<PAGE>
ANNUAL REPORT
MAY 31, 1996
[LOGO]
WESTCORE EQUITY FUNDS
WESTCORE MIDCO GROWTH FUND
WESTCORE BLUE CHIP FUND
WESTCORE GROWTH AND INCOME FUND
WESTCORE SMALL-CAP OPPORTUNITY FUND
WESTCORE BOND FUNDS
WESTCORE LONG-TERM BOND FUND
WESTCORE INTERMEDIATE-TERM BOND FUND
WESTCORE COLORADO TAX-EXEMPT FUND
WESTCORE FUNDS ARE MANAGED BY
DENVER INVESTMENT ADVISORS LLC.
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LETTER FROM THE CHAIRMAN & PRESIDENT
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Dear Westcore Investor:
Enclosed is your copy of the Westcore Funds Annual Report for the fiscal
year ended May 31, 1996. Please take a moment to review the Fund Manager
Updates on each of the Funds. They are designed to give you more insight into
the performance of your Fund over the year. We hope you find them useful.
The year has been a notable one for the Funds. One of the most significant
events was the restructuring of the seven Westcore Funds into 100% no-load funds
- - no sales or redemption charges and no 12(b)-1 fees. This has been a positive
change for new investors as well as you, our existing shareholders, who no
longer have to pay a sales fee to invest in the Funds.
MARKET UPDATE
During the twelve months ending May 31, 1996, the stock market was driven
higher by a combination of steady economic growth, moderate inflation and strong
corporate earnings. During the later stages of this span, interest rates rose
as bond investors became concerned about the pace of economic growth. Stock
investors chose to see the bright side - few signs of inflation were apparent
and corporate profits were benefitting from strong demand in most industries.
However, despite the stock market's strong underlying fundamentals, some
worrisome signs were present, most notably the rush by investors to invest in
stocks. It seems likely that the stock market will experience some volatility
going forward and that stock selection will become a more important aspect of a
successful investment strategy.
The bond market experienced two cycles in the twelve months ending May 31,
1996. From May of 1995 to year-end '95, interest rates declined, the economy
was slowing, and the Federal Reserve was lowering interest rates. Investors
worried that the U.S. economy might be headed for a recession. From year-end to
May 31, 1996, everything reversed. Interest rates rose, the U.S. economy began
to grow more rapidly, the Fed stopped easing and the concern became too rapid
growth and a potential rise of inflation. The net result over the entire
period-rates on bonds with maturities over one year increased.
As always, Westcore Funds remain committed to providing you with the
highest level of investment management and service. If you have any questions
regarding this report or your investment with Westcore Funds, please call 1-800-
392-2673 or write us at 370 17th Street, Suite 2700, Denver, Colorado 80202.
Thank you for your continued confidence in Westcore Funds.
Sincerely,
/s/ Jack D. Henderson /s/ Kenneth V. Penland
Jack D. Henderson Kenneth V. Penland
Chairman President
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MANAGER'S FUND UPDATE
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TOP 10 HOLDINGS
- - HFS INC.
- - OXFORD HEALTH PLANS INC.
- - WORLDCOM INC.
- - CUC INTERNATIONAL INC.
- - INFINITY BROADCASTING CO. CLASS A
- - ORACLE SYSTEMS CORP.
- - 3COM CORP.
- - FIRST DATA CORP.
- - MFS COMMUNICATIONS INC.
- - DOLLAR GENERAL CORP.
* WESTCORE MIDCO GROWTH FUND PREVIOUSLY USED THE S&P 500 INDEX FOR ITS
BENCHMARK, WHICH RETURNED 28.39% FOR THE PAST 12 MONTHS. THE FUND IS NOW USING
THE S&P 400 MIDCAP INDEX BECAUSE WE BELIEVE IT MORE ACCURATELY COMPARES TO THE
HOLDINGS IN THE FUND.
MIDCO GROWTH FUND-
AVERAGE ANNUAL TOTAL RETURN
1 Year 5 Year Since incep.
38.62% 17.35% 16.69%
AVERAGE ANNUAL TOTAL RETURNS ARE FOR THE PERIOD ENDED 5/31/96 AND REFLECT
REINVESTMENT OF ALL DIVIDENDS, CAPITAL GAINS DISTRIBUTIONS, ALL FEE WAIVERS IN
EFFECT AND ANY EXPENSE REIMBURSEMENTS. WITHOUT THE FEE WAIVERS AND EXPENSE
REIMBURSEMENTS, THE TOTAL RETURN FIGURES WOULD HAVE BEEN LOWER. FUND INCEPTION
DATE IS 8/1/86. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FOR THE
PERIOD ENDED 6/30/96, THE FUND'S AVERAGE ANNUAL TOTAL RETURN FOR THE PAST 1
YEAR, 5 YEARS AND SINCE INCEPTION WAS 26.02%, 17.92% AND 16.23%, RESPECTIVELY.
MIDCO GROWTH FUND
Westcore MIDCO Growth Fund has shown exceptional performance during the
past 12 months ended May 31, 1996. It returned 38.62 percent, while its
benchmark, the S&P 400 Midcap index* returned 28.45 percent. The performance
advantage versus the index was driven by several factors. They include
outstanding individual holdings, significant weightings in the
technology/telecommunications and health care industries, and an underweighting
in interest-sensitive stocks.
MIDCO GROWTH FUND SECTOR PROFILE AS OF MAY 31, 1996
[PIE CHART]
In general, technology/telecommunications and health care were the best
performing sectors. There were several trends driving these sectors over the
past year. Strong earnings growth prospects for many
technology/telecommunications issues produced good stock returns. The passage of
a telecommunications bill by Congress, in particular, opened new markets to
several telecommunications companies in the Fund's portfolio. Also, in health
care, the drive for efficiency resulted in strong earnings growth for some HMOs
and physician management companies.
There were several very strong stocks during the year. Three were of
particular importance because of their weighting in the portfolio. U.S.
Robotics, a maker of computer modems, had outstanding performance, as it
returned more than 300 percent as of May 31, 1996. The company is experiencing
explosive growth as communication becomes an essential fixture in personal
computing. HBO & Co. returned over 150 percent for the year. This company is a
leader in hospital information systems which are in great demand because of the
drive to lower health care costs. Finally, HFS Inc. returned approximately 120
percent over this period. HFS's earnings have grown rapidly as a franchiser of
moderately-priced motels under the Ramada, Howard Johnson and Days Inn names.
The company's earnings growth also has been aided by an acquisition program into
the real estate industry, where HFS is now the franchiser for Century 21 Real
Estate and Coldwell Banker offices.
Todger Anderson, manager of Westcore MIDCO Growth Fund, expects future
stock price movements will be determined by earnings to a great degree due to
rising interest rates which he thinks have capped movements in price-earnings
ratios. He believes selectivity will be the key to performance.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WESTCORE MIDCO GROWTH
FUND, S&P 400 MIDCAP AND THE S&P 500 INDEX
[GRAPH]
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MANAGER'S FUND UPDATE
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BLUE CHIP FUND
Westcore Blue Chip Fund was up 30.48 percent for the past 12 months ended
May 31, 1996. The Fund's performance compares favorably with its benchmark, the
S&P 500 Index, which was up 28.39 percent.
Consumer stocks, including food, beverage, retail stores, and drug and
health care stocks, performed well over the course of the year. Consumer stocks
were driven by low unemployment, strong economic growth, and positive consumer
sentiment. Financial stocks also performed well as interest rates were
declining and inflation remained low.
BLUE CHIP FUND SECTOR PROFILE AS OF MAY 31, 1996
[PIE CHART]
Concerns of a recession subsided by year-end 1995, allowing for strong
consumer spending. Sears Roebuck & Co. was a solid holding for the 12 month
period. The stock performed well due to a better environment for retail stocks,
and management's continued success restructuring the company and turning around
its retail operations.
The Westcore Blue Chip Fund uses a diversified, value-oriented investment
approach which the Fund's manager, Varilyn K. Schock, believes should perform
well in the current market environment. She also believes that, should there be
a stock market correction, value stocks and implicitly the Westcore Blue Chip
Fund may continue to outperform the broad market.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WESTCORE BLUE CHIP FUND
AND THE S&P 500 INDEX
[GRAPH]
TOP 10 HOLDINGS
- - GAP STORES INC.
- - HILTON HOTELS CORP.
- - DAYTON HUDSON CORP.
- - PEPSICO INC.
- - PFIZER INC.
- - MELVILLE CORP.
- - COMPUTER ASSOCIATES INTERNATIONAL INC.
- - PPG INDUSTRIES INC.
- - BANK OF NEW YORK INC.
- - NATIONSBANK CORP.
BLUE CHIP FUND-
AVERAGE ANNUAL TOTAL RETURN
1 Year 5 Year Since incep.
30.48% 14.48% 13.95%
AVERAGE ANNUAL TOTAL RETURNS ARE FOR THE PERIOD ENDED 5/31/96 AND REFLECT
REINVESTMENT OF ALL DIVIDENDS, CAPITAL GAINS DISTRIBUTIONS, ALL FEE WAIVERS IN
EFFECT AND ANY EXPENSE REIMBURSEMENTS. WITHOUT THE FEE WAIVERS AND EXPENSE
REIMBURSEMENTS, THE TOTAL RETURN FIGURES WOULD HAVE BEEN LOWER. FUND INCEPTION
DATE IS 6/1/88. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FOR THE
PERIODS ENDED 6/30/96, THE FUND'S AVERAGE ANNUAL TOTAL RETURN FOR THE PAST 1
YEAR, 5 YEARS AND SINCE INCEPTION WAS 28.82%, 15.68% AND 13.89%, RESPECTIVELY.
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MANAGER'S FUND UPDATE
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TOP 10 HOLDINGS
- - DIGITAL SYSTEMS INTERNATIONAL INC.
- - PRIDE PETROLEUM SERVICES INC.
- - USA WASTE SERVICES INC.
- - JLG INDUSTRIES INC.
- - PROFFITT'S INC.
- - MONEY STORE INC.
- - STANDARD REGISTER CO.
- - PRIME HOSPITALITY CORP.
- - PARAGON TRADE BRANDS
- - COMDISCO INC.
SMALL-CAP OPPORTUNITY FUND-
AVERAGE ANNUAL TOTAL RETURN
1 Year 5 Year Since incep.
37.49% N/A 17.76%
AVERAGE ANNUAL TOTAL RETURNS ARE FOR THE PERIOD ENDED 5/31/96 AND REFLECT
REINVESTMENT OF ALL DIVIDENDS, CAPITAL GAINS DISTRIBUTIONS, ALL FEE WAIVERS IN
EFFECT AND ANY EXPENSE REIMBURSEMENTS. WITHOUT THE FEE WAIVERS AND EXPENSE
REIMBURSEMENTS, THE TOTAL RETURN FIGURES WOULD HAVE BEEN LOWER. FUND INCEPTION
DATE IS 12/28/93. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FOR THE
PERIODS ENDED 6/30/96, THE FUND'S AVERAGE ANNUAL TOTAL RETURN FOR THE PAST 1
YEAR AND SINCE INCEPTION WAS 28.13% AND 15.38%, RESPECTIVELY.
SMALL-CAP OPPORTUNITY FUND
Westcore Small-Cap Opportunity Fund was up 37.49 percent for the past 12
months ended May 31, 1996. It performed favorably against its benchmark, the
Russell 2000 Index, which was up 35.91 percent over this period. Consumer stocks
in the Fund performed well, specifically drugs and healthcare stocks. Interest
rate sensitive stocks also exhibited good performance, including banks,
financial services and insurance. Securities within the capital goods sector,
such as machinery, engineering, and construction, were also good performers. JLG
Industries, which was up 470 percent in the 12 months, led this group. The
company's strong sales, margins, and earnings were driven by excellent demand
for its products which are used in the construction industry.
SMALL-CAP OPPORTUNITY FUND SECTOR PROFILE AS OF MAY 31, 1996
[PIE CHART]
Varilyn K. Schock, manager of Westcore Small-Cap Opportunity Fund,
continues to focus on attractive, undervalued small-capitalization stock
opportunities for the Fund. She is optimistic that owning a portfolio of these
stocks will continue to benefit investors in the future.
Comparison of Change in value of $10,000 investment in Westcore Small-Cap
Opportunity Fund and the Russell 2000 Index.
[GRAPH]
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MANAGER'S FUND UPDATE
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GROWTH AND INCOME FUND
During the past 12 months ended May 31, 1996, Westcore Growth and Income
Fund returned 27.25 percent in comparison to its benchmark, the S&P 500
Index, which returned 28.39 percent. During the past 6 months, the Fund has
seen excellent performance, gaining 14.5 percentage points, while the S&P 500
gained 10.1 percent.
The portfolio's hotel/motel holdings had the most outstanding performance
due to better pricing and higher occupancy rates. Industry growth has been
driven by more travelers, and more travelers who are willing to pay the higher
prices for a night's stay at a motel. Higher room rates have positively
impacted the bottom line for the Fund's holdings in this industry.
GROWTH AND INCOME FUND SECTOR PROFILE AS OF MAY 31, 1996
[PIE CHART]
Also, HFS Inc., a franchiser of moderately priced motels, continues to
leverage its franchise concept. The acquisition of Century 21 Real Estate by HFS
has proven rewarding as cost savings on the acquisition were even better than
had been expected.
Mil Schulhof, Westcore Growth and Income Fund's manager, expects a
continued healthy market, a growing economy, and inflation to maintain a low
profile. Since this type of environment has been attractive for stocks, he
believes that Westcore Growth and Income Fund also will continue its steady
performance due to its focus on attractive companies operating in attractive
industries.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WESTCORE GROWTH AND
INCOME FUND AND THE S&P 500 INDEX
[GRAPH]
TOP 10 HOLDINGS
- -FIRST FINANCIAL MANAGEMENT CORP. CONVERTIBLE DEBENTURES
- -MERCURY FINANCIAL CO.
- -HFS INC. CONVERTIBLE DEBENTURES
- -CINCINNATI BELL INC.
- -GENERAL ELECTRIC CO.
- -GENERAL MOTORS CORP. CLASS E (ELECTRONIC DATA SYSTEMS)
- -GTE CORP.
- -OEA INC.
- -FRONTIER INSURANCE GROUP INC.
- -OMNICOM GROUP INC.
GROWTH AND INCOME FUND-
AVERAGE ANNUAL TOTAL RETURN
1 Year 5 Year Since incep.
27.25% 10.88% 11.73%
AVERAGE ANNUAL TOTAL RETURNS ARE FOR THE PERIOD ENDED 5/31/96 AND REFLECT
REINVESTMENT OF ALL DIVIDENDS, CAPITAL GAINS DISTRIBUTIONS, ALL FEE WAIVERS IN
EFFECT AND ANY EXPENSE REIMBURSEMENTS. WITHOUT THE FEE WAIVERS AND EXPENSE
REIMBURSEMENTS, THE TOTAL RETURN FIGURES WOULD HAVE BEEN LOWER. FUND INCEPTION
DATE IS 6/1/88. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FOR THE
PERIODS ENDED 6/30/96, THE FUND'S AVERAGE ANNUAL TOTAL RETURN FOR THE PAST 1
YEAR, 5 YEARS AND SINCE INCEPTION WAS 25.36%, 12.01% AND 11.69%, RESPECTIVELY.
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MANAGER'S FUND UPDATE
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INTERMEDIATE-TERM BOND FUND-
AVERAGE ANNUAL TOTAL RETURN
1 Year 5 Year Since incep.
4.26% 7.46% 7.74%
AVERAGE ANNUAL TOTAL RETURNS ARE FOR THE PERIOD ENDED 5/31/96 AND REFLECT
REINVESTMENT OF ALL DIVIDENDS, CAPITAL GAINS DISTRIBUTIONS, ALL FEE WAIVERS IN
EFFECT AND ANY EXPENSE REIMBURSEMENTS. WITHOUT THE FEE WAIVERS AND EXPENSE
REIMBURSEMENTS, THE TOTAL RETURN FIGURES WOULD HAVE BEEN LOWER. FUND INCEPTION
DATE IS 6/1/88. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FOR THE
PERIODS ENDED 6/30/96, THE FUND'S AVERAGE ANNUAL TOTAL RETURN FOR THE PAST 1
YEAR, 5 YEARS AND SINCE INCEPTION WAS 4.60%, 7.47% AND 7.78%, RESPECTIVELY.
INTERMEDIATE-TERM BOND FUND
Westcore Intermediate-Term Bond Fund produced a total return of 4.26
percent for the past 12 months ended May 31, 1996. The Fund's benchmark, the
Lehman Brothers Intermediate Government/Corporate Bond Index, returned 4.60
percent over this period. The Fund's longer duration as compared to its
benchmark offset the benefits of the portfolio's overweighting in corporate
bonds and our issue selection. Corporate bonds proved to be the best performing
sector due to higher yields and stable to declining yield spreads when compared
to U.S. Treasury bonds.
