THE ADVISORS' INNER CIRCLE FUND
TURNER GROWTH EQUITY FUND
TURNER SMALL CAP FUND
SEMI-ANNUAL REPORT TO SHAREHOLDERS
AS OF APRIL 30, 1996
THIS INFORMATION MUST BE PRECEDED OR ACCOMPANIED
BY A CURRENT PROSPECTUS FOR EACH FUND DESCRIBED.
<PAGE>
TURNER FUNDS LOGO
[GRAPHIC OMITTED]
TURNER GROWTH EQUITY FUND
INVESTMENT ADVISOR'S REPORT TO SHAREHOLDERS
To Our Shareholders:
The past year presented a very favorable environment for equities, with U.S.
stocks extending their rally that had begun in December 1994. Underpinning the
market's continued advance was a favorable climate of moderate economic growth,
rising corporate profits, and low inflation. Even a persistent increase in
interest rates beginning in mid-February and continuing through the end of April
could not stall the market's climb.
For the twelve-month period ended April 30, 1996, the Turner Growth Equity Fund
posted a return of 32.49% compared to 30.27% for the S&P 500. Since the Fund's
inception on March 11, 1992, the annualized total return was 14.08% versus
15.23% for the S&P 500.
The performance of the Fund during the past year was hampered early in the
period before generating a strong comeback more recently. The following elements
contributed to the successful results produced by the Fund since February:
(BULLET) Our investment process was generally effective in identifying
companies like Safeway, HBO & Company, and Harley-Davidson that
reported favorable, and often exceptionally strong, first quarter 1996
earnings growth.
(BULLET) In the search for companies with prospects for continued profit
increases and reasonable stock valuations, investors redirected their
attention from large cap, blue chips to the broader mid cap and small
cap markets where your portfolio has a strategic commitment. Examples
of such holdings that performed well include PetSmart, Corporate
Express, and Paychex.
(BULLET) Surprisingly strong earnings reports from many technology companies
breathed life into the sector, and investors realized that the poor
performance of tech stocks from November through mid-January had been
greatly overdone. Our careful selection of individual companies such
as Intel, Microsoft, Stratacom, and Cisco allowed us to generate very
favorable results as the sector recovered.
Thank you for your continued support. The recent investment climate has favored
active stock selection, growth-style investing, and medium and small cap issues.
We believe that these factors will continue to influence the equity markets and
contribute to an extended period of solid performance for your portfolio.
Sincerely,
(/S/ ROBERT E. TURNER)
Robert E. Turner
Chairman and Chief Investment Officer
Turner Investment Partners, Inc.
<PAGE>
TURNER FUNDS LOGO
[GRAPHIC OMITTED]
TURNER SMALL CAP FUND
INVESTMENT ADVISOR'S REPORT TO SHAREHOLDERS
To Our Shareholders:
The past year presented a very favorable environment for equities, with U.S.
stocks extending their rally that had begun in December 1994. Underpinning the
market's continued advance was a favorable blend of moderate economic growth,
rising corporate profits, and low inflation. Even a persistent increase in
interest rates beginning in mid-February and continuing through the end of April
could not stall the market's climb. In the search for companies with prospects
for continued profit increases and reasonable stock valuations, investors began
in February to redirect their attention from large cap, blue chips to the
broader mid cap and small cap markets. As a result, small cap stocks
outperformed their larger cap counterparts during the period.
For the twelve-month period ended April 30, 1996, the Turner Small Cap Fund
posted a return of 92.55%, well in excess of the 33.46% return for the Russell
2500 Index of smaller-company stocks. Since the Fund's inception on February 7,
1994, the annualized total return has been 46.00% versus 16.89% for the Russell
2500.
Our sector-neutral approach, which ensures that the Fund weightings in each
often broad economic sectors are kept in line with the market, enabled us to
generate strong returns with less exposure to technology-related stocks than
many other small cap growth funds. The exceptional performance for the Fund was
fueled by the continued strength shown in the earnings dynamics of our holdings.
According to the Frank Russell Company, cumulative earnings for the companies in
the Fund's portfolio are projected to increase 32.7% over the next twelve months
compared to 20.4% for the Russell 2500 and 12.8% for the S&P 500. Careful stock
selection also enabled the Fund to generate favorable results from sectors such
as Utilities and Financial Services that were weak overall.
In the midst of the current economic environment of moderate growth and low
inflation, we continue to uncover many exciting investment opportunities among
smaller companies with dynamic products and services, entrepreneurial and
motivated managements, and focused business plans. We believe that the recent
small cap rally is sustainable and can continue for an extended period.
We appreciate your loyal support and confidence that you have placed in us.
Sincerely,
(/S/ WILLIAM H. CHENOWETH)
William H. Chenoweth
Senior Portfolio Manager
Turner Investment Partners, Inc.
