[Graphic omitted]
TURNER
------
FUNDS
SEMIANNUAL REPORT
MARCH 31, 2000
(UNAUDITED)
--------------------------------------------------------------------------------
Turner Large Cap Growth Equity Fund
--------------------------------------------------------------------------------
Turner Growth Equity Fund
--------------------------------------------------------------------------------
Turner Midcap Growth Fund
--------------------------------------------------------------------------------
Turner Small Cap Growth Fund
--------------------------------------------------------------------------------
Turner Micro Cap Growth Fund
--------------------------------------------------------------------------------
Turner Top 20 Fund
--------------------------------------------------------------------------------
Turner Technology Fund
--------------------------------------------------------------------------------
Turner Short Duration Government Funds
- Three Year Portfolio
--------------------------------------------------------------------------------
Turner Short Duration Government Funds
- One Year Portfolio
--------------------------------------------------------------------------------
Turner Core High Quality Fixed Income Fund
--------------------------------------------------------------------------------
Portfolios of The TIP Funds [Graphic omitted]
<PAGE>
TURNER FUNDS AND SHAREHOLDER SERVICES
--------------------------------------------------------------------------------
CONTENTS
2 Letter to Shareholders
4 Total returns of Turner Funds
6 Investment review:
Turner Large Cap Growth Equity Fund
8 Investment review:
Turner Growth Equity Fund
10 Investment review:
Turner Midcap Growth Fund
12 Investment review:
Turner Small Cap Growth Fund
14 Investment review:
Turner Micro Cap Growth Fund
16 Investment review:
Turner Top 20 Fund
18 Investment review:
Turner Technology Fund
20 Investment review:
Turner Short Duration Government
Funds-Three Year Portfolio
22 Investment review:
Turner Short Duration Government
Funds-One Year Portfolio
24 Investment review:
Turner Core High Quality Fixed
Income Fund
26 Financial Statements
60 Notes to Financial Statements
TURNER FUNDS
The Turner Funds, Portfolios of the TIP Funds offer a series of ten no-load
mutual funds to individual and institutional investors. The minimum initial
investment in a Turner Fund for regular accounts is $2,500 and $2,000 for
individual retirement accounts. The minimum amount for subsequent investments is
$50.
Turner Investment Partners, Inc., based in Berwyn, Pennsylvania, serves as the
investment adviser to the Turner Funds. The firm, founded in 1990, invests more
than $8 billion in equity, fixed-income, and balanced portfolios on behalf of
individuals and institutions.
SHAREHOLDER SERVICES
Turner 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 Turner
Funds, Box 219805, Kansas City, Missouri 64121-9805.
TURNER FUNDS 2000 SEMIANNUAL REPORT | 1
<PAGE>
LETTER TO SHAREHOLDERS
--------------------------------------------------------------------------------
TO OUR SHAREHOLDERS
Volatility ruled the markets during the six-month period ended March 31, 2000,
as the Federal Reserve Board moved aggressively to dampen economic growth, and
investors grew increasingly cautious about high valuations.
Many of the highest-flying e-commerce companies, particularly those in the
retail sector, were put to the test during the period, and demonstrated that
they had no magic formula for creating spectacular financial results. In
particular, the so-called "e-tailing" sector emerged from a critical holiday
season with no major meltdowns - but also little or no profit to show for all
their efforts.
And while technology clearly remained the most exciting and dynamic sector of
the markets, some investors began moving toward traditional blue-chip stocks
that offered fundamental strengths in the here and now.
EVENTS AND NON-EVENTS.
The six-month period was notable for what did - and did not - occur.
Actual events, for example, included three rate hikes by the Federal Reserve
Board, each of which boosted short-term rates by one quarter of one percent. And
while this action caused no small amount of turmoil in the bond markets, the
equity markets often seemed to blithely ignore the Fed, as though daring it to
take more stringent action against rampant speculation.
Non-events included the much feared turn of the millennium, which caused data
processing executives to camp out in their offices while their colleagues
enjoyed a truly spectacular global fireworks display. To the dismay of many
pundits and survivalists, everything from telephones to ATM machines continued
to operate as the world turned. In fact, no one is quite sure whether the
billions of dollars spent on Y2K compliance represented a prudent investment or
a tragic waste. And today, what is most significant about the dreaded Y2K bug is
how quickly it has been forgotten.
Oddly, it was two near-events at the very end of the period that finally shook
the markets' confidence in a serious way. The first was a belief - based on some
uncharacteristically lucid comments - that Fed chairman Alan Greenspan was
deliberately targeting the markets and would not relent until they became
rational and unexuberant. The second was the failure of Microsoft and the
Department of Justice to reach an out of court settlement in their antitrust
suit.
The net result was a six-month period which began strongly, peaked early,
declined late, and saw plenty of pyrotechnics in between.
STRONG PERFORMANCE FOR THE TURNER FUNDS
Despite the ongoing contradictions of the markets, the period proved to be a
strong one for the Turner Funds family overall, with most of our funds
delivering excellent returns.
The Turner Technology Equity Fund, which was introduced on July 1, 1999, led the
way with a spectacular six-month total return of 141.19%. Our other funds
performed as follows:
[bullet] Turner Large Cap Growth
Equity Fund: 61.22%
[bullet] Turner Growth Equity Fund: 58.19%
[bullet] Turner Midcap Growth Fund: 84.96%
[bullet] Turner Small Cap Growth Fund: 68.16%
[bullet] Turner Micro Cap Growth Fund: 101.24%
[bullet] Turner Top 20 Fund 99.95%*
[bullet] Turner Short Duration -
Three Year Fund Class I: 1.96%
[bullet] Turner Short Duration -
One Year Fund Class I: 2.78%
[bullet] Turner Core High Quality
Fixed Income Fund: 2.56%*
*Inception Date: 7/1/99
2 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
--------------------------------------------------------------------------------
A NEW ENVIRONMENT.
As of this writing, the market environment has clearly changed. Suddenly, it is
no longer enough to introduce a novel "dot-com" concept and watch investors
trample one another in an effort to give that concept a multi-billion dollar
market cap.
Substance, for now at least, has begun to matter. And we believe that this is a
healthy development. As always, we will continue to seek those investments that
represent real substance, whether in the form of profits, successful
products/services, or proven management teams.
The financial markets may be volatile, mystifying, and at times frustrating. But
they show no signs of becoming boring. We are excited at the prospects they hold
for the future, and we are grateful for the privilege of exploring those
prospects on behalf of you, our investors.
Sincerely,
/S/ BOB TURNER
Robert E. Turner
CHAIRMAN AND CHIEF INVESTMENT OFFICER
TURNER INVESTMENT PARTNERS, INC.
[Photo of Bob Turner omitted]
BOB TURNER
TURNER FUNDS 2000 SEMIANNUAL REPORT | 3
<PAGE>
PERFORMANCE
--------------------------------------------------------------------------------
TOTAL RETURNS OF TURNER FUNDS*
Six-month period ending March 31, 2000
<TABLE>
<CAPTION>
Past six Past 12 Past three Past five Since
months months years years inception
(ANNUALIZED) (ANNUALIZED) (ANNUALIZED)+
EQUITY
===========================================================================================================================
<S> <C> <C> <C> <C>
TURNER LARGE CAP GROWTH EQUITY FUND 61.22% 60.21% 52.17% N/A 46.10%
Lipper Large-Cap Growth Funds Average 37.61 38.08 36.45 n/a 31.49
S&P 500 Index 17.51 17.94 27.40 n/a 24.48
Russell Top 200 Growth Index 27.59 26.23 36.89 n/a 32.36
---------------------------------------------------------------------------------------------------------------------------
TURNER GROWTH EQUITY FUND 58.19 60.92 48.00 36.03% 24.78
Lipper Large-Cap Growth Funds Average 37.61 38.08 36.45 29.39 20.75
S&P 500 Index 17.51 17.94 27.40 26.76 20.16
Russell 1000 Growth Index 34.06 34.13 36.94 31.83 22.37
---------------------------------------------------------------------------------------------------------------------------
TURNER MIDCAP GROWTH FUND 84.96 122.84 71.13 N/A 58.01
Lipper Mid-Cap Growth Funds Average 70.02 97.82 43.06 n/a 28.78
Russell Midcap Growth Index 68.94 77.19 40.05 n/a 33.16
---------------------------------------------------------------------------------------------------------------------------
TURNER SMALL CAP GROWTH FUND 68.16 102.44 47.72 40.16 35.17
Lipper Mid-Cap Growth Funds Average 70.02 97.82 43.06 29.56 23.66
Russell 2000 Growth Index 45.77 59.04 25.94 19.84 15.91
---------------------------------------------------------------------------------------------------------------------------
TURNER MICRO CAP GROWTH FUND 101.24 194.33 N/A N/A 99.67
Lipper Small-Cap Growth Funds Average 36.05 54.26 20.20 n/a 92.00
Russell 2000 Growth Index 45.77 59.04 n/a n/a 20.46
---------------------------------------------------------------------------------------------------------------------------
TURNER TOP 20 FUND 99.95 N/A N/A N/A 179.73**
Lipper Multi-Cap Core Funds Average 23.41 n/a n/a n/a 14.79
S&P 500 Index 17.51 n/a n/a n/a 10.18**
---------------------------------------------------------------------------------------------------------------------------
TURNER TECHNOLOGY FUND 141.19 N/A N/A N/A 239.11**
Lipper Science & Technology Funds Average 94.31 n/a n/a n/a 107.48
Pacific Stock Exchange 85.28 n/a n/a n/a 93.71**
---------------------------------------------------------------------------------------------------------------------------
FIXED INCOME
===========================================================================================================================
TURNER SHORT DURATION GOVERNMENT FUNDS-
THREE YEAR PORTFOLIO (CLASS I) 1.96% 3.53% 5.69% 6.19% 5.85%
Lipper Short-Intermediate U.S. Government
Funds Average 1.27 1.64 4.93 5.47 4.71
Lehman Brothers 1-3 Year U.S. Government
Bond Index 1.82 3.64 5.73 6.05 5.59
---------------------------------------------------------------------------------------------------------------------------
TURNER SHORT DURATION GOVERNMENT FUNDS-
ONE YEAR PORTFOLIO (CLASS I) 2.78 5.38 5.88 6.21 6.04
Lipper Ultra Short Obligation Funds Average 2.60 4.69 5.29 5.52 5.23
Merrill Lynch Three-Month
U.S. Treasury Bill Index 2.66 5.20 5.18 5.33 5.24
---------------------------------------------------------------------------------------------------------------------------
TURNER CORE HIGH QUALITY
FIXED INCOME FUND 2.56 N/A N/A N/A 3.05**
Lipper General Bond Funds Average 3.56 n/a n/a n/a 3.23
Lehman Brothers Aggregate Bond Index 2.08 n/a n/a n/a 2.78
---------------------------------------------------------------------------------------------------------------------------
</TABLE>
**Past performance is no guarantee of future results.
**Return is not annualized
SOURCE: LIPPER ANALYTICAL SERVICES.
+ The inception dates for each Turner Fund are as follows: Turner Large Cap
Growth Equity Fund, February 1, 1997; Turner Growth Equity Fund, March 11, 1992;
Turner Midcap Growth Fund, October 1, 1996; Turner Small Cap Growth Fund,
February 7, 1994; Turner Micro Cap Growth Fund, March 1, 1998; Turner Top 20
Fund, July 1, 1999; Turner Technology Fund, July 1, 1999; Turner Short Duration
Government Funds-Three Year Portfolio (Class I Shares), March 1, 1994; Turner
Short Duration Government Funds-One Year Portfolio (Class I Shares), March 1,
1994; and Turner Core High Quality Fixed Income Fund, July 1, 1999.
SEI Investments Distribution Co., Oaks, PA acts as distributor of the Turner
Funds. The performance data quoted represents past performance and the principal
value and investment return will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than their original cost. This information
must be preceded or accompanied by a prospectus for the Turner Funds. Investors
should read the prospectus carefully before investing.
4 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
LIPPER INC. PERFORMANCE RANKINGS OF MUTUAL FUNDS
Periods ending March 31, 2000
<TABLE>
<CAPTION>
ONE TWO FIVE SEVEN
YEAR YEARS YEARS YEARS
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
LARGE-CAP GROWTH FUNDS
TURNER LARGE CAP GROWTH EQUITY FUND
Ranking vs. competitors 39/436 32/363 -- --
Percentile ranking 8 8 -- --
-------------------------------------------------------------------------------------------------------------------
LARGE-CAP GROWTH FUNDS
TURNER GROWTH EQUITY FUND
Ranking vs. competitors 37/436 42/363 21/185 13/104
Percentile ranking 8 11 11 12
-------------------------------------------------------------------------------------------------------------------
MID-CAP GROWTH FUNDS
TURNER MIDCAP GROWTH FUND
Ranking vs. competitors 53/224 15/188 -- --
Percentile ranking 23 7
-------------------------------------------------------------------------------------------------------------------
MID-CAP GROWTH FUNDS
TURNER SMALL CAP GROWTH FUND
Ranking vs. competitors 85/224 88/188 6/89 --
Percentile ranking 37 46 6 --
-------------------------------------------------------------------------------------------------------------------
SMALL-CAP GROWTH FUNDS
TURNER MICRO CAP GROWTH FUND
Ranking vs. competitors 4/253 2/202 -- --
Percentile ranking 1 1
-------------------------------------------------------------------------------------------------------------------
SHORT-INTERMEDIATE U.S. GOVERNMENT FUNDS
TURNER SHORT DURATION GOVERNMENT FUNDS -
THREE YEAR PORTFOLIO (CLASS I)
Ranking vs. competitors 5/91 3/85 9/63 --
Percentile ranking 5 3 14 --
-------------------------------------------------------------------------------------------------------------------
ULTRA-SHORT OBLIGATION FUNDS
TURNER SHORT DURATION GOVERNMENT FUNDS -
ONE YEAR PORTFOLIO (CLASS I)
Ranking vs. competitors 1/29 2/28 2/20 --
Percentile ranking 1 7 10 --
-------------------------------------------------------------------------------------------------------------------
</TABLE>
Source: Lipper Inc.
TURNER FUNDS 2000 SEMIANNUAL REPORT | 5
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
TURNER LARGE CAP GROWTH EQUITY FUND
TOTAL RETURN
SIX-MONTH PERIOD ENDING MARCH 31, 2000
--------------------------------------------------------------------------------
TURNER LARGE CAP EQUITY FUND 61.22%
Lipper Large-Cap Growth Funds Average 37.61
S&P 500 Index 17.51
Russell Top 200 Growth Index 27.59
================================================================================
The Turner Large Cap Growth Equity Fund once again outperformed its benchmarks
by a substantial margin during the six-month period ended March 31, 2000. The
fund achieved a total return of 61.22%, compared with 27.59% for the Russell Top
200 Growth Index and 17.51% for the S&P 500 Index.
The Large Cap Growth Equity Fund seeks to identify stocks that are growing at a
rate which meets or exceeds Wall Street expectations. And in the period just
past, many key portfolio holdings did just that, delivering better-than-expected
earnings through innovation and prudent financial management.
The portfolio's strongest performers for the period included Cisco Systems,
which recently became the world's most valuable company; Intel, which continues
to deliver strong earnings through both traditional business lines and
e-commerce related services; JDS Uniphase, a leader in fiber optic networking
products; and Oracle, a dominant player in corporate software and e-commerce
solutions.
Looking ahead, we believe that large cap stocks continue to offer compelling
values based on their reasonable price-earnings to growth ratios and fundamental
strengths. These companies have the wherewithal to continue dominating their
markets with new products and services, and are also boosting productivity by
harnessing new technologies and e-commerce tools. We will continue to seek those
which are best-positioned to deliver strong top-line and bottom-line growth.
GROWTH OF A $10,000 INVESTMENT IN THE TURNER LARGE CAP GROWTH EQUITY FUND:
JANUARY 31, 1997-MARCH 31, 2000*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
TURNER LARGE CAP RUSSELL TOP 200 S&P 500
GROWTH EQUITY FUND GROWTH INDEX INDEX
------------------ ------------ -----
1/31/97 $10,000 $10,000 $10,000
9/97 12,279 12,013 12,199
9/98 14,399 14,165 13,304
9/99 20,586 19,018 17,002
3/00 33,189 24,266 19,980
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than their original cost. The inception date of the Turner Large Cap Growth
Equity Fund is February 1, 1997.
------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2000
------------------------------------------------------
PAST ONE YEAR PAST THREE YEARS SINCE INCEPTION
60.21% 52.17% 46.10%
------------------------------------------------------
6 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
TURNER LARGE CAP GROWTH EQUITY FUND
================================================================================
FUND OBJECTIVE
The Turner Large Cap Growth Equity 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.
================================================================================
FUND PROFILE
MARCH 31, 2000
[Graphic of box chart omitted, indicates Large Market Capitalization and a
Growth Investment Style]
[bullet] Ticker Symbol TLCGX
[bullet] CUSIP #900297508
[bullet] Top 10 holdings
(1) Cisco Systems
(2) Intel
(3) American Online
(4) Oracle
(5) Yahoo!
(6) Warner-Lambert
(7) Sun Microsystems
(8) EMC-Mass
(9) Home Depot
(10) Wal-Mart Stores
[bullet] % in 10 largest holdings 38.4%
[bullet] Number of holdings 51
[bullet] Price/earnings ratio 66.2
[bullet] Weighted average market capitalization $157.4 billion
[bullet] % of holdings with positive earnings surprises 88.2%
[bullet] % of holdings with negative earnings surprises 0%
[bullet] Net assets $46 million
================================================================================
SECTOR WEIGHTINGS:
[graphic omitted]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
53.1% Technology
16.3% Consumer discretionary/services
11.5% Health care
3.9% Consumer staples
3.4% Financial services
3.2% Producer durables
2.9% Utilities/communication
1.3% Materials/processing
================================================================================
PORTFOLIO MANAGERS
[Photo omitted]
ROBERT E. TURNER, founder, chairman, and chief investment officer of Turner
Investment Partners, serves as the lead product manager of the Large Cap Growth
Equity Fund. A Chartered Financial Analyst, Bob previously was senior investment
manager with Meridian Investment Company. He earned bachelor's and MBA degrees
at Bradley University.
[Photo omitted]
JOHN F. HAMMERSCHMIDT serves as a comanager on the Large Cap Growth Equity Fund.
John joined Turner in 1992. Previously he was vice president of government
securities trading with S. G. Warburg. He holds a bachelor's degree from Lehigh
University and an MBA degree from Duke University.
[Photo omitted]
MARK D. TURNER, president of Turner Investment Partners, serves as a comanager
of the Large Cap Growth Equity Fund. Mark joined Turner when it was founded in
1990. He previously served as vice president and senior portfolio manager with
First Maryland Asset Management. He earned a bachelor's degree from Bradley
University and an MBA degree from the University of Illinois.
TURNER FUNDS 2000 SEMIANNUAL REPORT | 7
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
TURNER GROWTH EQUITY FUND
TOTAL RETURN
SIX-MONTH PERIOD ENDING MARCH 31, 2000
--------------------------------------------------------------------------------
TURNER GROWTH EQUITY FUND 58.19%
Lipper Large-Cap Growth Funds Average 37.61
S&P 500 Index 17.51
Russell 1000 Growth Index 34.06
================================================================================
For the six-month period ended March 31, 2000, the Turner Growth Equity Fund
continued to perform exceptionally well, delivering a total return of 58.19%. By
comparison, the Russell 1000 Growth Index returned 34.06%, while the S&P 500
Index yielded 17.51%.
The fund once again benefited from strong performance by some of its largest
holdings. These included Cisco Systems, which has surpassed Microsoft in market
value; Intel, which recently broke the one-gigahertz barrier in chip
performance; Oracle, which successfully transformed itself from a database
company into a full-fledged e-commerce enabler; and Wal-Mart Stores, which
appears ready to overtake General Motors as the world's largest corporation, as
measured by sales.
Looking ahead, we believe that companies with strong management, world-class
products and services, and long-term records of superior performance will
continue to perform well in the expanding global economy. And we feel confident
that our portfolio holdings represent many of the "best of the best" in this
exciting segment of the market.
GROWTH OF A $10,000 INVESTMENT IN THE TURNER GROWTH EQUITY FUND:
MARCH 31, 1992-MARCH 31, 2000*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
TURNER GROWTH S&P 500 RUSSELL 1000
EQUITY FUND COMPOSITE INDEX GROWTH INDEX
----------- --------------- ------------
3/31/92 $10,000 $10,000 $10,000
9/92 10,055 10,511 10,326
9/93 12,734 11,871 10,942
9/94 12,352 12,309 11,583
9/95 14,900 15,965 15,311
9/96 18,314 19,209 18,588
9/97 24,286 26,976 25,335
9/98 26,887 29,420 28,147
9/99 37,147 37,598 37,957
3/00 58,763 44,182 50,885
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than their original cost. The inception date of the Turner Growth Equity Fund is
March 11, 1992. Returns are calculated from the first full month following the
fund's inception date.
---------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2000
---------------------------------------------------
PAST ONE PAST THREE PAST FIVE SINCE
YEAR YEARS YEARS INCEPTION
60.92% 48.00% 36.03% 24.78%
---------------------------------------------------
8 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
TURNER GROWTH EQUITY FUND
================================================================================
FUND OBJECTIVE
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.
================================================================================
FUND PROFILE
MARCH 31, 2000
[Graphic of box chart omitted, indicates Medium to Large Market Capitalization
and a Growth Investment Style]
[bullet] Ticker symbol TRGEX
[bullet] CUSIP #900297102
[bullet] Top 10 holdings
(1) Cisco Systems
(2) Intel
(3) America Online
(4) Warner-Lambert
(5) Oracle
(6) Pepsico
(7) EMC-Mass
(8) Home Depot
(9) Sun Microsystems
(10) Motorola
[bullet] % in 10 largest holdings 32.8%
[bullet] Number of holdings 99
[bullet] Price/earnings ratio 61
[bullet] Weighted average market capitalization $125.8 billion
[bullet] % of holdings with positive earnings surprises 81.6%
[bullet] % of holdings with negative earnings surprises 1.8%
[bullet] Net assets $308 million
================================================================================
SECTOR WEIGHTINGS:
neutral to Russell 1000 Growth Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
49.4% Technology
15.5% Consumer discretionary/services
13.2% Health Care
6.7% Consumer staples
4.1% Utilities/communication
3.7% Financial services
2.6% Producer durables
0.8% Materials/processing
0.8% Energy
0.5% Autos/transportation
================================================================================
PORTFOLIO MANAGERS
[Photo omitted]
ROBERT E. TURNER, founder, chairman, and chief investment officer of Turner
Investment Partners, has served as the lead product manager of the Growth Equity
Fund since its inception in 1992. A Chartered Financial Analyst, Bob previously
was senior investment manager with Meridian Investment Company. He earned
bachelor's and MBA degrees at Bradley University.
[Photo omitted]
JOHN F. HAMMERSCHMIDT serves as a comanager of the Growth Equity Fund. John
joined Turner in 1992. Previously he was vice president of government securities
trading with S. G. Warburg. He holds a bachelor's degree from Lehigh University
and an MBA degree from Duke University.
[Photo omitted]
MARK D. TURNER, president of Turner Investment Partners, serves as a comanager
of the Growth Equity Fund. Mark joined Turner when it was founded in 1990. He
previously served as vice president and senior portfolio manager with First
Maryland Asset Management. He earned a bachelor's degree from Bradley University
and an MBA degree from the University of Illinois.
[Photo omitted]
CHRISTOPHER K. MCHUGH serves as comanager of the Growth Equity Fund. Chris
joined Turner when it was founded in 1990 and previously held a position as
performance specialist at Provident Capital Management. He earned a bachelor's
degree at the Philadelphia College of Textiles and Science and an MBA degree at
St. Joseph's University.