INTERMEDIATE-TERM BOND FUND SECTOR PROFILE AS OF MAY 31, 1996
[PIE CHART]
The two primary reasons for declining spreads, we believe, are continued
good economic growth with rising corporate profits and continued strong demand
for corporate bonds by insurance companies. John Cormey, the Fund's manager,
remains cautiously optimistic for the near-term and positive over the long-term
for low inflation and stable to lower interest rates. In the future, he looks
for U.S. demographics, worldwide growth, and increased trade to keep inflation
low and savings and investment high.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WESTCORE INTERMEDIATE-
TERM BOND FUND AND THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE BOND
INDEX
[GRAPH]
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MANAGER'S FUND UPDATE
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LONG-TERM BOND FUND
Westcore Long-Term Bond Fund enjoyed good relative performance during the
past 12 months ended May 31, 1996. It had a total return of 3.41 percent while
its benchmark, the Lehman Brothers Long-Term Government/Corporate Bond Index,
returned 2.83 percent for this period. However, elevated interest rates during
the year negatively impacted prices and relatively low initial yields did not
fully offset price declines. The good news-shorter duration and an
overweighting in corporate bonds-helped relative return. Corporate bonds did
better due to stable or declining yield spreads.
LONG-TERM BOND FUND SECTOR PROFILE AS OF MAY 31, 1996
[PIE CHART]
The two primary reasons for declining spreads, we believe, are continued
good economic growth with rising corporate profits and continued strong demand
for corporate bonds by insurance companies. The fund manager, John Cormey,
remains cautiously optimistic for the near-term and positive over the long-term
for low inflation and stable to lower interest rates. He looks to U.S.
demographics, worldwide growth, and increased trade to keep inflation low and
savings and investment high.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WESTCORE LONG-TERM BOND
FUND AND THE LEHMAN BROTHERS LONG-TERM GOVERNMENT/CORPORATE BOND INDEX
[GRAPH]
LONG-TERM BOND FUND-
AVERAGE ANNUAL TOTAL RETURN
1 Year 5 Year Since incep.
3.41% 9.57% 9.96%
AVERAGE ANNUAL TOTAL RETURNS ARE FOR THE PERIOD ENDED 5/31/96 AND REFLECT
REINVESTMENT OF ALL DIVIDENDS, CAPITAL GAINS DISTRIBUTIONS, ALL FEE WAIVERS IN
EFFECT AND ANY EXPENSE REIMBURSEMENTS. WITHOUT THE FEE WAIVERS AND EXPENSE
REIMBURSEMENTS, THE TOTAL RETURN FIGURES WOULD HAVE BEEN LOWER. FUND INCEPTION
DATE IS 6/1/88. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FOR THE
PERIODS ENDED 6/30/96, THE FUND'S AVERAGE ANNUAL TOTAL RETURN FOR THE PAST 1
YEAR, 5 YEARS AND SINCE INCEPTION WAS 3.91%, 9.98% AND 10.06%, RESPECTIVELY.
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MANAGER'S FUND UPDATE
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TOP 10 HOLDINGS:
- - GOLDSMITH METROPOLITAN DISTRICT, ARAPAHOE & DENVER COUNTIES, GO, 6.50%,
12/01/03, MBIA
- - JEFFERSON COUNTY SCHOOL DISTRICT R-1, GO, 5.90%, 12/15/04, AMBAC
- - FORT COLLINS, LARIMER COUNTY SALES & USE TAX, REVENUE, 4.90%, 06/01/01, FGIC
- - REGIONAL TRANSPORTATION DISTRICT RTD SALES TAX, REVENUE, 5.375%, 11/01/10,
FGIC
- - SAN MIGUEL COUNTY SCHOOL DISTRICT R-1, GO, 5.50%, 12/01/12, MBIA
- - GARFIELD, EAGLE & PITKIN COUNTIES SCHOOL DISTRICT RE-1, GO, 6.60%, 12/15/14,
MBIA
- - BRIGHTON, ADAMS COUNTY, GO, 6.625%, 12/01/11, MBIA
- - DOUGLAS & ELBERT COUNTIES SCHOOL DISTRICT RE-1, GO, 6.15%, 12/15/08, MBIA
- - LARIMER, WELD & BOULDER COUNTIES, THOMPSON SCHOOL DISTRICT R-2J, GO, 6.05%,
12/15/08, MBIA
- - BOULDER URBAN RENEWAL AUTHORITY TAX INCREMENT, REVENUE, 6.00%, 03/01/02, MBIA
COLORADO TAX-EXEMPT FUND-
AVERAGE ANNUAL TOTAL RETURN
1 Year 5 Year Since incep.
3.97% 6.56% 6.56%
AVERAGE ANNUAL TOTAL RETURNS ARE FOR THE PERIOD ENDED 5/31/96 AND REFLECT
REINVESTMENT OF ALL DIVIDENDS, CAPITAL GAINS DISTRIBUTIONS, ALL FEE WAIVERS IN
EFFECT AND ANY EXPENSE REIMBURSEMENTS. WITHOUT THE FEE WAIVERS AND EXPENSE
REIMBURSEMENTS, THE TOTAL RETURN FIGURES WOULD HAVE BEEN LOWER. FUND INCEPTION
DATE IS 6/1/91. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. FOR THE
PERIODS ENDED 6/30/96, THE FUND'S AVERAGE ANNUAL TOTAL RETURN FOR THE PAST 1
YEAR, 5 YEARS AND SINCE INCEPTION WAS 4.89%, 6.81% AND 6.60%, RESPECTIVELY.
COLORADO TAX-EXEMPT FUND
During the past 12 months ended May 31, 1996, Westcore Colorado Tax-Exempt
Fund returned 3.97 percent, while its benchmark, the Lehman Brothers Municipal
Bond Index, returned 4.57 percent over this period. However, the Fund resisted
price erosion due to the high percentage of insured holdings with good trading
names in its portfolio. The Fund's average maturity of 9 years kept it
consistent with its 7 and 10 year Lehman Brothers Municipal Bond Index.
COLORADO TAX-EXEMPT FUND SECTOR PROFILE AS OF MAY 31, 1996
[PIE CHART]
As the specter of a flat tax reform proposal diminishes, tax exemption
continues to be the best alternatives available for a tax shelter. Trends
presently driving the market are budget deficit concerns and the upcoming
presidential elections. These factors are contributing to the uncertain interest
rate environment.
Bob Lindig, the Fund's manager, expects that the tax-exempt feature of
municipal obligations will remain the most efficient and cost effective method
to build needed infrastructure projects. It is anticipated that the Fund will
continue to increase its share of insured paper to approximately 90 percent.
Diversification within the state continues to be a prime objective.
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN WESTCORE COLORADO TAX-
EXEMPT FUND AND THE LEHMAN BROTHERS MUNICIPAL BOND INDEX
[GRAPH]
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WESTCORE REPORT
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DEFINITION OF COMMON TERMS
CAPITAL GAIN (OR LOSS)
The increase (or decrease) in the market value (price) of a security in
your portfolio. If a stock or bond appreciates in price, there is a capital
gain; if it depreciates there is a capital loss. A capital gain or loss is
"realized" upon the sale of a security; if realized net capital gains exceed
realized net capital losses, there may be a capital gain distribution to
shareholders.
DIVIDEND
Income generated by securities in a portfolio and distributed to
shareholders after expenses are deducted. The Intermediate-Term Bond, Long-Term
Bond and Colorado Tax-Exempt Funds pay monthly dividends, the Blue Chip, Small-
Cap Opportunity and Growth and Income Funds pay dividends quarterly and the
MIDCO Growth Fund pays dividends annually.
NET ASSET VALUE (NAV) PER SHARE
The total market value of all securities and other assets held by a fund,
minus any liabilities, divided by the number of shares outstanding. It is the
value of a single share of a mutual fund on a given day. The total value of
your investment would be the NAV multiplied by the number of shares you own.
BOND RATINGS
The quality of bonds can, to some degree, be determined from the ratings of
prominent rating services such as: Moody's and Standard & Poor's. These ratings
are used by government and industry regulatory agencies, the investing public,
and portfolio managers as a guide to the relative security and value of each
bond. The ratings are not used as an absolute factor in determining the
strength of the pledge securing a particular issue. Many non-rated issues are
sound investments. However, since Moody's and Standard & Poor's rate bonds on a
fee basis, the number of non-rated issues may increase. The rating symbols used
by two services are:
MOODY'S STANDARD
INVESTORS & POOR'S
SERVICES, CORP.
INC. PLUS (+) OR
MINUS (-)
Prime Aaa AAA
Excellent Aa AA
Good A A
Average Baa BBB
Fair Ba BB
Poor B B
Marginal Caa C
SEC YIELD
The SEC Yield was created by the Securities and Exchange Commission in 1988
as a standardized yield calculation intended to put all funds which quote yield
performance on a level playing field. The SEC formula eliminates income derived
from capital gains, option writing, futures, or returns of capital. The formula
also adjusts the income from premium or discounted bonds to reflect the
amortization of that bond.
PRICE/EARNINGS RATIO
The Price/Earnings ratio is the price per share of a security divided by
the earnings of the company per share. It gives investors an idea of how much
they are paying for a company's earning power. The higher the P/E, the more
investors are paying, and therefore the more earnings growth they are expecting.
High P/E stocks--those with multiples over 20--are typically young, fast-growing
companies. Low P/E stocks tend to be in low-growth or mature industries, in
stock
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WESTCORE REPORT
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groups that have fallen out of favor, or in established blue-chip companies with
long records of earnings stability and regular dividends. In general, low P/E
stocks have higher yields than high P/E stocks, which often pay no dividends at
all.
TOTAL RETURN
Total return measures a fund's performance, taking into account the
reinvestment of any dividends or other distributions paid and the gain or loss
in the value of the securities held in the portfolio. It may be expressed on an
average annual basis or a cumulative basis (total change over a given period).
In addition, total return may be expressed with or without the effects of sales
charges or the reinvestment of dividends and capital gains.
Whenever a fund reports any type of performance, it must also report the
average annual total return according to the standardized calculation developed
by the SEC. This standardized calculation was introduced to insure that
investors can compare different funds on an equal basis. The SEC average annual
total return calculation includes the effects of all of the fund's fees and
sales charges, the effects of any expense waivers or reimbursements and assumes
the reinvestment of all dividends and capital gains distributions.
DEFINITIONS FOR WESTCORE COLORADO TAX-EXEMPT FUND:
CERTIFICATES OF PARTICIPATION - Certificates of participation (COPs), or lease-
secured bonds, represent a bondholder's proportionate interest in rental
payments made under a municipal lease contract. The payments are normally made
pursuant to a lease and trust agreement. This type of tax-exempt municipal
leasing has become an attractive alternative to traditional bond financing.
INSURED BONDS - Insured Bonds refer to municipal obligations which are covered
by an insurance policy issued by independent insurance companies. The policies
insure the payment of principal and/or interest on the bond. Examples of such
companies would be MBIA (Municipal Bond Investors Assurance Corporation), or
AMBAC (American Municipal Bond Assurance Corporation). Bonds insured by either
MBIA or AMBAC are usually rated Aaa/AAA by Moody's/Standard & Poor's.
GENERAL OBLIGATION BONDS - General obligation bonds (GOs) are debts backed by
the general taxing power of the issuer. Payment of the obligation may be backed
by a specific tax or the issuer's general tax fund. Examples of GOs include
sidewalk bonds, sewer bonds, street bonds and so on. These bonds are also known
as FULL FAITH AND CREDIT bonds because the debt is a general obligation of the
issuer.
REVENUE BONDS
Revenue bonds are issued to provide capital for the construction of a revenue-
producing facility. The interest and principal payments are payable only from
the revenues derived from the facility. Examples of revenue bonds include toll
bridges, roads, parking lots and ports. The municipality is not obligated to
cover debt payments on revenue bonds in default.
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WESTCORE REPORT
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DEFINITION OF INDICES
STANDARD & POOR'S 500 is a broad-based measurement of changes in stock-market
conditions based on the average performance of 500 widely held common stocks.
It is an unmanaged index.
STANDARD & POOR'S 400 MIDCAP is a broad-based measurement of changes in stock-
market conditions based on the average performance of 400 middle capitalization
issues. It is an unmanaged index.
RUSSELL 2000 represents the bottom two-thirds of the largest 3,000 publicly
traded companies domiciled in the United States. Only common stocks are
included in the index; in the case of multiple classes of stock, generally only
one is allowed. It is an unmanaged index.
THE LEHMAN BROTHERS INTERMEDIATE GOVERNMENT/CORPORATE BOND INDEX includes fixed
rate debt issues rated investment grade or higher by Moody's Investors Services,
Standard & Poor's Corporation or Fitch Investor's Service, in order.
Intermediate indices include bonds with maturities of up to ten years. It is an
unmanaged index.
THE LEHMAN BROTHERS LONG-TERM GOVERNMENT/CORPORATE BOND INDEX includes fixed
rate debt issues rated investment grade or higher by Moody's Investors Services,
Standard & Poor's Corporation or Fitch Investor's Service, in order. Long-term
indices include bonds with maturities of ten years or longer. It is an
unmanaged index.
THE LEHMAN BROTHERS MUNICIPAL BOND INDEX is a total return performance bench-
mark for the long-term, investment-grade tax-exempt bond market. Returns and
attributes for the Index are calculated semi-monthly using approximately 25,000
municipal bonds. It is an unmanaged index.