<PAGE>
STATEMENT OF NET ASSETS THE ADVISORS' INNER CIRCLE FUND
April 30, 1996 Unaudited
Market
Value
TURNER GROWTH EQUITY FUND Shares (000)
- -------------------------------------------------
COMMON STOCK (99.8%)
AGRICULTURE (1.3%)
Dole Food 30,300 $1,212
------
AIR TRANSPORTATION (0.6%)
America West Airlines* 26,240 551
------
APPAREL/TEXTILES (1.0%)
Tommy Hilfiger* 21,150 962
------
AUTOMOTIVE (1.1%)
Harley-Davidson 22,600 997
------
BANKS (1.3%)
NationsBank 15,000 1,196
------
BEAUTY PRODUCTS (2.1%)
Alberto-Culver, Cl B 12,550 475
Procter & Gamble 17,190 1,453
------
1,928
------
BROADCASTING, NEWSPAPERS &
ADVERTISING (1.4%)
Cox Communications* 42,350 868
Tele-Communications
International, Cl A 23,720 483
------
1,351
------
CHEMICALS (4.7%)
Eli Lilly 19,800 1,168
E.I. du Pont de Nemours 8,760 704
Hercules 11,530 698
Morton International 24,205 856
Union Carbide 21,900 996
------
4,422
------
COMMUNICATIONS EQUIPMENT (2.3%)
Andrew* 27,945 1,341
Ultratech Stepper* 32,190 841
------
2,182
------
COMPUTERS & SERVICES (16.7%)
Adaptec 11,040 635
Bay Networks* 28,000 882
Cisco Systems* 32,000 1,660
Computer Associates
International 4,500 330
DST Systems 16,740 615
First Data 18,400 1,398
Fore Systems* 8,500 672
HBO 7,930 942
Hewlett Packard 7,610 806
IBM 8,090 870
Macromedia* 10,150 383
Microsoft 10,140 1,150
Netscape Communications 16,940 1,033
Newbridge Networks 14,210 915
Oracle Systems 40,200 1,357
Market
Value
Shares (000)
- ----------------------------------------------------
Sun Microsystems 14,340 $ 778
UUNET Technologies 19,930 1,143
-------
15,569
-------
DRUGS (9.8%)
Amgen* 26,830 1,543
Baxter International 27,280 1,207
Boston Scientific* 22,290 961
Caremark International* 44,460 1,228
Johnson & Johnson 18,890 1,747
Merck 21,300 1,289
Pfizer 17,500 1,205
-------
9,180
-------
ELECTRICAL SERVICES (0.7%)
AES 29,980 682
-------
ENTERTAINMENT (1.0%)
Walt Disney 15,050 933
-------
ENVIRONMENTAL SERVICES (0.8%)
WMX Technologies 20,800 723
-------
FINANCIAL SERVICES (1.4%)
Morgan Stanley Group 25,830 1,298
-------
FOOD, BEVERAGE & TOBACCO (8.3%)
Campbell Soup 20,840 1,303
Coca Cola 15,230 1,241
CPC International 6,900 477
IBP 30,000 803
PepsiCo 22,660 1,439
Philip Morris 10,860 979
Robert Mondavi* 16,500 454
Sara Lee 14,800 459
Starbucks 22,870 620
-------
7,775
-------
HOUSEHOLD PRODUCTS (1.4%)
Gillette 24,110 1,302
-------
INSURANCE (4.7%)
American International Group 10,535 963
Jefferson-Pilot 13,210 697
Oxford Health Plan* 16,300 823
Total Renal Care Holdings* 16,200 620
United Healthcare 21,750 1,272
-------
4,375
-------
MACHINERY (1.9%)
Harnischfeger Industries 20,830 844
Smith International 30,000 893
-------
1,737
-------
MEASURING DEVICES (1.0%)
Cognex* 33,620 899
-------
<PAGE>
STATEMENT OF NET ASSETS THE ADVISORS' INNER CIRCLE FUND
April 30, 1996 Unaudited
Market
TURNER GROWTH EQUITY FUND Value
(Concluded) Shares (000)
- -----------------------------------------------------------
MEDICAL PRODUCTS & SERVICES (1.4%)
Medtronic 24,500 $ 1,302
-------
MEDICAL PRODUCTS & SERVICES (2.2%)
Healthsouth Rehabilitation* 12,700 471
Phycor* 16,900 832
Renal Treatment Centers* 26,070 756
-------
2,059
-------
MISCELLANEOUS CONSUMER SERVICES (1.9%)
Accustaff 16,000 476
Service International 23,700 1,259
-------
1,735
-------
PAPER & PAPER PRODUCTS (1.0%)
Kimberly-Clark 12,656 919
-------
PETROLEUM & FUEL PRODUCTS (1.2%)
Chesapeake Energy 15,390 1,089
-------
PROFESSIONAL SERVICES (2.1%)
Gartner Group* 26,330 902
Paychex 15,500 1,050
-------
1,952
-------
RETAIL (11.6%)
Borders Group 14,650 469
Boston Chicken* 27,000 864
Corporate Express* 24,050 899
Federated Department Stores* 28,320 945
Gap 30,000 904
Home Depot 17,680 838
McDonald's 19,800 948
Nordstrom 21,600 1,099
Pep Boys (Manny Moe & Jack) 26,770 893
Petsmart* 18,670 828
Rite Aid 32,660 967
Safeway 33,380 1,127