TURNER FUNDS 2000 SEMIANNUAL REPORT | 9
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
TURNER MIDCAP GROWTH FUND
TOTAL RETURN
SIX-MONTH PERIOD ENDING MARCH 31, 2000
--------------------------------------------------------------------------------
TURNER MIDCAP GROWTH FUND 84.96%
Lipper Mid-Cap Growth Funds Average 70.02
Russell Midcap Growth Index 68.94
================================================================================
During the six months ended March 31, 2000, the Turner Midcap Growth Fund
continued to deliver superb performance, with a total return of 84.96%. This
compares with a total return for the Russell Midcap Growth Index of 68.94%.
These exceptional results were again achieved without exceptional risk, as the
portfolio's average price-earnings ratio was held to a relatively moderate 65.1.
Among the portfolio's best performers during the period were Exodus
Communications, a leading provider of e-commerce services to large corporations;
Immunex, a biopharmaceutical developer; KLA-Tencor, a manufacturer of
semiconductor testing equipment; Broadcom, a designer of semiconductor products;
Applied Micro Circuits, a maker of high-performance communications chips; JDS
Uniphase, a leader in optical data communications; Network Appliance, a producer
of Internet-ready file servers; PMC-Sierra, a developer of networking
semiconductor components; and Nextlink Communications, a local-exchange
communications carrier.
Looking ahead, we believe that the midcap sector continues to offer some of the
most exciting prospects for growth. Companies in this sector tend to be
innovative and agile, and are challenging many of their larger counterparts
through the rapid introduction of market-leading products and services. And
while there can be above-average levels of volatility in midcap stocks,
experience has shown that the long-term opportunities tend to outweigh the
risks.
GROWTH OF A $10,000 INVESTMENT IN THE TURNER MIDCAP GROWTH FUND:
OCTOBER 31, 1996-MARCH 31, 2000*
[graphic omitted]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
TURNER MID CAP RUSSELL MID CAP
GROWTH FUND GROWTH INDEX
----------- ------------
10/31/96 $10,000 $10,000
9/97 14,248 13,117
9/98 14,425 11,887
9/99 26,552 16,309
3/00 49,111 27,553
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than their original cost. The inception date of the Turner Midcap Growth Fund is
October 1, 1996.
-------------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2000
-------------------------------------------------------
PAST ONE YEAR PAST THREE YEARS SINCE INCEPTION
122.84% 71.13% 58.01%
-------------------------------------------------------
10 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
TURNER MIDCAP GROWTH FUND
================================================================================
FUND OBJECTIVE
The Turner Midcap Growth Fund seeks capital appreciation. It invests primarily
in a diversified portfolio of common stocks with market capitalizations between
$1 billion and $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 Midcap Growth Index.
================================================================================
FUND PROFILE
MARCH 31, 2000
[Graphic of box chart omitted, indicates Medium Market Capitalization and a
Growth Investment Style]
[bullet] Ticker symbol TMGFX
[bullet] CUSIP #900297409
[bullet] Top 10 holdings
(1) JDS Uniphase
(2) Veritas Software
(3) Exodus Communications
(4) SDL
(5) PMC-Sierra
(6) Nextel Communications, Cl A
(7) PE Biosystems
(8) Applied Micro Circuits
(9) Xilinx
(10) Medimmune
[bullet] % in 10 largest holdings 20.4%
[bullet] Number of holdings 114
[bullet] Price/earnings ratio 65.1
[bullet] Weighted average market capitalization $15.7 billion [bullet] % of
holdings with positive earnings surprises 73.4%
[bullet] % of holdings with negative earnings surprises 6.9%
[bullet] Net assets $743 million
================================================================================
SECTOR WEIGHTINGS:
neutral to Russell Midcap Growth Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
45.9% Technology
16.4% Consumer discretionary/services
8.7% Health care
6.1% Utilities/communication
5.9% Financial Services
5.6% Producer durables
2.5% Energy
1.9% Consumer staples
1.7% Autos/transportation
1.3% Materials/processing
================================================================================
PORTFOLIO MANAGERS
[Photo omitted]
CHRISTOPHER K. MCHUGH has served as the lead product manager of the Midcap
Growth Fund since its inception in 1996. Chris joined Turner when it was founded
in 1990 and previously held a position as performance specialist at Provident
Capital Management. He earned a bachelor's degree at the Philadelphia College of
Textiles and Science and an MBA degree at St. Joseph's University.
[Photo omitted]
WILLIAM C. MCVAIL serves as a comanager of the Midcap Growth Fund. Before
joining Turner in 1998, Bill was a portfolio manager at PNC Equity Advisors. A
Chartered Financial Analyst, Bill received a bachelor's degree from Vassar
College.
[Photo omitted]
ROBERT E. TURNER, founder, chairman, and chief investment officer of Turner
Investment Partners, serves as a comanager of the Midcap Growth Fund. A
Chartered Financial Analyst, Bob previously was senior investment manager with
Meridian Investment Company. He earned bachelor's and MBA degrees at Bradley
University.
TURNER FUNDS 2000 SEMIANNUAL REPORT | 11
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
TURNER SMALL CAP GROWTH FUND
TOTAL RETURN
SIX-MONTH PERIOD ENDING MARCH 31, 2000
--------------------------------------------------------------------------------
TURNER SMALL CAP GROWTH FUND 68.16%
Lipper Mid-Cap Growth Funds Average 70.02
Russell 2000 Growth Index 45.77
================================================================================
The Turner Small Cap Growth Fund once again delivered index-beating performance
during the six-month period ended March 31, 2000, with a total return of 68.16%.
This compares to a total return for the Russell 2000 Growth Index of 45.77%.
The fund benefited from strong performance from a number of holdings, including
Digex, a large corporate Web hosting company; Quanta Services, an installer of
utility lines; Global Industries Ltd., an oil services provider; Pinnacle
Holdings, a real estate investment trust specializing in cellular phone towers;
Dycom Industries, a construction and engineering firm; Lam Research, a provider
of semiconductor manufacturing equipment; DSP Group, a developer of
speech-recognition products; Mercury Interactive, a producer of testing
software; Peregrine Systems, a leader in help-desk software; and Powerwave
Technologies, a manufacturer of radio signal amplifiers.
Looking ahead, we believe the small cap sector offers exciting prospects for the
future, although it is sure to be impacted by the increasing level of market
volatility. We will view any corrections as opportunities to purchase shares at
a discount to recent prices, and encourage our investors to maintain a long-term
view.
GROWTH OF A $10,000 INVESTMENT IN THE TURNER SMALL CAP GROWTH FUND:
FEBRUARY 28, 1994-MARCH 31, 2000*
[graphic omitted]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
TURNER SMALL CAP RUSSELL 2000
GROWTH FUND GROWTH INDEX
----------- ------------
2/28/94 $10,000 $10,000
9/94 10,303 9,618
9/95 15,812 12,328
9/96 24,103 13,881
9/97 28,114 17,123
9/98 23,362 12,872
9/99 37,179 17,072
3/00 62,250 24,885
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than their original cost. The inception date of the Turner Small Cap Growth Fund
is February 7, 1994. Returns are calculated from the first full month following
the fund's inception date.
--------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2000
--------------------------------------------------
PAST ONE PAST THREE PAST FIVE SINCE
YEAR YEARS YEARS INCEPTION
102.44% 47.72% 40.16% 35.17%
--------------------------------------------------
12 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
TURNER SMALL CAP GROWTH FUND
================================================================================
FUND OBJECTIVE
The Turner Small Cap Growth Fund seeks capital appreciation. It invests
primarily in a diversified portfolio of common stocks with market
capitalizations at the time of purchase not exceeding $2 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 Fund participates in the Initial Public Offering ("IPO") market, and a
significant portion of the fund's returns are attributable to its investment in
IPOs, which have a magnified impact due to the fund's relatively small asset
base. There is no guarantee that as the fund's assets grow, it will continue to
experience substantially similar performance by investing in IPOs.
================================================================================
FUND PROFILE
MARCH 31, 2000
[Graphic of box chart omitted, indicates Small Market Capitalization and a
Growth Investment Style]
[bullet] Ticker symbol TSCEX
[bullet] CUSIP #900297300
[bullet] Top 10 holdings
(1) Asyst Technologies
(2) Peregrine Systems
(3) Sandisk
(4) Mercury Interactive
(5) Dycom Industries
(6) Micrel
(7) DSP Group
(8) Pinnacle Holdings
(9) BroadVision
(10) Micromuse
[bullet] % in 10 largest holdings 14.5%
[bullet] Number of holdings 144
[bullet] Price/earnings ratio 33.4
[bullet] Weighted average market capitalization $2.4 billion
[bullet] % of holdings with positive earnings surprises 66.2%
[bullet] % of holdings with negative earnings surprises 8.9%
[bullet] Net assets $515 million
================================================================================
SECTOR WEIGHTINGS:
neutral to Russell 2000 Growth Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
34.1% Technology
16.2% Consumer discretionary/services
14.0% Health care
9.9% Producer durables
7.8% Financial services
5.1% Materials/processing
4.4% Utilities/communication
2.7% Energy
1.8% Autos/transportation
1.7% Consumer staples
================================================================================
PORTFOLIO MANAGERS
[Photo omitted]
WILLIAM C. MCVAIL serves as the lead product manager of the Small Cap Growth
Fund. Before joining Turner in 1998, Bill was a portfolio manager at PNC Equity
Advisors. A Chartered Financial Analyst, Bill received a bachelor's degree from
Vassar College.
[Photo omitted]
FRANK L. SUSTERSIC serves as a comanager of the Small Cap Growth Fund. A
Chartered Financial Analyst, Frank joined Turner in 1994. Previously he was an
investment officer and fund manager with First Fidelity Bank Corporation. He
holds a bachelor's degree from the University of Pennsylvania.
[Photo omitted]
CHRISTOPHER K. MCHUGH serves as a comanager of the Small Cap Growth Fund. Chris
joined Turner when it was founded in 1990 and previously held a position as
performance specialist at Provident Capital Management. He earned a bachelor's
degree at the Philadelphia College of Textiles and Science and an MBA degree at
St. Joseph's University.
TURNER FUNDS 2000 SEMIANNUAL REPORT | 13
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
TURNER MICRO CAP GROWTH FUND
TOTAL RETURN
SIX-MONTH PERIOD ENDING MARCH 31, 2000
--------------------------------------------------------------------------------
TURNER MICRO CAP GROWTH FUND 101.24%
Lipper Small-Cap Growth Funds Average 36.05
Russell 2000 Growth Index 45.77
================================================================================
For the six months ended March 31, 2000, the Turner Micro Cap Growth Fund again
outperformed its benchmark by a wide margin, delivering a total return of
101.24%. By comparison, the Russell 2000 Growth Index recorded a return of
45.77%.
Technology, healthcare, and consumer discretionary issues continued to dominate
the portfolio, accounting for nearly three-quarters of fund assets at the end of
the period. However, the fund remained fully diversified among the other key
sectors of the microcap universe, with representation by consumer staples,
energy, financial services, materials and processing, producer durables, and
utilities/communications.
Among the best performers in the portfolio were Anaren Microwave, a developer of
microwave signal processing devices; Tollgrade Communications, a producer of
testing equipment for communications systems; Polymedica, a distributor of
products for the treatment of diabetes; Hot Topic, a youth-oriented clothing
chain; and Concord Camera, a top manufacturer of disposable cameras.
Looking ahead, the microcap sector is clearly vulnerable to the increasing
volatility of the equity markets. Still, we believe that effective stock
selection will remain the key factor in determining the relative performance of
any microcap portfolio, and we are confident in our ability to identify future
leaders in this dynamic sector.
GROWTH OF A $10,000 INVESTMENT IN THE TURNER MICRO CAP GROWTH FUND:
FEBRUARY 28, 1998-MARCH 31, 2000*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
TURNER MICRO CAP RUSSELL 2000
GROWTH FUND GROWTH INDEX
----------- ------------
2/28/98 $10,000 $10,000
9/98 9,882 7,625
9/99 21,093 10,113
3/00 42,448 14,742
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than their original cost. The inception date of the Turner Micro Cap Growth Fund
is March 1, 1998.
-------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2000
-------------------------------------------
PAST ONE YEAR SINCE INCEPTION
194.33% 99.67%
-------------------------------------------
14 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
TURNER MICRO CAP GROWTH FUND
================================================================================
FUND OBJECTIVE
The Turner Micro Cap Growth Fund seeks capital appreciation. It invests
primarily in a diversified portfolio of common stocks that, in Turner's opinion,
have strong earnings growth potential and market capitalizations not exceeding
$500 million at the time of purchase. The fund's economic-sector weightings stay
within a range that's not more than 50% above or below the sector weightings of
the Russell 2000 Growth Index.
The Fund participates in the Initial Public Offering ("IPO") market, and a
significant portion of the fund's returns are attributable to its investment in
IPOs, which have a magnified impact due to the fund's relatively small asset
base. There is no guarantee that as the fund's assets grow, it will continue to
experience substantially similar performance by investing in IPOs.
================================================================================
FUND PROFILE
MARCH 31, 2000
[Graphic of box chart omitted, indicates Small Market Capitalization and a
Growth Investment Style]
[bullet] Ticker symbol TMCGX
[bullet] CUSIP #872524301
[bullet] Top 10 holdings
(1) Shaw Group
(2) Three-Five Systems
(3) In Focus Systems
(4) Internet Commerce
(5) Nanometrics
(6) HOT Topics
(7) Stericycle
(8) NetPlex Group
(9) Biosource International
(10) Concord Camera
[bullet] % in 10 largest holdings 18.4%
[bullet] Number of holdings 109
[bullet] Price/earnings ratio 55.3
[bullet] Weighted average market capitalization $410 million
[bullet] % of holdings with positive earnings surprises 49.7%
[bullet] % of holdings with negative earnings surprises 2.9%
[bullet] Net assets $164 million
================================================================================
SECTOR WEIGHTINGS:
resemble Russell 2000 Growth Index
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
37.1% Technology
21.6% Health care
15.4% Consumer discretionary/services
8.9% Materials/processing
8.1% Producer durables
3.2% Utilities/communication
2.1% Energy
1.2% Consumer staples
1.2% Financial services
0.6% Autos/transportation
================================================================================
PORTFOLIO MANAGERS
[Photo omitted]
FRANK L. SUSTERSIC has served as the lead product manager of the Micro Cap
Growth Fund since its inception in 1998. A Chartered Financial Analyst, Frank
joined Turner in 1994. Previously he was an investment officer and fund manager
with First Fidelity Bank Corporation. He holds a bachelor's degree from the
University of Pennsylvania.
[Photo omitted]
WILLIAM C. MCVAIL serves as the comanager of the Micro Cap Growth Fund. Before
joining Turner in 1998, Bill was a portfolio manager at PNC Equity Advisors. A
Chartered Financial Analyst, Bill received a bachelor's degree from Vassar
College.
[Photo omitted]
CHRISTOPHER J. PERRY serves as the comanager of the Micro Cap Growth Fund. Chris
joined Turner in 1998 after serving as a research analyst at the Pennsylvania
Merchant Group. A Chartered Financial Analyst, he earned a bachelor's degree at
Villanova University and an MBA degree at Drexel University.
TURNER FUNDS 2000 SEMIANNUAL REPORT | 15
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
TURNER TOP 20 FUND
TOTAL RETURN
SIX-MONTH PERIOD ENDING MARCH 31, 2000
--------------------------------------------------------------------------------
TURNER TOP 20 FUND 99.95%
Lipper Multi-Cap Core Funds Average 23.41
S&P 500 Index 17.51
================================================================================
For the six-month period ended March 31, 2000, the Turner Top 20 Fund delivered
a total return of 99.95%, compared with a total return of 17.51% for its
benchmark, the S&P 500 Index.
With an inception date of July 1, 1999, this fund invests primarily in
approximately 15 to 25 common stocks that appear to have strong earnings growth
potential - regardless of their sector or market capitalization.
During the period, the fund's leading performers included America Online, the
nation's leading provider of online services; Cisco Systems, the leader in
computer networking equipment; Intel, the world's largest manufacturer of
semiconductor products; and JDS Uniphase, an up-and-coming provider of fiber
optic networking products.
Looking ahead, we believe that the uncommon approach of this fund will continue
to offer growth-oriented investors a simple, convenient way to invest in a
concentrated basket of issues. And we look forward to continuing to select from
the most promising names the markets have to offer.
GROWTH OF A $10,000 INVESTMENT IN THE TURNER TOP 20 FUND:
JUNE 30, 1999-MARCH 31, 2000*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
TURNER TOP 20 S&P 500
FUND INDEX
---- -----
6/30/99 $10,000 $10,000
9/99 13,990 9,375
3/00 27,973 11,017
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than their original cost. The inception date of the Turner Top 20 Fund is
July 1, 1999.
--------------------------------
CUMULATIVE TOTAL RETURN
Period ending March 31, 2000
--------------------------------
SINCE INCEPTION
179.73%
--------------------------------
16 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
TURNER TOP 20 FUND
================================================================================
FUND OBJECTIVE
The Turner Top 20 Fund seeks capital appreciation. It invests in common stock
and other equity securities of companies, regardless of their market
capitalization, that Turner believes have strong earnings potential. The
portfolio will contain a total of 15-25 stocks representing Turner's favorite
investment ideas.
================================================================================
FUND PROFILE
MARCH 31, 2000
[Graphic of box chart omitted, indicates Small to Large Market Capitalization
and a Growth Investment Style]
[bullet] Ticker symbol TTOPX
[bullet] CUSIP #87252R862
[bullet] Top 10 holdings
(1) America Online
(2) JDS Uniphase
(3) Cisco Systems
(4) EMC-Mass
(5) KLA-Tencor
(6) Lam Research
(7) Nortel Networks
(8) Motorola
(9) Yahoo!
(10) Qualcomm
[bullet] % in 10 largest holdings 56.4%
[bullet] Number of holdings 21
[bullet] Price/earnings ratio 118.9
[bullet] Weighted average market capitalization $123.1 billion
[bullet] % of holdings with positive earnings surprises 92.8%
[bullet] % of holdings with negative earnings surprises 0%
[bullet] Net assets $137 million
================================================================================
SECTOR WEIGHTINGS:
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
62.6% Technology
15.3% Producer durables
11.7% Consumer discretionary/services
4.9% Materials/Processing
4.2% Utilities/Communications
================================================================================
PORTFOLIO MANAGERS
[Photo omitted]
ROBERT E. TURNER, founder, chairman, and chief investment officer of Turner
Investment Partners, has served as the lead product manager of the Top 20 Fund
since its inception in 1999. A Chartered Financial Analyst, Bob previously was
senior investment manager with Meridian Investment Company. He earned bachelor's
and MBA degrees at Bradley University.
[Photo omitted]
CHRISTOPHER K. MCHUGH serves as a comanager on the Top 20 Fund. Chris joined
Turner when it was founded in 1990 and previously held a position as performance
specialist at Provident Capital Management. He earned a bachelor's degree at the
Philadelphia College of Textiles and Science and an MBA degree at St. Joseph's
University.
[Photo omitted]
WILLIAM C. MCVAIL serves as a comanager of the Top 20 Fund. Before joining
Turner in 1998, Bill was a portfolio manager at PNC Equity Advisors. A Chartered
Financial Analyst, Bill received a bachelor's degree from Vassar College.
TURNER FUNDS 2000 SEMIANNUAL REPORT | 17
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
TURNER TECHNOLOGY FUND
TOTAL RETURN
SIX-MONTH PERIOD ENDING MARCH 31, 2000
--------------------------------------------------------------------------------
TURNER TECHNOLOGY FUND 141.19%
Lipper Science & Technology Funds Average 94.31
Pacific Exchange Technology 100 Index 85.28
================================================================================
For the six-month period ended March 31, 2000, the Turner Technology Fund
produced a total return of 141.19%. This compares with a total return of 85.28%
for its benchmark, the Pacific Exchange Technology 100 Index.
With an inception date of July 1, 1999, this fund focuses on growth-oriented
companies in such sectors as computers, semiconductors, electronics,
communications, software, health care, and biotechnology.
Among the portfolio's best performers for the six-month period were Intel and
Advanced Micro Devices, the #1 and #2 developers of microprocessor semiconductor
products; Redback Networks, a creator of high-performance networking products;
and eBay, the leading provider of online auction services.
Looking ahead, we believe that technology will continue to be the dominant theme
of the economy and the markets in the years to come. And while volatility can be
expected in this sector, we feel that this fund offers a convenient and highly
focused approach for growth-oriented investors with long time horizons.
GROWTH OF A $10,000 INVESTMENT IN THE TURNER TECHNOLOGY FUND:
JUNE 30, 1999-MARCH 31, 2000*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
TURNER TECHNOLOGY PACIFIC EXCHANGE
FUND TECHNOLOGY 100 INDEX
---- --------------------
6/30/99 $10,000 $10,000
9/99 14,060 10,467
3/00 33,911 19,392
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than their original cost. The inception date of the Turner Technology Fund is
July 1, 1999.
------------------------------
CUMULATIVE TOTAL RETURN
Period ending March 31, 2000
------------------------------
SINCE INCEPTION
239.11%
------------------------------
18 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
TURNER TECHNOLOGY FUND
================================================================================
FUND OBJECTIVE
The Turner Technology Fund seeks capital appreciation. It invests in common
stock of companies that develop new technologies and that may experience
exceptional growth in sales and earnings driven technology related products and
services. Stock selection will not be based on company size, but rather on an
assessment of a company's fundamental prospects.
The Fund participates in the Initial Public Offering ("IPO") market, and a
significant portion of the fund's returns are attributable to its investment in
IPOs, which have a magnified impact due to the fund's relatively small asset
base. There is no guarantee that as the fund's assets grow, it will continue to
experience substantially similar performance by investing in IPOs.
================================================================================
FUND PROFILE
MARCH 31, 2000
[Graphic of box chart omitted, indicates Small to Large Market Capitalization
and a Growth Investment Style]
[bullet] Ticker symbol TTECX
[bullet] CUSIP #87252R870
[bullet] Top 10 holdings
(1) Juniper Networks
(2) Intel
(3) America Online
(4) Qualcomm
(5) Sun Microsystems
(6) Cisco Systems
(7) Broadcom, Cl A
(8) SDL
(9) National Semiconductor
(10) Yahoo!
[bullet] % in 10 largest holdings 35.7%
[bullet] Number of holdings 36
[bullet] Price/earnings ratio 98.1
[bullet] Weighted average market capitalization $92.3 billion
[bullet] % of holdings with positive earnings surprises 87.8%
[bullet] % of holdings with negative earnings surprises 0%
[bullet] Net assets $90 million
================================================================================
SECTOR WEIGHTINGS:
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
84.5% Technology
10.9% Consumer discretionary/services
2.7% Health care
2.6% Producer durables
================================================================================
PORTFOLIO MANAGERS
[Photo omitted]
ROBERT E. TURNER, founder, chairman, and chief investment officer of Turner
Investment Partners, has served as the lead product manager of the Technology
Fund since its inception in 1999. A Chartered Financial Analyst, Bob previously
was senior investment manager with Meridian Investment Company. He earned
bachelor's and MBA degrees at Bradley University.
[Photo omitted]
CHRISTOPHER K. MCHUGH serves as a comanager of the Technology Fund. Chris joined
Turner when it was founded in 1990 and previously held a position as performance
specialist at Provident Capital Management. He earned a bachelor's degree at the
Philadelphia College of Textiles and Science and an MBA degree at St. Joseph's
University.
[Photo omitted]
ROBB J. PARLANTI, serves as a comanager of the Technology Fund. Robb joined
Turner in 1993 as a senior portfolio manager/security analyst. A Chartered
Financial Analyst, he received a bachelor's degree at Wake Forest University.
Robb formerly was an assistant vice president/portfolio manager at PNC Bank.