xi ----------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 1996
<TABLE>
<CAPTION>
MIDCO Blue Small-Cap Growth Intermediate- Long-Term Colorado
Growth Chip Opportunity and Income Term Bond Bond Tax-Exempt
Fund Fund Fund Fund Fund Bond Fund Fund
------ ------ ----------- ---------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investments, at value
(cost-see below) $656,390,094 $64,866,114 $24,419,849 $25,124,097 $81,973,963 $23,720,558 $14,127,978
-see accompanying statements
Receivable for investments sold 1,869,370 3,264,256 0 335,479 0 935,733 0
Dividends and interest receivable 237,048 146,036 30,925 66,313 1,196,046 424,990 286,217
Shares of beneficial
interest sold 1,869,463 85,379 150 20,002 100,606 21,366 0
Organizational costs, net of
accumulated amortization 0 0 44,988 0 0 0 0
Prepaid and other assets 18,805 9,504 135,484 6,637 7,971 7,258 228
----------------------------------------------------------------------------------------------------------------------------------
Total Assets 660,384,780 68,371,289 24,631,396 25,552,528 83,278,586 25,109,905 14,414,423
----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Investments purchased 2,323,824 0 646,210 108,435 0 0 477,556
Accrued investment
advisory fee 358,675 19,087 6,850 6,657 23,857 4,263 0
Shares of beneficial
interest redeemed 735,548 5,495 0 3,583 136,684 2,610 0
Other payables 477,007 61,135 27,324 46,450 79,409 32,773 15,127
----------------------------------------------------------------------------------------------------------------------------------
Total Liabilities 3,895,054 85,717 680,384 165,125 239,950 39,646 492,683
----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $656,489,726 $68,285,572 $23,951,012 $25,387,403 $83,038,636 $25,070,259 $13,921,740
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $400,526,857 $46,689,253 $18,314,380 $19,256,535 $85,686,095 $24,576,997 $13,764,214
(Over)/Undistributed net
investment income (3,130,644) 184,414 478 (143,956) 85,280 29,351 11,725
Accumulated net realized
gain (loss) from investment
transactions 34,853,163 4,515,794 488,710 1,137,541 (1,801,911) 336,455 (9,885)
Net unrealized appreciation
(depreciation) of investments 224,240,350 16,896,111 5,147,444 5,137,283 (930,828) 127,456 155,686
----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $656,489,726 $68,285,572 $23,951,012 $25,387,403 $83,038,636 $25,070,259 $13,921,740
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Net Assets $656,489,726 $68,285,572 $23,951,012 $25,387,403 $83,038,636 $25,070,259 $13,921,740
----------------------------------------------------------------------------------------------------------------------------------
Shares of beneficial
interest outstanding 28,664,400 3,921,359 1,121,773 2,060,170 8,224,633 2,615,248 1,311,574
----------------------------------------------------------------------------------------------------------------------------------
Net asset value and redemption
price per share $22.90 $17.41 $21.35 $12.32 $10.10 $9.59 $10.61
----------------------------------------------------------------------------------------------------------------------------------
COST OF INVESTMENTS $432,149,744 $47,970,003 $19,272,405 $19,986,814 $82,904,791 $23,593,102 $13,972,292
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
- ----------------------------------------------------------------------------- 1
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
MIDCO GROWTH FUND
STATEMENT OF INVESTMENTS
May 31, 1996
Shares Market Value*
- ---------------- -------------
COMMON STOCKS 96.17%
- -----------------------------------------------------------------
CAPITAL GOODS 17.40%
- -----------------------------------------------------------------
AEROSPACE & DEFENSE 0.94%
- -----------------------------------------------------------------
101,800 General Motors Corp Class H $6,184,350
------------
COMPUTER HARDWARE 0.93%
- -----------------------------------------------------------------
97,200 Sun Microsystems Inc 6,087,150
------------
COMPUTER SERVICES & SOFTWARE 7.22%
- -----------------------------------------------------------------
21,000 American Management Systems Inc 598,500
79,000 Broderbund Software Inc ** 3,327,875
102,000 Compuserve Corp 2,524,500
126,607 First Data Corp 10,096,908
4,800 Harbinger Corp 115,200
162,900 Informix Corp** 3,705,975
38,400 Intuit ** 1,996,800
84,300 Macromedia Inc 3,593,288
42,000 McAfee Associates Inc 1,554,000
334,425 Oracle Systems Corp ** 11,077,828
57,200 PSINet Inc 829,400
50,400 Sterling Commerce Inc 2,211,300
43,000 Sybase Inc 994,375
49,700 Synopsys Inc ** 2,224,075
72,100 Technology Solutions Co 2,550,538
------------
47,400,562
------------
ELECTRONICS 3.72%
- -----------------------------------------------------------------
104,325 Analog Devices Inc ** 2,881,978
99,200 MEMC Electronics Materials Inc** 4,910,400
98,000 Microchip Technology Inc** 2,523,500
78,100 Millipore Corp 3,426,638
92,800 SCI Systems Inc** 4,176,000
83,900 Sierra Semi-Conductor Corp 1,237,525
60,800 Solectron Corp 2,637,200
75,800 Xilinx Inc ** 2,634,050
------------
24,427,291
------------
ENGINEERING & CONSTRUCTION 1.40%
- -----------------------------------------------------------------
105,100 Foster Wheeler Corp 4,676,950
91,200 Ionics Inc 4,514,400
------------
9,191,350
------------
NETWORKING 2.51%
- -----------------------------------------------------------------
207,100 3 Com Corp ** 10,199,675
35,200 Ascend Communications Inc 2,354,000
135,850 Bay Networks Inc** 3,939,650
------------
16,493,325
------------
OTHER-CAPITAL GOODS 0.68%
- -----------------------------------------------------------------
56,500 Greenfield Industries Inc $2,132,875
45,000 OEA Inc** 1,845,000
22,350 Wabash National Corp 455,381
------------
4,433,256
------------
TOTAL CAPITAL GOODS
(Cost $81,315,760) 114,217,284
------------
CONSUMER CYCLICAL 43.79%
- -----------------------------------------------------------------
AUTOMOTIVE 0.67%
- -----------------------------------------------------------------
50,200 APS Holdings Corp Class A** 1,104,400
72,200 Gentex Corp ** 3,267,050
------------
4,371,450
------------
BUILDING RELATED 0.76%
- -----------------------------------------------------------------
56,800 Fleetwood Enterprises Inc 1,711,100
110,200 Newell Co 3,306,000
------------
5,017,100
------------
CONSUMER PRODUCTS 1.08%
- -----------------------------------------------------------------
143,300 Callaway Golf Co 4,316,913
59,000 Duracell International Inc 2,750,875
------------
7,067,788
------------
CONSUMER SERVICES 6.24%
- -----------------------------------------------------------------
504,255 CUC International Inc ** 18,657,435
333,700 Loewen Group Inc 9,593,875
95,300 Sylvan Learning Systems Inc 3,692,875
236,900 USA Waste Services Inc** 6,988,550
36,700 United Waste Systems Inc** 2,023,088
------------
40,955,823
------------
CONSUMER SOFT GOODS 0.51%
- -----------------------------------------------------------------
118,300 Warnaco Group Inc Class A 3,356,763
------------
HOTELS/LEISURE 8.24%
- -----------------------------------------------------------------
203,900 Brinker International Inc 3,415,325
516,800 HFS Inc 32,235,400
165,600 La Quinta Inns Inc 5,216,400
74,300 MGM Grand Inc 3,380,650
94,200 Mirage Resorts Inc** 5,357,625
282,100 Prime Hospitality Corp ** 4,513,600
------------
54,119,000
------------
2 -----------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
MIDCO GROWTH FUND
STATEMENT OF INVESTMENTS
May 31, 1996 (continued)
Shares Market Value*
- ---------------- -------------
MEDIA-PUBLISHING 6.40%
- -----------------------------------------------------------------
160,700 Evergreen Media Corp Class A $6,428,000
389,900 Home Shopping Network Inc 5,604,813
479,625 Infinity Broadcasting Co Class A** 13,069,781
416,600 National Education Corp 7,759,175
25,000 Scholastic Corp 1,556,250
78,050 Tele Communications Liberty Media 2,341,500
299,100 Westwood One Inc** 5,234,250
------------
41,993,769
------------
RETAIL 8.70%
- -----------------------------------------------------------------
216,200 AutoZone Inc ** 7,594,025
190,800 Bed Bath & Beyond Inc** 5,366,250
44,800 Caseys General Stores Inc 1,058,400
216,100 Consolidated Stores Corp ** 8,184,788
46,400 Discount Auto Parts Inc** 1,194,800
348,733 Dollar General Corp 9,677,341
256,600 General Nutrition Cos 3,977,300
84,500 Intimate Brands Inc 1,827,313
146,600 Kohls Corp ** 4,856,125
113,500 Lowes Companies Inc 3,887,375
54,600 Nordstrom Inc 2,784,600
169,375 Office Depot Inc ** 4,340,234
7,900 Pier 1 Imports Inc 124,425
75,800 Sports Authority Inc ** 2,255,050
------------
57,128,026
------------
TELECOMMUNICATIONS 10.63%
- -----------------------------------------------------------------
52,600 ADC Telecommunications Inc ** 2,419,600
39,300 Adtran Inc** 2,716,613
88,100 Comcast Corp Class A 1,530,738
44,000 Fore Systems Inc** 3,564,000
155,600 Intelcom Group Inc 4,123,400
22,900 Intermedia Communication Co 801,500
35,000 LCI International Inc** 1,115,625
288,200 MFS Communications Inc ** 10,014,950
29,400 Nokia Corp 1,278,900
105,000 Paging Network Inc ** 2,362,500
32,800 QUALCOMM Inc 1,785,550
79,000 Spectrian Corp** 1,560,250
114,400 Stratacom Inc 6,220,500
28,900 Sync Research Inc 505,750
87,400 U.S. Robotics Corp** 8,018,950
7,800 Uniphase Corp 508,950
40,500 Vodafone Group PLC ADR 1,604,813
402,380 WorldCom Inc** 19,666,322
------------
69,798,911
------------
OTHER-CONSUMER CYCLICAL 0.56%
- -----------------------------------------------------------------
133,150 Unifi Inc 3,694,913
------------
TOTAL CONSUMER CYCLICAL
(Cost $175,820,950) 287,503,543
------------
- -----------------------------------------------------------------
CONSUMER STAPLES 18.75%
- -----------------------------------------------------------------
DRUGS & HEALTHCARE 6.87%
- -----------------------------------------------------------------
65,700 Arrow International Inc $2,669,062
57,100 Biochemical Pharmaceuticals Inc** 2,626,600
55,500 Biogen Inc 3,357,750
35,800 Biomet Inc 501,200
90,900 Centocor Inc** 3,215,587
130,100 Guidant Corp 7,545,800
68,200 IDEXX Labs Corp 2,966,700
56,700 Nellcor Puritan Bennet** 3,090,150
162,000 North American Vaccine Inc ** 3,665,250
54,800 Northfield Labs Inc** 924,750
88,800 Physio-Controls Intl 1,720,500
122,200 Sequus Pharmaceuticals** 2,612,025
221,700 Sybron Corp Del ** 6,013,612
93,732 Watson Pharmaceuticals Inc ** 4,217,940
------------
45,126,926
------------
FOOD, BEVERAGES, & TOBACCO 0.26%
- -----------------------------------------------------------------
50,900 Richfood Holdings Inc 1,705,150
------------
HEALTHCARE SERVICES 11.62%
- -----------------------------------------------------------------
65,100 Access Health Inc 3,547,950
37,100 American Oncology
Resources Corp** 1,743,700
48,700 HBO & Co 6,081,412
29,100 HCIA Inc 1,884,225
247,700 Health Management Association
Inc Class A 8,545,650
74,000 Healthsource Inc 1,674,250
112,500 Healthsouth Corp 3,937,500
131,300 MedPartners\Mullikin 3,069,137
676,400 Oxford Health Plans Inc ** 31,959,900
116,650 Phycor Inc** 6,328,262
37,900 Physician Reliance Network 1,989,750
45,600 Total Renal Care Holdings 1,881,000
37,200 U.S. Healthcare Inc 2,018,100
29,300 United Healthcare Corp 1,607,838
------------
76,268,674
------------
TOTAL CONSUMER STAPLES
(Cost $74,114,137) 123,100,750
------------
CREDIT SENSITIVE 6.13%
- -----------------------------------------------------------------
BANKS 0.46%
- -----------------------------------------------------------------
28,000 Cullen Frost Bankers Inc 1,442,000
45,900 Norwest Corp 1,600,762
------------
3,042,762
------------
- -----------------------------------------------------------------
- ----------------------------------------------------------------------------- 3
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
MIDCO GROWTH FUND
STATEMENT OF INVESTMENTS
May 31, 1996 (continued)
Shares Market Value*
- ---------------- -------------
FINANCIAL SERVICES 3.66%
- -----------------------------------------------------------------
96,050 Advanta Corp Class B $4,994,600
45,800 Credit Acceptance Corp** 916,000
55,100 MGIC Investment Corp Wisconsin 3,237,125
488,513 Mercury Financial Co 6,106,413
153,400 Olympic Financial Ltd** 3,624,075
141,000 Schwab Charles Corp 3,419,250
188,300 World Acceptance Corp ** 1,694,700
------------
23,992,163
------------
INSURANCE 1.45%
- -----------------------------------------------------------------
84,988 AFLAC Inc 2,560,248
90,405 Frontier Insurance Group Inc 3,107,672
95,050 Mutual Risk Management Ltd 3,813,881
------------
9,481,801
------------
UTILITIES-ELECTRIC 0.56%
- -----------------------------------------------------------------
133,497 AES Corp 3,704,543
------------
TOTAL CREDIT SENSITIVE
(Cost $26,304,553) 40,221,269
------------
INTERMEDIATE GOODS
& SERVICES 10.10%
- -----------------------------------------------------------------
BUSINESS SERVICES 1.59%
- -----------------------------------------------------------------
56,600 Accustaff Inc 1,782,900
49,300 Alternative Resources Corp** 1,898,050
179,600 Medaphis Corp ** 6,779,900
------------
10,460,850
------------
CHEMICAL 2.66%
- -----------------------------------------------------------------
152,800 Airgas Inc ** 3,189,700
34,200 Cytec Industries Inc** 3,060,900
43,100 IMC Global Inc 1,578,537
36,100 Olin Corp 3,339,250
79,700 Praxair Inc 3,237,812
71,000 Union Carbide Corp 3,061,875
------------
17,468,074
------------
ENERGY EQUIPMENT & SERVICES 2.58%
- -----------------------------------------------------------------
236,700 Input/Output Inc ** 9,556,762
213,600 Philip Environmental Inc 1,869,000
62,900 Production Operators Corp 2,295,850
77,400 Tidewater Inc 3,192,750
------------
16,914,362
------------
ENERGY PRODUCERS 1.90%
- -----------------------------------------------------------------
201,500 Apache Corp 5,767,937
275,200 Parker & Parsley Petroleum Co 6,708,000
------------
12,475,937
------------
PAPER & PACKAGING 0.25%
- -----------------------------------------------------------------
41,000 Bowater Inc $1,614,375
------------
TRANSPORTATION 1.12%
- -----------------------------------------------------------------
165,075 Comair Holdings Inc 4,333,219
111,100 Southwest Airlines Co 3,041,362
------------
7,374,581
------------
TOTAL INTERMEDIATE GOODS & SERVICES
(Cost $49,555,275) 66,308,179
------------
TOTAL COMMON STOCKS
(Cost $407,110,675) 631,351,025
------------
WARRANTS 0.00%
- -----------------------------------------------------------------
71 WESTWOOD ONE INC WARRANTS
(Cost $0) 0
------------
MUTUAL FUNDS 3.81%
- -----------------------------------------------------------------
24,953,323 PROVIDENT INSTITUTIONAL TEMP FUND
(Cost $25,039,069) 25,039,069
------------
TOTAL INVESTMENTS
(Cost $432,149,744) 99.98% $656,390,094
Other Assets in Excess
of Liabilities 0.02% 99,632
-------------------------
NET ASSETS 100.00% $656,489,726
-------------------------
-------------------------
* SEE NOTE 1 TO FINANCIAL STATEMENTS.
** DENOTES NON-INCOME PRODUCING SECURITY.
4 -----------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
BLUE CHIP FUND
STATEMENT OF INVESTMENTS
May 31, 1996
Shares Market Value*
- ---------------- -------------
COMMON STOCKS 94.19%
- -----------------------------------------------------------------
CAPITAL GOODS 8.51%
- -----------------------------------------------------------------
AEROSPACE & DEFENSE 4.23%
- -----------------------------------------------------------------
14,850 McDonnell Douglas Corp $1,499,850
12,700 United Technologies Corp 1,389,063
------------
2,888,913
------------
COMPUTER - SYSTEMS 2.03%
- -----------------------------------------------------------------
13,010 International Business Machines 1,388,818
------------
COMPUTER - SOFTWARE & SERVICES 2.25%
- -----------------------------------------------------------------
21,135 Computer Associates International Inc 1,537,571
------------
TOTAL CAPITAL GOODS
(Cost $3,038,000) 5,815,302
------------
CONSUMER CYCLICAL 15.93%
- -----------------------------------------------------------------
ENTERTAINMENT 2.03%
- -----------------------------------------------------------------
46,600 Carnival Corp Class A 1,386,350
------------
HARDWARE & TOOLS 2.04%
- -----------------------------------------------------------------
33,800 Black & Decker Corp 1,390,025
------------
HOTELS - MOTELS 2.49%
- -----------------------------------------------------------------
15,800 Hilton Hotels Corp 1,702,450
------------
RETAIL STORES -
GENERAL MERCHANDISE 7.12%
- -----------------------------------------------------------------
16,100 Dayton Hudson Corp 1,642,200
51,000 Gap Stores Inc 1,714,875
29,550 Sears Roebuck & Co 1,503,356
------------
4,860,431
------------
RETAIL STORES -
SPECIALTY APPAREL 2.25%
- -----------------------------------------------------------------
37,900 Melville Corp 1,539,688
------------
TOTAL CONSUMER CYCLICALS
(Cost $7,716,765) 10,878,944
------------
CONSUMER STAPLES 22.77%
- -----------------------------------------------------------------
BEVERAGES - SOFT DRINKS 2.37%
- -----------------------------------------------------------------
48,660 Pepsico Inc 1,617,945
------------
DRUGS 4.35%
- -----------------------------------------------------------------
22,100 Pfizer Inc 1,563,575
24,000 Schering Plough Corp 1,407,000
------------
2,970,575
------------
FOOD 6.02%
- -----------------------------------------------------------------
36,100 Dole Food Inc $1,362,775
50,200 IBP Inc 1,374,225
41,200 Sara Lee Corp 1,375,050
------------
4,112,050
------------
HEALTHCARE DIVERSIFIED 2.12%
- -----------------------------------------------------------------
16,990 Bristol Myers Squibb Co 1,450,521
------------
HEALTHCARE (HMO'S) 2.01%
- -----------------------------------------------------------------
25,300 US Healthcare Inc 1,372,525
------------
RETAIL STORES - DRUG 2.14%
- -----------------------------------------------------------------
49,700 Rite Aid Corp 1,459,938
------------
RETAIL STORES - FOOD CHAINS 1.72%
- -----------------------------------------------------------------
34,030 Giant Food Inc Class A 1,174,035
------------
TOBACCO 2.04%
- -----------------------------------------------------------------
42,240 UST Inc 1,393,920
------------
TOTAL CONSUMER STAPLES
(Cost $11,478,636) 15,551,509
------------
CREDIT SENSITIVE 26.81%
- -----------------------------------------------------------------
INVESTMENT BANKING/
BROKERAGE 2.17%
- -----------------------------------------------------------------
35,750 Traveler's Group Inc 1,483,625
------------
MAJOR REGIONAL BANKS 8.70%
- -----------------------------------------------------------------
28,600 Bank of Boston Corp 1,426,425
29,450 Bank of New York Inc 1,527,719
24,240 First Union Corp 1,481,670
18,600 Nationsbank Corp 1,508,925
------------
5,944,739
------------
MONEY CENTER BANKS 2.17%
- -----------------------------------------------------------------
21,150 Chase Manhattan Corp 1,480,500
------------
NATURAL GAS 2.18%
- -----------------------------------------------------------------
36,350 Coastal Corp 1,490,350
------------
PROPERTY - CASUALTY INSURANCE 1.99%
- -----------------------------------------------------------------
84,800 USF&G Corp 1,356,800
------------
TELECOMMUNICATIONS 2.21%
- -----------------------------------------------------------------
35,560 Sprint Corp 1,506,855
------------
UTILITIES-ELECTRIC 7.39%
- -----------------------------------------------------------------
45,100 Central & South West Corp 1,245,887
73,850 Edison International 1,218,525
43,030 General Public Utilities Corp 1,441,505
52,020 Ohio Edison Co 1,137,938
------------
5,043,855
------------
TOTAL CREDIT SENSITIVE
(Cost $14,752,434) 18,306,724
------------
- ----------------------------------------------------------------------------- 5
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
BLUE CHIP FUND
STATEMENT OF INVESTMENTS
May 31, 1996 (continued)
Shares Market Value*
- ------ -------------
INTERMEDIATE GOODS &
SERVICES 20.16%
- -----------------------------------------------------------------
ALUMINUM 1.88%
- -----------------------------------------------------------------
20,820 Aluminum Co of America $1,283,032
-------------
CHEMICALS 3.64%
- -----------------------------------------------------------------
17,350 Eastman Chemical Co 1,162,450
23,250 Hercules Inc 1,319,437
-------------
2,481,887
-------------
CHEMICALS - DIVERSIFIED 2.24%
- -----------------------------------------------------------------
29,560 PPG Industries Inc 1,529,730
-------------
MISCELLANEOUS 4.17%
- -----------------------------------------------------------------
21,890 Harris Corp 1,414,641
18,000 Loew's Corp 1,435,500
-------------
2,850,141
-------------
OIL (INTEGRATED -
DOMESTIC) 2.12%
- -----------------------------------------------------------------
29,300 Tosco Corp 1,450,350
-------------
OIL (INTEGRATED -
INTERNATIONAL) 4.15%
- -----------------------------------------------------------------
17,040 Exxon Corp 1,444,140
12,300 Mobil Corp 1,388,362
-------------
2,832,502
-------------
PHOTOGRAPHY/IMAGERY 1.96%
- -----------------------------------------------------------------
18,000 Eastman Kodak Co 1,338,750
-------------
TOTAL INTERMEDIATE GOODS & SERVICES
(Cost $10,436,925) 13,766,392
-------------
TOTAL COMMON STOCKS
(Cost $47,422,760) 64,318,871
-------------
MUTUAL FUNDS 0.80%
- -----------------------------------------------------------------
542,519 Provident Institutional Temp Fund
(Cost $547,243) 547,243
-------------
TOTAL INVESTMENTS
(COST $47,970,003) 94.99% $64,866,114
Other Assets in Excess
of Liabilities 5.01% 3,419,458
---------------------------
NET ASSETS 100.00% $68,285,572
SMALL-CAP OPPORTUNITY FUND
STATEMENT OF INVESTMENTS
May 31, 1996
Shares Market Value*
- ------ -------------
COMMON STOCKS 93.76%
- -----------------------------------------------------------------
BASIC INDUSTRIES 6.09%
- -----------------------------------------------------------------
COMMERCIAL CONSTRUCTION 1.61%
- -----------------------------------------------------------------
17,495 Granite Construction Inc $387,077
-----------
PAPER & WOOD 1.29%
- -----------------------------------------------------------------
8,240 Rayonier Inc 309,000
-----------
RUBBER & PLASTICS 1.73%
- -----------------------------------------------------------------
12,900 Tredegar Industries Inc 412,800
STEEL 1.46%
- -----------------------------------------------------------------
5,570 Texas Industries Inc 348,821
-----------
TOTAL BASIC INDUSTRIES
(Cost $1,044,197) 1,457,698
-----------
CAPITAL GOODS 8.22%
- -----------------------------------------------------------------
CONSTRUCTION EQUIPMENT 3.75%
- -----------------------------------------------------------------
12,820 AGCO Corp 386,202
6,460 JLG Industries Inc 511,147
-----------
897,349
-----------
MISCELLANOUS PRODUCTION
GOODS 4.47%
- -----------------------------------------------------------------
12,416 Commercial Metals Co 389,552
7,670 Pittway Corp Class A 370,078
11,660 Smith A O Corp 311,905
-----------
1,071,535
-----------
TOTAL CAPITAL GOODS
(Cost $1,207,720) 1,968,884
-----------
CONSUMER CYCLICAL 10.68%
- -----------------------------------------------------------------
APPAREL 1.45%
- -----------------------------------------------------------------
7,480 Springs Industries Inc 346,885
-----------
CONSUMER DURABLES 1.60%
- -----------------------------------------------------------------
35,200 Interco Inc New 382,800
-----------
MISCELLANEOUS 4.75%
- -----------------------------------------------------------------
13,400 Anthony Industries Inc 400,325
21,170 Oneida Ltd 367,829
21,200 Russ Berrie & Co 368,350
-----------
1,136,504
-----------
RESIDENTIAL CONSTRUCTION 2.89%
- -----------------------------------------------------------------
13,980 Continental Homes
Holding Corp 344,257
32,670 NVR Inc 347,119
-----------
691,376
-----------
TOTAL CONSUMER CYCLICAL
(Cost $2,227,853) 2,557,565
-----------
*See note 1 to financial statements.