-------
10,781
-------
RUBBER & PLASTIC (1.0%)
Nike 10,650 932
-------
SEMI-CONDUCTORS/INSTRUMENTS (3.5%)
Applied Materials* 23,950 958
Atmel 18,630 745
Intel 12,670 858
LSI Logic 19,200 691
-------
3,252
-------
STEEL & STEEL WORKS (1.3%)
Engelhard 50,000 1,256
-------
TELEPHONES & TELECOMMUNICATION (7.2%)
Airtouch Communications 22,880 715
America Online 15,750 1,008
Cascade Communications* 13,312 1,335
Shares/Face Market
Amount Value
(000) (000)
- ---------------------------------------------------------
Lucent Technologies* 23,570 $ 828
Pairgain Technologies* 8,920 852
Premisys Communications* 17,490 765
Telephone & Data Systems 11,090 516
U.S. West Media Group* 36,950 720
-------
6,739
-------
WHOLESALE (1.9%)
Officemax* 40,000 1,050
Sigma Aldrich 14,120 762
-------
1,812
-------
TOTAL COMMON STOCK
(Cost $78,020,193) 93,102
-------
REPURCHASE AGREEMENT (1.3%)
Lehman Brothers 5.040%, dated
04/30/96, matures 05/01/96,
repurchase price $1,280,079
(collateralized by U.S. Treasury
Bond, par value $899,957,
11.250%, matures 02/15/15:
market value $1,322,706) $1,280 1,280
-------
TOTAL REPURCHASE AGREEMENT
(Cost $1,280,079) 1,280
-------
TOTAL INVESTMENTS (101.1%)
(Cost $79,300,272) 94,382
-------
OTHER ASSETS AND LIABILITIES (-1.1%)
Other Assets and Liabilities, Net (1,073)
-------
NET ASSETS:
Portfolio shares (unlimited authorization,
no par value) based on 5,896,495
outstanding shares of outstanding
shares of beneficial interest 61,669
Distributions in excess of
net investment income (27)
Accumulated net realized gain on
investments 16,585
Net unrealized appreciation on
investments 15,082
-------
TOTAL NET ASSETS (100.0%) $93,309
=======
Net Asset Value, Offering Price and
Redemption Price Per Share $ 15.82
=======
* NON-INCOME PRODUCING SECURITY
CL-CLASS
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF NET ASSETS THE ADVISORS' INNER CIRCLE FUND
April 30, 1996 Unaudited
Market
Value
TURNER SMALL CAP FUND Shares (000)
- ------------------------------------------------------
COMMON STOCK (92.6%)
AIR TRANSPORTATION (1.6%)
America West Airlines* 11,778 $ 247
Midwest Express Holdings* 6,902 227
------
474
------
APPAREL/TEXTILES (2.2%)
Mossimo* 5,500 209
Nautica Enterprises* 4,743 221
Tommy Hilfiger* 4,435 202
------
632
------
AUTOMOTIVE (0.6%)
Penske Motorsports * 5,680 172
------
BEAUTY PRODUCTS (0.6%)
Alberto-Culver, Cl B 4,775 181
------
BROADCASTING, NEWSPAPERS &
ADVERTISING (2.0%)
Eagle River Interactive* 11,520 248
International Family
Entertainment* 9,691 148
TCA Cable Television 5,779 169
------
565
------
BUILDING & CONSTRUCTION (0.8%)
Jacobs Engineering Group 7,864 218
------
CHEMICALS (1.0%)
GTS Duratek * 9,300 161
International Specialty Products 10,745 134
------
295
------
COMMUNICATIONS EQUIPMENT (2.7%)
Affinity Technology* 9,050 213
Omnipoint 6,403 192
Picturetel* 5,754 196
Ultratech Stepper* 6,609 173
------
774
------
COMPUTERS & SERVICES (20.7%)
Arbor Software* 3,574 275
Axent Technologies* 10,700 193
Data Processing Resources 8,519 215
Forte Software* 4,550 281
HNC Software* 7,756 289
I2 Technologies* 4,150 169
Lanvision Systems* 12,800 235
Macromedia* 5,515 208
Medic Computer Systems* 2,270 212
National Data 5,044 178
Objective Systems Integrator* 6,069 270
PMT Services* 8,248 238
Raptor Systems* 5,264 174
Red Brick Systems* 5,611 332
Sapient * 5,800 306
Market
Value
Shares (000)
- ------------------------------------------------------
Security Dynamics Technology* 3,313 $ 280
Shiva* 4,498 269
Spyglass* 3,680 107
Sterling Commerce* 8,470 296
Sykes Enterprises* 3,550 126
Transaction Systems Architects* 4,470 239
Transition Systems* 10,400 252
UUNET Technologies 4,237 243
Verifone* 5,242 220
Verity* 3,100 107
Xylan 3,900 250
------
5,964
------
CONCRETE & MINERAL PRODUCTS (0.6%)
Ferro 6,400 178
------
DRUGS (1.8%)
Jones Medical Industries 4,050 212