TURNER FUNDS 2000 SEMIANNUAL REPORT | 19
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
TURNER SHORT DURATION GOVERNMENT FUNDS-
THREE YEAR PORTFOLIO
TOTAL RETURN
SIX-MONTH PERIOD ENDING MARCH 31, 2000
--------------------------------------------------------------------------------
TURNER SHORT DURATION GOVERNMENT FUNDS-
THREE YEAR PORTFOLIO (CLASS I) 1.96%
Lipper Short/Intermediate U.S. Government
Funds Average 1.27
Lehman Brothers 1-3 Year
U.S. Government Bond Index 1.82
================================================================================
For the six-month period ended March 31, 2000, the Turner Short Duration --
Three Year Portfolio (Class I Shares) delivered a total return of 1.96%. By
comparison, the Lehman Brothers 1-3 Year U.S. Government Bond Index returned
1.82%.
After a weak first fiscal quarter during which the fund was hampered by rising
rates, the second fiscal quarter saw a strong return to positive territory.
During this time, we adjusted the portfolio to better position the fund for a
rising rate environment, pulling back on maturity levels and adding
higher-yielding agency securities where advantageous. Looking ahead, we believe
that further rate hikes by the Federal Reserve Board are on the horizon.
Therefore, we plan to maintain our relatively conservative stance in order to
optimize liquidity and seek higher-yielding instruments as they become
available.
GROWTH OF A $10,000 INVESTMENT IN THE TURNER SHORT DURATION GOVERNMENT FUNDS-
THREE YEAR PORTFOLIO, CLASS I:
FEBRUARY 28, 1994-MARCH 31, 2000*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
TURNER SHORT
DURATION GOVERNMENT- LEHMAN 1-3 YEAR
3 YEAR PORTFOLIO GOVERNMENT
CLASS I BOND INDEX
------- ----------
2/28/94 $10,000 $10,000
9/94 10,089 10,049
9/95 10,976 10,871
9/96 11,637 11,488
9/97 12,463 12,279
9/98 13,469 13,253
9/99 13,858 13,676
3/00 14,130 13,925
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than their original cost. The inception date of the Turner Short Duration
Government Funds-Three Year Portfolio (Class I) is March 1, 1994.
--------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2000
--------------------------------------------------
PAST ONE PAST THREE PAST FIVE SINCE
YEAR YEARS YEARS INCEPTION
Class I Shares
3.53% 5.69% 6.19% 5.85%
Class II Shares
-- -- -- 8.39%
--------------------------------------------------
20 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
TURNER SHORT DURATION GOVERNMENT FUNDS-
THREE YEAR PORTFOLIO
================================================================================
FUND OBJECTIVE
The Turner Short Duration Government Funds-Three Year Portfolio seeks to produce
maximum total return consistent with preservation of capital and investment
prudence. It invests primarily in high-grade securities issued or guaranteed by
the U.S. government or its agencies. The fund seeks to limit fluctuations in
principal and reduce interest-rate risk by maintaining an average effective
duration no greater than that of a three-year Treasury bill.
================================================================================
FUND PROFILE
MARCH 31, 2000
[Graphic of box chart omitted, indicates High Credit Quality and a Long Maturity
Average]
[bullet] Ticker symbol TSDGX,
Class I Shares
[bullet] CUSIP #872524202,
Class I Shares
[bullet] Top 10 holdings
(1) U.S. Treasury Notes, 8.00%, 05/15/01
(2) U.S. Treasury Notes, 3.625%, 07/15/02
(3) U.S. Treasury Notes, 7.00%, 07/15/06
(4) U.S. Treasury Notes, 5.50%, 02/15/08
(5) FHLMC, 9.50%, 06/15/06
(6) Fleet Credit Card, 1998-AA
(7) GNMA, 6.5%, 01/15/13
(8) Ford Motor Credit, 5.75%, 02/23/04
(9) FHLMC 6.000%, 01/01/19
(10) Securitized Asset Sales, Inc., 6.25%, 12/25/23
[bullet] % in 10 largest holdings 49.6%
[bullet] Number of holdings 56
[bullet] Average effective duration 1.78 years
[bullet] Average maturity 2.42 years
[bullet] Average yield to maturity 6.66%
[bullet] Average credit quality Agency
[bullet] Convexity (0.15)
[bullet] Net assets $48 million
================================================================================
SECTOR WEIGHTINGS:
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
53.5% Mortgage-backed securities
32.4% Treasury securities
8.5% Asset-backed securities
4.0% Corporates
0.8% Other
================================================================================
PORTFOLIO MANAGERS
[Photo omitted]
JAMES I. MIDANEK, fixed-income chief investment officer, has served as manager
of the Short Duration Funds-Three Year Portfolio since inception. Jim joined
Turner in 1998, upon our acquisition of Solon Asset Management, which he
cofounded. Previously he was chief investment officer, fixed income with
Montgomery Asset Management. He holds a bachelor's degree from Queens College.
[Photo omitted]
JOHN PAK, joined the firm in 2000. He earned a bachelor of arts degree and a
master of arts degree, both in economics, at the University of San Francisco.
Previously he served as vice-president/ trade desk manager at Tuttle Decision
Systems and assistant vice president at C. E. Childs and Company.
TURNER FUNDS 2000 SEMIANNUAL REPORT | 21
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
TURNER SHORT DURATION GOVERNMENT FUNDS-
ONE YEAR PORTFOLIO
TOTAL RETURN
SIX-MONTH PERIOD ENDING MARCH 31, 2000
--------------------------------------------------------------------------------
TURNER SHORT DURATION GOVERNMENT FUNDS-
ONE YEAR PORTFOLIO (CLASS I) 2.78%
Lipper Ultra-Short Obligation Funds Average 2.60
Merrill Lynch 3 Month
U.S. Treasury Bill Index 2.66
================================================================================
For the six months ended March 31, 2000, the Turner Short Duration - One Year
Portfolio (Class I Shares) delivered a total return of 2.78%. By contrast, the
Merrill Lynch 3 Month U.S. Treasury Bill Index reported a total return of 2.66%.
The fund once again benefited from a rising-rate environment, as the Federal
Reserve Board instituted three quarter-point hikes in the Fed Funds Rate. In
addition, we continued to balance our holdings of U.S. Treasury securities with
strong representation by higher-yielding agency issues. The result was good
overall performance without compromising asset quality.
Looking ahead, the Fed has made it clear that is will remain vigilant against
inflation. And with core inflation rates showing signs of increasing, we believe
that further rate hikes are imminent. Therefore, we plan to maintain a
relatively conservative stance with regard to maturities in order to seek
incremental yields as they become available.
GROWTH OF A $10,000 INVESTMENT IN THE TURNER SHORT DURATION GOVERNMENT FUNDS-
ONE YEAR PORTFOLIO, CLASS I:
FEBRUARY 28, 1994-MARCH 31, 2000*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
TURNER SHORT MERRILL LYNCH
DURATION GOVERNMENT- 3-MONTH
1 YEAR PORTFOLIO U.S. TREASURY
CLASS I BILL INDEX
------- ----------
2/28/94 $10,000 $10,000
9/94 10,231 10,235
9/95 10,935 10,837
9/96 11,704 11,431
9/97 12,428 12,047
9/98 13,201 12,693
9/99 13,906 13,289
3/00 14,293 13,643
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than their original cost. The inception date of the Turner Short Duration
Government Funds-One Year Portfolio (Class I) is March 1, 1994.
--------------------------------------------------
ANNUALIZED TOTAL RETURNS
Periods ending March 31, 2000
--------------------------------------------------
PAST ONE PAST THREE PAST FIVE SINCE
YEAR YEARS YEARS INCEPTION
Class I Shares
5.38% 5.88% 6.21% 6.04%
Class II Shares
5.24% -- -- 5.32%
--------------------------------------------------
22 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
TURNER SHORT DURATION GOVERNMENT FUNDS-
ONE YEAR PORTFOLIO
================================================================================
FUND OBJECTIVE
The Turner Short Duration Government Funds-One Year Portfolio seeks to produce
maximum total return consistent with the preservation of capital and investment
prudence. It invests primarily in high-grade securities issued or guaranteed by
the U.S. government or its agencies. The fund seeks to limit fluctuations in
principal and reduce interest-rate risk by maintaining an average effective
duration no greater than that of a one-year Treasury note.
================================================================================
FUND PROFILE
MARCH 31, 2000
[Graphic of box chart omitted, indicates High Credit Quality and a Short
Maturity Average]
[bullet] Ticker Symbol TSDOX
Class I Shares
[bullet] CUSIP #872524103,
Class I Shares
[bullet] Top 10 holdings
(1) U.S. Treasury Notes, 6.125%, 09/30/00
(2) U.S. Treasury Notes, 8.000%, 05/15/01
(3) U.S. Treasury Notes, 3.625%, 07/15/02
(4) FNMA, 6.000% 1998-45 PB, 05/18/12
(5) FNMA, 1993-55 H, 6.000% 09/25/06
(6) GNMA #811 6.375%, 03/20/16
(7) BA Mortgage Security, 1997-2 2A1, 7.25%, 10/25/27
(8) Residential Fund Mortgage, 1992-S39 A8, 7.500%, 11/25/07
(9) FNMA, 6.000%, 01/18/08, 1998-44 TB
(10) GE Capital Mortgage Services 99-11 A2, 6.000%, 07/25/29
[bullet] % in 10 largest holdings 70.4%
[bullet] Number of holdings 44
[bullet] Average effective duration 0.57 years
[bullet] Average maturity 0.78 years
[bullet] Average yield to maturity 6.32%
[bullet] Average credit quality Agency
[bullet] Convexity (0.14)
[bullet] Net assets $21 million
================================================================================
SECTOR WEIGHTINGS:
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
47.3% Mortgage-backed securities
38.8% Treasury securities
0.9% Asset-backed securities
13.1% Other
================================================================================
PORTFOLIO MANAGERS
[Photo omitted]
JAMES I. MIDANEK, fixed-income chief investment officer, has served as manager
of the Short Duration Funds-One Year Portfolio since inception. Jim joined
Turner in 1998, upon our acquisition of Solon Asset Management, which he
cofounded. Previously he was chief investment officer, fixed income with
Montgomery Asset Management. He holds a bachelor's degree from Queens College.
[Photo omitted]
JOHN PAK, joined the firm in 2000. He earned a bachelor of arts degree and a
master of arts degree, both in economics, at the University of San Francisco.
Previously he served as vice-president/ trade desk manager at Tuttle Decision
Systems and assistant vice president at C. E. Childs and Company.
TURNER FUNDS 2000 SEMIANNUAL REPORT | 23
<PAGE>
INVESTMENT REVIEW
--------------------------------------------------------------------------------
TURNER CORE HIGH QUALITY
FIXED INCOME FUND
TOTAL RETURN
SIX-MONTH PERIOD ENDING MARCH 31, 2000
--------------------------------------------------------------------------------
TURNER CORE HIGH QUALITY
FIXED INCOME FUND 2.56%
Lipper General Bond Funds Average 3.56
Lehman Brothers Aggregate
Bond Index 2.08
================================================================================
For the six-month period ended March 31, 2000, the Turner Core High Quality
Fixed Income Fund produced a total return of 2.56%, compared with a total return
of 2.08% for its benchmark, the Lehman Brothers Aggregate Bond Index.
With an inception date of July 1, 1999, this fund invests primarily in U.S.
government securities, corporate debt securities, mortgage-backed securities,
asset-backed securities, and short-term obligations. The six-month period was a
challenging one for bonds, with the Federal Reserve Board increasing short-term
rates on three occasions by one quarter of one percent. The result was
relatively lackluster performance for the market, and for the fund. Looking
ahead, we believe that additional rate hikes by the Fed are likely, due to
continued economic strength and growing signs of inflation. However, we also
believe that the bond market could benefit from a flight to quality by equity
investors and others during times of market instability.
Therefore, we plan to maintain our emphasis on issues of the highest quality
from each sector of the market, and to hold our average weighted maturity to a
relatively conservative level until interest rates appear to be more stable.
GROWTH OF A $10,000 INVESTMENT IN THE TURNER CORE HIGH QUALITY FIXED INCOME
FUND:
JUNE 30, 1999-MARCH 31, 2000*
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
TURNER CORE
HIGH QUALITY LEHMAN
FIXED AGGREGATE BOND
INCOME FUND INDEX
----------- -----
6/30/99 $10,000 $10,000
9/99 10,047 10,068
3/00 10,305 10,278
* These figures represent past performance, which is no guarantee of future
results. The investment return and principal value of an investment will
fluctuate, so an investor's shares, when redeemed, may be worth more or less
than their original cost. The inception date of the Turner Core High Quality
Fixed Income Fund is July 1, 1999.
-------------------------------------------
CUMULATIVE TOTAL RETURN
Period ending March 31, 2000
-------------------------------------------
SINCE INCEPTION
3.05%
-------------------------------------------
24 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
TURNER CORE HIGH QUALITY FIXED INCOME FUND
================================================================================
FUND OBJECTIVE
The Turner Core High Quality Fixed Income Fund seeks current income and capital
appreciation, an objective that emphasizes total return rather than just yield
alone. It invests in investment-grade fixed-income securities, including U.S.
government, corporate, mortgaged-backed and asset-backed securities.
================================================================================
FUND PROFILE
MARCH 31, 2000
[Graphic of box chart omitted, indicates High Credit Quality and a Medium
Maturity Average]
[bullet] Ticker symbol THQFX
[bullet] CUSIP #87252R847
[bullet] Top 10 holdings
(1) U.S. Treasury Notes, 5.50%, 02/15/08
(2) U.S. Treasury Notes, 7.000%, 07/15/06
(3) FNMA, 6.00%, 6/01/14
(4) FNMA, 6.00%, 1993-198K, 12/25/22
(5) FNMA, 6.50%, 1994-27PJ, 06/25/23
(6) FHLMC Gold, 6.00%, 06/01/29
(7) FNMA, 6.00%, 05/01/29
(8) U.S. Treasury Notes, 8.125%, 05/15/21
(9) U.S. Treasury Notes, 8.125%, 08/15/19
(10) Spiegel Master Trust, 7.50%
[bullet] % in 10 largest holdings 61.49%
[bullet] Number of holdings 38
[bullet] Average effective duration 5.0 years
[bullet] Average maturity 8.0 years
[bullet] Average yield to maturity 6.77%
[bullet] Average credit quality Agency
[bullet] Convexity 0.25
[bullet] Net assets $13 million
================================================================================
SECTOR WEIGHTINGS:
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC:
45.6% Mortgage-backed securities
43.3% Treasury securities
6.6% Asset-backed securities
2.5% Corporates
2.1% Other
================================================================================
PORTFOLIO MANAGERS
[Photo omitted]
JAMES I. MIDANEK, fixed-income chief investment officer, has served as manager
of the Core High Quality Fixed Income Fund since its inception in 1999. Jim
joined Turner in 1998, upon our acquisition of Solon Asset Management, which he
cofounded. Previously he was chief investment officer, fixed income with
Montgomery Asset Management. He holds a bachelor's degree from Queens College.
[Photo omitted]
JOHN PAK, joined the firm in 2000. He earned a bachelor of arts degree and a
master of arts degree, both in economics, at the University of San Francisco.
Previously he served as vice-president/ trade desk manager at Tuttle Decision
Systems and assistant vice president at C. E. Childs and Company.
TURNER FUNDS 2000 SEMIANNUAL REPORT | 25
<PAGE>
FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER LARGE CAP GROWTH EQUITY FUND
March 31, 2000
Value
Shares (000)
----------------------------------------------------------
COMMON STOCKS--97.7%
----------------------------------------------------------
BROADCASTING, NEWSPAPERS & ADVERTISING--2.4%
----------------------------------------------------------
AT&T - Liberty Media, Cl A* 9,570 $ 567
Omnicom Group 5,870 548
------
Total Broadcasting, newspapers &
advertising 1,115
------
----------------------------------------------------------
COMMUNICATIONS--1.5%
----------------------------------------------------------
Level 3 Communications* 6,460 683
------
Total Communications 683
------
----------------------------------------------------------
COMMUNICATIONS EQUIPMENT--5.5%
----------------------------------------------------------
Juniper Networks* 2,500 659
Nokia ADR 4,270 928
Nortel Networks ADR 7,210 908
------
Total Communications equipment 2,495
------
----------------------------------------------------------
COMPUTERS & SERVICES--23.5%
----------------------------------------------------------
Cisco Systems* 52,428 4,053
Dell Computer* 14,120 762
EMC-Mass* 8,820 1,102
Hewlett-Packard 6,130 813
Lexmark International Group, Cl A* 7,570 801
Qualcomm* 6,660 994
Sun Microsystems* 12,760 1,196
Sycamore Networks* 5,145 664
Tibco Software* 3,850 314
------
Total Computers & services 10,699
------
----------------------------------------------------------
DRUGS--5.2%
----------------------------------------------------------
Genentech* 4,210 640
Immunex* 8,350 530
Warner-Lambert 12,420 1,211
------
Total Drugs 2,381
------
----------------------------------------------------------
ELECTRONICS--4.7%
----------------------------------------------------------
Gemstar International Group Ltd* 6,950 598
Micron Technology* 4,480 564
Motorola 6,850 975
------
Total Electronics 2,137
------
----------------------------------------------------------
ENERGY & POWER--1.1%
----------------------------------------------------------
AES* 6,240 491
------
Total Energy & power 491
------
Value
Shares (000)
----------------------------------------------------------
ENTERTAINMENT--1.3%
----------------------------------------------------------
Walt Disney 13,800 $ 571
------
Total Entertainment 571
------
----------------------------------------------------------
FINANCIAL SERVICES--3.4%
----------------------------------------------------------
Citigroup 13,210 784
Merrill Lynch 7,240 760
------
Total Financial services 1,544
------
----------------------------------------------------------
FOOD, BEVERAGE & TOBACCO--1.9%
----------------------------------------------------------
Pepsico 24,950 862
------
Total Food, beverage & tobacco 862
------
----------------------------------------------------------
GLASS PRODUCTS--0.9%
----------------------------------------------------------
Corning 2,210 429
------
Total Glass products 429
------
----------------------------------------------------------
HEALTHCARE--2.2%
----------------------------------------------------------
PE Biosystems Group 10,410 1,005
------
Total Healthcare 1,005
------
----------------------------------------------------------
INTERNET SERVICES--6.6%
----------------------------------------------------------
America Online* 26,670 1,794
Yahoo!* 7,210 1,236
------
Total Internet services 3,030
------
----------------------------------------------------------
MACHINERY--1.4%
----------------------------------------------------------
Applied Materials* 6,880 648
------
Total Machinery 648
------
----------------------------------------------------------
MEDICAL PRODUCTS & SERVICES--4.1%
----------------------------------------------------------
Amgen* 12,380 760
Medimmune* 2,120 369
Medtronic 14,760 759
------
Total Medical products & services 1,888
------
----------------------------------------------------------
MISCELLANEOUS BUSINESS SERVICES--0.9%
----------------------------------------------------------
Internet Capital Group* 4,640 419
------
Total Miscellaneous business services 419
------
----------------------------------------------------------
MISCELLANEOUS MANUFACTURING--1.3%
----------------------------------------------------------
Tyco International Ltd 11,990 598
------
Total Miscellaneous manufacturing 598
------
26 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER LARGE CAP GROWTH EQUITY FUND
Value
Shares (000)
----------------------------------------------------------
PETROLEUM REFINING--1.0%
----------------------------------------------------------
Enron 6,170 $ 462
------
Total Petroleum refining 462
------
----------------------------------------------------------
RETAIL--6.6%
----------------------------------------------------------
Home Depot 16,584 1,070
Safeway* 19,750 894
Wal-Mart Stores 18,830 1,045
------
Total Retail 3,009
------
----------------------------------------------------------
SEMICONDUCTORS/INSTRUMENTS--14.0%
----------------------------------------------------------
Applied Micro Circuits* 3,200 480
Avanex* 3,710 563
Broadcom, Cl A* 2,710 658
Intel 22,750 3,002
JDS Uniphase* 6,100 735
Texas Instruments 6,140 982
------
Total Semiconductors/instruments 6,420
------
----------------------------------------------------------
SOFTWARE & PROGRAMMING--5.6%
----------------------------------------------------------
Check Point Software Technologies* 2,660 455
Oracle* 18,420 1,438
Veritas Software* 5,125 671
------
Total Software & programming 2,564
------
----------------------------------------------------------
TECHNOLOGY--1.1%
----------------------------------------------------------
Comverse Technology* 2,580 488
------
Total Technology 488
------
----------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS--1.5%
----------------------------------------------------------
Nextel Communications, Cl A* 4,460 661
------
Total Telephones & telecommunications 661
------
----------------------------------------------------------
TOTAL COMMON STOCKS
(COST $38,231) 44,599
----------------------------------------------------------
Face amount Value
(000) (000)
----------------------------------------------------------
REPURCHASE AGREEMENT--6.9%
----------------------------------------------------------
Morgan Stanley, 5.80%, dated 03/31/00,
matures 04/03/00, repurchase price
$3,131,115, (collateralized by
U.S. Treasury Notes, par value
$3,180,632, 7.50%, 02/15/05,
market value $3,208,852) $3,131 $ 3,131
----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $3,131) 3,131
----------------------------------------------------------
----------------------------------------------------------
TOTAL INVESTMENTS--104.6%
(COST $41,362) 47,730
----------------------------------------------------------
----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(4.6%) (2,101)
----------------------------------------------------------
----------------------------------------------------------
NET ASSETS:
----------------------------------------------------------
Portfolio capital (unlimited authorization--
no par value) based on 1,593,344
outstanding shares of beneficial interest 34,045
Accumulated net investment loss (85)
Accumulated net realized
gain on investments 5,301
Net unrealized appreciation
on investments 6,368
----------------------------------------------------------
TOTAL NET ASSETS--100.0% $45,629
----------------------------------------------------------
----------------------------------------------------------
NET ASSET VALUE, OFFERING AND
----------------------------------------------------------
----------------------------------------------------------
REDEMPTION PRICE PER SHARE $28.64
----------------------------------------------------------
* Non-income producing security
ADR - American Depository Receipt Cl - Class
Ltd - Limited
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2000 SEMIANNUAL REPORT | 27
<PAGE>
FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER GROWTH EQUITY FUND
March 31, 2000
Value
Shares (000)
----------------------------------------------------------
COMMON STOCKS--97.1%
----------------------------------------------------------
BEAUTY PRODUCTS--1.0%
----------------------------------------------------------
Kimberly-Clark 52,490 $ 2,939
------
Total Beauty products 2,939
------
----------------------------------------------------------
BROADCASTING, NEWSPAPERS & ADVERTISING--2.3%
----------------------------------------------------------
AT&T - Liberty Media, Cl A* 52,225 3,094
Omnicom Group 30,745 2,873
TMP Worldwide* 15,000 1,166
------
Total Broadcasting, newspapers &
advertising 7,133
------
----------------------------------------------------------
COMMUNICATIONS--2.0%
----------------------------------------------------------
Covad Communications Group* 11,260 816
Global Crossing Ltd* 25,730 1,053
Level 3 Communications* 20,270 2,144
Voicestream Wireless* 16,400 2,113
------
Total Communications 6,126
------
----------------------------------------------------------
COMMUNICATIONS EQUIPMENT--5.2%
----------------------------------------------------------
Extreme Networks* 14,010 1,107
Juniper Networks* 9,190 2,422
Metromedia Fiber Network, Cl A* 18,070 1,748
Nokia ADR 17,780 3,863
Nortel Networks ADR 25,235 3,180
Redback Networks* 4,630 1,389
Sycamore Networks* 19,190 2,476
------
Total Communications equipment 16,185
------
----------------------------------------------------------
COMPUTERS & SERVICES--19.6%
----------------------------------------------------------
Brocade Communications System* 9,650 1,730
Cisco Systems* 283,850 21,945
Comverse Technology* 12,660 2,393
Dell Computer* 83,360 4,496
EMC-Mass* 51,795 6,474
Hewlett-Packard 34,630 4,591
Lexmark International Group, Cl A* 24,080 2,546
Network Appliance* 18,930 1,566
Qualcomm* 34,830 5,201
Sun Microsystems* 67,710 6,345
Tibco Software* 23,220 1,892
Vignette* 8,700 1,394
------
Total Computers & services 60,573
------
Value
Shares (000)
----------------------------------------------------------
DRUGS--5.5%
----------------------------------------------------------
Genentech* 21,020 $ 3,195
Immunex* 32,330 2,051
Pharmacia & Upjohn 39,910 2,365
Warner-Lambert 95,970 9,357
------
Total Drugs 16,968
------
----------------------------------------------------------
ELECTRONICS--5.7%
----------------------------------------------------------
Advanced Micro Devices* 47,050 2,685
Atmel* 27,420 1,416
Gemstar International Group Ltd* 30,800 2,649
LSI Logic* 25,030 1,818
Micron Technology* 18,750 2,362