6 -----------------------------------------------------------------------------
<PAGE>
- -----------------------------------------------------------------
WESTCORE ANNUAL REPORT
- -----------------------------------------------------------------
SMALL-CAP OPPORTUNITY FUND
STATEMENT OF INVESTMENTS
May 31, 1996 (continued)
Shares Market Value*
- ------ -------------
CONSUMER STAPLES 10.42%
- -----------------------------------------------------------------
DRUGS & MEDICAL PRODUCTS 5.71%
- -----------------------------------------------------------------
7,380 Bio Radiology Labs
Inc Class A** $380,070
12,420 Datascope Corp** 220,455
42,100 Health Images Inc 405,212
12,020 Sola International Inc 363,605
------------
1,369,342
------------
FOOD/AGRICULTURE 2.96%
- -----------------------------------------------------------------
21,750 Ben & Jerrys Homemade Inc Class A 348,000
27,455 J&J Snack Foods Corp** 360,347
------------
708,347
------------
MISCELLANEOUS 1.75%
- -----------------------------------------------------------------
17,000 Paragon Trade Brands 418,625
------------
TOTAL CONSUMER STAPLES
(Cost $2,157,637) 2,496,314
------------
ENERGY 5.21%
- -----------------------------------------------------------------
OIL & NATURAL GAS 5.21%
- -----------------------------------------------------------------
10,630 Diamond Shamrock Inc 349,461
18,150 Global Industrial
Technologies Inc 335,775
32,660 Pride Petroleum Services Inc** 563,385
------------
TOTAL ENERGY
(Cost $826,880) 1,248,621
------------
FINANCIALS 12.22%
- -----------------------------------------------------------------
BANKS/SAVINGS & LOANS 4.72%
- -----------------------------------------------------------------
2,980 Baybanks Inc 321,840
7,630 Deposit Guaranty Corp 345,257
5,365 MAF Bancorp 130,766
13,710 North Fork Bancorporation Inc 334,181
------------
1,132,044
------------
INSURANCE 5.56%
- -----------------------------------------------------------------
14,450 Fremont General Corp 344,994
13,370 PXRE Corp 334,250
14,510 Paul Revere Corp 397,211
8,050 Selective Insurance Group Inc 255,588
------------
1,332,043
------------
MISCELLANEOUS 1.94%
- -----------------------------------------------------------------
17,675 Money Store Inc 463,969
------------
TOTAL FINANCIALS
(Cost $2,045,722) 2,928,056
------------
INTERMEDIATE GOODS &
SERVICES 22.03%
- -----------------------------------------------------------------
BUSINESS SERVICES 6.31%
- -----------------------------------------------------------------
29,620 Aviall Inc $296,200
16,555 Bell Industries Inc** 364,218
15,160 Comdisco Inc 416,900
15,520 Standard Register CO 434,560
------------
1,511,878
------------
MEDICAL & DENTAL 3.07%
- -----------------------------------------------------------------
20,870 Bindley Western Industries Inc 357,399
14,560 Universal Health Services Inc** 378,560
------------
735,959
------------
RETAIL 7.44%
- -----------------------------------------------------------------
63,273 General Host Corp 213,546
8,100 Long's Drug Stores Corp 347,288
13,288 Proffitt's Inc 488,334
24,030 Shopko Stores Inc 363,454
13,800 Waban Inc 369,150
------------
1,781,772
------------
SANITATION 2.23%
- -----------------------------------------------------------------
18,135 USA Waste Services Inc** 534,983
------------
TRAVEL/RECREATION 2.98%
- -----------------------------------------------------------------
11,100 Marcus Corp 288,600
26,460 Prime Hospitality Corp** 423,360
------------
711,960
------------
TOTAL INTERMEDIATE GOODS & SERVICES
(Cost $3,929,007) 5,276,552
------------
TECHNOLOGY 12.03%
- -----------------------------------------------------------------
AEROSPACE 4.72%
- -----------------------------------------------------------------
30,570 ECC International Corp 275,130
9,310 Tech System Corp 317,704
7,610 Thiokol Corp 312,961
7,360 Watkins Johnson Co 225,400
------------
1,131,195
------------
COMPUTER & OFFICE 4.53%
- -----------------------------------------------------------------
14,050 Evans & Sutherland Computers 330,175
11,200 Marshall Industries 351,400
15,510 Western Digital Corp** 403,260
------------
1,084,835
------------
- ----------------------------------------------------------------------------- 7
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
SMALL-CAP OPPORTUNITY FUND
STATEMENT OF INVESTMENTS
May 31, 1996 (continued)
Shares Market Value*
- ------ -------------
COMMUNICATION 2.78%
- ------------------------------------------------------------------
30,060 Digital Systems International Inc $665,077
------------
TOTAL TECHNOLOGY
(Cost $2,269,507) 2,881,107
------------
TRANSPORTATION 2.46%
- ------------------------------------------------------------------
AIR TRANSPORTATION 2.46%
- ------------------------------------------------------------------
16,620 Harper Group Inc 340,710
31,940 Worldcorp Inc 247,535
------------
TOTAL TRANSPORTATION
(Cost $647,413) 588,245
------------
UTILITIES 4.40%
- ------------------------------------------------------------------
ELECTRIC & GAS 4.40%
- ------------------------------------------------------------------
11,440 Central Hudson Gas & Electric Corp 341,770
8,200 Cilcorp Inc 349,525
20,960 Southwest Gas Corp 361,560
------------
TOTAL UTILITIES
(Cost $952,517) 1,052,855
------------
TOTAL COMMON STOCKS
(Cost $17,308,453) 22,455,897
------------
MUTUAL FUNDS 4.04%
- ------------------------------------------------------------------
962,344 Provident Institutional Temp Fund,
(Cost $966,615) 966,615
------------
Face Amount
SHORT- TERM U.S. GOVERNMENT
TREASURIES 4.16%
- ------------------------------------------------------------------
$1,000,000 U.S. Treasury Bill, 5.045%, 06/20/96
(Cost $997,337) 997,337
------------
TOTAL INVESTMENTS 101.96% $24,419,849
(Cost $19,272,405)
Liabilities in Excess
of Other Assets -1.96% (468,837)
-------------------------------
TOTAL NET ASSETS 100.00% $23,951,012
-------------------------------
GROWTH AND INCOME FUND
STATEMENT OF INVESTMENTS
May 31, 1996
Shares Market Value*
- ------ -------------
COMMON STOCKS 83.17%
- ------------------------------------------------------------------
CAPITAL GOODS 15.91%
- ------------------------------------------------------------------
AEROSPACE/DEFENSE 3.16%
- ------------------------------------------------------------------
5,400 General Motors Corp Class H $328,050
12,000 Goodrich B F & Co 475,500
------------
803,550
------------
COMPUTER HARDWARE 1.47%
- ------------------------------------------------------------------
3,500 Hewlett Packard Co 373,625
------------
COMPUTER SERVICES 2.38%
- ------------------------------------------------------------------
10,700 General Motors Corp Class E 603,212
------------
CONSTRUCTION 1.12%
- ------------------------------------------------------------------
6,400 Foster Wheeler Corp 284,800
------------
ELECTRICAL EQUIPMENT 2.48%
- ------------------------------------------------------------------
7,600 General Electric Co 628,900
------------
ELECTRONICS 1.66%
- ------------------------------------------------------------------
1,800 Intel Corp 135,900
6,500 Millipore Corp 285,187
------------
421,087
------------
OTHER- CAPITAL GOODS 3.64%
- ------------------------------------------------------------------
9,700 Greenfield Industries Inc 366,175
13,600 OEA Inc 557,600
------------
923,775
------------
TOTAL CAPITAL GOODS 4,038,949
(Cost $ 2,979,127) ------------
CONSUMER CYCLICALS 17.46%
- ------------------------------------------------------------------
BUILDING RELATED 0.47%
- ------------------------------------------------------------------
4,000 Fleetwood Enterprises 120,500
------------
BUSINESS SERVICES 2.83%
- ------------------------------------------------------------------
5,100 Manpower Inc 196,350
12,000 Omnicom Group Inc 523,500
------------
719,850
------------
CONSUMER PRODUCTS 2.95%
- ------------------------------------------------------------------
2,600 Duracell International Inc 121,225
6,900 Gillette Co 407,962
2,500 Procter & Gamble Inc 219,687
------------
748,874
------------
CONSUMER SERVICES 1.45%
- ------------------------------------------------------------------
12,800 Loewen Group Inc 368,000
------------
*See note 1 to financial statements.
**Denotes non-income producing security.
8 -----------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
GROWTH AND INCOME FUND
STATEMENT OF INVESTMENTS
May 31, 1996 (continued)
Shares Market Value*
- ------ -------------
CONSUMER SOFT GOODS 0.84%
- ------------------------------------------------------------------
7,500 Warnaco Group Inc $212,812
-------------
HOTELS/LEISURE 1.70%
- ------------------------------------------------------------------
1,200 Hilton Hotels Inc 129,300
9,600 La Quinta Inns Inc 302,400
-------------
431,700
-------------
RETAIL 5.30%
- ------------------------------------------------------------------
8,600 Caseys General Stores Inc 203,175
14,625 Dollar General Corp 405,844
5,400 Home Depot Inc 276,075
9,000 Intimate Brands 194,625
5,200 Nordstrom Inc 265,200
-------------
1,344,919
-------------
TELECOMMUNICATIONS 1.15%
- ------------------------------------------------------------------
1,700 Nokia Corp ADR 73,950
5,500 Vodafone Group PLC ADR 217,937
-------------
291,887
-------------
OTHER- CONSUMER CYCLICAL 0.77%
- ------------------------------------------------------------------
6,500 Newell Co 195,000
-------------
TOTAL CONSUMER CYCLICAL
(Cost $ 3,795,383) 4,433,542
-------------
CONSUMER STAPLES 7.14%
- ------------------------------------------------------------------
DRUGS & HEALTHCARE 1.93%
- ------------------------------------------------------------------
4,500 Guidant Corp 261,000
3,900 Schering Plough Corp 228,638
-------------
489,638
-------------
FOOD, BEVERAGE & TOBACCO 5.21%
- ------------------------------------------------------------------
3,700 CPC International Inc 255,763
11,000 Coca Cola Co 506,000
14,800 Pepsico Inc 492,100
2,100 Richfood Holdings Inc 70,350
-------------
1,324,213
-------------
TOTAL CONSUMER STAPLES 1,813,851
(Cost $ 1,387,843) -------------
CREDIT SENSITIVE 31.18%
- ------------------------------------------------------------------
BANKS 4.34%
- ------------------------------------------------------------------
7,600 Charter One Financial Inc 276,450
7,700 Cullen Frost Bankers Inc 396,550
12,300 Norwest Corp 428,963
-------------
1,101,963
-------------
FINANCIAL SERVICES 8.15%
- ------------------------------------------------------------------
7,000 Advanta Corp Class B $364,000
6,600 Household International Inc 457,050
9,300 MBNA Corp 284,813
4,600 MGIC Investment
Corp Wisconsin 270,250
55,350 Mercury Financial Co 691,875
-------------
2,067,988
-------------
HEALTHCARE SERVICES 1.18%
- ------------------------------------------------------------------
5,500 U.S. Healthcare Inc 298,375
-------------
INSURANCE 3.19%
- ------------------------------------------------------------------
15,400 Frontier Insurance Group Inc 529,375
11,000 GCR Holdings LTD 280,500
-------------
809,875
-------------
REAL ESTATE INVESTMENT TRUST 1.39%
- ------------------------------------------------------------------
15,500 Healthcare Realty Trust 352,625
-------------
UTILITIES- ELECTRIC 3.19%
- ------------------------------------------------------------------
13,496 AES Corp 374,514
16,600 Illinova Corp 435,750
-------------
810,264
-------------
UTILITIES- GAS 4.91%
- ------------------------------------------------------------------
8,800 Enron Corp 352,000
7,800 KN Energy Inc 263,250
12,100 Panenergy Corp 388,713
7,400 Questar Corp 242,350
-------------
1,246,313
-------------
UTILITIES- TELEPHONE 4.83%
- ------------------------------------------------------------------
12,000 Cincinnati Bell Inc 637,500
13,800 GTE Corp 589,950
-------------
1,227,450
-------------
TOTAL CREDIT SENSITIVE
(Cost $ 6,150,255) 7,914,853
-------------
INTERMEDIATE GOODS
& SERVICES 11.47%
- ------------------------------------------------------------------
AIRLINES 1.10%
- ------------------------------------------------------------------
5,400 Comair Holdings Inc 141,750
5,000 Southwest Airlines 136,875
-------------
278,625
-------------
CHEMICALS 1.76%
- ------------------------------------------------------------------
5,800 PPG Industries Inc 300,150
3,400 Union Carbide Corp 146,625
-------------
446,775
-------------
- ----------------------------------------------------------------------------- 9
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
GROWTH AND INCOME FUND
STATEMENT OF INVESTMENTS
May 31, 1996 (continued)
Shares Market Value*
- ------ -------------
ENERGY PRODUCERS 3.58%
- ----------------------------------------------------------------------
7,000 Apache Corp $200,375
4,600 Mobil Corp 519,225
7,800 Parker & Parsley Petroleum Co 190,125
-----------
909,725
-----------
ENERGY EQUIPMENT 1.89%
- ----------------------------------------------------------------------
7,700 Production Operators Corp 281,050
4,800 Tidewater Inc 198,000
-----------
479,050
-----------
TRANSPORTATION 3.14%
- ----------------------------------------------------------------------
3,400 Burlington Northern Santa Fe 288,150
5,500 CSX Corp 272,250
3,400 Union Pacific Corp 238,425
-----------
798,825
-----------
TOTAL INTERMEDIATE GOODS & SERVICES
(Cost $ 2,592,277) 2,913,000
-----------
TOTAL COMMON STOCKS
(Cost $ 16,904,885) 21,114,195
-----------
Face Amount
- -----------
CONVERTIBLE DEBENTURES 12.59%
- ----------------------------------------------------------------------
COMPUTER SERVICES/SOFTWARE 2.96%
- ----------------------------------------------------------------------
$400,000 First Financial Management
Corp, ** 5.00%, 12/15/99 751,808
-----------
HEALTHCARE SERVICES 1.09%
- ----------------------------------------------------------------------
250,000 Phycor Inc SDCV, **
4.50%, 2/15/03 277,188
-----------
ELECTRONICS 1.16%
- ----------------------------------------------------------------------
250,000 Analog Devices SDCV, **
3.50%, 12/1/00 295,000
-----------
ENERGY EQUIPMENT 1.13%
- ----------------------------------------------------------------------
200,000 Philip Environmental Inc SDCV, **
6.00%, 10/15/00 286,000
-----------
HOTELS 4.42%
- ----------------------------------------------------------------------
200,000 HFS Inc, ** 4.50%, 10/01/99 689,500
300,000 Prime Hospitality, **7.00%, 4/15/02 433,125
-----------
1,122,625
-----------
MEDIA-PUBLISHING 1.83%
- ----------------------------------------------------------------------
500,000 National Education Corp, **
6.50%, 5/15/11 465,000
-----------
TOTAL CONVERTIBLE DEBENTURES
(Cost $ 2,269,648) 3,197,621
-----------
MUTUAL FUNDS 3.20%
- ----------------------------------------------------------------------
810,186 Provident Institutional Temp Fund
(Cost $ 812,281) $812,281
-----------
TOTAL INVESTMENTS 98.96% $25,124,097
(Cost $ 19,986,814)
Assets in Excess of Other
Liabilities 1.04% 263,306
----------------------------
NET ASSETS 100.00% $25,387,403
----------------------------
*See note 1 to financial statements.