Parexel International 6,365 313
------
525
------
ENERGY & POWER (0.7%)
Calenergy* 7,286 189
------
ENTERTAINMENT (0.7%)
Regal Cinemas* 5,150 210
------
FINANCIAL SERVICES (4.3%)
Aames Financial 3,500 154
Contifinancial* 7,867 251
First USA Paymentech* 6,250 272
Imperial Credit* 10,662 277
Money Store 9,871 249
------
1,203
------
FOOD, BEVERAGE & TOBACCO (0.9%)
Canandaigua Wine, Cl A* 3,850 117
Robert Mondavi* 5,266 145
------
262
------
GAS/NATURAL GAS (0.6%)
USX-Delhi Group 12,900 179
------
HOUSEHOLD PRODUCTS (0.5%)
Blount International 4,800 149
------
INSURANCE (6.7%)
CMAC Investment 4,458 250
Compdent* 6,699 296
Executive Risk 8,320 258
Housecall Medical Resources* 9,650 210
Meadowbrook Insurance Group 8,310 259
Total Renal Care Holdings* 6,357 243
United Dental Care* 5,435 213
United Insurance* 9,450 200
------
1,929
------
<PAGE>
STATEMENT OF NET ASSETS THE ADVISORS' INNER CIRCLE FUND
April 30, 1996 Unaudited
Market
TURNER SMALL CAP FUND Value
(Continued) Shares (000)
- ---------------------------------------------------------
MACHINERY (1.2%)
Greenfield Industries 4,250 $ 161
Smith International 6,687 199
------
360
------
MEASURING DEVICES (2.5%)
Cognex* 6,943 186
Fore Systems* 3,913 309
Waters 8,403 234
------
729
------
MEDICAL PRODUCTS & SERVICES (2.1%)
Heartport* 6,250 223
National Surgery Centers* 5,919 197
Optical Sensors* 13,169 173
------
593
------
MEDICAL PRODUCTS & SERVICES (0.9%)
Orthodontic Centers of America* 6,421 254
------
MISCELLANEOUS BUSINESS SERVICES (2.1%)
Concord EFS* 8,746 293
Issac Fair 3,954 168
Sitel 2,681 148
------
609
------
MISCELLANEOUS CONSUMER SERVICES (2.5%)
ABR Information Services* 4,668 292
Accustaff 6,900 205
Career Horizons* 6,700 236
------
733
------
MISCELLANEOUS MANUFACTURING (0.8%)
Belden 7,306 217
------
PAPER & PAPER PRODUCTS (2.2%)
Buckeye Cellulose 8,042 180
Fort Howard 8,503 187
NUCO2* 9,634 263
------
630
------
PETROLEUM & FUEL PRODUCTS (3.4%)
BJ Services* 5,931 228
Chesapeake Energy 3,440 243
Falcon Drilling* 9,719 261
Nabors Industries* 15,839 244
------
976
------
PROFESSIONAL SERVICES (2.5%)
Apollo Group, Cl A* 4,149 183
Equity International* 6,950 199
Phymatrix 5,960 113
RTW* 5,678 227
------
722
------
RAILROADS (0.9%)
Wisconsin Central Transportation* 3,087 261
------
Market
Value
Shares (000)
- --------------------------------------------------------
RETAIL (4.4%)
Baby Superstore* 4,089 $ 186
Corporate Express* 5,755 215
Petsmart* 5,064 225
Planet Hollywood International* 6,600 167
Sunglass Hut International* 7,104 208
Vons * 5,450 174
Zale* 4,224 79
------
1,254
------
RUBBER & PLASTIC (2.3%)
Aptargroup 5,539 208
Just For Feet* 4,975 238
Sealed Air* 6,393 226
------
672
------
SEMI-CONDUCTORS/INSTRUMENTS (1.0%)
Silicon Valley Group* 6,099 163
Trident International* 7,200 126
------
289
------
SPECIALTY MACHINERY (0.7%)
U.S. Filter* 6,610 203
------
TECHNOLOGY, GENERAL (0.7%)
Tel-Save Holdings* 12,300 206
------
TELEPHONES & TELECOMMUNICATION (7.3%)
Apac Teleservices* 2,386 185
Arch Communications Group* 8,842 210
Intelcom Group * 13,450 271
Intermedia Communications of
Florida* 10,063 249
LCI International 10,912 284
Pairgain Technologies* 2,506 239
Premiere Technologies* 4,880 184
Premisys Communications* 5,987 262
Trescom International* 11,377 219
------
2,103
------
TESTING LABORATORIES (1.0%)
Quintiles Transnational 3,758 275
------
WHOLESALE (5.1%)
Aspen Technology* 3,696 205
Checkfree* 13,300 256
Citrix Systems* 4,458 348
Officemax* 7,716 203
Physician Sales and Services 10,008 270
U.S. Office Products 5,026 181
------
1,463
------
TOTAL COMMON STOCK
(Cost $20,256,481) 26,648
------
<PAGE>
STATEMENT OF NET ASSETS THE ADVISORS' INNER CIRCLE FUND
April 30, 1996 Unaudited
Face Market
TURNER SMALL CAP FUND Amount Value
(Concluded) (000) (000)
- --------------------------------------------------------