Motorola 35,745 5,089
National Semiconductor* 27,030 1,639
------
Total Electronics 17,658
------
----------------------------------------------------------
ENERGY & POWER--0.8%
----------------------------------------------------------
AES* 30,005 2,363
------
Total Energy & power 2,363
------
----------------------------------------------------------
ENTERTAINMENT--1.2%
----------------------------------------------------------
Walt Disney 91,690 3,794
------
Total Entertainment 3,794
------
----------------------------------------------------------
FINANCIAL SERVICES--3.1%
----------------------------------------------------------
Charles Schwab 51,150 2,906
Citigroup 39,632 2,351
Fannie Mae 10 1
Merrill Lynch 24,020 2,522
Portal Software* 32,100 1,828
------
Total Financial services 9,608
------
----------------------------------------------------------
FOOD, BEVERAGE & TOBACCO--3.7%
----------------------------------------------------------
Pepsico 198,970 6,877
Seagram Ltd 74,670 4,443
------
Total Food, beverage & tobacco 11,320
------
----------------------------------------------------------
GLASS PRODUCTS--0.7%
----------------------------------------------------------
Corning 11,380 2,208
------
Total Glass products 2,208
------
28 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER GROWTH EQUITY FUND
Value
Shares (000)
----------------------------------------------------------
HEALTHCARE--1.6%
----------------------------------------------------------
PE Biosystems Group 35,950 $ 3,469
Waters* 14,430 1,374
------
Total Healthcare 4,843
------
----------------------------------------------------------
INSURANCE--0.6%
----------------------------------------------------------
American International Group 15,790 1,729
------
Total Insurance 1,729
------
----------------------------------------------------------
INTERNET SERVICES--6.4%
----------------------------------------------------------
America Online* 156,800 10,545
CMGI* 12,210 1,384
eBay* 6,990 1,230
Exodus Communications* 9,590 1,347
Infospace.com* 11,040 1,606
Yahoo!* 21,910 3,755
------
Total Internet services 19,867
------
----------------------------------------------------------
MACHINERY--1.4%
----------------------------------------------------------
Applied Materials* 27,530 2,595
SPX* 14,210 1,619
------
Total Machinery 4,214
------
----------------------------------------------------------
MEDICAL PRODUCTS & SERVICES--6.1%
----------------------------------------------------------
Amgen* 69,960 4,294
Becton Dickinson 70,600 1,858
Columbia HCA Healthcare 179,430 4,542
Health Management
Associates, Cl A* 123,570 1,761
Medimmune* 11,050 1,924
Medtronic 88,680 4,561
------
Total Medical products & services 18,940
------
----------------------------------------------------------
MISCELLANEOUS BUSINESS SERVICES--2.3%
----------------------------------------------------------
Aether Systems* 1,920 348
Art Technology Group* 21,000 1,379
Internet Capital Group* 22,120 1,998
Kana Communications* 14,420 981
Network Solutions* 9,000 1,383
Webvan Group* 112,120 862
------
Total Miscellaneous
business services 6,951
------
Value
Shares (000)
----------------------------------------------------------
MISCELLANEOUS MANUFACTURING--0.8%
----------------------------------------------------------
Tyco International Ltd 49,990 $ 2,493
--------
Total Miscellaneous manufacturing 2,493
--------
----------------------------------------------------------
MULTIMEDIA--0.6%
----------------------------------------------------------
CBS* 32,955 1,866
--------
Total Multimedia 1,866
--------
----------------------------------------------------------
PETROLEUM REFINING--0.5%
----------------------------------------------------------
Avanex* 10,440 1,584
--------
Total Petroleum refining 1,584
--------
----------------------------------------------------------
PRINTING & PUBLISHING--0.4%
----------------------------------------------------------
Dow Jones 19,050 1,368
--------
Total Printing & publishing 1,368
--------
----------------------------------------------------------
RETAIL--4.9%
----------------------------------------------------------
Home Depot 98,605 6,360
Safeway* 89,670 4,058
Starbucks* 39,750 1,781
Wal-Mart Stores 50,970 2,829
--------
Total Retail 15,028
--------
----------------------------------------------------------
SEMICONDUCTORS/INSTRUMENTS--12.8%
----------------------------------------------------------
Applied Micro Circuits* 22,880 3,433
Broadcom, Cl A* 10,940 2,657
Celestica* 29,830 1,583
Intel 132,810 17,523
JDS Uniphase* 22,880 2,758
Kla-Tencor* 32,820 2,765
PMC - Sierra* 6,360 1,295
SDL* 10,980 2,337
Texas Instruments 32,470 5,195
--------
Total Semiconductors/instruments 39,546
--------
----------------------------------------------------------
SOFTWARE & PROGRAMMING--4.3%
----------------------------------------------------------
Check Point Software Technologies* 7,720 1,321
Oracle* 99,220 7,745
Siebel Systems* 11,640 1,390
Veritas Software* 22,315 2,923
--------
Total Software & programming 13,379
--------
TURNER FUNDS 2000 SEMIANNUAL REPORT | 29
<PAGE>
FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER GROWTH EQUITY FUND
Shares/Face Value
amount (000) (000)
----------------------------------------------------------
TECHNOLOGY--1.2%
----------------------------------------------------------
Akamai Technologies* 6,360 $ 1,023
Research In Motion Ltd* 14,810 1,577
Safeguard Scientifics* 15,920 1,119
--------
Total Technology 3,719
--------
----------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS--1.9%
----------------------------------------------------------
McLeodUSA, Cl A* 18,250 1,548
Nextel Communications, Cl A* 15,510 2,299
Nextlink Communications, Cl A* 15,120 1,870
--------
Total Telephones &
telecommunications 5,717
--------
----------------------------------------------------------
WHOLESALE--0.5%
----------------------------------------------------------
Sysco 41,770 1,491
--------
Total Wholesale 1,491
--------
----------------------------------------------------------
TOTAL COMMON STOCKS
(COST $238,454) 299,610
----------------------------------------------------------
----------------------------------------------------------
WARRANTS--0.0%
----------------------------------------------------------
Per-se Technologies* 395 --
----------------------------------------------------------
TOTAL WARRANTS
(COST $0) --
----------------------------------------------------------
----------------------------------------------------------
REPURCHASE AGREEMENT--4.3%
----------------------------------------------------------
JP Morgan, 6.10%, dated 03/31/00,
matures 04/03/00, repurchase price
$13,199,698 (collateralized by
FNMA and FHLMC, par values
$9,999,000 and $3,842,274, 7.50%
and 7.00%, 03/01/30 and 08/01/29,
market values $9,861,514 and
3,602,178, respectively) $13,200 13,200
----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $13,200) 13,200
----------------------------------------------------------
Value
(000)
----------------------------------------------------------
TOTAL INVESTMENTS--101.4%
(COST $251,654) $312,810
----------------------------------------------------------
----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(1.4%) (4,384)
----------------------------------------------------------
----------------------------------------------------------
NET ASSETS:
----------------------------------------------------------
Portfolio capital (unlimited authorization--
no par value) based on 15,767,104
outstanding shares of beneficial interest 213,064
Accumulated net investment loss (421)
Accumulated net realized gain
on investments 34,627
Net unrealized appreciation
on investments 61,156
----------------------------------------------------------
TOTAL NET ASSETS--100.0% $308,426
----------------------------------------------------------
----------------------------------------------------------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $19.56
----------------------------------------------------------
* Non-income producing security
ADR - American Depository Receipt
Cl - Class
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
Ltd - Limited
The accompanying notes are an integral part of the financial statements.
30 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER MIDCAP GROWTH FUND
March 31, 2000
Value
Shares (000)
----------------------------------------------------------
COMMON STOCKS--94.9%
----------------------------------------------------------
AIR TRANSPORTATION--0.9%
----------------------------------------------------------
Delta Air Lines 127,130 $ 6,770
-------
Total Air transportation 6,770
-------
----------------------------------------------------------
BANKS--0.7%
----------------------------------------------------------
Northern Trust 81,480 5,505
-------
Total Banks 5,505
-------
----------------------------------------------------------
BROADCASTING, NEWSPAPERS & ADVERTISING--2.7%
----------------------------------------------------------
Hispanic Broadcasting* 51,940 5,882
TMP Worldwide* 114,080 8,870
Young & Rubicam 104,890 4,930
-------
Total Broadcasting, newspapers &
advertising 19,682
-------
----------------------------------------------------------
CHEMICALS--0.8%
----------------------------------------------------------
Avery Dennison 92,720 5,662
-------
Total Chemicals 5,662
-------
----------------------------------------------------------
COMMUNICATIONS--1.8%
----------------------------------------------------------
American Tower, Cl A* 78,790 3,890
Broadwing* 149,720 5,568
Voicestream Wireless* 32,620 4,202
-------
Total Communications 13,660
-------
----------------------------------------------------------
COMMUNICATIONS EQUIPMENT--3.6%
----------------------------------------------------------
Ciena* 76,070 9,594
Extreme Networks* 80,760 6,380
Powerwave Technologies* 27,040 3,380
Redback Networks* 23,610 7,082
-------
Total Communications equipment 26,436
-------
----------------------------------------------------------
COMPUTERS & SERVICES--7.8%
----------------------------------------------------------
Brocade Communications System* 34,890 6,256
Comverse Technology* 32,480 6,139
Lexmark International Group, Cl A* 80,740 8,538
Network Appliance* 115,740 9,577
Peoplesoft* 195,570 3,911
Terayon Communication* 41,700 8,549
Tibco Software* 26,870 2,190
Value
Shares (000)
----------------------------------------------------------
Universal Access* 95,100 $ 3,186
Va Linux Systems* 54,790 3,308
Vignette* 39,190 6,280
-------
Total Computers & services 57,934
-------
----------------------------------------------------------
DRUGS--3.2%
----------------------------------------------------------
Forest Laboratories, Cl A* 62,180 5,254
Getty Images* 109,120 3,922
Idec Pharmaceuticals* 36,510 3,587
Immunex* 90,630 5,749
Safeguard Scientifics* 78,570 5,524
-------
Total Drugs 24,036
-------
----------------------------------------------------------
ELECTRONICS--4.5%
----------------------------------------------------------
Analog Devices* 18,690 1,506
Atmel* 139,770 7,216
LSI Logic* 110,970 8,059
National Semiconductor* 99,060 6,006
Xilinx* 123,960 10,265
-------
Total Electronics 33,052
-------
----------------------------------------------------------
ENERGY & POWER--1.0%
----------------------------------------------------------
AES* 98,560 7,762
-------
Total Energy & power 7,762
-------
----------------------------------------------------------
FINANCIAL SERVICES--5.1%
----------------------------------------------------------
Bisys Group* 66,040 4,392
Checkfree Holdings* 80,170 5,652
Fiserv* 191,815 7,133
Lehman Brothers Holdings 64,190 6,226
Paychex 168,800 8,841
Portal Software* 97,780 5,567
-------
Total Financial services 37,811
-------
----------------------------------------------------------
FOOD, BEVERAGE & TOBACCO--0.5%
----------------------------------------------------------
Quaker Oats 63,150 3,828
-------
Total Food, beverage & tobacco 3,828
-------
TURNER FUNDS 2000 SEMIANNUAL REPORT | 31
<PAGE>
FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER MIDCAP GROWTH FUND
Value
Shares (000)
----------------------------------------------------------
GAS/NATURAL GAS--0.6%
----------------------------------------------------------
Dynegy, Cl A 69,390 $ 4,354
-------
Total Gas/natural gas 4,354
-------
----------------------------------------------------------
GLASS PRODUCTS--0.6%
----------------------------------------------------------
Ditech Communications* 40,560 4,302
-------
Total Glass products 4,302
-------
----------------------------------------------------------
HEALTHCARE--2.5%
----------------------------------------------------------
Pe Biosystems Group 111,050 10,716
Shire Pharmaceuticals Group ADR* 76,840 3,938
Waters* 41,590 3,961
-------
Total Healthcare 18,615
-------
----------------------------------------------------------
INTERNET SERVICES--11.0%
----------------------------------------------------------
Agile Software* 69,880 4,367
CMGI* 81,650 9,252
Critical Path* 81,350 6,915
Doubleclick* 79,590 7,452
Exodus Communications* 102,300 14,373
Infospace.com* 41,130 5,982
Looksmart Ltd* 114,730 5,048
Onvia.com* 45,850 969
Phone.com* 36,910 6,021
Priceline.com* 122,830 9,826
RealNetworks* 91,910 5,233
Ticketmaster Online-City, Cl B* 123,920 3,106
VerticalNet* 23,780 3,234
-------
Total Internet services 81,778
-------
----------------------------------------------------------
MACHINERY--2.4%
----------------------------------------------------------
MRV Communications* 29,530 2,706
Proxicom* 104,450 4,628
Quest Software* 39,700 4,476
SPX* 51,590 5,878
-------
Total Machinery 17,688
-------
----------------------------------------------------------
MEDICAL PRODUCTS & SERVICES--4.1%
----------------------------------------------------------
Becton Dickinson 138,990 3,657
Health Management
Associates, Cl A* 418,020 5,957
Value
Shares (000)
----------------------------------------------------------
Medimmune* 58,250 $ 10,143
Minimed* 46,620 6,037
Tenet Healthcare* 209,000 4,807
-------
Total Medical products & services 30,601
-------
----------------------------------------------------------
MISCELLANEOUS BUSINESS SERVICES--6.0%
----------------------------------------------------------
Aether Systems* 20,600 3,739
Art Technology Group* 36,860 2,421
Cacheflow* 36,700 4,349
Digex* 27,400 3,040
E.Piphany* 17,140 2,289
Kana Communications* 26,610 1,809
Keynote Systems* 25,700 2,628
Matrixone* 47,890 1,913
Micromuse* 35,520 4,931
Network Solutions* 51,150 7,862
Rare Medium Group* 108,020 4,766
Selectica* 57,950 5,114
-------
Total Miscellaneous business services 44,861
-------
----------------------------------------------------------
PETROLEUM SERVICES--0.8%
----------------------------------------------------------
Cooper Cameron* 94,000 6,286
-------
Total Petroleum services 6,286
-------
----------------------------------------------------------
PROFESSIONAL SERVICES--0.4%
----------------------------------------------------------
UnitedGlobalCom, Cl A* 36,580 2,746
-------
Total Professional services 2,746
-------
----------------------------------------------------------
RADIO--0.5%
----------------------------------------------------------
Westwood One* 105,560 3,827
-------
Total Radio 3,827
-------
----------------------------------------------------------
RETAIL--2.9%
----------------------------------------------------------
Bed Bath & Beyond* 108,520 4,273
Best Buy* 98,830 8,499
Kohls* 82,020 8,407
-------
Total Retail 21,179
-------
----------------------------------------------------------
RUBBER & PLASTIC--1.4%
----------------------------------------------------------
Clarent* 65,400 5,898
Sealed Air* 77,290 4,198
-------
Total Rubber & plastic 10,096
-------
32 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
-------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER MIDCAP GROWTH FUND
Value
Shares (000)
----------------------------------------------------------
SEMICONDUCTORS/INSTRUMENTS--15.9%
----------------------------------------------------------
Applied Micro Circuits* 69,620 $ 10,447
Broadcom, Cl A* 40,120 9,744
Globespan* 40,080 4,086
Intersil Holding* 79,270 4,097
JDS Uniphase* 228,200 27,512
Kla-Tencor* 100,870 8,498
Lam Research* 92,250 4,157
Novellus Systems* 135,370 7,598
PMC-Sierra* 61,700 12,568
Qlogic* 39,620 5,369
SDL* 61,230 13,034
Silicon Laboratories* 56,030 4,959
Vitesse Semiconductor* 66,000 6,353
-------
Total Semiconductors/instruments 118,422
-------
----------------------------------------------------------
SOFTWARE & PROGRAMMING--7.4%
----------------------------------------------------------
Check Point Software Technologies* 19,950 3,413
J.D. Edwards* 123,450 4,020
Mercury Interactive* 55,950 4,434
Peregrine Systems* 117,210 7,860
Siebel Systems* 54,510 6,511
VeriSign* 32,620 4,877
Veritas Software* 184,057 24,111
-------
Total Software & programming 55,226
-------
----------------------------------------------------------
TECHNOLOGY--0.5%
----------------------------------------------------------
Interwoven* 33,310 3,656
-------
Total Technology 3,656
-------
----------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS--4.0%
----------------------------------------------------------
Flag Telecom Holdings Ltd 94,420 2,136
McLeodUSA, Cl A* 85,930 7,288
Nextel Communications, Cl A* 73,720 10,929
Nextlink Communications, Cl A* 72,670 8,988
-------
Total Telephones & telecommunications 29,341
-------
Shares/Face Value
amount (000) (000)
----------------------------------------------------------
WHOLESALE--1.3%
----------------------------------------------------------
Sysco 280,510 $ 10,011
--------
Total Wholesale 10,011
--------
----------------------------------------------------------
TOTAL COMMON STOCKS
(COST $604,807) 705,127
----------------------------------------------------------
----------------------------------------------------------
REPURCHASE AGREEMENT--6.6%
----------------------------------------------------------
JP Morgan 6.10%, dated 03/31/00,
matures 04/03/00, repurchase price
$48,778,314 (collateralized by
various FNMA obligations, par value
$54,682,930, 6.00%-7.50%,
12/01/28-03/01/30, market value
$49,753,881) $48,778 48,778
--------
----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $48,778) 48,778
----------------------------------------------------------
TOTAL INVESTMENTS--101.5%
(COST $653,585) 753,905
----------------------------------------------------------
----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(1.5%) (10,947)
----------------------------------------------------------
----------------------------------------------------------
TOTAL NET ASSETS--100.0% $742,958
----------------------------------------------------------
* Non-income producing security
ADR - American Depository Receipt
Cl - Class
FNMA - Federal National Mortgage Association
Ltd - Limited
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2000 SEMIANNUAL REPORT | 33
<PAGE>
FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
March 31, 2000
Value
Shares (000)
----------------------------------------------------------
COMMON STOCKS--97.4%
----------------------------------------------------------
AIR TRANSPORTATION--1.2%
----------------------------------------------------------
Atlas Air* 119,720 $ 3,277
Skywest 78,100 3,056
--------
Total Air transportation 6,333
--------
----------------------------------------------------------
AUTOMOTIVE--0.2%
----------------------------------------------------------
Tower Automotive* 75,800 1,241
--------
Total Automotive 1,241
--------
----------------------------------------------------------
BANKS--0.3%
----------------------------------------------------------
Webster Financial 59,230 1,362
--------
Total Banks 1,362
--------
----------------------------------------------------------
BROADCASTING, NEWSPAPERS & ADVERTISING--4.1%
----------------------------------------------------------
24/7 Media* 48,800 1,928
Avenue A* 47,470 1,448
Entercom Communications* 82,180 4,191
Modem Media Poppe Tyson* 102,210 3,309
NBC Internet, Cl A* 69,240 2,982
Radio One* 43,920 2,926
True North Communications 115,960 4,559
--------
Total Broadcasting, newspapers &
advertising 21,343
--------
----------------------------------------------------------
CHEMICALS--1.7%
----------------------------------------------------------
Millennium Chemicals 183,450 3,669
Olin 138,950 2,466
OM Group 53,380 2,429
--------
Total Chemicals 8,564
--------
----------------------------------------------------------
COMMERCIAL SERVICES--1.1%
----------------------------------------------------------
Quanta Services* 96,750 5,872
--------
Total Commercial services 5,872
--------
----------------------------------------------------------
COMMUNICATIONS--2.9%
----------------------------------------------------------
Allied Riser Communications* 112,650 3,915
MGC Communications* 54,740 3,914
Northeast Optic Network* 22,810 1,929
Primus Telecommunications Group* 98,070 5,069
--------
Total Communications 14,827
--------
Value
Shares (000)
----------------------------------------------------------
COMMUNICATIONS EQUIPMENT--5.2%
----------------------------------------------------------
Anadigics* 66,125 $ 4,364
Aspect Communications* 110,300 4,088
Digital Microwave* 71,720 2,430
Emcore* 26,030 2,995
Polycom* 58,810 4,657
Powerwave Technologies* 49,670 6,209
Turnstone Systems* 18,240 2,098
--------
Total Communications equipment 26,841
--------
----------------------------------------------------------
COMPUTERS & SERVICES--4.8%
----------------------------------------------------------
APEX* 62,300 2,313
ISS Group* 29,170 3,398
Sandisk* 64,270 7,873
Triquint Semiconductor* 51,180 3,762
WebTrends* 76,920 5,538
Xicor* 118,680 1,676
--------
Total Computers & services 24,560
--------
----------------------------------------------------------
DRUGS--7.9%
----------------------------------------------------------
Alkermes* 25,760 2,383
Biovail* 95,600 4,236
Diamond Technolgy Partners* 56,880 3,740
Getty Images* 95,550 3,434
Idec Pharmaceuticals* 18,190 1,787
Inhale Therapeutic Systems* 35,970 2,680
Jones Pharma 156,547 4,755
King Pharmaceuticals* 199,400 6,281
Medicis Pharmaceutical, Cl A* 111,270 4,451
QLT Phototherapeutics* 75,540 4,174
Varian* 77,680 2,981
--------
Total Drugs 40,902
--------
----------------------------------------------------------
ELECTRONICS--2.8%
----------------------------------------------------------
Cypress Semiconductor* 106,070 5,231
DSP Group* 103,820 6,852
Photronics* 69,050 2,438
--------
Total Electronics 14,521
--------
34 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
----------------------------------------------------------
FINANCIAL SERVICES--5.6%
----------------------------------------------------------
Avis Group Holdings* 125,030 $ 2,204
Blackrock* 92,160 1,866
Jack Henry & Associates 162,250 5,983
Legg Mason 36,660 1,586
Metris Companies 130,690 5,081
Pinnacle Holdings* 121,450 6,710
S1* 60,710 5,202
--------
Total Financial services 28,632
--------
----------------------------------------------------------
FOOD, BEVERAGE & TOBACCO--1.2%
----------------------------------------------------------
Beringer Wine Estates Holdings, Cl B 51,540 1,849
Whole Foods Market* 57,720 2,392
Wild Oats Markets* 96,430 1,977
--------
Total Food, beverage & tobacco 6,218
--------
----------------------------------------------------------
HEALTHCARE--1.1%
----------------------------------------------------------
First Health Group* 93,560 2,959
Shire Pharmaceuticals Group ADR* 57,740 2,959
--------
Total Healthcare 5,918
--------
----------------------------------------------------------
HOUSEHOLD FURNITURE & FIXTURES--0.4%
----------------------------------------------------------
Celgene* 21,950 2,185
--------
Total Household furniture & fixtures 2,185
--------
----------------------------------------------------------
HOUSEHOLD PRODUCTS--0.7%
----------------------------------------------------------
Interwoven* 32,050 3,517
--------
Total Household products 3,517
--------
----------------------------------------------------------
INSURANCE--0.9%
----------------------------------------------------------
Annuity & Life Re Holdings 44,520 1,158
Radian Group 68,430 3,259
--------
Total Insurance 4,417
--------
----------------------------------------------------------
INTERNET SERVICES--3.8%
----------------------------------------------------------
BroadVision* 140,200 6,291
Go2Net* 49,730 4,006
Lifeminders.com* 32,310 2,193
Looksmart Ltd* 61,960 2,726
VerticalNet* 32,340 4,398
--------
Total Internet services 19,614
--------
Value
Shares (000)
----------------------------------------------------------
MACHINERY--8.3%
----------------------------------------------------------
Advanced Energy Industries* 93,400 $ 4,763
Asyst Technologies* 158,760 9,287
Micrel* 72,370 6,948
MRV Communications* 51,240 4,695
Natural Microsystems* 46,080 3,951
Netro* 56,410 3,668
PRI Automation* 52,870 3,232
Proxicom* 99,260 4,398
SPX* 13,980 1,593
--------
Total Machinery 42,535
--------
----------------------------------------------------------
MATERIAL & PROCESSING--2.1%
----------------------------------------------------------
American Superconductor* 65,850 2,930
Dycom Industries* 143,525 6,997
Worthington Industries 91,370 1,131
--------
Total Material & processing 11,058
--------
----------------------------------------------------------
MEASURING DEVICES--1.6%
----------------------------------------------------------
Aclara BioSciences* 74,290 2,930
Mettler-Toledo International* 123,640 5,062
--------
Total Measuring devices 7,992
--------
----------------------------------------------------------
MEDICAL PRODUCTS & SERVICES--4.0%
----------------------------------------------------------
Conmed* 122,470 3,069
Hooper Holmes 99,870 3,427
Minimed* 23,450 3,037
Novoste* 117,700 4,708
Patterson Dental* 83,330 3,187
Techne* 49,430 3,411