**Convertible to common stock.
10 -----------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
INTERMEDIATE-TERM BOND FUND
STATEMENT OF INVESTMENTS
May 31, 1996
Face Amount Market Value*
- ----------- -------------
CORPORATE BONDS 47.79%
- ---------------------------------------------------------------------------
ASSET BACKED 4.48%
- ---------------------------------------------------------------------------
$405,293 ALPS 94 1 Pass-Through Certificates
Ser A, 7.150%, 09/15/04 $408,004
750,000 Conti Mortgage Home Equity
Loan Trust, 7.95%, 04/15/10 763,777
812,395 Equicredit Corp Home Equity Loan
Trust Ser 1994-1, 5.80%, 03/15/09 787,511
1,000,000 Premier Auto Trust Ser 95-2-A5,
7.15%, 02/04/99 1,012,629
750,000 World Omni Auto Ser 95-A
6.05%, 11/25/01 749,549
-----------
TOTAL ASSET BACKED
(Cost $3,754,517) 3,721,470
-----------
FINANCIAL 12.79%
- ---------------------------------------------------------------------------
OPERATORS OF NON-RESIDENTIAL
BUILDINGS 1.14%
- ---------------------------------------------------------------------------
Kimco Realty Corp MTN,
1,000,000 6.83%, 11/14/05 946,100
-----------
PERSONAL CREDIT INSTITUTIONS 1.19%
- ---------------------------------------------------------------------------
1,000,000 General Motors Acceptance Corp
MTN, 6.65%, 05/24/00 986,653
-----------
REAL ESTATE INVESTMENT TRUST 5.25%
- ---------------------------------------------------------------------------
550,000 Camden Property Trust,
6.625%, 05/15/01 518,136
700,000 Developers Diversified Realty
Corp, 7.625%, 05/15/00 695,392
420,000 Nationwide Health Properties
MTN, 6.93%, 12/18/01 403,146
1,000,000 New Plan Realty Trust,
7.75%, 04/06/05 1,003,986
800,000 Price REIT Inc,
7.25%, 11/01/00 771,707
1,000,000 Weingarten Realty Investors Trust
MTN, 7.22%, 06/01/05 969,800
-----------
4,362,167
-----------
SAVINGS & LOAN HOLDING COMPANIES -
FEDERALLY CHARTERED 2.53%
- ---------------------------------------------------------------------------
1,500,000 Golden West Financial Corp,
8.375%, 04/15/02 1,580,085
500,000 World Savings and Loan,
10.25%, 10/01/97 523,239
-----------
2,103,324
-----------
SECURITIES BROKERS, DEALERS &
FLOTATION COS 1.33%
- ---------------------------------------------------------------------------
$1,130,000 Merrill Lynch Corp MTN,
6.50%, 04/01/01 $1,101,305
-----------
STATE COMMERCIAL BANKS 1.35%
- ---------------------------------------------------------------------------
1,150,000 Chemical Bank NY NY,
7.00%, 6/01/05 1,117,751
-----------
TOTAL FINANCIAL
(Cost $10,795,085) 10,617,300
-----------
INDUSTRIAL 23.72%
- ---------------------------------------------------------------------------
BOOKS - PUBLISHING OR
PUBLISHING & PRINTING 1.02%
- ---------------------------------------------------------------------------
1,000,000 Golden Books Publishing Co,
7.65%, 09/15/02 847,500
-----------
BROADCAST - MEDIA 3.30%
- ---------------------------------------------------------------------------
1,100,000 Cox Communications Inc,
6.375%, 06/15/00 1,076,633
1,500,000 TKR Cable I Cable Notes,
10.50%, 10/30/07, Callable
10/30/99 @ 105.25 1,665,000
-----------
2,741,633
-----------
CABLE & OTHER PAY
TELEVISION SERVICES 2.77%
- ---------------------------------------------------------------------------
2,375,000 Telecommunications Inc,
8.00%, 08/01/05 2,301,468
-----------
COOKIES & CRACKERS 1.19%
- ---------------------------------------------------------------------------
1,000,000 RJR Nabisco Inc,
8.00%, 07/15/01 986,160
-----------
ELECTRONIC & OTHER
ELECTRICAL EQUIPTMENT 1.33%
- ---------------------------------------------------------------------------
1,150,000 Rockwell International Corp,
6.625%, 06/01/05 1,102,089
-----------
INDUSTRIAL ORGANIC
CHEMICALS 0.94%
- ---------------------------------------------------------------------------
750,000 International Specialty Products,
Inc., 9.00%, 03/01/99 777,019
-----------
METALS - MISC 1.16%
- ---------------------------------------------------------------------------
1,000,000 CSR America Inc,
6.875%, 07/21/05 967,190
-----------
- ---------------------------------------------------------------------------- 11
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
INTERMEDIATE-TERM BOND FUND
STATEMENT OF INVESTMENTS
May 31, 1996 (continued)
Face Amount Market Value*
- ----------- --------------
MOTION PICTURE & VIDEO TAPE
PRODUCTION 2.59%
- ---------------------------------------------------------------------------
Time Warner Entertainment Co:
$1,000,000 9.625%, 05/01/02 $1,096,376
1,000,000 8.875%, 10/01/12 1,055,304
-----------
2,151,680
-----------
NEWSPAPER - PUBLISHING OR PUBLISHING
& PRINTING 2.83%
- ---------------------------------------------------------------------------
1,500,000 News America Holdings, Inc
8.625%, 02/01/03 1,587,103
750,000 The New York Times Co,
7.625%, 03/15/05 764,567
-----------
2,351,670
-----------
PHARMACEUTICAL PREPARATIONS 3.19%
- ---------------------------------------------------------------------------
1,700,000 Bayer Corp,
6.50%, 10/01/02 (1) 1,648,490
1,000,000 Upjohn Co MTN Ser-A,
6.25%, 02/02/98 996,793
-----------
2,645,283
-----------
RETAIL DEPARTMENT STORES 1.03%
- ---------------------------------------------------------------------------
1,000,000 K Mart Corp,
8.125%, 12/01/06 857,500
-----------
SEARCH, DETECTION, NAVIGATION, GUIDANCE
AERONAUTICAL SYSTEMS 0.90%
- ---------------------------------------------------------------------------
790,000 Raytheon Co,
6.50%, 07/15/05 749,084
-----------
SERVICES - MISCELLANEOUS, AMUSEMENT
& RECREATION 1.47%
- ---------------------------------------------------------------------------
1,250,000 Walt Disney Co,
6.375%, 03/30/01 1,220,616
-----------
TOTAL INDUSTRIAL
(Cost $19,957,486) 19,698,892
-----------
TRANSPORTATION 4.26%
- ---------------------------------------------------------------------------
AIR TRANSPORTATION, SCHEDULED 4.26%
- ---------------------------------------------------------------------------
896,208 American Airlines,
9.71%, 01/02/07 976,509
500,000 Continental Airlines,
7.75%, 07/02/15 503,350
1,060,740 Jet Equipment Trust Ser 95-B,
7.83%, 02/15/15 (1) 1,049,071
962,137 United Airlines Pass Through
Certificates 95-A1, 9.02%, 04/19/12 1,011,003
-----------
TOTAL TRANSPORTATION
(Cost $3,431,949) 3,539,933
-----------
UTILITIES 2.54%
- ---------------------------------------------------------------------------
ELECTRIC SERVICES 1.47%
- ---------------------------------------------------------------------------
$1,250,000 Central Maine Power Co,
6.25%, 11/01/98 $1,222,530
-----------
ELECTRIC & OTHER SERVICES
COMBINED 1.07%
- ---------------------------------------------------------------------------
1,000,000 Long Island Lighting Co,
7.125%, 06/01/05 883,380
-----------
TOTAL UTILITIES
(Cost $2,221,628) 2,105,910
-----------
TOTAL CORPORATE BONDS
(Cost $40,160,665) 39,683,505
-----------
MORTGAGE-BACKED
SECURITIES 0.72%
- ---------------------------------------------------------------------------
577,587 Collateralized Mortgage Securities
Corp, 8.75%, 04/20/19
(Cost $567,842) 596,162
-----------
U.S. GOVERNMENT TREASURIES 46.23%
- ---------------------------------------------------------------------------
U.S. Treasury Notes:
3,000,000 8.00%, 01/15/97 3,043,125
1,000,000 7.875%, 01/15/98 1,025,936
4,000,000 7.875%, 04/15/98 4,115,000
3,000,000 6.125%, 05/15/98 2,994,375
5,000,000 6.875%, 08/31/99 5,053,125
4,000,000 7.75%, 11/30/99 4,148,744
3,000,000 7.125%, 02/29/00 3,052,500
3,300,000 6.875%, 03/31/00 3,331,964
2,200,000 6.75%, 04/30/00 2,211,000
2,000,000 6.125%, 09/30/00 1,963,122
1,000,000 5.625%, 11/30/00 961,875
2,000,000 7.75%, 02/15/01 2,088,122
3,000,000 6.25%, 02/15/03 2,919,375
500,000 6.50%, 08/15/05 487,031
U.S. Treasury Bills:
1,000,000 06/20/96 997,337
-----------
TOTAL U.S. GOVERNMENT TREASURIES
(Cost $38,874,619) 38,392,631
-----------
Shares
- ------
MUTUAL FUNDS 3.98%
- ---------------------------------------------------------------------------
3,286,473 Provident Institutional Temp Fund
(Cost $3,301,665) 3,301,665
-----------
TOTAL INVESTMENTS 98.72% $81,973,963
(Cost $82,904,791)
Other Assets in Excess
of Other Liabilities 1.28% 1,064,673
--------------------------
NET ASSETS 100.00% $83,038,636
--------------------------
--------------------------
*See note 1 to financial statements.
(1) Restricted security- see Note 6 of Notes to Financial
Statements
12 -----------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
LONG-TERM BOND FUND
STATEMENT OF INVESTMENTS
May 31, 1996
Face Amount Market Value*
- ----------- --------------
CORPORATE BONDS 48.36%
- ---------------------------------------------------------------------------
FINANCIAL 17.73%
- ---------------------------------------------------------------------------
FINANCIAL SERVICES 0.91%
- ---------------------------------------------------------------------------
$250,000 Leucadia National Corp,
7.75%, 08/15/13 $227,356
-----------
FIRE MARINE & CASUALTY
INSURANCE 2.14%
- ---------------------------------------------------------------------------
600,000 Zurich Reinsurance Center Holdings,
7.125%, 10/15/23 536,517
-----------
LIFE INSURANCE 3.14%
- ---------------------------------------------------------------------------
500,000 Lincoln National Insurance Co,
9.125%, 10/01/24 534,784
250,000 Security Benefit Life,
8.75%, 05/15/16 252,325
-----------
787,109
-----------
MULTI LINE INSURANCE 0.91%
- ---------------------------------------------------------------------------
250,000 Principal Mutual Life Insurance Co,
7.875%, 03/01/24(1) 228,958
-----------
OPERATORS OF NON-RESIDENTIAL
BUILDINGS 5.40%
- ---------------------------------------------------------------------------
400,000 Kimco Realty Corp,
6.83%, 11/14/05 378,440
250,000 New Plan Realty Trust,
7.75%, 04/06/05 250,997
500,000 Property Trust of America,
6.875%, 02/15/08 470,111
250,000 Rouse Co,
8.50%, 01/15/03 255,455
-----------
1,355,003
-----------
REAL ESTATE INVESTMENT TRUSTS 3.13%
- ---------------------------------------------------------------------------
150,000 Camden Property Trust,
6.625%, 05/15/01 141,310
140,000 Nationwide Health Property Mtn,
6.93%, 12/18/01 134,382
275,000 Price REIT Inc,
7.25%, 11/01/00 265,274
250,000 Weingarten Realty Investors Trust
MTN, 7.22%, 06/01/05 242,450
-----------
783,416
-----------
SAVINGS INSTITUTIONS-
FEDERALLY CHARTED 2.10%
- ---------------------------------------------------------------------------
500,000 Golden West Financial Corp,
8.375%, 04/15/02 526,695
-----------
TOTAL FINANCIAL
(Cost $4,523,687) 4,445,054
-----------
INDUSTRIAL 23.98%
- ---------------------------------------------------------------------------
BOOKS, PUBLISHING OR PUBLISHING
& PRINTING 0.85%
- ---------------------------------------------------------------------------
$250,000 Golden Books Publishing,
7.65%, 09/15/02 $211,875
-----------
BROADCAST MEDIA 1.54%
- ---------------------------------------------------------------------------
400,000 Cox Communications Inc,
7.625%, 06/15/25 386,516
-----------
CABLE & OTHER PAY TELEVISION
SERVICES 3.09%
- ---------------------------------------------------------------------------
Telecommunications Inc,
800,000 8.00%, 08/01/05 775,231
-----------
DAIRY PRODUCTS 1.61%
- ---------------------------------------------------------------------------
500,000 Borden Inc,
7.875%, 02/15/23 404,115
-----------
INDUSTRIAL ORGANIC CHEMICALS 2.07%
- ---------------------------------------------------------------------------
500,000 International Specialty Products,
Inc., 9.00%, 03/01/99 518,012
-----------
SERVICES - MISCELLANEOUS, AMUSEMENT
& RECREATION 2.11%
- ---------------------------------------------------------------------------
550,000 Walt Disney Co,
6.75%, 03/30/06 528,559
-----------
MISCELLANEOUS CHEMICAL
PRODUCTS 1.52%
- ---------------------------------------------------------------------------
400,000 Lubrizol Corp,
7.25%, 06/15/25 382,196
-----------
NATURAL GAS TRANSMISSION 1.24%
- ---------------------------------------------------------------------------
250,000 Coastal Corp,
10.75%, 10/01/10 311,382
-----------
NEWSPAPERS - PUBLISHING OR
PUBLISHING & PRINTING 2.17%
- ---------------------------------------------------------------------------
500,000 News America Holdings Inc,
9.25%, 02/01/13 543,308
-----------
PERIODICALS - PUBLISHING OR
PUBLISHING & PRINTING 3.11%
- ---------------------------------------------------------------------------
750,000 Time Warner Inc,
9.125%, 01/15/13 780,026
-----------
PHARMACEUTICAL PREPARATIONS 2.13%
- ---------------------------------------------------------------------------
550,000 Bayer Corp,
6.50%, 10/01/02(1) 533,335
-----------
- ---------------------------------------------------------------------------- 13
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
LONG-TERM BOND FUND
STATEMENT OF INVESTMENTS
May 31, 1996 (continued)
Face Amount Market Value*
- ----------- --------------
RETAIL - DEPARTMENT STORES 1.56%
- ---------------------------------------------------------------------------
$500,000 Kmart Corp,
7.95%, 02/01/23 $391,250
-----------
SEARCH, DETECTION, NAVIGATION,
GUIDENCE, AERONAUTICAL SYSTEMS 0.98%
- ---------------------------------------------------------------------------
260,000 Raytheon Co,
6.50%, 07/15/05 246,534
-----------
TOTAL INDUSTRIAL
(Cost $6,155,170) 6,012,339
-----------
TRANSPORTATION 4.71%
- ---------------------------------------------------------------------------