REPURCHASE AGREEMENT (12.1%)
Lehman Brothers 5.040%, dated
04/30/96, matures 05/01/96,
repurchase price $3,489,384
(collateralized by U.S. Treasury
Bond, par value $2,453,206,
11.250%, matures 02/15/15:
market value $3,605,580) $3,489 $ 3,489
-------
TOTAL REPURCHASE AGREEMENT
(Cost $3,489,407) 3,489
-------
TOTAL INVESTMENTS (104.7%)
(Cost $23,745,888) 30,137
-------
OTHER ASSETS AND LIABILITIES (-4.7%)
Other Assets and Liabilities, Net (1,345)
-------
Market
Value
(000)
- --------------------------------------------------------
NET ASSETS:
Portfolio shares (unlimited authorization,
no par value) based on 1,314,634
outstanding shares of beneficial
interest $19,086
Distributions in excess of
net investment income (78)
Accumulated net realized gain on
investments 3,393
Net unrealized appreciation on
investments 6,391
-------
TOTAL NET ASSETS (100.0%) $28,792
=======
Net Asset Value, Offering Price and
Redemption Price Per Share $ 21.90
=======
* NON-INCOME PRODUCING SECURITY
CL-CLASS
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
<PAGE>
STATEMENT OF OPERATIONS ADVISORS' INNER CIRCLE FUND
For the six-month period ended April 30,1996 Unaudited
TURNER TURNER
GROWTH EQUITY SMALL CAP
FUND FUND
------------- ----------
11/01/95 11/01/95
TO 4/30/96 TO 4/30/96
(000) (000)
- --------------------------------------------------------------------------------
Investment Income:
Dividends ........................................... $ 613 $ 7
Interest ............................................ 22 26
- --------------------------------------------------------------------------------
Total Investment Income ........................... 635 33
- --------------------------------------------------------------------------------
Expenses:
Administrator Fees .................................. 92 37
Investment Advisory Fees ............................ 381 82
Investment Advisory Fee Waiver and Reimbursements ... -- (44)
Custodian Fees ...................................... 5 4
Transfer Agent Fees ................................. 5 6
Professional Fees ................................... 10 6
Trustee Fees ........................................ 3 3
Registration Fees ................................... 18 3
Pricing Fees ........................................ 1 --
Printing Expense .................................... 12 3
Amortization of Deferred Organizational Costs ....... 2 1
Insurance and Other Fees ............................ 17 2
- --------------------------------------------------------------------------------
Total Expenses .................................... 546 103
- --------------------------------------------------------------------------------
Directed Brokerage ................................ (56) --
- --------------------------------------------------------------------------------
Net Expenses .................................... 490 103
- --------------------------------------------------------------------------------
Net Investment Income (Loss) .................. 145 (70)
- --------------------------------------------------------------------------------
Net Realized Gain From Securities Sold .............. 16,644 3,396
Net Unrealized Appreciation (Depreciation)
of Investment Securities .......................... (5,366) 3,387
- --------------------------------------------------------------------------------
Net Realized and Unrealized Gain on Investments ... 11,278 6,783
- --------------------------------------------------------------------------------
Net Increase in Net Assets Resulting From Operations $11,423 $6,713
================================================================================
Amounts designated as "--" are either $0 or have been rounded to $0.
The accompanying notes are an integral part of the financial statements.