--------
Total Medical products & services 20,839
--------
----------------------------------------------------------
MISCELLANEOUS BUSINESS SERVICES--9.8%
----------------------------------------------------------
724 Solutions* 20,640 2,570
Bisys Group* 88,900 5,912
Digex* 49,740 5,518
Eloquent* 69,970 1,426
Exchange Applications* 58,880 3,116
Extensity* 32,340 1,552
Fairmarket* 68,970 1,569
Firepond* 34,140 1,398
Hyperion Solutions* 29,670 964
TURNER FUNDS 2000 SEMIANNUAL REPORT | 35
<PAGE>
FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
Value
Shares (000)
----------------------------------------------------------
Information Architects* 70,690 $ 1,228
Inforte* 4,360 214
Internet Pictures* 109,500 3,716
Micromuse* 45,260 6,283
Open Market* 102,710 2,645
OTG Software* 59,110 2,383
Predictive Systems* 38,080 1,735
Preview Systems* 37,350 1,767
Rare Medium Group* 91,530 4,039
Vicinity* 67,720 2,353
--------
Total Miscellaneous business
services 50,388
--------
----------------------------------------------------------
MISCELLANEOUS MANUFACTURING--0.6%
----------------------------------------------------------
Dexter 53,680 2,845
--------
Total Miscellaneous manufacturing 2,845
--------
----------------------------------------------------------
PAPER & PAPER PRODUCTS--0.7%
----------------------------------------------------------
Boise Cascade 103,780 3,606
--------
Total Paper & paper products 3,606
--------
----------------------------------------------------------
PETROLEUM & FUEL PRODUCTS--1.1%
----------------------------------------------------------
Global Industries Ltd* 206,600 3,022
Ocean Energy* 193,752 2,785
--------
Total Petroleum & fuel products 5,807
--------
----------------------------------------------------------
PETROLEUM REFINING--2.1%
----------------------------------------------------------
Blaze Software* 95,620 2,725
Precision Drilling* 77,350 2,582
Triton Energy Ltd* 65,540 2,298
Valero Energy 109,270 3,346
--------
Total Petroleum refining 10,951
--------
----------------------------------------------------------
RETAIL--4.2%
----------------------------------------------------------
American Eagle Outfitters* 88,530 3,359
Drugstore.com* 29,750 392
Insight Enterprises* 92,660 3,376
Men's Wearhouse* 108,790 3,223
Pacific Sunwear of California* 86,680 3,337
Tweeter Home Entertainment
Group* 78,580 3,477
Zale* 95,900 4,525
--------
Total Retail 21,689
--------
Value
Shares (000)
----------------------------------------------------------
SEMICONDUCTORS/INSTRUMENTS--5.6%
----------------------------------------------------------
Alpha Industries* 36,830 $ 3,499
Cymer* 83,810 4,191
Globespan* 54,350 5,540
Harmonic* 32,560 2,711
Lam Research* 122,370 5,514
Metalink Ltd* 66,800 2,563
Varian Semiconductor Equipment* 71,580 4,554
--------
Total Semiconductors/instruments 28,572
--------
----------------------------------------------------------
SOFTWARE & PROGRAMMING--3.1%
----------------------------------------------------------
Mercury Interactive* 91,200 7,228
Peregrine Systems* 127,320 8,538
--------
Total Software & programming 15,766
--------
----------------------------------------------------------
TECHNOLOGY--4.7%
----------------------------------------------------------
Active Software* 36,700 2,334
Advanced Digital Information* 72,210 2,473
Allaire* 45,610 3,449
Breakaway Solutions* 73,240 3,332
Cree* 41,150 4,645
Emulex* 33,110 3,613
Netegrity* 62,400 4,274
--------
Total Technology 24,120
--------
----------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS--1.9%
----------------------------------------------------------
Focal Communications* 53,060 2,971
Intermedia Communications* 43,590 2,106
Leap Wireless International* 27,390 2,703
Viatel* 35,360 1,775
--------
Total Telephones &
telecommunications 9,555
--------
----------------------------------------------------------
TESTING LABORATORIES--1.7%
----------------------------------------------------------
Diversa* 43,320 2,036
Maxygen* 21,450 1,398
Quest Diagnostics* 127,875 5,083
--------
Total Testing laboratories 8,517
--------
----------------------------------------------------------
TOTAL COMMON STOCKS
(COST $389,128) 501,107
----------------------------------------------------------
36 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SMALL CAP GROWTH FUND
Face amount Value
(000) (000)
----------------------------------------------------------
REPURCHASE AGREEMENT--0.7%
----------------------------------------------------------
JP Morgan 6.10%, dated 03/31/00,
matures 04/03/00, repurchase price
$3,862,930 (collateralized by FNMA,
par value $4,524,422, 6.00%,
12/01/28, market value $3,940,190) $3,863 $ 3,863
----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $3,863) 3,863
----------------------------------------------------------
----------------------------------------------------------
TOTAL INVESTMENTS--98.1%
(COST $392,991) 504,970
----------------------------------------------------------
----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--1.9% 9,671
----------------------------------------------------------
Value
(000)
----------------------------------------------------------
NET ASSETS:
----------------------------------------------------------
Portfolio capital (unlimited authorization--
no par value) based on 10,663,933
outstanding shares of beneficial interest $307,599
Accumulated net investment loss (1,734)
Accumulated net realized gain
on investments 96,797
Net unrealized appreciation on investments 111,979
----------------------------------------------------------
TOTAL NET ASSETS--100.0% $514,641
----------------------------------------------------------
----------------------------------------------------------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $48.26
----------------------------------------------------------
* Non-income producing
ADR - American Depository Receipt
Cl - Class
FNMA - Federal National Mortgage Association
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2000 SEMIANNUAL REPORT | 37
<PAGE>
FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
March 31, 2000
Value
Shares (000)
----------------------------------------------------------
COMMON STOCKS--101.1%
----------------------------------------------------------
AUTOMOTIVE--0.6%
----------------------------------------------------------
Oshkosh Truck 31,315 $ 973
-------
Total Automotive 973
-------
----------------------------------------------------------
BANKS--0.8%
----------------------------------------------------------
Dime Community Bancshares* 16,670 264
Independent Bank 15,000 191
PFF Bancorp 53,930 836
-------
Total Banks 1,291
-------
----------------------------------------------------------
BUILDING & CONSTRUCTION SUPPLIES--1.4%
----------------------------------------------------------
Mobile Mini* 117,350 2,288
-------
Total Building & construction supplies 2,288
-------
----------------------------------------------------------
CHEMICALS--0.6%
----------------------------------------------------------
Cyberoptics* 23,000 976
-------
Total Chemicals 976
-------
----------------------------------------------------------
COMMUNICATIONS--2.0%
----------------------------------------------------------
Startec Global Communication* 100,000 2,100
TTI Team Telecom International Ltd* 10,000 330
Vari-L* 33,300 866
-------
Total Communications 3,296
-------
----------------------------------------------------------
COMMUNICATIONS EQUIPMENT--3.7%
----------------------------------------------------------
California Amplifier* 31,970 991
Data Critical* 78,850 1,138
Eltrax Systems* 118,250 1,574
Tollgrade Communications* 43,510 2,306
-------
Total Communications equipment 6,009
-------
----------------------------------------------------------
COMPUTERS & SERVICES--12.6%
----------------------------------------------------------
Brooktrout* 49,000 1,421
Cybex Computer Products* 38,250 1,439
Homeseekers.com* 134,200 2,063
In Focus Systems* 90,050 3,225
Interlink Electronics* 25,820 2,463
Ion Networks* 54,700 1,839
Media 100* 45,430 1,584
NetPlex Group* 211,750 2,567
Sonic Foundry* 10,270 1,001
Value
Shares (000)
----------------------------------------------------------
Telcom Semiconductor* 61,550 1,862
Xicor* 74,500 1,052
-------
Total Computers & services 20,516
-------
----------------------------------------------------------
CONSUMER PRODUCTS--1.2%
----------------------------------------------------------
Steven Madden Ltd* 98,960 1,880
-------
Total Consumer products 1,880
-------
----------------------------------------------------------
DRUGS--8.7%
----------------------------------------------------------
Emisphere Technologies* 37,890 1,966
Hall Kinion & Associates* 91,000 2,190
Ilex Oncology* 55,300 2,323
Intrabiotics Pharmaceuticals* 87,000 1,305
Matrix Pharmaceutical* 127,000 1,294
Microcide Pharmaceutical* 59,750 777
Neose Technologies* 45,000 1,448
OSI Pharmaceuticals* 101,200 1,973
United Therapeutics* 13,130 1,021
-------
Total Drugs 14,297
-------
----------------------------------------------------------
ELECTRONICS--2.4%
----------------------------------------------------------
Anaren Microwave* 23,700 2,272
Universal Electronics* 68,800 1,668
-------
Total Electronics 3,940
-------
----------------------------------------------------------
ENTERTAINMENT--1.8%
----------------------------------------------------------
Argosy Gaming* 139,850 1,993
Isle of Capri Casinos* 73,900 924
-------
Total Entertainment 2,917
-------
----------------------------------------------------------
ENVIRONMENTAL SERVICES--1.6%
----------------------------------------------------------
Stericycle* 102,730 2,568
-------
Total Environmental services 2,568
-------
----------------------------------------------------------
FINANCIAL SERVICES--0.4%
----------------------------------------------------------
ACE Cash Express* 42,150 722
-------
Total Financial services 722
-------
----------------------------------------------------------
FOOD, BEVERAGE & TOBACCO--1.2%
----------------------------------------------------------
Hain Food Group* 57,000 1,614
Seaway Food Town 22,000 374
-------
Total Food, beverage & tobacco 1,988
-------
38 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
Value
Shares (000)
----------------------------------------------------------
GAS/NATURAL GAS--0.8%
----------------------------------------------------------
NUI 52,020 $ 1,346
-------
Total Gas/natural gas 1,346
-------
----------------------------------------------------------
GLASS PRODUCTS--1.1%
----------------------------------------------------------
Applied Films* 88,150 1,763
-------
Total Glass products 1,763
-------
----------------------------------------------------------
HEALTHCARE--2.3%
----------------------------------------------------------
Biosource International* 210,000 2,559
Cima Labs* 69,700 1,198
-------
Total Healthcare 3,757
-------
----------------------------------------------------------
HOUSEHOLD PRODUCTS--0.8%
----------------------------------------------------------
Salton* 28,900 1,254
-------
Total Household products 1,254
-------
----------------------------------------------------------
INTERNET SERVICES--1.0%
----------------------------------------------------------
NetCreations* 37,880 1,610
-------
Total Internet services 1,610
-------
----------------------------------------------------------
LUMBER & WOOD PRODUCTS--0.7%
----------------------------------------------------------
Biosite Diagnostics* 46,460 1,132
-------
Total Lumber & wood products 1,132
-------
----------------------------------------------------------
MACHINERY--1.2%
----------------------------------------------------------
Applied Science & Technology* 26,270 795
NATCO Group, Cl A* 107,010 1,124
-------
Total Machinery 1,919
-------
----------------------------------------------------------
MEASURING DEVICES--1.7%
----------------------------------------------------------
Nanometrics* 57,900 2,823
-------
Total Measuring devices 2,823
-------
----------------------------------------------------------
MEDICAL PRODUCTS & SERVICES--8.4%
----------------------------------------------------------
Accredo Health* 59,990 1,987
Collagenex Pharmaceuticals* 70,970 1,136
Dianon Systems* 39,150 805
Endocare* 26,220 501
Exactech* 31,230 529
Meade Instruments* 35,000 2,415
Molecular Devices* 14,100 1,082
PolyMedica* 36,000 2,115
Value
Shares (000)
----------------------------------------------------------
Province Healthcare* 51,730 $ 1,481
Zoll Medical* 33,000 1,691
-------
Total Medical products & services 13,742
-------
----------------------------------------------------------
METAL--0.8%
----------------------------------------------------------
Century Aluminum 89,500 1,231
-------
Total Metal 1,231
-------
----------------------------------------------------------
MISCELLANEOUS BUSINESS SERVICES--4.2%
----------------------------------------------------------
American Software, Cl A* 110,880 1,552
Boundless* 94,100 1,464
Caminus* 78,200 1,564
DSET* 53,500 986
Optika* 46,000 1,288
-------
Total Miscellaneous business services 6,854
-------
----------------------------------------------------------
MISCELLANEOUS MANUFACTURING--2.8%
----------------------------------------------------------
Jakks Pacific* 60,700 1,309
LSI Industries 13,440 261
Shuffle Master* 74,700 882
Uniroyal Technology* 45,300 2,129
-------
Total Miscellaneous manufacturing 4,581
-------
----------------------------------------------------------
PETROLEUM & FUEL PRODUCTS--1.4%
----------------------------------------------------------
HS Resources* 49,900 1,054
Key Energy Services* 108,660 1,263
-------
Total Petroleum & fuel products 2,317
-------
----------------------------------------------------------
PHOTOGRAPHIC EQUIPMENT & SUPPLIES--1.5%
----------------------------------------------------------
Concord Camera* 46,000 2,530
-------
Total Photographic equipment & supplies 2,530
-------
----------------------------------------------------------
RETAIL--4.4%
----------------------------------------------------------
Brauns Fashions* 83,190 2,101
HOT Topic* 74,120 2,594
Ugly Duckling* 94,500 726
Ultimate Electronics* 44,600 976
Wilsons Leather Experts* 60,120 812
-------
Total Retail 7,209
-------
TURNER FUNDS 2000 SEMIANNUAL REPORT | 39
<PAGE>
FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER MICRO CAP GROWTH FUND
Value
Shares (000)
----------------------------------------------------------
SEMICONDUCTORS/INSTRUMENTS--12.4%
----------------------------------------------------------
Astropower* 44,940 $ 1,452
Cohu 39,740 1,657
Elantec Semiconductor* 19,000 1,398
ESS Technology* 50,760 888
Ibis Technology* 17,400 1,566
Icos Vision Systems NV* 37,000 1,240
Keithley Instruments 30,200 1,438
Measurement Specialties* 57,600 1,458
Merix* 67,250 1,564
Parlex* 55,390 1,689
Pericom Semiconductor* 33,250 1,187
Three-Five Systems* 58,050 3,483
Zoran* 23,000 1,295
-------
Total Semiconductors/instruments 20,315
-------
----------------------------------------------------------
STEEL & STEEL WORKS--5.8%
----------------------------------------------------------
Eprise* 54,060 851
Genus* 105,000 1,457
Maverick Tube* 64,940 2,107
Shaw Group* 144,170 5,082
-------
Total Steel & steel works 9,497
-------
----------------------------------------------------------
TECHNOLOGY--5.5%
----------------------------------------------------------
Apropos Technology* 25,170 931
Blue Wave Systems* 108,000 1,728
Celeritek* 24,800 1,569
Internet Commerce, Cl A* 62,750 2,965
Photon Dynamics* 26,000 1,794
-------
Total Technology 8,987
-------
----------------------------------------------------------
TELEPHONES & TELECOMMUNICATIONS--1.0%
----------------------------------------------------------
Lightbridge* 73,150 1,710
-------
Total Telephones &
telecommunications 1,710
-------
----------------------------------------------------------
THERAPEUTICS--2.2%
----------------------------------------------------------
Trimeris* 26,600 1,328
Trimeris* (A) 15,000 562
Titan Pharmaceuticals* 41,550 1,293
Titan Pharmaceuticals* (A) 20,000 465
-------
Total Therapeutics 3,648
-------
Value
Shares (000)
----------------------------------------------------------
TRANSPORTATION SERVICES--0.5%
----------------------------------------------------------
Navigant International* 77,800 $ 739
-------
Total Transportation services 739
-------
----------------------------------------------------------
WATER UTILITIES--0.1%
----------------------------------------------------------
Artesian Resources, Cl A 9,500 219
-------
Total Water utilities 219
-------
----------------------------------------------------------
WHOLESALE--1.5%
----------------------------------------------------------
Advanced Marketing Services 51,450 1,068
Jaco Electronics* 120,000 1,433
-------
Total Wholesale 2,501
-------
----------------------------------------------------------
TOTAL COMMON STOCKS
(COST $138,419) 165,345
----------------------------------------------------------
----------------------------------------------------------
TOTAL INVESTMENTS--101.1%
(COST $138,419) 165,345
----------------------------------------------------------
----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(1.1%) (1,827)
----------------------------------------------------------
----------------------------------------------------------
NET ASSETS:
----------------------------------------------------------
Portfolio capital (unlimited authorization--
no par value) based on 4,052,688
outstanding shares of beneficial interest 119,634
Accumulated net investment loss (250)
Accumulated net realized gain
on investments 17,208
Net unrealized appreciation
on investments 26,926
----------------------------------------------------------
TOTAL NET ASSETS--100.0% $163,518
----------------------------------------------------------
----------------------------------------------------------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $40.35
----------------------------------------------------------
* Non-income producing security
(A) Private placement, market quotation not readily available (see Note 2).
ADR - American Depository Receipt
Cl - Class
Ltd - Limited
The accompanying notes are an integral part of the financial statements.
40 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER TOP 20 FUND
March 31, 2000
Value
Shares (000)
----------------------------------------------------------
COMMON STOCKS--97.3%
----------------------------------------------------------
COMMUNICATIONS EQUIPMENT--13.8%
----------------------------------------------------------
Metromedia Fiber Network, Cl A* 59,210 $ 5,728
Nokia ADR 28,100 6,105
Nortel Networks ADR 56,650 7,138
-------
Total Communications equipment 18,971
-------
----------------------------------------------------------
COMPUTERS & SERVICES--26.5%
----------------------------------------------------------
Cisco Systems* 104,370 8,069
Comverse Technology* 30,560 5,776
EMC-Mass* 61,530 7,691
Lexmark International Group, Cl A* 55,080 5,825
Qualcomm* 44,630 6,664
Vignette* 14,260 2,285
-------
Total Computers & services 36,310
-------
----------------------------------------------------------
ELECTRONICS--9.3%
----------------------------------------------------------
Advanced Micro Devices* 107,030 6,107
Motorola 46,330 6,597
-------
Total Electronics 12,704
-------
----------------------------------------------------------
INTERNET SERVICES--11.5%
----------------------------------------------------------
America Online* 135,210 9,093
Yahoo!* 39,450 6,761
-------
Total Internet services 15,854
-------
----------------------------------------------------------
MACHINERY--2.9%
----------------------------------------------------------
Research In Motion* 37,230 3,965
-------
Total Machinery 3,965
-------
----------------------------------------------------------
MISCELLANEOUS MANUFACTURING--4.8%
----------------------------------------------------------
Tyco International Ltd 131,790 6,573
-------
Total Miscellaneous manufacturing 6,573
-------
----------------------------------------------------------
SEMICONDUCTORS/INSTRUMENTS--25.4%
----------------------------------------------------------
Broadcom, Cl A* 20,620 5,008
Intel 50,230 6,627
JDS Uniphase* 68,020 8,201
Kla-Tencor* 89,060 7,503
Lam Research* 165,220 7,445
-------
Total Semiconductors/instruments 34,784
-------
Shares/Face Value
amount (000) (000)
----------------------------------------------------------
SOFTWARE & PROGRAMMING--3.1%
----------------------------------------------------------
VeriSign* 28,300 $ 4,231
-------
Total Software & programming 4,231
-------
----------------------------------------------------------
TOTAL COMMON STOCKS
(COST $131,254) 133,392
----------------------------------------------------------
----------------------------------------------------------
REPURCHASE AGREEMENT--6.1%
----------------------------------------------------------
JP Morgan, 6.10%, dated 03/31/00,
matures 04/03/00, repurchase price
$8,357,425 (collateralized by
FNMA, par value $8,869,044,
7.00%, 12/01/29, market value
$8,524,574) $8,357 8,357
----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $8,357) 8,357
----------------------------------------------------------
----------------------------------------------------------
TOTAL INVESTMENTS--103.4%
(COST $139,611) 141,749
----------------------------------------------------------
----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(3.4%) (4,720)
----------------------------------------------------------
----------------------------------------------------------
TOTAL NET ASSETS--100.0% $137,029
----------------------------------------------------------
*Non-income producing security
ADR - American Depository Receipt
Cl - Class
FNMA - Federal National Mortgage Association
Ltd - Limited
The accompanying notes are an integral part of the financial statements.
TURNER FUNDS 2000 SEMIANNUAL REPORT | 41
<PAGE>
FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
SCHEDULE OF INVESTMENTS
TURNER TECHNOLOGY FUND
March 31, 2000
Value
Shares (000)
----------------------------------------------------------
COMMON STOCKS--100.0%
----------------------------------------------------------
COMMUNICATIONS EQUIPMENT--21.1%
----------------------------------------------------------
Ciena* 18,270 $ 2,304
Extreme Networks* 22,470 1,775
Foundry Networks* 15,640 2,248
Juniper Networks* 14,430 3,803
Nokia ADR 12,690 2,757
Nortel Networks ADR 14,340 1,807
Powerwave Technologies* 18,690 2,336
Redback Networks* 6,960 2,088
-------
Total Communications equipment 19,118
-------
----------------------------------------------------------
COMPUTERS & SERVICES--23.0%
----------------------------------------------------------
Cisco Systems* 40,880 3,160
EMC-Mass* 20,630 2,579
Hewlett-Packard 13,640 1,808
Lexmark International Group, Cl A* 22,340 2,362
Qualcomm* 22,360 3,339
Sun Microsystems* 35,020 3,281
Sycamore Networks* 17,550 2,264
Vignette* 12,310 1,973
-------
Total Computers & services 20,766
-------
----------------------------------------------------------
ELECTRONICS--14.0%
----------------------------------------------------------
Advanced Micro Devices* 35,670 2,035
LSI Logic* 33,850 2,458
Micron Technology* 21,820 2,749
Motorola 17,500 2,492
National Semiconductor* 47,870 2,902
-------
Total Electronics 12,636
-------
----------------------------------------------------------
INTERNET SERVICES--13.4%
----------------------------------------------------------
America Online* 52,760 3,548
eBay* 7,800 1,373
Priceline.com* 26,280 2,102
RealNetworks* 38,440 2,189
Yahoo!* 16,740 2,869
-------
Total Internet services 12,081
-------
----------------------------------------------------------
MISCELLANEOUS BUSINESS SERVICES--3.6%
----------------------------------------------------------
Aether Systems* 8,780 1,594
Open Market* 66,100 1,702
-------
Total Miscellaneous business services 3,296
-------
Shares/Face Value
amount (000) (000)
----------------------------------------------------------
SEMICONDUCTORS/INSTRUMENTS--20.4%
----------------------------------------------------------
Avanex* 14,780 $ 2,243
Broadcom, Cl A* 12,400 3,012
Intel 27,920 3,684
JDS Uniphase* 14,760 1,779
Rambus* 8,190 2,412
SDL* 14,040 2,989
Texas Instruments 14,430 2,309
-------
Total Semiconductors/instruments 18,428
-------
----------------------------------------------------------
SOFTWARE & PROGRAMMING--2.7%
----------------------------------------------------------
VeriSign* 16,140 2,413
-------
Total Software & programming 2,413
-------
----------------------------------------------------------
THERAPEUTICS--1.8%
----------------------------------------------------------
Titan Pharmaceuticals* (A) 70,000 1,628
-------
Total Therapeutics 1,628
-------
----------------------------------------------------------
TOTAL COMMON STOCKS
(COST $96,494) 90,366
----------------------------------------------------------
----------------------------------------------------------
REPURCHASE AGREEMENT--8.5%
----------------------------------------------------------
JP Morgan 6.10%, dated 03/31/00,
matures 04/03/00, repurchase price
$7,668,618 (collateralized by FNMA,
par value $8,882,245, 6.00%,
05/01/29, market value $7,821,991 $ 7,669 7,669
----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $7,669) 7,669
----------------------------------------------------------
----------------------------------------------------------
TOTAL INVESTMENTS--108.5%
(COST $104,163) 98,035
----------------------------------------------------------
----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(8.5%) (7,713)
----------------------------------------------------------
----------------------------------------------------------
TOTAL NET ASSETS--100.0% $90,322
----------------------------------------------------------
* Non-income producing security
(A) Private placement, market quotation not readily available (see Note 2).