AIR TRANSPORTATION - SCHEDULED 4.71%
- ---------------------------------------------------------------------------
500,000 AMR Corp,
10.00%, 04/15/21 588,523
343,758 Jet Equipment Trust 95-B,
7.83%, 02/15/15(1) 339,977
240,534 United Airlines Pass-Through
Certificates, 9.02%, 04/19/12 252,751
-----------
TOTAL TRANSPORTATION
(Cost $1,082,392) 1,181,251
-----------
UTILITIES 1.94%
- ---------------------------------------------------------------------------
ELECTRIC AND OTHER SERVICES
COMBINED 1.94%
- ---------------------------------------------------------------------------
550,000 Long Island Lighting Co,
7.125%, 06/01/05 485,859
-----------
TOTAL UTILITIES
(Cost $537,640) 485,859
-----------
TOTAL CORPORATE BONDS
(Cost $12,298,889) 12,124,503
-----------
U.S. GOVERNMENT TREASURIES 46.18%
- ---------------------------------------------------------------------------
U.S. TREASURY BONDS/NOTES/BILLS 34.69%
- ---------------------------------------------------------------------------
U.S. Treasury Bonds:
1,000,000 9.375%, 02/15/06 1,176,250
1,000,000 7.50%, 11/15/16 1,035,311
1,000,000 8.875%, 02/15/19 1,188,750
1,000,000 8.50%, 02/15/20 1,149,375
1,500,000 7.875%, 02/15/21 1,620,000
1,400,000 8.125%, 08/15/21 1,553,125
U.S. Treasury Notes,
1,000,000 6.25%, 02/15/03 973,125
-----------
8,695,936
-----------
U.S. GOVERNMENT ZERO COUPON
STRIPS 11.49%
- ---------------------------------------------------------------------------
$2,000,000 02/15/04 $1,187,104
5,000,000 08/15/11 1,693,655
-----------
2,880,759
-----------
TOTAL U.S. GOVERNMENT TREASURIES
(Cost $11,274,853) 11,576,695
-----------
Shares
------
MUTUAL FUNDS 0.08%
- ---------------------------------------------------------------------------
16,532 Provident Institutional Temp Fund 19,360
(Cost $19,360)) -----------
TOTAL INVESTMENTS
(Cost $23,593,102) 94.62% $23,720,558
Other Assets
in Excess of Liabilities 5.38% 1,349,701
-------------------------
NET ASSETS 100.00% $25,070,259
-------------------------
-------------------------
* See Note 1 to financial statements
(1) Restricted Security- See Note 6 of Notes to Financial Statements
14 -----------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
COLORADO TAX-EXEMPT FUND
STATEMENT OF INVESTMENTS
May 31, 1996
Bond Rating Market
Face Amount Moody's/S&P(+) Value*
- ----------- ---------------------------
CERTIFICATES OF PARTICIPATION 2.23%
- ---------------------------------------------------------------------------
$100,000 Colorado State Board of Agriculture
Certificate of Participation
CSU Research Foundation Master
Lease Purchase Agreement,
6.45%, 11/01/01, Optional
05/01/99 @ 101.00, MBIA Aaa/AAA $105,195
100,000 State of Colorado Certificate
of Participation Master Lease
Purchase Agreement,
5.25%, 11/01/99, AMBAC Aaa/AAA 102,283
100,000 Lakewood, Jefferson County,
Public Building Authority,
Certificate of Participation,
Lease Purchase Agreement
5.625%, 12/01/99, MBIA Aaa/AAA 102,597
-----------
TOTAL CERTIFICATES OF PARTICIPATION
(Cost $300,771) 310,075
-----------
GENERAL OBLIGATION BONDS 62.17%
- ---------------------------------------------------------------------------
COUNTY/CITY/SPECIAL DISTRICT/
SCHOOL DISTRICT 62.17%
- ---------------------------------------------------------------------------
100,000 Adams & Arapahoe Counties
School District 29-J 5.40%, 12/01/09,
Optional 12/01/06 @ 100.00, MBIA Aaa/AAA 98,625
100,000 Adams & Arapahoe Counties
School District 28J 5.75%,
12/01/06, MBIA Aaa/AAA 103,751
100,000 Adams County School District 12,
7.25%, 12/15/09, Prerefunded
12/15/99 @ 100.00 NR/A+ 108,697
225,000 Alamosa & Conejos Counties
School District Re-11J
4.9%, 12/01/07, Optional
12/01/05 @ 100.00, MBIA Aaa/AAA 214,159
100,000 Arapahoe County School
District 1, 4.85%, 11/01/04, F5A Aaa/AAA 98,128
125,000 Arapahoe County School
District 2, 6.75%, 12/01/04,
Optional 12/01/99 @ 101.00 A/NR 132,336
250,000 Arapahoe County School District
6, 5.50%, 12/01/06 Aa/AA 254,995
250,000 Basalt & Rural Fire Protection District,
Eagle & Pitkin Counties,
5.20%, 12/01/15, Optional
12/01/06 @ 100.00, AMBAC Aaa/AAA 233,172
250,000 Brighton, Adams County,
6.625%, 12/01/11, Optional
12/01/01 @ 101.00, MBIA Aaa/AAA 266,395
25,000 Boulder & Gilpin Counties
Valley School District Re-2,
5.55%, 12/01/03 A-1/AA 25,693
$150,000 Boulder Library, 7.30%,
10/01/08, Prerefunded
10/01/98 @ 100.00 Aaa/AA $160,051
Boulder, Larimer & Weld
Counties, St. Vrain Valley,
School District Re-1J:
100,000 5.50%, 12/15/04, Optional
12/15/02 @ 101.00, MBIA Aaa/AAA 102,878
175,000 5.80%, 12/15/07, Optional
12/15/02 @ 101.00, MBIA Aaa/AAA 180,579
100,000 6.00%, 12/15/10, Optional
12/15/02 @ 101.00, MBIA Aaa/AAA 102,819
125,000 Colorado Springs, El Paso County
6.60%, 09/01/00, Prerefunded
09/01/99 @ 100.00 NR/AAA 132,797
250,000 Clear Creek County School
District Re-1, 5.40%, 12/01/11,
Optional 12/01/05 @ 100.00, MBIA Aaa/AAA 243,200
250,000 Douglas & Elbert Counties
School District Re-1,
6.15%, 12/15/08, Optional
12/15/04 @ 101.00, MBIA Aaa/AAA 263,257
250,000 Douglas & Elbert Counties
School District Re-1, 5.75%,
12/15/05, Optional 12/15/01
@ 101.00, FGIC Aaa/AAA 259,215
Eagle, Garfield & Routt Counties
School District 50-J:
125,000 6.60%, 12/01/99, Prerefunded
12/01/98 @ 100.00, FGIC Aaa/AAA 131,806
85,000 5.60%, 12/01/01, FGIC Aaa/AAA 88,544
200,000 5.75%, 12/01/03, Optional
12/01/02 @ 100.00, FGIC Aaa/AAA 209,026
125,000 El Paso County School District 3,
6.20%, 12/15/00, Optional
12/15/98 @ 101.00, MBIA Aaa/AAA 130,607
125,000 El Paso County School District
49, 6.75%, 12/01/04, Optional
12/01/00 @ 100.00, MBIA Aaa/AAA 133,252
125,000 Fruita, Mesa County,
6.40%, 10/01/00, Optional
10/01/97 @ 100.00, AMBAC Aaa/AAA 127,727
250,000 Garfield, Eagle & Pitkin Counties
School District Re-1, 6.60%,
12/15/14, Prerefunded 06/15/04
@ 101.00, MBIA Aaa/AAA 276,978
625,000 Goldsmith Metropolitan District
Arapahoe & Denver Counties,
6.50%, 12/01/03, Optional
12/01/99 @ 101.00, MBIA Aaa/AAA 660,225
100,000 Gunnison & Saquache
Counties School District
Re-1J, 5.15%, 12/01/10, Optional
12/15/06 @ 100.00, MBIA Aaa/AAA 94,925
- ---------------------------------------------------------------------------- 15
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
COLORADO TAX-EXEMPT FUND
STATEMENT OF INVESTMENTS
May 31, 1996 (continued)
Bond Rating Market
Face Amount Moody's/S&P(+) Value*
- ----------- ---------------------------
Jefferson County School
District R-1:
$100,000 5.10%, 12/15/99, AMBAC Aaa/AAA $102,072
100,000 5.75%, 12/15/03, Optional
12/15/02 @ 101.00, AMBAC Aaa/AAA 105,109
500,000 5.90%, 12/15/04, Optional
12/15/02 @ 101.00, AMBAC Aaa/AAA 526,160
125,000 Larimer County Poudre School
District R-1, 7.00%, 12/15/08,
Prerefunded 12/15/01 @ 101.00 NR/NR 138,873
250,000 Larimer, Weld & Boulder Counties,
Thompson School District R-2J
6.05%, 12/15/08, Optional
12/15/04 @ 100.00, MBIA Aaa/AAA 262,563
100,000 Longmont, Boulder County,
5.15%, 09/01/99, MBIA Aaa/AAA 101,787
105,000 Morgan County School District
Re-3, 6.45%, 12/01/98 A/NR 110,195
Northglenn, Adams County Water:
150,000 6.70%, 11/01/01, Optional
11/01/96 @ 101.00, MBIA Aaa/AAA 152,772
250,000 5.50%, 12/01/06, Optional
12/01/04 @ 101.00, FSA Aaa/AAA 255,400
100,000 Otero County, East Otero
School District R-1
5.05%, 12/15/09, Optional
12/15/05 @ 100.00, FSA Aaa/AAA 94,617
100,000 Pitkin County School District Re-1,
5.50%, 11/15/00, AMBAC Aaa/AAA 103,180
125,000 Poudre Valley Hospital District,
Larimer County, 6.80%,
11/15/02, Prerefunded
11/15/98 @ 101.00 NR/AAA 133,443
250,000 Pueblo, Pueblo County Limited
Tax, 6.00%, 06/01/16, Optional
06/01/06 @ 100.00, MBIA Aaa/AAA 250,185
75,000 Routt County School District
Re-2, 5.00%, 12/01/05, Optional
12/01/03 @ 100.00, FGIC Aaa/AAA 73,667
375,000 San Miguel County School District
R-1, 5.50%, 12/01/12, Optional
12/01/05 @ 101.00, MBIA Aaa/AAA 364,706
100,000 Summit County School District
Re-1 5.20%, 12/01/12, Optional
12/01/06 @ 101.00, FGIC Aaa/AAA 94,168
125,000 Thornton, Adams County,
5.75%, 12/01/04, Optional
12/01/02 @ 101.00, FGIC Aaa/AAA 130,843
Thornton, Adams County Water:
25,000 7.40%, 12/01/98, FGIC Aaa/AAA 26,836
125,000 7.40%, 12/01/98, Prerefunded
12/01/96 @ 102.00, FGIC Aaa/AAA 129,749
$100,000 Thorton, Adams County
Water, 5.20%, 12/01/99, FGIC Aaa/AAA $102,374
135,000 Three Lakes Water & Sanitation
District, Grand County Limited
Tax, 6.00%, 06/01/00 Optional
06/01/97 @ 101.00, MBIA Aaa/AAA 137,931
100,000 Willows Water District,
Arapahoe County, 6.40%,
12/01/98, Optional 12/01/96
@ 100.00, MBIA Aaa/AAA 100,168
100,000 Windsor & Severance Library
District, Weld County, 5.30%,
12/15/15, Optional 12/15/06
@ 100.00, AMBAC Aaa/AAA 93,753
100,000 Woodland Park, Teller County,
6.30%, 07/01/08, Optional
07/01/00 @ 101.00, FGIC Aaa/AAA 104,244
125,000 Woodmoor Water & Sanitation
District 1 El Paso County, 6.20%,
12/01/00, Optional 12/01/96
@ 100.00, MBIA Aaa/AAA 126,398
-----------
TOTAL GENERAL OBLIGATION BONDS
(Cost $8,549,601) 8,655,030
-----------
REVENUE BONDS 32.60%
- ----------------------------------------------------------------------------
EDUCATION 2..70%
- ----------------------------------------------------------------------------
100,000 Auraria Higher Education
Center Student Fee, 5.25%,
05/01/10, Optional 05/01/06
@ 101.00, AMBAC Aaa/AAA 96,083
70,000 Colorado State Board of Agriculture
CSU Auxiliary Facilities
7.70%, 09/01/06, Optional
09/01/96 @ 101.00, MBIA Aaa/AAA $71,317
100,000 State of Colorado Department of
Higher Education
State Board for Community Colleges
& Occupational Education, 5.20%,
11/01/03, Optional 11/01/02
@ 100.00, AMBAC Aaa/AAA 101,137
100,000 University of Colorado Board of
Regents Auxiliary Facilities,
6.50%, 06/01/01, Prerefunded
06/01/00 @ 101.00 A1/NR 107,249
----------
375,786
----------
16 -----------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
COLORADO TAX-EXEMPT FUND
STATEMENT OF INVESTMENTS
May 31, 1996
Bond Rating Market
Face Amount Moody's/S&P(+) Value*
- ----------- ---------------------------
HOSPITALS 2.47%
- ---------------------------------------------------------------------------
$100,000 Poudre Valley Hospital
District, Larimer County, 5.80%,
12/01/98, ETM, AMBAC Aaa/AAA $103,611
250,000 Poudre Valley Hospital District,
Larimer County, 4.75%,
12/01/05, Optional 12/01/03
@ 101.00, AMBAC Aaa/AAA 240,743
----------
344,354
----------
PUBLIC FACILITES 1.54%
- ---------------------------------------------------------------------------
200,000 Denver Metropolitan Major
League Baseball Stadium
District Sales Tax, 6.25%, 10/01/02,
Prerefunded 10/01/01 @ 101.00,
FGIC Aaa/AAA 215,040
----------
SPECIAL TAX 13.15%
- ----------------------------------------------------------------------------
250,000 Boulder Urban Renewal
Authority Tax Increment, 6.00%,
03/01/02, Optional 03/01/00
@ 101.00, MBIA Aaa/AAA 261,992
250,000 Breckenridge, Summit County
Excise Tax, 5.20%,
12/01/01, Optional 12/01/00
@ 100.00, MBIA Aaa/AAA 255,632
100,000 Commerce City, Adams
County Sales Tax, 5.375%,
08/01/07, Optional 08/01/03
@ 101.00, MBIA Aaa/AAA 100,243
150,000 Delta County Sales Tax Revenue,
4.75%, 06/01/01, FSA Aaa/AAA 149,735
500,000 Fort Collins, Larimer County
Sales & Use Tax, 4.90%,
06/01/01, FGIC Aaa/AAA 502,420
150,000 Lafayette, Boulder County,
Sales & Use Tax, 6.40%, 11/15/04,
Prerefunded 11/15/01 @ 100.00,
AMBAC Aaa/AAA 163,685
250,000 Silverthorne, Summit County Sales
Tax, 5.625%, 04/15/13, Optional
04/15/05 @ 100.00, FSA Aaa/AAA 247,965
Thornton, Adams County, Sales
and Use Tax:
100,000 4.95%, 09/01/04, Optional
09/01/02 @ 101.00, FGIC Aaa/AAA 99,458
50,000 5.15%, 09/01/06, Optional 09/01/03
@ 100.00, FGIC Aaa/AAA 49,662
----------
1,830,792
----------
TRANSPORTATION 4.25%
- ---------------------------------------------------------------------------
Regional Transportation District
RTD Sales Tax:
$100,000 7.00%, 11/01/98, FGIC Aaa/AAA $106,224
500,000 5.375%, 11/01/10, Optional
11/01/03 @ 101.00, FGIC Aaa/AAA 485,100
----------
591,324
----------
UTILITY 8.49%
- ---------------------------------------------------------------------------
75,000 Boulder Water & Sewer,
5.75%, 12/01/06, Optional
12/01/02 @ 100.00 Aa/AA 76,919
250,000 Central Weld County Water
District, 5.25%, 12/01/05,
Optional 12/01/03 @
100.00, MBIA Aaa/AAA 251,848
100,000 Colorado Springs Utilities
Systems, 6.40%, 11/15/02,
Optional 11/15/01 @ 102.00 Aa/AA 108,466
250,000 Fort Collins, Larimer County
Wastewater Utility Enterprise,
5.375%, 12/01/09, Optional
12/01/05 @ 100.00, FGIC Aaa/AAA 245,883
100,000 Glenwood Springs, Garfield
County Water & Sewer, 4.70%,
12/01/05, Optional
12/01/01 @ 100.00, AMBAC Aaa/AAA 96,245
200,000 Lafayette, Boulder County
Sewer, 4.95%, 09/01/05, FGIC Aaa/AAA 198,084
Metropolitan Denver Sewer
Disposal District 1:
100,000 6.10%, 04/01/99, Optional
10/01/96 @ 101.00 A1/AA 101,782
50,000 6.10%, 04/01/99, Prerefunded
10/01/96 @ 101.00 A1/AA 50,884
50,000 Ute Water Conservancy District,
Mesa County, 7.60%, 06/15/01,
Prerefunded 06/15/97
@ 100.00, AMBAC Aaa/AAA 51,560
----------
1,181,671
----------
TOTAL REVENUE BONDS
(Cost $4,498,014) 4,538,967
----------
Shares
------
MUTUAL FUNDS 4.48%
- ---------------------------------------------------------------------------
622,574 Provident Institutional
Municipal Fund
(Cost $623,906) 623,906
----------
TOTAL INVESTMENTS
(Cost $13,972,292) 101.48% $14,127,978
Liabilities in Excess of
Other Assets (1.48%) (206,238)
-------------------------
NET ASSETS 100.00% $13,921,740
-------------------------
*See note 1 to financial statements.