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS THE ADVISORS' INNER CIRCLE FUND
For the six-month period ended April 30,1996 (Unaudited) and the periods ended
October 31.
<TABLE>
<CAPTION>
TURNER TURNER
GROWTH EQUITY SMALL CAP
FUND FUND
--------------------------- --------------------------
11/01/95 11/01/94 11/01/95 11/01/94
TO 4/30/96 TO 10/31/95 TO 4/30/96 TO 10/31/95
(000) (000) (000) (000)
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Activities:
Net Investment Income (Loss) ....................... $ 145 $ 935 $ (70) $ (56)
Net Realized Gain on Securities Sold ............... 16,644 11,270 3,396 1,005
Net Unrealized Appreciation (Depreciation) of
Investment Securities ............................ (5,366) 11,773 3,387 2,573
- ----------------------------------------------------------------------------------------------------------------------
Net Increase in Net Assets Resulting
from Operations ................................ 11,423 23,978 6,713 3,522
- ----------------------------------------------------------------------------------------------------------------------
Distributions to Shareholders:
Net Investment Income .............................. (132) (1,022) -- --
Realized Capital Gain .............................. (5,806) -- (925) --
- ----------------------------------------------------------------------------------------------------------------------
Total Distributions .............................. (5,938) (1,022) (925) --
- ----------------------------------------------------------------------------------------------------------------------
Capital Share Transactions:
Shares Issued ...................................... 8,785 33,135 15,479 5,250
Shares Issued in Lieu of Cash Distributions ........ 5,650 909 904 --
Shares Redeemed .................................... (42,430) (54,140) (6,451) (506)
- ----------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets From
Capital Share Transactions ..................... (27,995) (20,096) 9,932 4,744
- ----------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets......... (22,510) 2,860 15,720 8,266
- ----------------------------------------------------------------------------------------------------------------------
Net Assets:
Beginning of Period .............................. 115,819 112,959 13,072 4,806
- ----------------------------------------------------------------------------------------------------------------------
End of Period .................................... $ 93,309 $115,819 $28,792 $13,072
======================================================================================================================
Shares Issued and Redeemed:
Issued ............................................. 587 2,600 813 407
Issued in Lieu of Cash Distributions ............... 393 70 55 --
Redeemed ........................................... (2,819) (3,998) (366) (35)
- ----------------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Share Transactions ....... (1,839) (1,328) 502 372
- ----------------------------------------------------------------------------------------------------------------------
<FN>
Amounts designated as "--" are either $0 or have been rounded to $0.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS THE ADVISORS' INNER CIRCLE FUND
For the six-month period
ended April 30, 1996 (Unaudited) and the periods ended October 31.
For a Share Outstanding Throughout each Period
<TABLE>
<CAPTION>
Net Realized and Net
Asset Net Unrealized Distributions Distributions Asset
Value Investment Gains or from Net from Value
Beginning Income (Losses) on Investment Capital End
of Period (Loss) Securities Income Gains of Period Total Return(3)
--------- ---------- ------------ ------------- ------------- --------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
- -------------------------
TURNER GROWTH EQUITY FUND
- -------------------------
1996 $14.97 0.02 1.69 (0.02) (0.84) $15.82 12.04 %
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)%
1993 $10.40 0.09 2.72 (0.09) -- $13.12 27.08 %
1992(1) $10.00 0.03 0.40 (0.03) -- $10.40 6.95 %
- ---------------------
TURNER SMALL CAP FUND
- ---------------------
1996 $16.08 (0.05) 6.91 -- (1.04) $21.90 44.77 %
1995 $10.90 (0.06) 5.24 -- -- $16.08 47.52 %
1994(2) $10.00 (0.02) 0.92 -- -- $10.90 12.35 %
</TABLE>
<TABLE>
<CAPTION>
Ratio of Net
Ratio of Expenses Income (Loss) to
Net Ratio of Net to Average Average
Assets Ratio Income Net Assets Net Assets
End of Expenses (Loss) (Excluding (Excluding Portfolio Average
of Period to Average to Average Waivers and Waivers and Turnover Commission
(000) Net Assets Net Assets Reimbursements) Reimbursements) Rate Rate(4)
--------- ----------- ------------ ------------------ --------------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
- -------------------------
TURNER GROWTH EQUITY FUND
- -------------------------
1996 $ 93,309 1.08%*(DAGGER) 0.17%*(DAGGER) 1.08%*(DAGGER) 0.17%*(DAGGER) 85.78% $0.06
1995 $115,819 1.03%(DAGGER) 0.69%(DAGGER) 1.03%(DAGGER) 0.69%(DAGGER) 177.86% --
1994 $112,959 0.95% 0.86% 1.08% 0.73% 164.81% --
1993 $ 53,327 1.00% 0.80% 1.52% 0.28% 88.35% --
1992(1)$ 7,781 1.44%* 0.73%* 2.55%* (0.38)%* 205.00% --
- ---------------------
TURNER SMALL CAP FUND
- ---------------------
1996 $ 28,792 1.25%* (0.85)%* 1.79%* (1.39)%* 112.10% $0.06
1995 $ 13,072 1.25% (0.68)% 2.39% (1.82)% 183.49% --
1994(2)$ 4,806 1.09%* (0.27)%* 4.32%* (3.50)%* 173.92% --
<FN>
* Annualized
(1) The Turner Growth Equity Fund commenced operations on March 11, 1992.