ADR - American Depository Receipt
Cl - Class
FNMA - Federal National Mortgage Association
The accompanying notes are an integral part of the financial statements.
42 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SHORT DURATION GOVERNMENT FUNDS-
THREE YEAR PORTFOLIO
March 31, 2000
Face amount Value
(000) (000)
----------------------------------------------------------
ASSET-BACKED SECURITIES--8.5%
----------------------------------------------------------
Fleet Credit Card Master Trust,
Ser 1998-A, Cl A (A)
6.044%, 07/15/03 $1,400 $ 1,399
Hyundai Auto Receivables Trust,
Ser 1998-A, Cl A2
6.050%, 07/15/04 890 881
Olympic Automobile Receivables
Trust, Ser 1996-A, Cl A5
6.000%, 02/15/02 249 248
Peoplefirst.com Auto Receivables
Owner Trust Pfaro, Ser 1999-1, Cl A1
6.415%, 02/15/02 558 557
Spiegel Master Trust, Ser 1995-A, Cl A
7.500%, 09/15/04 950 952
----------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(COST $4,048) 4,037
----------------------------------------------------------
----------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--11.3%
----------------------------------------------------------
Ba Mortgage Securities, CMO,
Ser 1997-2, Cl 2A-1
7.250%, 10/25/27 601 600
Ge Capital Mortgage Services,
Ser 1999-11, Cl A2
6.000%, 07/25/29 1,000 972
Goldman Sachs Mortgage Securities,
Ser 1998-C1, Cl A1
6.060%, 10/18/30 938 887
Residential Funding Mortgage,
Ser 1992-S39, Cl A8
7.500%, 11/25/07 548 544
Residential Funding Mortgage
Securization, Ser 1993-S23, Cl A7
6.500%, 06/25/08 165 164
Securitized Asset Sales, Ser 1993-7,
Cl TA2
6.250%, 12/25/23 1,111 1,094
Structured Asset Securities,
Ser 1997-2, Cl 1A (A)
7.204%, 10/30/07 1,097 1,094
----------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(COST $5,398) 5,355
----------------------------------------------------------
----------------------------------------------------------
CORPORATE OBLIGATIONS--3.9%
----------------------------------------------------------
Ford Motor Credit
5.750%, 02/23/04 1,450 1,368
Phillips Petroleum
9.000%, 06/01/01 500 510
----------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS
(COST $1,906) 1,878
----------------------------------------------------------
Face amount Value
(000) (000)
----------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATION--0.7%
----------------------------------------------------------
FNMA, MTN
6.710%, 03/13/02 $ 360 $ 358
----------------------------------------------------------
TOTAL U.S. GOVERNMENT AGENCY OBLIGATION
(COST $361) 358
----------------------------------------------------------
----------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-
BACKED BONDS--42.0%
----------------------------------------------------------
FHLMC, Pool #34889
7.500%, 12/01/29 402 396
FHLMC, Ser 1380, Cl K
6.750%, 10/15/07 770 760
FHLMC, Ser 1434, Cl G
6.750%, 03/15/19 477 475
FHLMC CMO/REMIC, Ser 1093, Cl F
7.500%, 06/15/06 351 352
FHLMC CMO/REMIC, Ser 1361, Cl D
6.000%, 11/15/05 185 183
FHLMC CMO/REMIC, Ser 1411, Cl G
6.500%, 07/15/18 274 272
FHLMC CMO/REMIC, Ser 1430, Cl G
7.000%, 10/15/18 284 284
FHLMC CMO/REMIC, Ser 1457, Cl PH
7.000%, 06/15/06 637 635
FHLMC CMO/REMIC, Ser 1465, Cl E
6.500%, 09/15/06 388 386
FHLMC CMO/REMIC, Ser 1497, Cl D
6.400%, 02/15/19 279 276
FHLMC CMO/REMIC, Ser 1501, Cl F
6.100%, 11/15/16 132 131
FHLMC CMO/REMIC, Ser 161, Cl F
9.500%, 06/15/06 1,668 1,703
FHLMC CMO/REMIC, Ser 1862,
Cl FD (A)
6.813%, 12/15/22 351 351
FHLMC CMO/REMIC, Ser 1900, Cl FA (A)
6.613%, 03/15/09 586 588
FHLMC CMO/REMIC, Ser 2043, Cl CD
6.000%, 09/15/16 570 556
FHLMC, Pool #G10288
6.000%, 09/01/09 362 347
FHLMC, Pool #G10446
6.500%, 02/01/11 754 733
FNMA CMO/REMIC,
Ser 1993-88, Cl F (A)
6.625%, 06/25/00 548 548
FNMA, Pool #252209
6.000%, 01/01/19 1,199 1,112
FNMA, Pool #6222
9.000%, 04/01/16 258 267
FNMA, Pool #8245
8.000%, 12/01/08 521 527
TURNER FUNDS 2000 SEMIANNUAL REPORT |43
<PAGE>
FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SHORT DURATION GOVERNMENT FUNDS-
THREE YEAR PORTFOLIO
Face amount Value
(000) (000)
----------------------------------------------------------
FNMA, Ser 1991-72, Cl G
8.000%, 07/25/06 $ 293 $ 295
FNMA Ser, 1993-106, Cl D
6.650%, 12/25/11 1,000 990
FNMA, Ser 1993-194, Cl PH
6.000%, 11/25/05 500 495
FNMA, Ser 1993-55, Cl H
6.000%, 09/25/06 500 494
FNMA, Ser 1998-36, Cl PA
6.250%, 07/18/13 1,000 989
FNMA, Ser 1998-44, Cl TB
6.000%, 01/18/08 500 495
FNMA, Ser 1998-45, Cl PB
6.000%, 05/18/12 1,000 990
GNMA ARM (A), Pool #8108
6.375%, 03/20/16 823 833
GNMA ARM (A), Pool #8254
6.750%, 08/20/17 537 543
GNMA ARM (A), Pool #8266
6.750%, 09/20/17 192 194
GNMA ARM (A), Pool #8426
7.125%, 11/20/18 181 184
GNMA, Pool #351122
6.500%, 07/15/08 542 527
GNMA, Pool #357343
6.500%, 10/15/08 212 207
GNMA, Pool #28264
6.750%, 09/20/17 120 121
GNMA, Pool #28320
6.375%, 02/20/18 344 348
GNMA, Pool #462486
6.500%, 01/15/13 1,443 1,397
----------------------------------------------------------
TOTAL U.S. GOVERNMENT MORTGAGE-
BACKED BONDS
(COST $20,132) 19,984
----------------------------------------------------------
----------------------------------------------------------
U.S. TREASURY OBLIGATIONS--31.9%
----------------------------------------------------------
U.S. Treasury Notes
8.000%, 05/15/01 5,494 5,582
7.000%, 07/15/06 3,059 3,162
5.500%, 02/15/08 2,231 2,127
U.S. Treasury Notes (B)
3.625%, 07/15/02 4,317 4,301
----------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $15,176) 15,172
----------------------------------------------------------
Face amount Value
(000) (000)
----------------------------------------------------------
REPURCHASE AGREEMENT--0.7%
----------------------------------------------------------
Morgan Stanley, 5.80%, dated 03/31/00,
matures 04/03/00, repurchase price
$348,132 (collateralized by
U.S. Treasury Notes, par value
$353,637, 7.50%, 02/15/05,
market value $356,775) $ 348 $ 348
----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $348) 348
----------------------------------------------------------
----------------------------------------------------------
TOTAL INVESTMENTS--99.0%
(COST $47,369) 47,132
----------------------------------------------------------
----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--1.0% 457
----------------------------------------------------------
----------------------------------------------------------
NET ASSETS:
----------------------------------------------------------
Portfolio capital of class I shares
(unlimited authorization -- no
par value) based on 4,129,318 outstanding
shares of beneficial interest 40,873
Portfolio capital of class II shares
(unlimited authorization-- no par value)
based on 758,244 outstanding shares
of beneficial interest 7,356
Distributions in excess of net
investment income (51)
Accumulated net realized loss on investments (352)
Net unrealized depreciation on investments (237)
----------------------------------------------------------
TOTAL NET ASSETS--100.0% $47,589
----------------------------------------------------------
----------------------------------------------------------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE-CLASS I $9.74
----------------------------------------------------------
----------------------------------------------------------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE-CLASS II $9.70
----------------------------------------------------------
(A) Floating Rate Security. The rate reflected on the statement of net assets is
the rate in effect on March 31, 2000.
(B) TIP - Treasury inflation protection note
ARM - Adjustable Rate Mortgage
Cl - Class
CMO - Collateralized Mortgage Obligation
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
MTN - Medium Term Note
REMIC - Real Estate Mortgage Investment Conduit
Ser - Series
The accompanying notes are an integral part of the financial statements.
44 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SHORT DURATION GOVERNMENT FUNDS-
ONE YEAR PORTFOLIO
March 31, 2000
Face amount Value
(000) (000)
----------------------------------------------------------
ASSET-BACKED SECURITIES--2.4%
----------------------------------------------------------
Fleet Credit Card Master Trust,
Ser 1998-A, Cl A (A)
6.044%, 07/15/03 $ 40 $ 40
Hyundai Auto Receivables Trust,
Ser 1998-A, Cl A2
6.050%, 07/15/04 50 49
Morgan Stanley Capital I,
Ser 1997-C1, Cl A1A
6.850%, 02/15/20 320 318
Peoplefirst.com Auto Receivables
Owner Trust Pfaro, Ser 1999-1, Cl A1
6.415%, 02/15/02 80 80
Spiegel Master Trust, Ser 1995-A, Cl A
7.500%, 09/15/04 15 15
----------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(COST $505) 502
----------------------------------------------------------
----------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--8.7%
----------------------------------------------------------
Ba Mortgage Securities, CMO,
Ser 1997-2, Cl 2A-1
7.250%, 10/25/27 601 600
Countrywide Funding,
Ser 1994-13, Cl A4
6.500%, 06/25/09 241 240
Ge Capital Mortgage Services,
Ser 1999-11, Cl A2
6.000%, 07/25/29 500 486
Residential Funding Mortgage,
Ser 1992-S39, Cl A8
7.500%, 11/25/07 548 544
----------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE
OBLIGATIONS (COST $1,873) 1,870
----------------------------------------------------------
----------------------------------------------------------
U.S. GOVERNMENT MORTGAGE-
BACKED BONDS--36.4%
----------------------------------------------------------
FHLMC CMO/REMIC, Ser 1361, Cl D
6.000%, 11/15/05 142 141
FHLMC CMO/REMIC, Ser 1430, Cl G
7.000%, 10/15/18 108 108
FHLMC CMO/REMIC, Ser 1457, Cl PH
7.000%, 06/15/06 102 102
FHLMC CMO/REMIC, Ser 1465, Cl E
6.500%, 09/15/06 314 312
Face amount Value
(000) (000)
----------------------------------------------------------
FHLMC CMO/REMIC, Ser 1501, Cl F
6.100%, 11/15/16 $ 4 $ 4
FHLMC CMO/REMIC, Ser 1506, Cl EA
5.700%, 07/15/05 192 191
FHLMC CMO/REMIC, Ser 1549, Cl D
5.850%, 11/15/05 292 291
FHLMC CMO/REMIC, Ser 161, Cl F
9.500%, 06/15/06 74 75
FHLMC CMO/REMIC,
Ser 1862, Cl FD (A)
6.813%, 12/15/22 65 65
FHLMC CMO/REMIC,
Ser 1900, Cl FA (A)
6.613%, 03/15/09 65 65
FHLMC, Ser 1106, Cl E
7.500%, 07/15/06 111 111
FHLMC, Ser 1271, Cl F
7.000%, 07/15/05 380 379
FHLMC, Ser 1434, Cl G
6.750%, 03/15/19 477 475
FNMA CMO/REMIC, Ser 1992-70, Cl H
7.000%, 04/25/06 24 24
FNMA CMO/REMIC,
Ser 1993-76,Cl F (A)
6.375%, 06/25/08 280 281
FNMA CMO/REMIC,
Ser 1993-88, Cl F (A)
6.625%, 06/25/00 391 391
FNMA CMO/REMIC, Ser 1996-35, Cl C
7.000%, 05/25/20 42 42
FNMA, Ser 1993-55, Cl H
6.000%, 09/25/06 875 864
FNMA, Ser 1998-44, Cl TB
6.000%, 01/18/08 500 495
FNMA, Ser 1998-45, Cl PB
6.000%, 05/18/12 1,000 990
GNMA ARM (A), Pool #8108
6.375%, 03/20/16 201 203
GNMA ARM (A), Pool #8111
6.375%, 03/20/16 781 792
GNMA ARM (A), Pool #8254
6.750%, 08/20/17 455 461
GNMA ARM (A), Pool #8287
7.125%, 11/20/17 143 144
TURNER FUNDS 2000 SEMIANNUAL REPORT | 45
<PAGE>
FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER SHORT DURATION GOVERNMENT FUNDS-
ONE YEAR PORTFOLIO
Face amount Value
(000) (000)
----------------------------------------------------------
GNMA ARM (A), Pool #8297
7.125%, 12/20/17 $ 62 $ 63
GNMA ARM (A), Pool #8333
6.375%, 03/20/18 93 95
GNMA ARM (A), Pool #8392
6.750%, 08/20/18 86 87
GNMA ARM (A), Pool #8405
6.750%, 09/20/18 70 71
GNMA ARM (A), Pool #8462
6.375%, 02/20/19 36 37
GNMA ARM (A), Pool #8489
6.375%, 04/20/19 240 243
GNMA Pool #28345
6.375%, 04/20/18 175 176
GNMA Pool #28404
6.750%, 09/20/18 33 33
----------------------------------------------------------
TOTAL U.S. GOVERNMENT
MORTGAGE-BACKED BONDS (COST $7,802) 7,811
----------------------------------------------------------
----------------------------------------------------------
U.S. TREASURY OBLIGATIONS--38.1%
----------------------------------------------------------
U.S. Treasury Notes
6.125%, 09/30/00 5,000 4,996
8.000%, 05/15/01 1,761 1,789
U.S. Treasury Note (B)
3.625%, 07/15/02 1,400 1,395
----------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $8,180) 8,180
----------------------------------------------------------
REPURCHASE AGREEMENT--17.6%
----------------------------------------------------------
JP Morgan, 6.10%, dated 03/31/00,
matures 04/03/00, repurchase price
$3,775,126 (collateralized by FNMA,
par value $4,421,582, 6.00%,
12/01/28, market value $3,850,629) 3,775 3,775
----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $3,775) 3,775
----------------------------------------------------------
----------------------------------------------------------
TOTAL INVESTMENTS--103.2%
(COST $22,135) 22,138
----------------------------------------------------------
----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--(3.2%) (688)
----------------------------------------------------------
Value
(000)
----------------------------------------------------------
NET ASSETS:
----------------------------------------------------------
Portfolio capital of class I shares
(unlimited authorization--no par
value) based on 1,201,905 outstanding
shares of beneficial interest $ 12,052
Portfolio capital of class II shares
(unlimited authorization--no par
value) based on 931,770 outstanding
shares of beneficial interest 9,405
Distributions in excess of net
investment income (4)
Accumulated net realized loss on investments (6)
Net unrealized appreciation on investments 3
----------------------------------------------------------
TOTAL NET ASSETS--100.0% $21,450
----------------------------------------------------------
----------------------------------------------------------
NET ASSET VALUE, OFFERING
AND REDEMPTION PRICE PER SHARE-CLASS I $10.03
----------------------------------------------------------
----------------------------------------------------------
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE-CLASS II $10.09
----------------------------------------------------------
(A) Floating Rate Security. The rate reflected on the statement of net
assets is the rate in effect on March 31, 2000.
(B) TIP - Treasury Inflation Protection Note
ARM - Adjustable Rate Mortgage
Cl - Class
CMO - Collateralized Mortgage Obligation
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
REMIC - Real Estate Mortgage Investment Conduit
Ser - Series
The accompanying notes are an integral part of the financial statements.
46 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER CORE HIGH QUALITY FIXED INCOME FUND
March 31, 2000
Face amount Value
(000) (000)
----------------------------------------------------------
ASSET-BACKED SECURITIES--6.5%
----------------------------------------------------------
Olympic Automobile Receivables
Trust, Ser 1995-D, Cl A5
6.150%, 07/15/01 $ 160 $ 160
Peoplefirst.com Auto Receivables
Owner Trust Pfaro, Ser 1999-1, Cl A1
6.415%, 02/15/02 159 159
Spiegel Master Trust, Ser 1995-A, Cl A
7.500%, 09/15/04 500 501
----------------------------------------------------------
TOTAL ASSET-BACKED SECURITIES
(COST $820) 820
----------------------------------------------------------
----------------------------------------------------------
COLLATERALIZED MORTGAGE OBLIGATIONS--0.5%
----------------------------------------------------------
Drexel Burnham Lambert CMO
Trust, Ser S, Cl 2
9.000%, 08/01/18 20 20
Golman Sachs Mortgage Securities II,
Ser 1998-C1, Cl A1
6.060%, 10/18/30 40 38
----------------------------------------------------------
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
(COST $61) 58
----------------------------------------------------------
----------------------------------------------------------
CORPORATE OBLIGATIONS--2.4%
----------------------------------------------------------
Ford Motor Credit
5.750%, 02/23/04 60 57
Phillips Petroleum
9.000%, 06/01/01 15 15
Sprint Capital Global Bond Issue
6.125%, 11/15/08 250 228
----------------------------------------------------------
TOTAL CORPORATE OBLIGATIONS
(COST $303) 300
----------------------------------------------------------
----------------------------------------------------------
U.S. GOVERNMENT
MORTGAGE-BACKED BONDS--44.9%
----------------------------------------------------------
FHLMC, Pool #C00784
6.000%, 06/01/29 596 543
FHLMC, Ser 1380, Cl K
6.750%, 10/15/07 200 198
FHLMC, Ser 2097, Cl PX
6.000%, 10/15/27 258 237
FHLMC CMO/REMIC, Ser 1465, Cl E
6.500%, 09/15/06 308 306
Face amount Value
(000) (000)
----------------------------------------------------------
FHLMC CMO/REMIC, Ser 1538, Cl J
6.500%, 06/15/08 $ 160 $ 155
FHLMC CMO/REMIC, Ser 161, Cl F
9.500%, 06/15/06 310 317
FHLMC, Pool #C16814
7.500%, 10/01/28 464 457
FNMA, Pool #323715
6.000%, 05/01/29 595 541
FNMA, Pool #514768
7.000%, 12/01/29 99 95
FNMA, Pool #489836
6.000%, 06/01/14 905 852
FNMA, Ser 1994-27, Cl PJ
6.500%, 06/25/23 600 573
FNMA, Ser 1993-198, Cl K
6.000%, 12/25/22 834 774
FNMA, Ser 1998-63, Cl PG
6.000%, 03/25/27 100 92
GNMA ARM (A), Pool #8103
6.375%, 02/20/16 53 54
GNMA ARM (A), Pool #8266
6.750%, 09/20/17 192 194
GNMA, TBA
7.500%, 04/01/29 50 50
GNMA, Pool #521378
6.745%, 10/15/39 100 93
GNMA, Ser 2000-18, Cl PB
7.500%, 06/20/29 100 100
----------------------------------------------------------
TOTAL U.S. GOVERNMENT
MORTGAGE-BACKED BONDS (COST $5,668) 5,631
----------------------------------------------------------
----------------------------------------------------------
U.S. TREASURY OBLIGATIONS--42.7%
----------------------------------------------------------
U.S. Treasury Bonds (C)
8.125%, 05/15/21 420 516
7.000%, 07/15/06 1,203 1,243
6.125%, 08/15/29 100 102
5.250%, 11/15/28 140 125
U.S. Treasury Notes (C)
8.000%, 05/15/01 422 429
8.125%, 08/15/19 420 510
7.500%, 11/15/16 345 391
6.125%, 09/30/00 100 100
5.500%, 02/15/08 1,493 1,423
TURNER FUNDS 2000 SEMIANNUAL REPORT | 47
<PAGE>
FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
STATEMENT OF NET ASSETS
TURNER CORE HIGH QUALITY FIXED INCOME FUND
Face amount Value
(000) (000)
----------------------------------------------------------
U.S. Treasury Notes (B)
3.375%, 01/15/07 $ 319 $ 307
3.625%, 01/15/08 219 213
----------------------------------------------------------
TOTAL U.S. TREASURY OBLIGATIONS
(COST $5,291) 5,359
----------------------------------------------------------
----------------------------------------------------------
REPURCHASE AGREEMENT--2.4%
----------------------------------------------------------
Morgan Stanley, 5.80%, dated 03/31/00,
matures 04/03/00, repurchase price
$348,132, (collateralized by U.S.
Treasury Notes, par value $353,637,
7.50%, 02/15/05, market
value $356,755) 296 296
----------------------------------------------------------
----------------------------------------------------------
TOTAL REPURCHASE AGREEMENT
(COST $296) 296
----------------------------------------------------------
TOTAL INVESTMENTS--99.4%
(COST $12,439) 12,464
----------------------------------------------------------
----------------------------------------------------------
OTHER ASSETS AND LIABILITIES, NET--0.6% 79
----------------------------------------------------------
Value
(000)
----------------------------------------------------------
NET ASSETS:
----------------------------------------------------------
Portfolio capital (unlimited authorization--
no par value) based on 1,271,056
outstanding shares of beneficial interest $12,894
Undistributed net investment income 1
Accumulated net realized loss on investments (377)
Net unrealized appreciation on investments 25
----------------------------------------------------------
TOTAL NET ASSETS--100.0% $12,543
----------------------------------------------------------
----------------------------------------------------------
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE $9.87
----------------------------------------------------------
(A) Floating Rate Security. The rate reflected on the statement of net
assets is the rate in effect on March 31, 2000.
(B) TIP - Treasury Inflation Protection Note
(C) Securities are pledged as collateral for TBA securities.
ARM - Adjustable Rate Mortgage
Cl - Class
CMO - Collateralized Mortgage Obligation
FHLMC - Federal Home Loan Mortgage Corporation
FNMA - Federal National Mortgage Association
GNMA - Government National Mortgage Association
REMIC - Real Estate Mortgage Investment Conduit
Ser - Series
TBA - To be announced
The accompanying notes are an integral part of the financial statements.