(+) Unaudited
- ---------------------------------------------------------------------------- 17
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED MAY 31, 1996
<TABLE>
<CAPTION>
MIDCO Blue Small-Cap Growth Intermediate- Long-Term Colorado
Growth Chip Opportunity and Income Term Bond Tax-Exempt
Fund Fund Fund Fund Bond Fund Fund Fund
---------- ---------- ----------- ---------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $1,930,771 $1,476,810 $204,711 $650,651 $0 $0 $0
Interest 1,736,446 134,234 62,123 60,928 5,992,888 2,096,493 603,936
- ----------------------------------------------------------------------------------------------------------------------------------
Total Income 3,667,217 1,611,044 266,834 711,579 5,992,888 2,096,493 603,936
- ----------------------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fee 3,558,326 398,660 173,531 179,195 409,197 135,354 56,823
Administrative fee 1,230,673 138,303 40,862 57,047 188,905 62,471 25,233
Fund accounting 177,787 30,483 32,387 31,712 42,767 32,660 33,289
Legal 164,604 29,770 8,362 9,828 37,522 13,435 2,956
Audit 13,821 8,751 7,813 8,813 12,313 7,750 3,179
Custodian 131,399 24,180 18,793 22,966 30,844 14,196 8,353
Amortization of organization
costs 0 0 17,759 0 0 0 10,829
Transfer agency 335,745 45,546 38,465 61,864 42,346 24,395 13,575
Printing 117,473 26,332 10,233 7,099 14,096 5,831 1,040
Insurance 23,602 2,083 517 1,446 3,938 1,398 429
Registration 47,563 17,460 20,274 15,023 25,889 5,886 857
Trustee fee 25,517 3,413 1,049 1,506 4,913 4,989 399
Reorganization 150,451 14,753 5,114 12,725 17,864 6,892 4,850
Distribution/administration
assistance - retail 21,061 0 704 2,601 1,677 0 0
Other 64,607 25,600 7,657 6,726 5,681 6,916 770
- ----------------------------------------------------------------------------------------------------------------------------------
Total Expenses 6,062,629 765,334 383,520 418,551 837,952 322,173 162,582
Expenses waived by:
Investment advisor 0 (59,499) (136,791) (49,319) (58,864) (32,618) (56,823)
Custodian (131,399) (24,180) (18,793) (22,966) (30,844) (14,196) (8,353)
Administrator 0 (4,948) (1,806) (4,873) (10,539) (3,520) (24,766)
Expenses reimbursed by
Investment advisor 0 0 0 0 0 0 (22,238)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Expenses 5,931,230 676,707 226,130 341,393 737,705 271,839 50,402
- ----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME
(LOSS) (2,264,013) 934,337 40,704 370,186 5,255,183 1,824,654 553,534
- ----------------------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from
investment transactions 53,405,690 8,541,198 1,021,344 3,440,453 849,471 810,714 (7,226)
- ----------------------------------------------------------------------------------------------------------------------------------
Unrealized appreciation
(depreciation) of
investments:
Beginning of period 97,968,007 10,123,581 693,860 2,440,998 1,160,831 1,519,743 295,433
End of period 224,240,350 16,896,111 5,147,444 5,137,283 (930,828) 127,456 155,686
- ----------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized
appreciation (depreciation) 126,272,343 6,772,530 4,453,584 2,696,285 (2,091,659) (1,392,287) (139,747)
- ----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS 179,678,033 15,313,728 5,474,928 6,136,738 (1,242,188) (581,573) (146,973)
- ----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $177,414,020 $16,248,065 $5,515,632 $6,506,924 $4,012,995 $1,243,081 $406,561
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18 ----------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MIDCO Growth Fund
------------------------------------------
For the Year Ended May 31,
------------------------------------------
1996 1995
------------------- ---------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net investment loss $(2,264,013) $(169,107)
Net realized gain on investments 53,405,690 1,443,760
Net unrealized appreciation 126,272,343 37,597,019
- ---------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 177,414,020 38,871,672
- ---------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gain on investments
Institutional class (19,218,923) (11,450,951)
Retail class 0 (685,566)
- ---------------------------------------------------------------------------------------------------------------------
Change in net assets derived from investment activities 158,195,097 26,735,155
- ---------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets derived from
institutional class beneficial interest transactions - Note 2 101,245,432 41,013,312
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets derived from
retail class beneficial interest transactions - Note 2 (30,387,017) 7,925,300
- ---------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS 229,053,512 75,673,767
NET ASSETS:
Beginning of period 427,436,214 351,762,447
- ---------------------------------------------------------------------------------------------------------------------
End of period (including over distributed net investment
income of ($3,130,644) and ($866,631), respectively) $656,489,726 $427,436,214
- ---------------------------------------------------------------------------------------------------------------------
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
Blue Chip Fund
------------------------------------------
For the Year Ended May 31,
------------------------------------------
1996 1995
------------------- ---------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net investment income $934,337 $743,795
Net realized gain on investments 8,541,198 1,045,955
Net unrealized appreciation 6,772,530 6,095,272
- ---------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 16,248,065 7,885,022
- ---------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (976,769) (498,807)
Distributions to shareholders from net realized gain on investments (4,826,591) (622,592)
- ---------------------------------------------------------------------------------------------------------------------
Change in net assets derived from investment activities 10,444,705 6,763,623
- ---------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS
Shares sold 17,435,317 21,451,091
Shares issued in reinvestment of dividends 5,209,936 1,004,437
- ---------------------------------------------------------------------------------------------------------------------
22,645,253 22,455,528
Shares redeemed (17,349,667) (13,348,260)
- ---------------------------------------------------------------------------------------------------------------------
Change in net assets derived from beneficial interest transactions 5,295,586 9,107,268
- ---------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS 15,740,291 15,870,891
NET ASSETS:
Beginning of period 52,545,281 36,674,390
- ---------------------------------------------------------------------------------------------------------------------
End of period (including undistributed net
investment income of $184,414 and $226,846, respectively) $68,285,572 $52,545,281
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
- ---------------------------------------------------------------------------- 19
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Small-Cap
Opportunity Fund
------------------------------------------
For the Year Ended May 31,
------------------------------------------
1996 1995
------------------- ---------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net investment income $40,704 $43,350
Net realized gain (loss) on investments 1,021,344 (111,091)
Net unrealized appreciation 4,453,584 680,840
- ---------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 5,515,632 613,099
- ---------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income
Institutional class (48,100) (35,513)
Retail class (895) (2,821)
Distributions to shareholders from net realized gain on investments
Institutional class (421,504) (66,448)
Retail class 0 (6,502)
- ---------------------------------------------------------------------------------------------------------------------
Change in net assets derived from investment activities 5,045,133 501,815
- ---------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets derived from
institutional class beneficial interest transactions - Note 2 9,334,752 7,089,788
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets derived from
retail class beneficial interest transactions - Note 2 (1,065,766) 389,185
- ---------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS 13,314,119 7,980,788
NET ASSETS:
Beginning of period 10,636,893 2,656,105
- ---------------------------------------------------------------------------------------------------------------------
End of period (including undistributed net investment
income of $478 and $8,769, respectively) $23,951,012 $10,636,893
- ---------------------------------------------------------------------------------------------------------------------
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS Growth and Income Fund
------------------------------------------
For the Year Ended May 31,
------------------------------------------
FROM INVESTMENT ACTIVITIES 1996 1995
------------------- ---------------------
<S> <C> <C>
Net investment income $370,186 $863,093
Net realized gain (loss) on investments 3,440,453 (1,036,420)
Net unrealized appreciation 2,696,285 779,981
- ---------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 6,506,924 606,654
- ---------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income
Institutional class (518,985) (834,009)
Retail class (21,581) (70,652)
Distributions to shareholders from net realized gain on investments
Institutional class (1,458,171) (1,003,450)
Retail class 0 (94,567)
- ---------------------------------------------------------------------------------------------------------------------
Change in net assets derived from investment activities 4,508,187 (1,396,024)
- ---------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS
Net decrease in net assets derived from
institutional class beneficial interest transactions - Note 2 (5,892,042) (14,255,191)
- ---------------------------------------------------------------------------------------------------------------------
Net decrease in net assets derived from
retail class beneficial interest transactions - Note 2 (4,128,687) (118,398)
- ---------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS (5,512,542) (15,769,613)
NET ASSETS:
Beginning of period 30,899,945 46,669,558
- ---------------------------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment income
of ($143,956) and $26,424, respectively) $25,387,403 $30,899,945
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
20 ----------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Intermediate-Term Bond Fund
------------------------------------------
For the Year Ended May 31,
------------------------------------------
1996 1995
------------------- --------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net investment income $5,255,183 $5,308,012
Net realized gain (loss) on investments 849,471 (1,790,451)
Net unrealized appreciation (depreciation) (2,091,659) 4,569,545
- ---------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 4,012,995 8,087,106
- ---------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income
Institutional class (5,220,333) (5,349,712)
Retail class (52,026) (140,002)
- ---------------------------------------------------------------------------------------------------------------------
Change in net assets derived from investment activities (1,259,364) 2,597,392
- ---------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS
Net increase (decrease) in net assets derived from
institutional class beneficial interest transactions - Note 2 (13,314,494) 6,124,220
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets derived from
retail class beneficial interest transactions - Note 2 (2,577,091) 562,082
- ---------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS (17,150,949) 9,283,694
NET ASSETS:
Beginning of period 100,189,585 90,905,891
- ---------------------------------------------------------------------------------------------------------------------
End of period (including undistributed net investment income
of $85,280 and $102,456, respectively) $83,038,636 $100,189,585
- ---------------------------------------------------------------------------------------------------------------------
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS Long-Term Bond Fund
------------------------------------------
For the Year Ended May 31,
------------------------------------------
1996 1995
-------------------- --------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net investment income $1,824,654 $1,808,619
Net realized gain (loss) on investments 810,714 (307,479)
Net unrealized appreciation (depreciation) (1,392,287) 2,584,530
- ---------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 1,243,081 4,085,6701
- ---------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (1,851,721) (1,816,108)
- ---------------------------------------------------------------------------------------------------------------------
Change in net assets derived from investment activities (608,640) 2,269,562
- ---------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS
Shares sold 6,252,499 10,155,539
Shares issued in reinvestment of dividends 1,672,703 1,662,861
- ---------------------------------------------------------------------------------------------------------------------
7,925,202 11,818,400
Shares redeemed (15,686,515) (7,609,598)
- ---------------------------------------------------------------------------------------------------------------------
Change in net assets derived from beneficial interest transactions (7,761,313) 4,208,802
- ---------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS (8,369,953) 6,478,364
NET ASSETS:
Beginning of period 33,440,212 26,961,848
- ---------------------------------------------------------------------------------------------------------------------
End of period (including undistributed net investment income
of $29,351 and $56,418, respectively) $25,070,259 $33,440,212
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
- ---------------------------------------------------------------------------- 21
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Colorado Tax-Exempt Fund
------------------------------------------
For the Year Ended May 31,
------------------------------------------
1996 1995
--------------------- -------------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net investment income $553,534 $516,588
Net realized loss on investments (7,226) (12)
Net unrealized appreciation (depreciation) (139,747) 213,154
- ---------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 406,561 729,730
- ---------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (540,156) (535,461)
- ---------------------------------------------------------------------------------------------------------------------
Change in net assets derived from investment activities (133,595) 194,269
- ---------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS
Shares sold 3,597,527 1,234,996
Shares issued in reinvestment of dividends 347,227 324,646
- ---------------------------------------------------------------------------------------------------------------------
3,944,754 1,559,642
Shares redeemed (681,115) (1,515,481)
- ---------------------------------------------------------------------------------------------------------------------
Change in net assets derived from beneficial interest transactions 3,263,639 44,161
- ---------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS 3,130,044 238,430
NET ASSETS:
Beginning of period 10,791,696 10,553,266
- ---------------------------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment income
of $11,725 and ($1,653), respectively) $13,921,740 $10,791,696
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
22 ----------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the periods indicated:
<TABLE>
<CAPTION>
MIDCO Growth Fund
--------------------------------------------------
Institutional Shares
--------------------------------------------------
For the Period Ended May 31,
--------------------------------------------------
1996 1995 1994 1993 1992
-------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value - beginning of period $17.12 $16.09 $15.79 $14.38 $14.00
- ------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.08) 0.00 0.00 0.04 0.06
Net realized and unrealized gain (loss) on
investments 6.58 1.56 1.34 2.48 1.84
- ------------------------------------------------------------------------------------------------------
Total income (loss) from investment operations 6.50 1.56 1.34 2.52 1.90
- ------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income 0.00 0.00 0.00 0.00 (0.32)
Distributions from net realized gain on
investments (0.72) (0.53) (1.03) (1.11) (1.20)
Return of Capital (0.00) (0.00) (0.01) (0.00) (0.00)
- ------------------------------------------------------------------------------------------------------
Total dividends, distributions, and return of capital
to shareholders (0.72) (0.53) (1.04) (1.11) (1.52)
- ------------------------------------------------------------------------------------------------------
Net asset value - end of period $22.90 $17.12 $16.09 $15.79 $14.38
- ------------------------------------------------------------------------------------------------------
Total return (2) 38.62% 10.05% 8.37% 18.04% 14.09%
- ------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $656,490 $401,760 $335,453 $231,595 $180,681
- ------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets 1.08% 0.94% 0.84% 0.83% 0.80%
- ------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average
net assets (0.42%) (0.03%) (0.09%) 0.04% 0.12%
- ------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 1.10% 0.96% 0.87% 0.85% 0.85%
- ------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss) to average
net assets without fee waivers (0.44%) (0.05%) (0.12%) 0.02% 0.07%
- ------------------------------------------------------------------------------------------------------
Portfolio turnover rate (1) 62.83% 50.19% 52.05% 56.23% 48.17%
- ------------------------------------------------------------------------------------------------------
<CAPTION>
MIDCO Growth Fund
--------------------------------
Retail Shares
--------------------------------
For the
Period Ended
May 31
--------------------------------
1996** 1995 1994*
---------- -------- ----------
<S> <C> <C> <C>
Net asset value - beginning of period $17.10 $16.10 $17.33
- ----------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income (loss) (0.01) (0.03) (0.01)
Net realized and unrealized gain (loss) on
investments 3.12 1.56 (0.19)
- ----------------------------------------------------------------------------------
Total income (loss) from investment operations 3.11 1.53 (0.20)
- ----------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.00) (0.00) 0.00
Distributions from net realized gain on
investments (0.00) (0.53) (1.02)
Return of Capital (0.00) (0.00) (0.01)
- ----------------------------------------------------------------------------------
Total dividends, distributions, and return of capital
to shareholders (0.00) (0.53) (1.03)
- ----------------------------------------------------------------------------------
Net asset value - end of period $20.21 $17.10 $16.10
- ----------------------------------------------------------------------------------
Total return (2) 18.19% 9.78% (1.88%)(3)
- ----------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $30,827 $25,677 $16,309
- ----------------------------------------------------------------------------------
Ratio of expenses to average
net assets 1.16%(3) 1.19% 1.10%(3)
- ----------------------------------------------------------------------------------
Ratio of net investment income (loss) to average
net assets (0.24%)(3)(0.28%) (0.37%)(3)
- ----------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 1.17%(3) 1.21% 1.13%(3)
- ----------------------------------------------------------------------------------
Ratio of net investment income (loss) to average
net assets without fee waivers (0.26%)(3)(0.30%) (0.40%)(3)
- ----------------------------------------------------------------------------------
Portfolio turnover rate (1) 62.83% 50.19% 52.05%
- ----------------------------------------------------------------------------------
</TABLE>
(1) A portfolio turnover rate is, in general, the percentage computed by taking
the lesser of purchases or sales of portfolio securities (excluding
securities with a maturity date of one year or less at the time of
acquisition) for a period and dividing it by the monthly average of the
market value of such securities during the period. Purchases and sales of
investment securities (excluding short-term securities) for the year ended
May 31, 1996 were $387,990,462 and $324,571,405, respectively.
(2) Sales charges are not reflected in total return.
(3) Annualized.
* For the period October 11, 1993 (inception of offering) to May 31, 1994.
** For the period June 1, 1995 to September 29, 1995.
SEE NOTES TO FINANCIAL STATEMENTS
- ---------------------------------------------------------------------------- 23
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the periods indicated:
<TABLE>
<CAPTION>
Blue Chip Fund
---------------------------------------------------------------------------------------
For the Year
Ended May 31,
---------------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
---------- ---------- ---------- ---------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value - beginning of period $14.70 $12.70 $13.87 $13.35 $12.68 $11.74
- ------------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.25 0.23 0.40 0.34 0.28 0.29
Net realized and unrealized gain on
investments 4.03 2.12 0.04 1.13 0.95 1.15
- ------------------------------------------------------------------------------------------------------------------------------------
Total income from investment operations 4.28 2.35 0.44 1.47 1.23 1.44
- ----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.27) (0.16) (0.43) (0.21) (0.35) (0.30)
Distributions from net realized gain on
investments (1.30) (0.19) (1.18) (0.74) (0.21) (0.20)
- ----------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (1.57) (0.35) (1.61) (0.95) (0.56) (0.50)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $17.41 $14.70 $12.70 $13.87 $13.35 $12.68
- ----------------------------------------------------------------------------------------------------------------------------------
Total return 30.48% 19.03% 3.12% 11.62% 10.02% 13.08%
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $68,286 $52,545 $36,674 $28,176 $30,572 $27,208
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets 1.10% 1.01% 1.06% 0.99% 0.91% 0.84%
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets 1.52% 1.78% 2.30% 2.37% 2.17% 2.65%
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 1.25% 1.06% 1.09% 1.02% 0.97% 0.94%
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net
assets without fee waivers 1.38% 1.73% 2.27% 2.34% 2.11% 2.55%
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (1) 65.11% 61.72% 41.32% 85.53% 123.91% 142.01%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) A portfolio turnover rate is, in general, the percentage computed by
taking the lesser of purchases or sales of portfolio securities
(excluding securities with a maturity date of one year or less at the
time of acquisition) for a period and dividing it by the monthly
average of the market value of such securities during the period.