(2) The Turner Small Cap Fund commenced operations on February 7, 1994.
(3) Returns are for the period indicated and have not been annualized.
(4) Average commission rate paid per share for the security purchases and
sales made during the period.
(DAGGER) The Ratios of Expenses to Average Net Assets (with and without
waivers) and Net Income to Average Net Assets (with and without
waivers) do not reflect the Advisor's use of arrangements whereby
certain broker-dealers have agreed to pay certain expenses of the
Turner Growth Equity Fund in return for the direction of a percentage
of the Fund's brokerage transactions. As a result of these
arrangements, the Ratios of Expenses to Average Net Assets (with and
without waivers) and Net Income to Average Net Assets (with and
without waivers) were 0.94% and 0.78%, and 0.97% and 0.28% for the
year ended 10/31/95 and the period ended 4/30/96, respectively.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS THE ADVISORS' INNER CIRCLE FUND
April 30, 1996 Unaudited
1. ORGANIZATION:
THE ADVISORS' INNER CIRCLE FUND (the "Trust") is organized as a Massachusetts
business trust under a Declaration of Trust dated July 18, 1991. The Trust is
registered under the Investment Company Act of 1940, as amended, as a
diversified open-end management investment company with nine portfolios. The
financial statements included herein present those of the Turner Growth Equity
Fund and the Turner Small Cap Fund (the "Funds"). The financial statements of
the remaining portfolios are presented separately. The assets of each portfolio
are segregated, and a Shareholder's interest is limited to the portfolio in
which shares are held. The Funds' prospectus provides a description of each
Fund's investment objectives, policies and strategies.
On April 30, 1996, pursuant to a tax-free reorgani-zation approved by the
Advisors' Inner Circle Turner Small Cap and the Advisors' Inner Circle Turner
Growth Equity Fund shareholders on April 3, 1996, all of the assets and
liabilities of the portfolios were transferred to the Turner Small Cap Portfolio
and Turner Growth Equity Portfolio, both portfolios of the Turner Funds, a
Massachusetts' business trust (the Turner Trust). In conjunction with the
reorganization, the Funds have changed their fiscal year end from October 31,
1996 to September 30, 1996.
2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of the significant accounting policies followed by
the Funds.
SECURITY VALUATION -- Investments in equity securities which are traded on
a national exchange (or reported on the NASDAQ national market system) are
stated at the last quoted sales price if readily available for such equity
securities on each business day; other equity securities traded in the
over-the-counter market and listed equity securities for which no sale was
reported on that date are stated at the last quoted bid price. Debt
obligations exceeding sixty days to maturity for which market quotations
are readily available are valued at the most recently quoted bid price.
Debt obligations with sixty days or less remaining until maturity may be
valued at their amortized cost, which approximates market value.
FEDERAL INCOME TAXES -- It is each Fund's intention to qualify as a
regulated investment company by complying with the appropriate provisions
of the Internal Revenue Code of 1986, as amended. Accordingly, no provision
for Federal income taxes is required.
SECURITY TRANSACTIONS AND RELATED INCOME -- Security transactions are
accounted for on the date the security is purchased or sold (trade date).
Dividend income is recognized on the ex-dividend date, and interest income
is recognized on the accrual basis. Costs used in determining realized
gains and losses on the sales of investment securities are those of the
specific securities sold during the respective holding period.
NET ASSET VALUE PER SHARE -- The net asset value per share of each Fund is
calculated on each business day, by dividing the total value of the Fund's
assets, less liabilities, by the number of shares outstanding.
REPURCHASE AGREEMENTS -- Securities pledged as collateral for repurchase
agreements are held by the custodian bank until the respective agreements
mature. Provisions of the repurchase agreements ensure that the market
value of the collateral, including accrued interest thereon, is sufficient
in the event of default of the counterparty. If the counterparty defaults
and the value of the collateral declines or if the counterparty enters an
insolvency proceeding, realization of the collateral by the Funds may be
delayed or limited.
OTHER -- Expenses that are directly related to one of the Funds are charged
to that Fund. Other operating expenses of the Trust are prorated to the
Funds on the basis of relative daily net assets.