48 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES (000)
<TABLE>
<CAPTION>
Turner Midcap Turner Turner
Growth Fund Top 20 Fund Technology Fund
----------------------------------------------------------
3/31/00 3/31/00 3/31/00
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Assets:
--------------------------------------------------------------------------------------------------------------------
Investment securities at cost $ 653,585 $ 139,611 $ 104,163
--------------------------------------------------------------------------------------------------------------------
Investment securities at value 753,905 141,749 98,035
Cash -- -- 15
Dividend and interest receivable 50 9 14
Receivable for investment securities sold 36,231 6,089 17,518
Capital shares sold 13,468 2,470 1,682
Other assets 10 15 10
--------------------------------------------------------------------------------------------------------------------
Total assets 803,664 150,332 117,274
--------------------------------------------------------------------------------------------------------------------
Liabilities:
Payable for investment securities purchased 56,651 12,780 25,678
Capital shares redeemed 3,754 314 1,173
Accrued expenses 301 209 101
--------------------------------------------------------------------------------------------------------------------
Total liabilities 60,706 13,303 26,952
--------------------------------------------------------------------------------------------------------------------
Net assets:
Portfolio capital 560,826 102,258 67,771
Accumulated net investment loss (1,001) (252) (190)
Accumulated net realized gain on investments 82,813 32,885 28,869
Net unrealized appreciation (depreciation) on
investments 100,320 2,138 (6,128)
--------------------------------------------------------------------------------------------------------------------
Total net assets $ 742,958 $ 137,029 $ 90,322
--------------------------------------------------------------------------------------------------------------------
Outstanding shares of beneficial interest: 17,041,805 5,500,212 2,856,723
--------------------------------------------------------------------------------------------------------------------
Net asset value, offering and redemption
price per share $ 43.60 $ 24.91 $ 31.62
--------------------------------------------------------------------------------------------------------------------
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
TURNER FUNDS 2000 SEMIANNUAL REPORT | 49
<PAGE>
FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (000)
<TABLE>
<CAPTION>
Turner Large Cap Turner Growth Turner Midcap Turner Small Cap
Growth Equity Fund Equity Fund Growth Fund Growth Fund
-------------------------------------------------------------------------------
10/1/99 thru 10/1/99 thru 10/1/99 thru 10/1/99 thru
3/31/00 3/31/00 3/31/00 3/31/00
-------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment income:
Dividend $ 32 $ 353 $ 208 $ 268
Interest 19 168 554 373
----------------------------------------------------------------------------------------------------------------------------
Total investment income 51 521 762 641
----------------------------------------------------------------------------------------------------------------------------
Expenses:
Investment advisory fees 102 790 1,463 1,978
Investment advisory fee waiver (37) -- -- (7)
Administrator fees 33 67 123 126
Administrator fee waiver -- -- -- --
Custodian fees 4 9 10 12
Transfer agent fees 23 86 101 228
Professional fees 5 21 28 30
Trustee fees 1 2 3 3
Registration fees 3 5 22 1
Pricing fees -- 1 1 1
Printing fees -- 12 11 20
Shareholder service fees -- -- -- --
Amortization of deferred
organizational costs 2 2 3 2
Insurance and other fees -- 5 1 3
----------------------------------------------------------------------------------------------------------------------------
Total expenses 136 1,000 1,766 2,397
Less: Reimbursements from adviser -- -- -- --
Directed brokerage -- (58) (9) (22)
----------------------------------------------------------------------------------------------------------------------------
Net expenses 136 942 1,757 2,375
----------------------------------------------------------------------------------------------------------------------------
Net investment income (loss) (85) (421) (995) (1,734)
----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) from securities sold 5,635 38,789 84,684 99,272
Net unrealized appreciation
(depreciation) of
investment securities 5,878 48,333 89,061 76,898
----------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized
gain (loss) on investments 11,513 87,122 173,745 176,170
----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
resulting from operations $11,428 $86,701 $172,750 $174,436
----------------------------------------------------------------------------------------------------------------------------
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
50 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Turner Short Duration
Government Funds-
---------------------------------
<S> <C> <C> <C> <C> <C>
Turner Core
Turner Micro Cap Turner Turner Technology Three Year One Year High Quality
Growth Fund Top 20 Fund Fund Portfolio Portfolio Fixed Income Fund
----------------------------------------------------------------------------------------------------------------------------
10/1/99 thru 10/1/99 thru 10/1/99 thru 10/1/99 thru 10/1/99 thru 10/1/99 thru
3/31/00 3/31/00 3/31/00 3/31/00 3/31/00 3/31/00
----------------------------------------------------------------------------------------------------------------------------
$ 40 $ 72 $ 15 $ -- $ -- $ --
227 90 61 1,295 338 337
----------------------------------------------------------------------------------------------------------------------------
267 162 76 1,295 338 337
----------------------------------------------------------------------------------------------------------------------------
472 369 227 53 14 26
(7) (2) (8) (53) (14) (26)
41 33 33 33 33 33
-- (10) (10) -- -- (10)
3 -- -- 2 3 --
10 10 10 17 17 11
(3) 5 5 16 11 5
-- -- -- -- -- --
(2) 8 8 15 7 7
1 1 1 2 -- 1
-- -- -- 9 4 1
-- -- -- 4 7 --
2 -- -- 1 -- --
-- -- -- 1 -- 1
----------------------------------------------------------------------------------------------------------------------------
517 414 266 100 82 49
-- -- -- (44) (75) (25)
-- -- -- -- -- --
----------------------------------------------------------------------------------------------------------------------------
517 414 266 56 7 24
----------------------------------------------------------------------------------------------------------------------------
(250) (252) (190) 1,239 331 313
----------------------------------------------------------------------------------------------------------------------------
17,218 35,383 29,469 (135) (9) (271)
24,331 1,332 (6,440) (209) 2 267
----------------------------------------------------------------------------------------------------------------------------
41,549 36,715 23,029 (344) (7) (4)
----------------------------------------------------------------------------------------------------------------------------
$41,299 $36,463 $22,839 $ 895 $324 $ 309
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
TURNER FUNDS 2000 SEMIANNUAL REPORT | 51
<PAGE>
FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (000)
<TABLE>
<CAPTION>
Turner Large Cap Turner Growth
Growth Equity Fund Equity Fund
-----------------------------------------------------------------------------------------------------------------------------
10/1/99 year 10/1/99 year
thru ended thru ended
3/31/00 9/30/99 3/31/00 9/30/99
-----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment activities:
Net investment loss $ (85) $ (36) $ (421) $ (509)
Net realized gain from
securities sold 5,635 1,821 38,789 37,857
Net unrealized appreciation
(depreciation) of investments 5,878 307 48,333 658
-----------------------------------------------------------------------------------------------------------------------------
Net increase in
net assets resulting
from operations 11,428 2,092 86,701 38,006
-----------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
Realized capital gains (1,951) -- (41,205) (12,236)
-----------------------------------------------------------------------------------------------------------------------------
Capital share transactions(1):
Proceeds from shares issued 44,032 4,366 121,520 34,770
Proceeds from shares issued in
lieu of cash distributions 1,924 -- 39,721 11,874
Increase from in-kind transfer -- -- 14,278 4,270
Cost of shares redeemed (18,263) (2,327) (55,413) (31,717)
-----------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from capital share transactions 27,693 2,039 120,106 19,197
-----------------------------------------------------------------------------------------------------------------------------
Total increase in net assets 37,170 4,131 165,602 44,967
-----------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 8,459 4,328 142,824 97,857
-----------------------------------------------------------------------------------------------------------------------------
End of period(3) $45,629 $8,459 $308,426 $142,824
-----------------------------------------------------------------------------------------------------------------------------
(1) Shares issued and redeemed:
Issued 1,765 255 6,642 2,274
Issued in lieu of cash distributions 83 -- 2,498 890
Issued in connection with In-Kind Transfer -- -- 758 273
Redeemed (703) (134) (3,122) (2,051)
-----------------------------------------------------------------------------------------------------------------------------
Net increase in capital shares 1,145 121 6,776 1,386
-----------------------------------------------------------------------------------------------------------------------------
<FN>
(2) Commenced operations on July 1, 1999.
(3) Includes undistributed net investment income (loss) and/or
distributions in excess of net investment income (000) of $(85) and
$(0) for the Large Cap Growth Equity Fund, $(423) and $(0) for the
Growth Equity Fund, $(1,001)) and $(6) for the Midcap Growth Fund,
$(1,734) and $(0) for the Small Cap Growth Fund, $(250) and $(0) for
the Micro Cap Growth Fund, $(252) and $(0) for the Top 20 Fund, and
$(190) and $(0) for the Technology Fund, as of March 31, 2000, and
September 30, 1999, respectively.
Amounts designated as "--" are either $0 or have been rounded to $0
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
52 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
-------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Turner Midcap Turner Small Cap Turner Micro Cap
Growth Fund Growth Fund Growth Fund
10/1/99 year 10/1/99 year 10/1/99 year
thru ended thru ended thru ended
3/31/00 9/30/99 3/31/00 9/30/99 3/31/00 9/30/99
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment activities:
Net investment loss $ (995) $ (376) $ (1,734) $ (1,960) $ (250) $ (30)
Net realized gain from
securities sold 84,684 20,948 99,272 61,638 17,218 2,292
Net unrealized appreciation
(depreciation) of investments 86,061 10,401 76,898 30,895 24,331 2,652
------------------------------------------------------------------------------------------------------------------------
Net increase in
net assets resulting
from operations 172,750 30,973 174,436 90,573 41,299 4,914
------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
Realized capital gains (20,897) -- (53,791) -- (2,225) --
------------------------------------------------------------------------------------------------------------------------
Capital share transactions(1): 540,662 127,616 163,036 87,818 257,333 6,101
Proceeds from shares issued
Proceeds from shares issued in 19,905 -- 51,918 -- 1,957 --
lieu of cash distributions
Increase from in-kind transfer -- -- -- -- -- --
Cost of shares redeemed (118,292) (34,341) (75,035) (71,848) (147,809) (895)
------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from capital share transactions 442,275 93,275 139,919 15,970 111,481 5,206
------------------------------------------------------------------------------------------------------------------------
Total increase in net assets 594,128 124,248 260,564 106,543 150,555 10,120
------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 148,830 24,582 254,077 147,534 12,963 2,843
------------------------------------------------------------------------------------------------------------------------
End of period(3) $742,958 $148,830 $514,641 $254,077 $163,518 $12,963
------------------------------------------------------------------------------------------------------------------------
(1) Shares issued and redeemed:
Issued 13,500 5,625 3,499 3,160 7,296 380
Issued in lieu of cash distributions 613 -- 1,386 -- 67 --
Issued in connection with In-Kind Transfer -- -- -- -- -- --
Redeemed (2,901) (1,567) (1,650) (2,596) (3,925) (53)
------------------------------------------------------------------------------------------------------------------------
Net increase in capital shares 11,212 4,058 3,235 564 3,438 327
------------------------------------------------------------------------------------------------------------------------
</TABLE>
[TABLE CONTINUED]
<TABLE>
<CAPTION>
Turner Turner
Top 20 Fund Technology Fund
10/1/99 7/1/99 10/1/99 7/1/99
thru thru thru thru
3/31/00 9/30/99(2) 3/31/00 9/30/99(2)
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment activities:
Net investment loss $ (252) $ (21) $ (190) $ (10)
Net realized gain from
securities sold 35,383 2,562 29,469 1,278
Net unrealized appreciation
(depreciation) of investments 1,332 806 (6,440) 312
-------------------------------------------------------------------------------------------------
Net increase in
net assets resulting
from operations 36,463 3,347 22,839 1,580
-------------------------------------------------------------------------------------------------
Distributions to shareholders:
Realized capital gains (5,039) -- (1,868) --
-------------------------------------------------------------------------------------------------
Capital share transactions(1): 115,396 13,557 85,831 7,914
Proceeds from shares issued
Proceeds from shares issued in 4,896 -- 1,800 --
lieu of cash distributions
Increase from in-kind transfer -- -- -- --
Cost of shares redeemed (30,799) (792) (26,576) (1,198)
-------------------------------------------------------------------------------------------------
Net increase in net assets
from capital share transactions 89,493 12,765 61,055 6,716
-------------------------------------------------------------------------------------------------
Total increase in net assets 120,917 16,112 82,026 8,296
-------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 16,112 -- 8,296 --
-------------------------------------------------------------------------------------------------
End of period(3) $137,029 $16,112 $90,322 $8,296
-------------------------------------------------------------------------------------------------
(1) Shares issued and redeemed:
Issued 5,485 1,223 3,168 696
Issued in lieu of cash distributions 274 -- 85 --
Issued in connection with In-Kind Transfer -- -- -- --
Redeemed (1,411) (71) (986) (106)
-------------------------------------------------------------------------------------------------
Net increase in capital shares 4,348 11,52 2,267 590
-------------------------------------------------------------------------------------------------
</TABLE>
TURNER FUNDS 2000 SEMIANNUAL REPORT | 53
<PAGE>
FINANCIAL STATEMENTS
-------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS (000)
<TABLE>
<CAPTION>
Turner Short Duration Government Funds-
Three Year Portfolio
-----------------------------------------------------
10/1/99 thru year ended
3/31/00 9/30/99
--------------------------------------------------------------------------------------------------------
<S> <C> <C>
Investment activities:
Net investment income $ 1,239 $ 1,255
Net realized loss from securities sold (135) (177)
Net unrealized appreciation (depreciation) of investments (209) (264)
--------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 895 814
--------------------------------------------------------------------------------------------------------
Distributions to shareholders:
Net investment income
Class I(1) (1,158) (1,258)
Class II(2) (98) (1)
Realized capital gains
Class I(1) -- (156)
Class II(2) -- --
--------------------------------------------------------------------------------------------------------
Total distributions (1,256) (1,415)
--------------------------------------------------------------------------------------------------------
Capital share transactions(3):
Class I(1)
Proceeds from shares issued 5,146 10,962
Proceeds from shares issued in lieu of cash distributions 1,158 1,276
Increase from in-kind transfer -- 18,947
Cost of shares redeemed (4,397) (3,912)
--------------------------------------------------------------------------------------------------------
Increase in net assets
from Class I transactions 1,907 27,273
--------------------------------------------------------------------------------------------------------
Class II(2)
Proceeds from shares issued 7,459 192
Proceeds from shares issued in lieu of cash distributions 91 1
Cost of shares redeemed (281) (106)
--------------------------------------------------------------------------------------------------------
Increase in net assets from Class II transactions 7,269 87
--------------------------------------------------------------------------------------------------------
Net increase in net assets from capital
share transactions 9,176 27,360
--------------------------------------------------------------------------------------------------------
Total increase from net assets 8,815 26,759
--------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 38,774 12,015
--------------------------------------------------------------------------------------------------------
End of period(4) $47,589 $38,774
--------------------------------------------------------------------------------------------------------
(3) Shares issued and redeemed:
Class I (1)
Issued 528 1,100
Issued in lieu of cash distributions 119 128
Issued in connection with in-kind transfers -- 1,926
Redeemed (451) (393)
--------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class I transactions 196 2,761
--------------------------------------------------------------------------------------------------------
Class II (1)
Issued 769 20
Issued in lieu of cash distributions 9 --
Redeemed (29) (11)
--------------------------------------------------------------------------------------------------------
Increase in net assets from Class II transactions 749 9
--------------------------------------------------------------------------------------------------------
Net increase in capital shares 945 2,770
--------------------------------------------------------------------------------------------------------
<FN>
(1) Formerly Institutional Class Shares.
(2) Formerly Adviser Class Shares.
Amounts designated as "--" are either $0 or have been rounded to $0
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
54 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Turner Short Duration Governement Funds- Turner Core High Quality
One-Year Portfolio Fixed Income Fund
-----------------------------------------------------------------------------
10/1/99 year ended 10/1/99 7/1/99 thru
3/31/00 9/30/99 3/31/00 9/30/99(5)
-----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment activities:
Net investment income $ 331 $ 100 $ 313 $ 140
Net realized loss from securities sold (9) -- (271) (106)
Net unrealized appreciation (depreciation) of investments 2 (1) 267 18
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 324 99 309 52
------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders:
Net investment income
Class I(1) (166) (77) (312) (140)
Class II(2) (169) (25) -- --
Realized capital gains
Class I(1) -- -- -- --
Class II(2) -- -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Total distributions (335) (102) (312) (140)
------------------------------------------------------------------------------------------------------------------------------------
Capital share transactions(3):
Class I(1)
Proceeds from shares issued 13,204 3,414 2,268 18
Proceeds from shares issued in lieu of cash distributions 164 76 311 139
Increase from in-kind transfer -- -- -- 10,120
Cost of shares redeemed (4,518) (1,272) (42) (180)
------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets
from Class I transactions 8,850 2,218 2,537 10,097
------------------------------------------------------------------------------------------------------------------------------------
Class II(2)
Proceeds from shares issued 7,657 3,642 -- --
Proceeds from shares issued in lieu of cash distributions 154 23 -- --
Cost of shares redeemed (1,562) (509) -- --
------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from Class II transactions 6,249 3,156 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from capital
share transactions 15,099 5,374 2,537 10,097
------------------------------------------------------------------------------------------------------------------------------------
Total increase from net assets 15,088 5,371 2,534 10,009
------------------------------------------------------------------------------------------------------------------------------------
Net assets:
Beginning of period 6,362 991 10,009 --
------------------------------------------------------------------------------------------------------------------------------------
End of period(4) $21,450 $6,362 $12,543 10,009
------------------------------------------------------------------------------------------------------------------------------------
(3) Shares issued and redeemed:
Class I (1)
Issued 1,317 340 233 2
Issued in lieu of cash distributions 16 8 32 14
Issued in connection with in-kind transfers -- -- -- 1,012
Redeemed (450) (127) (4) (18)
------------------------------------------------------------------------------------------------------------------------------------
Increase (decrease) in net assets from Class I transactions 883 221 261 1,010
------------------------------------------------------------------------------------------------------------------------------------
Class II (1)
Issued 759 360 -- --
Issued in lieu of cash distributions 16 2 -- --
Redeemed (50) -- -- --
------------------------------------------------------------------------------------------------------------------------------------
Increase in net assets from Class II transactions 620 312 -- --
------------------------------------------------------------------------------------------------------------------------------------
Net increase in capital shares 1,503 533 261 1,010
------------------------------------------------------------------------------------------------------------------------------------
<FN>
(4) Includes undistributed net investment income (loss) and/or distributions in
excess of net investment income (000) of $(51) and 34 for the Three Year
Fund, $(4) and )4 for the One Year Fund, and $1 and $0 for the Core High
Quality Fixed Income Fund as of March 31, 2000 and September 30, 1999,
respectively.
(5) Commenced Operations on July 1, 1999.
</FN>
</TABLE>
TURNER FUNDS 2000 SEMIANNUAL REPORT | 55
<PAGE>
FINANCIAL STATEMENTS (Unaudited)
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
Net Realized and
asset Net unrealized Distributions Distributions
value, investment gains from net from Net asset
beginning income (losses) on investment capital Return value end Total
of period (loss) investments income gains of capital of period return+
------------------------------------------------------------------------------------------------------------------------------------
Turner Large Cap Growth Equity Fund (formerly Turner Ultra Large Cap Growth Fund)
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2000* $18.90 (0.05) 11.27 -- (1.48) -- $28.64 61.22%
1999 $13.22 (0.08) 5.76 -- -- -- $18.90 42.97%
1998 $12.28 (0.01) 1.98 (0.01) (1.02) -- $13.22 17.26%
1997(1) $10.00 0.01 2.27 -- -- -- $12.28 22.80%
-------------------------
Turner Growth Equity Fund
-------------------------
2000* $15.88 (0.03) 8.23 -- (4.52) -- $19.56 58.19%
1999 $12.87 (0.05) 4.66 -- (1.60) -- $15.88 38.16%
1998 $16.64 (0.05) 1.10 -- (4.82) -- $12.87 10.71%
1997 $17.03 (0.03) 4.23 -- (4.59) -- $16.64 32.61%
1996(2) $14.97 0.02 2.91 (0.02) (0.85) -- $17.03 20.61%
1995 $12.46 0.10 2.52 (0.11) -- -- $14.97 21.15%
1994 $13.12 0.10 (0.66) (0.10) -- -- $12.46 (4.28)%
-------------------------
Turner Midcap Growth Fund
-------------------------
2000* $25.53 (0.06) 20.83 -- (2.70) -- $43.60 84.96%
1999 $13.87 (0.06) 11.72 -- -- -- $25.53 84.07%
1998 $14.22 (0.07) 0.22 -- (0.50) -- $13.87 1.24%
1997(3) $10.00 (0.03) 4.36 -- (0.11) -- $14.22 43.77%
----------------------------
Turner Small Cap Growth Fund
----------------------------
2000* $34.20 (0.16) 21.40 -- (7.18) -- $48.26 68.16%
1999 $21.49 (0.26) 12.97 -- -- -- $34.20 59.14%
1998 $26.35 (0.23) (4.19) -- (0.25) (0.19) $21.49 (16.90)%
1997 $23.13 (0.07) 3.80 -- (0.51) -- $26.35 16.64%
1996(2) $16.08 (0.08) 8.17 -- (1.04) -- $23.13 52.90%
1995 $10.90 (0.06) 5.24 -- -- -- $16.08 47.52%
1994(4) $10.00 (0.02) 0.92 -- -- -- $10.90 12.35%
----------------------------
Turner Micro Cap Growth Fund
----------------------------
2000* $21.09 (0.06) 20.83 -- (1.51) -- $40.35 101.24%
1999(5) $ 9.88 (0.05) 11.26 -- -- -- $21.09 113.46%
1998(6) $10.00 (0.04) (0.08) -- -- -- $ 9.88 (1.20)%
------------------
Turner Top 20 Fund
------------------
2000* $13.99 (0.05) 13.17 -- (2.20) -- $24.91 99.95%
1999(7) $10.00 (0.02) 4.01 -- -- -- $13.99 39.90%
----------------------
Turner Technology Fund
----------------------
2000* $14.06 (0.07) 19.17 -- (1.54) -- $31.62 141.19%
1999(7) $10.00 (0.02) 4.08 -- -- -- $14.06 40.60%
<FN>
* For the six-month period ended March 31, 2000. All ratios for the period
have been annualized.
+ Returns are for the period indicated and have not been annualized.
(1) Commenced operations on February 1, 1997. All ratios for the period have
been annualized.
(2) On April 19, 1996, the Board of Trustees of the Adviser Inner Circle 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. All ratios
for the period have been annualized.
(3) Commenced operations on October 1, 1996. All ratios for the period have been
annualized.
(4) Commenced operations on February 7, 1994. All ratios for the period have
been annualized.
