Growth Fund"). As of March 31, 1998 the Turner Fixed Income
Fund had not commenced operations. Additionally, the Turner Small Cap Growth
Fund was closed to new investors as of August 30, 1997. 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.
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 60 days to maturity for which market quotations are readily available
are valued at the most recently quoted bid price. Debt obligations with 60 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 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
21
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued) TIP FUNDS
March 31, 1998 (Unaudited)
proceeding, realization of the collateral by the Funds may be delayed or
limited.
EXPENSES -- 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 TO SHAREHOLDERS -- 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 principles. 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.
USE OF ESTIMATES -- 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.
<PAGE>
3. TRANSACTIONS WITH AFFILIATES: Certain officers of the Trust are also officers
of SEI Fund Resources (the "Administrator") and/or SEI Investments Distribution
Co.(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 Trust and the Administrator are parties to an agreement under which the
Administrator provides management and administrative services for an annual fee
of 0.12% of the average daily net assets of each of the Funds up to $75 million,
0.10% on the next $75 million, 0.09% on the next $150 million, 0.08% on the next
$300 million, and 0.075% of such assets in excess on $600 million. There is a
minimum annual fee of $75,000 per Fund payable to the Administrator for services
rendered to the Funds under the Administration Agreement. During fiscal 1998,
the Administrator has voluntarily waived a portion of its fee.
The Growth Equity Fund, the Turner Midcap Growth Fund, and the Turner Small Cap
Growth Fund had directed certain portfolio trades to brokers who paid a portion
of its expenses. For the period ended March 31, 1998, the Funds expenses were
reduced by $19,257, $4,417 and $21,246 respectively, 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.
22
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Concluded) TIP FUNDS
March 31, 1998 (Unaudited)
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.
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
Growth Equity, Midcap, and Ultra Large Cap Funds, 1.00% of those of the Small
Cap Fund. The Adviser has voluntarily agreed to waive all or a portion of its
fees and to reimburse expenses of the Growth Equity, Midcap, Small Cap, and
Ultra Large Cap 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%, 1.25%, 1.25%, and 1.00%, 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 period ended March 31, 1998 are as follows
(000):
ULTRA
SMALL LARGE
GROWTH MIDCAP CAP CAP
EQUITY GROWTH GROWTH GROWTH
FUND FUND FUND FUND
------------------------------------
Purchases
Gov't $ -- $ -- $ -- $ --
Other 112,919 29,204 134,384 1,661
Sales
Gov't $ -- $ -- $ -- $ --
Other 125,801 15,485 120,850 987
At March 31, 1998, 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, 1998, are as follows (000):
ULTRA
SMALL LARGE
GROWTH MIDCAP CAP CAP
EQUITY GROWTH GROWTH GROWTH
FUND FUND FUND FUND
----------------------------------
Aggregate gross
unrealized
appreciation $20,732 $2,828 $42,053 $205
Aggregate gross
unrealized
depreciation (597) (213) (2,194) (16)
------- ------ ------- ----
Net unrealized
appreciation $20,135 $2,615 $39,859 $189
======= ====== ======= ====
23
<PAGE>
TRUST
TIP Funds
P.O. Box 419805
Kansas City, MO 64141-6805
INVESTMENT ADVISOR
Turner Investment Partners, Inc.
DISTRIBUTOR
SEI Investments Distribution Co.
ADMINISTRATOR
SEI Fund Resources
LEGAL COUNSEL
Morgan, Lewis & Bockius LLP
INDEPENDENT AUDITORS
Ernst & Young LLP
[Logo Omitted]
TURNER
INVESTMENT PARTNERS,
INC.
To open an account, receive account information, make inquiries, or request
literature:
1-800-224-6312
THIS REPORT WAS PREPARED FOR SHAREHOLDERS IN THE TIP FUNDS. IT MAY BE
DISTRIBUTED TO OTHERS ONLY IF PRECEDED OR ACCOMPANIED BY A TIP FUNDS PROSPECTUS,
WHICH CONTAINS DETAILED INFORMATION.
TUR-F-018-05