Distributions from net investment income are declared and paid to
Shareholders on a quarterly basis. Any net realized capital gains on sales
of securities are distributed to Shareholders at least annually.
Effective 1994, generally accepted accounting principles require that
differences between undistributed net investment income or accumulated net
realized capital gains for financial reporting and tax purposes, if
permanent, be reclassified to/from paid in capital. The Funds were not
affected by this standard.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that effect the reported amount of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reported period. Actual results could differ from those
estimates.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED) THE ADVISORS' INNER CIRCLE FUND
April 30, 1996 Unaudited
3. TRANSACTIONS WITH AFFILIATES:
Certain officers and trustees of the Trust are also officers of SEI Financial
Management Company (the "Administrator") and/or SEI Financial Services Company
(the "Distributor"). Such officers and trustees are paid no fees by the Trust
for serving as officers and trustees of the Trust.
4. ADMINISTRATION, SHAREHOLDER SERVICING AND DISTRIBUTION AGREEMENTS:
Prior to April 30, 1996, the Trust and the Administrator were parties to an
Administration Agreement dated November 14, 1991, as amended and restated on May
17, 1994, under which the Administrator provides management and administrative
services for an annual fee of .20% of the average daily net assets of each of
the Funds up to $75 million and .15% of such assets in excess of $75 million.
There is a minimum annual fee of $75,000 per Fund.
As of May 1, 1996, the Trust and the administrator signed a new agreement under
which the Administrator provides management and administrative services for an
annual fee of .12% of the average daily net assets of each of the Funds up to
$75 million, .10% on the next $75 million, .09% on the next $150 million, .08%
on the next $300 million and .075% of such assets in excess on $600 million.
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
November 14, 1991, as amended and restated August 8, 1994. The Distributor
receives no fees for its distribution services under this agreement.
5. INVESTMENT ADVISORY AND CUSTODIAN AGREEMENTS:
The Trust and Turner Investment Partners, Inc. (the "Adviser") are parties to an
Investment Advisory Agreement dated February 21, 1992 under which the Adviser
receives an annual fee equal to .75% of the average daily net assets of the
Growth Equity Fund and 1.00% of the average daily net assets of the Small Cap
Fund. The Adviser has voluntarily agreed for an indefinite period of time, to
waive all or a portion of its fees (and to reimburse the Fund's expenses) in
order to limit operating expenses to not more than 1.25% of the average daily
net assets of the Small Cap Portfolio. Fee waivers and expense reimbursements
are voluntary and may be terminated at any time.
CoreStates Bank, N.A. acts as custodian (the "Custodian") for the Funds. Fees of
the Custodian are being paid on the basis of the net assets of the Funds. The
Custodian plays no role in determining the investment policies of the Funds or
which securities are to be purchased or sold in the Funds.
6. INVESTMENT TRANSACTIONS:
The cost of security purchases and the proceeds from security sales, other than
short-term investments, for the six months ended April 30, 1996 are as follows:
TURNER TURNER
GROWTH EQUITY SMALL CAP
FUND FUND
(000) (000)
------------- ---------
Purchases
Government........... $ 0 $ 0
Other................ 87,774 26,149
Sales
Government........... $ 0 $ 0
Other................ 120,991 18,963
At April 30, 1996, the total cost of securities and the net realized gains or
losses on securities sold for Federal income tax purposes was not materially
different from amounts reported for financial reporting purposes. The aggregate
gross unrealized appreciation and depreciation for securities held by the Funds
at April 30, 1996, are as follows:
TURNER TURNER
GROWTH EQUITY SMALL CAP
FUND FUND
(000) (000)
------------- ---------
Aggregate gross unrealized
appreciation............ $16,590 $6,721
Aggregate gross unrealized
depreciation............ (1,508) (330)
-------- -------
Net unrealized appreciation.. $15,082 $6,391
======== =======
<PAGE>
NOTICE TO SHAREHOLDERS
OF
THE ADVISOR'S INNER CIRCLE FUND
UNAUDITED
Shareholder's Voting Results
- ----------------------------
There was a special meeting of shareholders on April 15, 1996 for the
shareholders of the Turner Growth Equity Fund and the Turner Small Cap Fund to
approve an Agreement and Plan of Reorganization and Liquidation between The
Advisor's Inner Circle Fund, on behalf of Turner Growth Equity Portfolio and
Turner Small Cap Portfolio, and the Turner Funds, on behalf of the Growth Equity
Fund and the Small Cap Fund.
Turner Growth Equity Fund
Proposal Shares Voted
-------- ------------
For 3,617,282
Against 0
Abstain 86,565
Turner Small Cap Fund
Proposal Shares Voted
-------- ------------
For 439,305
Against 0
Abstain 171
<PAGE>
TUR-F-017-05