</FN>
</TABLE>
56 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
<TABLE>
<CAPTION>
Ratio of net
Ratio of Ratio of Ratio of investment
net expenses net expenses expenses income (loss)
to average net to average Ratio of net to average to average
Net assets (including net assets investment net assets net assets
assets end directed (including income (loss) (excluding (excluding Portfolio
of period brokerage waivers and to average waivers and waivers and turnover
(000) arrangements) reimbursements) net assets reimbursements) reimbursements) rate
---------------------------------------------------------------------------------------------------------------------------
Turner Large Cap Growth Equity Fund (formerly Turner Ultra Large Cap Growth Fund)
--------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
2000* $ 45,629 1.00% 1.00% (0.62)% 1.27% (0.89)% 307.02%
1999 $ 8,459 1.00% 1.00% (0.47)% 2.41% (1.88)% 370.71%
1998 $ 4,328 1.00% 1.00% (0.10)% 7.70% (6.80)% 234.93%
1997(1) $ 701 1.00% 1.00% 0.20% 26.45% (25.25)% 346.47%
-------------------------
Turner Growth Equity Fund
-------------------------
2000* $308,426 0.90% 0.95% (0.46)% 0.95% (0.46)% 167.65%
1999 $142,824 0.92% 0.96% (0.42)% 0.96% (0.42)% 328.26%
1998 $ 97,857 1.00% 1.04% (0.42)% 1.12% (0.50)% 249.58%
1997 $ 99,590 0.96% 1.02% (0.25)% 1.05% (0.28)% 178.21%
1996(2) $ 96,164 0.94% 1.06% 0.03% 1.06% 0.03% 147.79%
1995 $115,819 0.94% 1.03% 0.69% 1.03% 0.69% 177.86%
1994 $112,959 0.95% 0.95% 0.86% 1.08% 0.73% 164.81%
-------------------------
Turner Midcap Growth Fund
-------------------------
2000* $742,958 0.90% 0.91% (0.52)% 0.91% (0.52)% 147.75%
1999 $148,830 1.03% 1.08% (0.58)% 1.08% (0.58)% 290.79%
1998 $ 24,582 1.23% 1.34% (0.79)% 1.73% (1.18)% 304.29%
1997(3) $ 5,145 1.25% 1.25% (0.62)% 7.96% (7.33)% 348.29%
----------------------------
Turner Small Cap Growth Fund
----------------------------
2000* $514,641 1.20% 1.21% (0.89)% 1.22% (0.90)% 97.51%
1999 $254,077 1.25% 1.27% (1.00)% 1.31% (1.04)% 223.61%
1998 $147,534 1.25% 1.28% (0.99)% 1.41% (1.12)% 167.73%
1997 $153,462 1.24% 1.24% (0.84)% 1.33% (0.93)% 130.68%
1996(2) $ 67,425 1.25% 1.25% (0.88)% 1.54% (1.17)% 149.00%
1995 $ 13,072 1.25% 1.25% (0.68)% 2.39% (1.82)% 183.49%
1994(4) $ 4,806 1.09% 1.09% (0.27)% 4.32% (3.50)% 173.92%
----------------------------
Turner Micro Cap Growth Fund
----------------------------
2000* $163,518 1.10% 1.10% (0.53)% 1.11% (0.54)% 105.67%
1999(5) $ 12,963 0.90% 0.90% (0.47)% 2.86% (2.43)% 239.32%
1998(6) $ 2,843 1.25% 1.25% (0.64)% 8.18% (7.57)% 128.53%
------------------
Turner Top 20 Fund
------------------
2000* $137,029 1.24% 1.24% (0.75)% 1.27% (0.78)% 867.02%
1999(7) $ 16,112 1.35% 1.35% (0.87)% 2.55% (2.07)% 369.11%
----------------------
Turner Technology Fund
----------------------
2000* $ 90,322 1.29% 1.29% (0.92)% 1.37% (1.00)% 1,044.66%
1999(7) $ 8,296 1.35% 1.35% (0.87)% 3.89% (3.41)% 317.32%
<FN>
(5) On January 25, 1999 shareholders of the Alpha Select Turner Micro Cap Growth
Fund (the "Funds") approved a tax-free reorganization under which all assets
and liabilities of the Fund were transferred to the TIP Turner Micro Cap
Growth Fund.
(6) Commenced operations on March 1, 1998. All ratios for the period have been
annualized.
(7) Commenced operations on July 1, 1999. All ratios for the period have been
annualized.
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.
TURNER FUNDS 2000 SEMIANNUAL REPORT | 57
<PAGE>
FINANCIAL STATEMENTS (Unaudited)
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
<TABLE>
<CAPTION>
Realized and
Net asset unrealized Distributions Distributions Ratio of
value, Net gains from net from Net asset Net assets net expenses
beginning investment (losses) on investment capital value end Total end of to average
of period income investments income gains of period return+ period (000) net assets
------------------------------------------------------------------------------------------------------------------------------------
Turner Short Duration Government Funds-Three Year Portfolio--Class I(1)
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
2000* $ 9.84 0.29 (0.10) (0.29) -- $ 9.74 1.96% $40,232 0.24%
1999(3) $10.25 0.55 (0.27) (0.55) (0.14) $ 9.84 2.89% $38,687 0.24%
1998(4) $10.10 0.35 0.15 (0.34) (0.01) $10.25 5.09% $12,015 0.24%
1998(5) $10.00 0.59 0.10 (0.59) -- $10.10 7.07% $15,544 0.24%
1997 $10.04 0.58 (0.01) (0.59) (0.02) $10.00 5.45% $17,809 0.24%
1996 $ 9.80 0.60 0.23 (0.59) -- $10.04 8.73% $11,027 0.24%
1995(6) $10.00 0.61 (0.22) (0.59) -- $ 9.80 4.08% $ 7,065 0.15%
------------------------------------------------------------------------
Turner Short Duration Government Funds-Three Year Portfolio--Class II(2)
------------------------------------------------------------------------
2000* $ 9.80 0.29 (0.10) (0.29) -- $ 9.70 2.00% $ 7,357 0.49%
1999(7) $ 9.95 0.68 (0.13) (0.70) -- $ 9.80 5.64% $ 87 0.48%
---------------------------------------------------------------------
Turner Short Duration Government Funds-One Year Portfolio--Class I(1)
---------------------------------------------------------------------
2000* $10.05 0.30 (0.02) (0.30) -- $10.03 2.78% $12,053 0.00%
1999(8) $10.09 0.54 (0.02) (0.56) -- $10.05 5.34% $ 3,207 0.00%
1998(4) $10.08 0.35 -- (0.33) (0.01) $10.09 3.50% $ 991 0.00%
1998(5) $10.06 0.60 0.02 (0.60) -- $10.08 6.34% $ 1,195 0.00%
1997 $10.03 0.60 0.03 (0.60) -- $10.06 6.32% $ 864 0.00%
1996 $ 9.99 0.64 0.05 (0.65) -- $10.03 7.09% $ 398 0.00%
1995(6) $10.00 0.53 (0.02) (0.52) -- $ 9.99 5.21% $ 145 0.00%
----------------------------------------------------------------------
Turner Short Duration Government Funds-One Year Portfolio--Class II(2)
----------------------------------------------------------------------
2000* $10.10 0.29 (0.01) (0.29) -- $10.09 2.78% $ 9,397 0.25%
1999(8) $10.11 0.47 0.02 (0.50) -- $10.10 5.00% $ 3,155 0.23%
1998(9) $10.08 0.30 0.03 (0.30) -- $10.11 3.26% -- 0.25%
------------------------------------------
Turner Core High Quality Fixed Income Fund
------------------------------------------
2000* $ 9.91 0.29 (0.04) (0.29) -- $ 9.87 2.56% $12,543 0.45%
1999(10) $10.00 0.14 (0.09) (0.14) -- $ 9.91 0.48% $10,009 0.45%
<FN>
* For the six-month period ended March 31, 2000. All ratios for the period
have been annualized.
+ Returns are for the period indicated and have not been annualized.
(1) Formerly Institutional Class Shares.
(2) Formerly Adviser Class Shares.
(3) On January 25, 1999 shareholders of the Alpha Select Turner Short Duration
Government Funds-Three Year Portfolio (the "Fund") approved a tax-free
reorganization under which all assets and liabilities of the Fund were
transferred to the TIPTurner Short Duration Government Funds-Three Year
Portfolio.
(4) On November 10, 1997 the Board of Trustees of TIP Institutional Funds
(formerly, The Solon Funds) approved a change in the Turner Short Duration
Government Funds Three Year and One Year Portfolios' year end from February
28 to September 30, effective March 1, 1998. All ratios for the period have
been annualized.
(5) On January 22, 1998, shareholders of both the Three Year and One Year Funds
approved a change in the advisor from Solon Asset Management, L.P. to
Turner Investment Partners, Inc.
</FN>
</TABLE>
56 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
<TABLE>
<CAPTION>
Ratio of net
Ratio of investment
expenses income (loss)
Ratio of net to average to average Average Average Average
investment net assets net assets debt debt shares
income (excluding (excluding per share outstanding outstanding Portfolio
to average waivers and waivers and Interest during during during turnover
net assets reimbursements) reimbursements) expense the period (11) the period (11)(12) the period rate
------------------------------------------------------------------------------------------------------------------------------------
Turner Short Duration Government Funds-Three Year Portfolio--Class I(1)
-----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
2000* 5.83% 0.70% 5.37% -- -- -- -- 108.64%
1999(3) 6.21% 1.31% 5.14% -- -- -- -- 257.98%
1998(4) 5.84% 1.49% 4.59% -- -- -- -- 121.63%
1998(5) 5.85% 1.21% 4.88% -- -- -- -- 197.03%
1997 5.80% 1.21% 4.83% 0.02% $0.04 $ 56,238 1,320,830 279.00%
1996 6.18% 1.45% 4.97% 0.12% $0.28 $256,115 901,238 251.00%
1995(6) 6.21% 1.18% 5.18% 0.04% $0.08 $ 75,604 895,472 405.00%
------------------------------------------------------------------------
Turner Short Duration Government Funds-Three Year Portfolio--Class II(2)
------------------------------------------------------------------------
2000* 5.98% 0.95% 5.52% -- -- -- -- 108.64%
1999(7) 5.71% 0.95% 5.24% -- -- -- -- 257.98%
---------------------------------------------------------------------
Turner Short Duration Government Funds-One Year Portfolio--Class I(1)
---------------------------------------------------------------------
2000* 5.95% 1.58% 4.37% -- -- -- -- 93.42%
1999(8) 5.50% 6.53% (1.03)% -- -- -- -- 154.33%
1998(4) 5.88% 10.83% (4.95)% -- -- -- -- 96.56%
1998(5) 5.97% 8.83% (2.86)% -- -- -- -- 68.80%
1997 5.91% 10.25% (4.34)% -- -- -- -- 81.82%
1996 6.46% 16.47% (10.01)% -- -- -- -- --
1995(6) 5.74% 27.89% (22.15)% -- -- -- -- --
----------------------------------------------------------------------
Turner Short Duration Government Funds-One Year Portfolio--Class II(2)
----------------------------------------------------------------------
2000* 5.68% 1.83% 4.10% -- -- -- -- 93.42%
1999(8) 5.13% 6.76% (1.40)% -- -- -- -- 154.33%
1998(9) 5.63% 11.08% (5.20)% -- -- -- -- 96.56%
------------------------------------------
Turner Core High Quality Fixed Income Fund
------------------------------------------
2000* 5.91% 1.60% 4.76% -- -- -- -- 107.19%
1999(10) 5.67% 1.99% 4.13% -- -- -- -- 39.70%
<FN>
(6) Commenced operations on March 1, 1994. All ratios for the period have been
annualized.
(7) Commenced operations on April 28, 1999. All ratios for the period have been
annualized.
(8) On May 24, 1999 shareholders of the Alpha Select Turner Short Duration
Government Funds-One Year Portfolio (the "Fund") approved a tax-free
reorganization under which all assets and liabilities of the Fund were
transferred to the TIP Turner Short Duration Government Funds-One Year
Portfolio.
(9) Commenced operations on February 27, 1998. All ratios for the period have
been annualized.
(10) Commenced operations on July 1, 1999. All ratios for the period have been
annualized.
(11) Average based upon amounts outstanding at each month end. (12) There was no
debt outstanding at the end of any period presented.
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.
TURNER FUNDS 2000 SEMIANNUAL REPORT | 59
<PAGE>
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
March 31, 2000
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 19 portfolios. The financial statements included herein
are those of the Turner Large Cap Growth Equity Fund (the "Large Cap Growth
Equity Fund"), 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"), the Turner Micro Cap Growth Fund (the
"Micro Cap Growth Fund"), the Turner Top 20 Fund (the "Top 20 Fund"), the Turner
Technology Fund (the "Technology Fund"), the Turner Short Duration Government
Funds-Three Year Portfolio (the "Three Year Portfolio"), the Turner Short
Duration Government Funds-One Year Portfolio (the "One Year Portfolio"), and the
Turner Core High Quality Fixed Income Fund (the "Core High Quality Fixed Income
Fund") (each a "fund" and collectively the "Funds"). The Turner Short Duration
Government Funds-Three Year and One Year Portfolios are registered to offer two
classes of shares, Class I Shares and Class II Shares (formerly Institutional
Class Shares and Adviser Class Shares, respectively). The financial statements
of the remaining portfolios are presented separately. 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.
As of March 31, 2000, the Turner International Growth Fund and the Turner
Focused Large Cap Equity Fund had not yet commenced operations.
The Turner Small Cap Growth Fund and the Turner Micro Cap Growth Fund were
closed to new investors as of August 30, 1997, and March 7, 2000, respectively
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. Market value
for debt obligations is determined on the basis of last reported sales price,
or if no sales are reported, as is the case with most securities traded over
the counter, the mean between representative bid and asked quotations.
Short-term securities with maturities of 60 days or less may be carried at
amortized cost, which approximates market value. Fixed income securities for
which market quotations are not readily available may be valued, pursuant to
guidelines established by the Board of Trustees, with reference to fixed
income securities whose prices are more readily obtainable and whose
durations are comparable to the securities being valued. Subject to the
foregoing, other securities for which market quotations are not readily
available are valued at fair value as determined in good faith by the Board
of Trustees. At March 31, 2000, two securities held were valued under this
valuation method: Trimeris was held by the Micro Cap Growth Fund and Titan
Pharmaceuticals was held by both the Micro Cap Growth Fund and the Technology
Fund.
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.
Securities purchased on a when-issued or delayed delivery basis may be
settled a month or more after the trade date. Such securities are included in
the portfolio and are subject to market fluctuations during this period. On
the date of the commitment to purchase or sell, the Funds designate specific
assets with a current value at least equal to the amount of the commitment to
be used for settling the commitment.
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.
60 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
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
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 at least annually for the Large Cap Growth
Equity Fund, the Midcap Growth Fund, the Small Cap Growth Fund, the Micro Cap
Growth Fund, the Top 20 Fund, and the Technology Fund; quarterly for the
Growth Equity Fund; and declared daily and paid monthly for the Three Year
Portfolio, One Year Portfolio and the Core High Quality Fixed Income Fund.
Any net realized capital gains on sales of securities for all Funds 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. Certain 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.
CLASSES--Class specific expenses are borne by that class. Income, non-class
specific expenses and realized/unrealized gains and losses are allocated to
the respective classes on the basis of the relative daily net assets.
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.
3. ORGANIZATION COSTS AND TRANSACTIONS WITH AFFILIATES:
Organization costs have been capitalized by each fund and are being amortized
over a period of sixty months. In the event any of the initial shares of a fund
are redeemed by any holder thereof during the period that such fund is
amortizing its organizational costs, the redemption proceeds payable to the
holder thereof by a Fund will be reduced by the unamortized organizational costs
in the same ratio as the number of shares outstanding at the time of redemption.
Certain officers of the Trust are also officers of SEI Investments Mutual Funds
Services (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.
For these administrative services, the Administrator is entitled to a fee from
the Trust, which is calculated daily and paid monthly, at an annual rate of .09%
of the Trust's average daily net assets up to $250 million, .07% on the next
$250 million, .06% on the next $250 million, .05% on the next $1.25 billion and
.04% of such assets in excess of $2 billion. Each Fund is subject to a minimum
annual fee of $65,000 for the first class of shares and $15,000 for each
additional class of shares, which may be reduced at the sole discretion of the
Administrator.
The Growth Equity Fund, the Midcap Growth Fund, and the Small Cap Growth Fund
have directed certain portfolio trades to brokers who paid a portion of its
expenses. For the period ended March 31, 2000, the Funds expenses were reduced
by $58,194, $9,361 and $21,671 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.
The Trust and the Distributor are parties to a Distribution Agreement dated
April 28, 1996. The Distributor receives no fees for its distribution services
under this agreement.
The Three Year and One Year Portfolios have adopted a shareholder service plan
and agreement for their Class II Shares. Under the shareholder service plan and
agreement both funds pay the Distributor a shareholder servicing fee at an
annual rate of 0.25% of the average daily net assets of the Class II Shares of
each fund.
TURNER FUNDS 2000 SEMIANNUAL REPORT | 61
<PAGE>
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
5. INVESTMENT ADVISORY AGREEMENT:
The Trust and Turner Investment Partners, Inc. (the "Adviser") are parties to an
Investment Advisory Agreement dated April 28, 1996 under which the Adviser
receives an annual fee equal to .75% of the average daily net assets of the
Large Cap Growth Equity, Growth Equity, and Midcap Growth Equity Funds, 1.00% of
the Small Cap Growth and Micro Cap Growth Funds, 1.10% of the Top 20 and
Technology Funds, .25% of the Three Year and One Year Portfolios and .50% of the
Core High Quality Fixed Income Fund. The adviser has voluntarily agreed to waive
all or a portion of its fees and to reimburse expenses in order to limit their
total operating expenses (as a percentage of daily net assets on an annualized
basis) to not more than 1.00% of the Large Cap Growth Equity and Growth Equity
Funds, 1.25% of the Small Cap Growth, Midcap Growth Equity and Micro Cap Growth
Funds, 1.35% of the Top 20 and Technology Funds, .36% and .61% of the Three Year
and One Year Portfolios, Class I shares and Class II shares, respectively, and
.45% of the Core High Quality Fixed Income Fund. Fee waivers and expense
reimbursements are voluntary and may exceed the amount necessary to maintain the
stated contractual caps. These waivers and reimbursements may be terminated at
any time.
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, 2000, are as follows
(000):
<TABLE>
<CAPTION>
TURNER SHORT DURATION
TURNER TURNER TURNER TURNER TURNER GOVERNMENT FUNDS- TURNER CORE
LARGE CAP GROWTH MIDCAP SMALL CAP MICRO CAP TURNER TURNER --------------------- HIGH QUALITY
GROWTH EQUITY GROWTH GROWTH GROWTH TOP 20 TECHNOLOGY THREE YEAR ONE YEAR FIXED INCOME
EQUITY FUND FUND FUND FUND FUND FUND FUND PORTFOLIO PORTFOLIO FUND
==========================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Purchases
Government -- -- -- -- -- -- -- 38,826 9,206 12,122
Other 103,018 416,554 938,717 443,639 203,370 655,014 486,124 2,690 1,818 229
Sales
Government -- -- -- -- -- -- -- 30,327 3,021 9,337
Other 78,123 345,685 549,567 365,378 91,997 574,340 426,164 784 205 295
At March 31, 2000, the total cost of securities and 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, 2000, are as follows (000):
<CAPTION>
TURNER SHORT DURATION
TURNER TURNER TURNER TURNER TURNER GOVERNMENT FUNDS- TURNER CORE
LARGE CAP GROWTH MIDCAP SMALL CAP MICRO CAP TURNER TURNER --------------------- HIGH QUALITY
GROWTH EQUITY GROWTH GROWTH GROWTH TOP 20 TECHNOLOGY THREE YEAR ONE YEAR FIXED INCOME
EQUITY FUND FUND FUND FUND FUND FUND FUND PORTFOLIO PORTFOLIO FUND
=============================================================================================================
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Aggregate gross
unrealized
appreciation 7,149 70,532 146,270 149,993 36,348 8,208 2,915 76 22 114
Aggregate gross
unrealized
depreciation (781) (9,376) (45,950) (38,014) (9,422) (6,070) (9,043) (313) (19) (89)
---------------------------------------------------------------------------------------------------------------------------------
Net unrealized
appreciation
(depreciation) 6,368 61,156 100,320 111,979 26,926 2,138 (6,128) (237) 3 25
=================================================================================================================================
</TABLE>
62 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
(Unaudited)
--------------------------------------------------------------------------------
7. IN-KIND TRANSFERS OF SECURITIES:
During the period ended September 30, 1999, the Growth Equity Fund issued
273,210 shares of beneficial interest in exchange for portfolio assets from
certain accounts managed by Turner Investment Partners, Inc., at their then
current value of $4,270,277.
During the period ended September 30, 1999, the Three Year Portfolio issued
1,925,533 shares of beneficial interest in exchange for portfolio assets from
certain accounts managed by Turner Investment Partners, Inc., at their then
current value of $18,947,249.
During the period ended September 30, 1999, the Core HighQuality Fixed Income
Fund issued 1,012,284 shares of beneficial interest in exchange for portfolio
assets from certain accounts managed by Turner Investment Partners, Inc., at
their then current value of $10,120,317 which includes $260,485 of net
unrealized loss.
During the period ended March 31, 2000, the Growth Equity Fund issued 757,860
shares of beneficial interest in exchange for portfolio securities from certain
accounts managed by Turner Investment Partners, Inc., at their then current
value of $14,278,088.
8. LINE OF CREDIT:
Pursuant to a credit agreement dated May 21, 1997, First Union National Bank
provides an uncommitted line of credit to the Large Cap Growth Equity Fund, the
Growth Equity Fund, the Midcap Growth Fund and the Small Cap Growth Fund,
Portfolios of the TIP Funds, for short-term or emergency purposes, such as
funding shareholder redemptions. These loans are for the respective benefit of
and repayable from the respective assets of each Fund. The aggregate principal
amount of all borrowings may not exceed 10% of each Fund, net assets and the
maximum principal amount that the Bank will loan is $10,000,000. Borrowings
under the line of credit are charged interest based on the federal funds rate
determined at the date of borrowing and are secured by investment securities of
the borrowing portfolio. Each Fund is individually, and not jointly, liable for
its particular advances under the line. There is no commitment fee on the unused
portion of the line of credit. There were no borrowings under the line of credit
during the period ended March 31, 2000.
9. SUBSEQUENT EVENTS:
On February 25, 2000, the Board of Trustees of the TIP Funds approved two (2)
tax-free reorganizations:
[BULLET] Turner Large Cap Growth Equity Fund (the "Large Cap Fund") under which
all of the assets and liabilities of the Large Cap Fund would be
transferred to the Mercury Asset Management Funds, Inc., a Maryland
corporation. A Shareholder meeting to approve this reorganization is
scheduled for June 9, 2000.
[BULLET] Turner Growth Equity Fund (the "Growth Fund") under which all of the
assets and liabilities of the Growth Fund would be transferred to the
Vanguard Fenway Funds, a Delaware business trust. A Shareholder meeting
to approve this reorganization is scheduled for May 22, 2000.
TURNER FUNDS 2000 SEMIANNUAL REPORT | 63
<PAGE>
--------------------------------------------------------------------------------
TURNER FUNDS, PORTFOLIOS OF THE TIP FUNDS
TIP FUNDS TRUSTEES
RICHARD A. HOCKER
Chief Investment Officer and Senior Vice President
Penn Capital Management Co., Inc.
MICHAEL E. JONES
Senior Vice President, Investment Adviser, and Portfolio Manager
Clover Capital Management, Inc.
ALFRED C. SALVATO
Treasurer
Thomas Jefferson University Health Care Pension Fund
JANET F. SANSONE
Retired, Corporate Vice President, Human Resources
Frontier Corporation
ROBERT E. TURNER
Chairman and Chief Investment Officer
Turner Investment Partners, Inc.
DR. JOHN T. WHOLIHAN
Professor and Dean, College of Business
Loyola Marymount University
INVESTMENT ADVISER
TURNER INVESTMENT PARTNERS, INC.
Berwyn, Pennsylvania
DISTRIBUTOR
SEI INVESTMENTS DISTRIBUTION CO.
Oaks, Pennsylvania
ADMINISTRATOR
SEI INVESTMENTS MUTUAL FUNDS SERVICES
Oaks, Pennsylvania
LEGAL COUNSEL
MORGAN, LEWIS & BOCKIUS LLP
Philadelphia
INDEPENDENT AUDITORS
ERNST & YOUNG LLP
Philadelphia
THIS REPORT WAS PREPARED FOR SHAREHOLDERS OF THE TURNER FUNDS, PORTFOLIOS OF THE
TIP FUNDS. IT MAY BE DISTRIBUTED TO OTHERS ONLY IF PRECEDED OR ACCOMPANIED BY A
TURNER FUNDS' PROSPECTUS, WHICH CONTAINS DETAILED INFORMATION. ALL TURNER FUNDS
ARE OFFERED BY PROSPECTUS ONLY.
64 | TURNER FUNDS 2000 SEMIANNUAL REPORT
<PAGE>
[Graphic omitted]
TURNER
------
FUNDS
---------------------
Turner Funds
1235 Westlakes Drive
Berwyn, Pennsylvania 19312
Telephone: 1-800-224-6312
Email:[email protected]
Web Site:www.turner-invest.com
TUR-F-027-01