Purchases and sales of investment securities (excluding short-term
securities) for the period ended May 31, 1996 were $37,959,388 and
$38,051,658, respectively.
SEE NOTES TO FINANCIAL STATEMENTS
24 ----------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the periods indicated:
<TABLE>
<CAPTION>
Small-Cap Opportunity Fund
-------------------------------------------------------------------------------------
Institutional Shares Retail Shares
--------------------------------------------------------------------------------------
For the For the
Period Ended Period Ended
May 31 May 31
--------------------------------------------------------------------------------------
1996 1995 1994* 1996** 1995 1994*
---------- ---------- ---------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value - beginning of period $15.95 $14.97 $15.00 $15.95 $14.96 $15.00
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.04 0.09 0.05 0.01 0.06 0.03
Net realized and unrealized gain (loss) on
investments 5.86 1.11 (0.05) 2.25 1.11 (0.04)
- -----------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment operations 5.90 1.20 0.00 2.26 1.17 (0.01)
- -----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.06) (0.10) (0.03) (0.02) (0.06) (0.03)
Distributions from net realized gain on
investments (0.44) (0.12) 0.00 0.00 (0.12) 0.00
- -----------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (0.50) (0.22) (0.03) (0.02) (0.18) (0.03)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $21.35 $15.95 $14.97 $18.19 $15.95 $14.96
- -----------------------------------------------------------------------------------------------------------------------------------
Total return (2) 37.49% 8.15% (0.07%)(3) 14.14% 7.96% (0.22%)(3)
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $23,951 $9,703 $2,159 $1,072 $934 $497
- -----------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets 1.30% 1.27% 1.38%(3) 1.48%(3) 1.51% 1.63%(3)
- -----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets 0.24% 0.61% 1.00%(3) 0.16%(3) 0.37% 0.64%(3)
- -----------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 2.20% 2.77% 6.56%(3) 2.53%(3) 3.10% 6.81%(3)
- -----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets without fee waivers (0.67%) (0.89%) (4.18%)(3) (0.89%)(3) (1.22%) (4.54%)(3)
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (1) 47.83% 59.17% 64.31%(3) 47.83% 59.17% 64.31%(3)
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) A portfolio turnover rate is, in general, the percentage computed by taking
the lesser of purchases or sales of portfolio securities (excluding
securities with a maturity date of one year or less at the time of
acquisition) for a period and dividing it by the monthly average of the
market value of such securities during the period. Purchases and sales of
investment securities (excluding short-term securities) for the year ended
May 31, 1996 were $14,769,419 and $7,829,753, respectively.
(2) Sales charges are not reflected in total return.
(3) Annualized.
* For the period December 28, 1993 (inception of Fund) to May 31, 1994.
** For the period June 1, 1995 to September 29, 1995.
SEE NOTES TO FINANCIAL STATEMENTS
- ---------------------------------------------------------------------------- 25
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the periods indicated:
<TABLE>
<CAPTION>
Growth and Income Fund
-----------------------------------------------------------
Institutional Shares
-----------------------------------------------------------
For the Year Ended May 31,
-----------------------------------------------------------
1996 1995 1994 1993 1992
---------- -------- -------- -------- ----------
<S> <C> <C> <C> <C> <C>
Net asset value - beginning of period: $10.50 $10.62 $11.51 $10.99 $10.10
------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.15 0.20 0.51 0.32 0.32
Net realized and unrealized gain (loss) on
investments 2.57 0.15 (0.30) 0.68 1.05
------------------------------------------------------------------------------------------------------
Total income (loss) from investment operations 2.72 0.35 0.21 1.00 1.37
------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.24) (0.21) (0.54) (0.20) (0.43)
Distributions from net realized gain on
investments (0.66) (0.26) (0.56) (0.28) (0.05)
------------------------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (0.90) (0.47) (1.10) (0.48) (0.48)
------------------------------------------------------------------------------------------------------
Net asset value - end of period $12.32 $10.50 $10.62 $11.51 $10.99
------------------------------------------------------------------------------------------------------
Total return (2) 27.25% 3.73% 1.71% 9.41% 14.12%
------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $25,387 $27,029 $42,644 $35,791 $25,128
------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets 1.22% 1.17% 1.03% 0.99% 0.95%
------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets 1.34% 2.09% 4.45% 2.75% 3.03%
------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 1.51% 1.22% 1.06% 1.03% 1.02%
------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets
without fee waivers 1.05% 2.04% 4.42% 2.71% 2.96%
------------------------------------------------------------------------------------------------------
Portfolio turnover rate (1) 88.31% 81.14% 53.86% 61.24% 68.56%
------------------------------------------------------------------------------------------------------
<CAPTION>
- --------------------------------------------------------------------------------
Retail Shares
--------------------------
For the
Period Ended
May 31,
--------------------------
1996** 1995 1994*
------ ------- -------
<S> <C> <C> <C>
Net asset value - beginning of period: $10.51 $10.63 $11.65
- --------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.05 0.19 0.15
Net realized and unrealized gain (loss) on
investments 0.72 0.14 (0.45)
- --------------------------------------------------------------------------------
Total income (loss) from investment operations 0.77 0.33 (0.30)
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.06) (0.19) (0.16)
Distributions from net realized gain on
investments 0.00 (0.26) (0.56)
- --------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (0.06) (0.45) (0.72)
- --------------------------------------------------------------------------------
Net asset value - end of period $11.22 $10.51 $10.63
- --------------------------------------------------------------------------------
Total return (2) 7.35% 3.48% (4.20%)(3)
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- --------------------------------------------------------------------------------
Net assets, end of period (000) $3,921 $3,871 $4,026
- --------------------------------------------------------------------------------
Ratio of expenses to average
net assets 1.58%(3) 1.41% 1.25%(3)
- --------------------------------------------------------------------------------
Ratio of net investment income to average
net assets 1.40%(3) 1.86% 2.12%(3)
- --------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 1.61%(3) 1.47% 1.27%(3)
- --------------------------------------------------------------------------------
Ratio of net investment income to average net assets
without fee waivers 1.37%(3) 1.80% 2.09%(3)
- --------------------------------------------------------------------------------
Portfolio turnover rate (1) 88.31% 81.14% 53.86%
- --------------------------------------------------------------------------------
</TABLE>
(1) A portfolio turnover rate is, in general, the percentage computed by taking
the lesser of purchases or sales of portfolio securities (excluding
securities with a maturity date of one year or less at the time of
acquisition) for a period and dividing it by the monthly average of the
market value of such securities during the period. Purchases and sales of
investment securities (excluding short-term securities) for the year ended
May 31, 1996 were $23,528,402 and $35,671,719, respectively.
(2) Sales charges are not reflected in total return.
(3) Annualized.
* For the period October 11, 1993 (inception of offering) to May 31, 1994.
** For the period June 1, 1995 to September 29, 1995.
SEE NOTES TO FINANCIAL STATEMENTS
26 ----------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the periods indicated:
<TABLE>
<CAPTION>
Intermediate-Term Bond Fund
--------------------------------------------------
Institutional Shares
--------------------------------------------------
For the Year Ended May 31,
--------------------------------------------------
1996 1995 1994 1993 1992
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value - beginning of period $10.27 $10.02 $10.70 $10.14 $9.80
- ------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.60 0.58 0.55 0.67 0.78
Net realized and unrealized gain (loss) on
investments (0.17) 0.27 (0.52) 0.53 0.39
- ------------------------------------------------------------------------------------------------------
Total income from investment operations 0.43 0.85 0.03 1.20 1.17
- ------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.60) (0.60) (0.53) (0.64) (0.83)
Distributions from net realized gain on
investments 0.00 0.00 (0.18) 0.00 0.00
- ------------------------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (0.60) (0.60) (0.71) (0.64) (0.83)
- ------------------------------------------------------------------------------------------------------
Net asset value - end of period $10.10 $10.27 $10.02 $10.70 $10.14
- ------------------------------------------------------------------------------------------------------
Total return (2) 4.26% 8.93% 0.10% 12.16% 12.42%
- ------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $83,039 $97,619 $88,965 $99,469 $87,712
- ------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets 0.81% 0.77% 0.68% 0.65% 0.61%
- ------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets 5.78% 5.86% 5.03% 6.37% 7.73%
- ------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 0.92% 0.80% 0.70% 0.67% 0.65%
- ------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets
without fee waivers 5.67% 5.83% 5.00% 6.35% 7.69%
- ------------------------------------------------------------------------------------------------------
Portfolio turnover rate (1) 71.97% 60.86% 65.04% 87.17% 53.92%
- ------------------------------------------------------------------------------------------------------
<CAPTION>
- ------------------------------------------------------------------------------------------------------
Retail Shares
------------------------------------------------
For the
Period Ended
May 31,
--------------------------
1996** 1995 1994*
------ ------- -------
<S> <C> <C> <C>
Net asset value - beginning of period: $10.27 $10.03 $10.97
- --------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.20 0.56 0.34
Net realized and unrealized gain (loss) on
investments 0.04 0.26 (0.77)
- --------------------------------------------------------------------------------
Total income (loss) from investment operations 0.24 0.82 (0.43)
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.21) (0.58) (0.33)
Distributions from net realized gain on
investments 0.00 0.00 (0.18)
- --------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (0.21) (0.58) (0.51)
- --------------------------------------------------------------------------------
Net asset value - end of period $10.30 $10.27 $10.03
- --------------------------------------------------------------------------------
Total return (2) 2.34% 8.53% (6.33%)(3)
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $2,781 $2,571 $1,941
- --------------------------------------------------------------------------------
Ratio of expenses to average
net assets 0.95%(3) 0.99% 0.95%(3)
- --------------------------------------------------------------------------------
Ratio of net investment income to average
net assets 5.74%(3) 5.64% 4.65%(3)
- --------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 0.97%(3) 1.02% 0.97%(3)
- --------------------------------------------------------------------------------
Ratio of net investment income to average net assets
without fee waivers 5.72%(3) 5.61% 4.63%(3)
- --------------------------------------------------------------------------------
Portfolio turnover rate (1) 71.97% 60.86% 65.04%
- --------------------------------------------------------------------------------
</TABLE>
(1) A portfolio turnover rate is, in general, the percentage computed by taking
the lesser of purchases or sales of portfolio securities (excluding
securities with a maturity date of one year or less at the time of
acquisition) for a period and dividing it by the monthly average of the
market value of such securities during the period. Purchases and sales of
investment securities (excluding short-term securities) for the year ended
May 31, 1996 were $61,945,342 and $78,767,790, respectively.
(2) Sales charges are not reflected in total return.
(3) Annualized.
* For the period October 11, 1993 (inception of offering) to May 31, 1994.
** For the period June 1, 1995 to September 29, 1995.
SEE NOTES TO FINANCIAL STATEMENTS
- ---------------------------------------------------------------------------- 27
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the periods indicated:
<TABLE>
<CAPTION>
Long-Term Bond Fund
----------------------------------------------------------------------------------
For the Year
Ended May 31,
----------------------------------------------------------------------------------
1996 1995 1994 1993 1992 1991
---------- ----------- ---------- ----------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value - beginning of period $9.87 $9.22 $11.25 $10.60 $10.01 $10.11
- -----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.61 0.59 0.62 0.77 0.80 1.08
Net realized and unrealized gain (loss) on
investments (0.27) 0.66 (0.51) 0.99 0.56 0.04
- -----------------------------------------------------------------------------------------------------------------------------------
Total income from investment operations 0.34 1.25 0.11 1.76 1.36 1.12
- -----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.62) (0.60) (0.62) (0.78) (0.77) (1.11)
Distributions from net realized gain on
investments 0.00 0.00 (1.52) (0.33) 0.00 (0.11)
- -----------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (0.62) (0.60) (2.14) (1.11) (0.77) (1.22)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $9.59 $9.87 $9.22 $11.25 $10.60 $10.01
- -----------------------------------------------------------------------------------------------------------------------------------
Total return 3.41% 14.37% (.25%) 17.40% 14.04% 11.87%
- -----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $25,070 $33,440 $26,962 $26,281 $30,800 $27,448
- -----------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets 0.90% 0.94% 0.89% 0.77% 0.70% 0.65%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets 6.07% 6.54% 5.74% 6.63% 7.59% 8.29%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 1.07% 0.99% 0.92% 0.80% 0.74% 0.73%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets
without fee waivers 5.90% 6.49% 5.71% 6.60% 7.55% 8.21%
- -----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (1) 33.10% 25.09% 52.82% 79.16% 51.79% 81.13%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) A portfolio turnover rate is, in general, the percentage computed by taking
the lesser of purchases or sales of portfolio securities (excluding
securities with a maturity date of one year or less at the time of
acquisition) for a period and dividing it by the monthly average of the
market value of such securities during the period. Purchases and sales of
investment securities (excluding short-term securities) for the year ended
May 31, 1996 were $9,489,738 and $17,274,608, respectively.
SEE NOTES TO FINANCIAL STATEMENTS
28 ----------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the periods indicated: Colorado Tax-Exempt Fund
----------------------------------------------
For the Year
Ended May 31,
----------------------------------------------
1996 1995 1994 1993 1992
------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Net asset value - beginning of period $10.70 $10.52 $10.71 $10.25 $10.00
- --------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.52 0.52 0.53 0.57 0.58
Net realized and unrealized gain (loss) on
investments (0.10) 0.20 (0.19) 0.46 0.23
- --------------------------------------------------------------------------------------------------------------
Total income from investment operations 0.42 0.72 0.34 1.03 0.81
- --------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.51) (0.54) (0.53) (0.57) (0.56)
Distributions from net realized gain on
investments 0.00 0.00 0.00 0.00 0.00
- --------------------------------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (0.51) (0.54) (0.53) (0.57) (0.56)
- --------------------------------------------------------------------------------------------------------------
Net asset value - end of period $10.61 $10.70 $10.52 $10.71 $10.25
- --------------------------------------------------------------------------------------------------------------
Total return 3.97% 7.16% 3.22% 10.27% 8.36%
- --------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $13,922 $10,792 $10,553 $7,326 $4,511
- --------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets 0.44% 0.42% 0.27% 0.22% 0.11%
- --------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets 4.87% 5.03% 4.98% 5.45% 5.84%
- --------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 1.43% 1.62% 1.59% 1.88% 1.65%
- --------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets
without fee waivers 3.88% 3.83% 3.65% 3.79% 4.30%
- --------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (1) 10.23% 3.15% 9.76% 1.82% 12.95%
- --------------------------------------------------------------------------------------------------------------
</TABLE>
(1) A portfolio turnover rate is, in general, the percentage computed by taking
the lesser of purchases or sales of portfolio securities (excluding
securities with a maturity date of one year or less at the time of
acquisition) for a period and dividing it by the monthly average of the
market value of such securities during the period. Purchases and sales of
investment securities (excluding short-term securities) for the period
ended May 31, 1996 were $5,353,679 and $1,127,047, respectively.
SEE NOTES TO FINANCIAL STATEMENTS
- ----------------------------------------------------------------------------- 29
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
1. SIGNIFICANT ACCOUNTING POLICIES
Westcore Trust ("the Trust") is registered under the Investment Company Act
of 1940, as amended, as an open ended management investment company. Interests
in the MIDCO Growth, Blue Chip (formerly the Modern Value Equity), Small-Cap
Opportunity, Growth and Income (formerly the Equity Income), Intermediate -Term
Bond, Long-Term Bond and Colorado Tax-Exempt Funds ("the Funds") are represented
by separate classes of beneficial interest of the Trust, which is organized as a
Massachusetts business trust. The Funds, for book and tax purposes, have a
fiscal year of May 31, 1996. From October 11, 1993 to September 30, 1995, MIDCO
Growth, Small-Cap Opportunity, the Growth and Income and Intermediate-Term Bond
Funds offered Institutional and Retail classes of shares with a front-end load
and their own distribution/administrative service plan. On October 1, 1995 the
Retail class was merged into the Institutional class at the respective net asset
value per share. The distribution/administrative service plan on the Retail
class was discontinued. The front-end sales load on all the Funds was also
discontinued.
The following is a summary of significant accounting policies consistently
followed by each Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. The actual results could differ from those estimates.
INVESTMENT VALUATION - Securities of the Funds are valued at 4:00 p.m.
(Eastern time) on each trading day. Listed and unlisted securities for which
such information is regularly reported are valued at the last sales price of the
day or, in the absence of sales, at values based on the average closing bid and
asked price. Securities for which market quotations are not readily available
are valued under procedures established by the Board of Trustees to determine
fair value in good faith. Short term securities having a remaining maturity of
60 days or less are valued at amortized cost which approximates market value.
FEDERAL INCOME TAXES - It is the Funds' policy to continue to comply with
the provisions of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of their taxable income to shareholders.
Therefore, no federal income tax provision is required. At May 31, 1996 the
Intermediate-Term Bond and Colorado Tax-Exempt Funds had available for federal
income tax purposes unused capital loss carryovers of approximately $1,783,000
and $4,500, respectively, which will expire through 2003.
DISTRIBUTIONS - Distributions of net investment income are distributed
annually for the MIDCO Growth Fund, quarterly for the Blue Chip, Small-Cap
Opportunity and Growth and Income Funds and monthly for the Intermediate-Term
Bond, Long-Term Bond and Colorado Tax-Exempt Funds. Distributions of net
realized gains, if any, are declared at least once each year. Distributions to
shareholders are recorded on the ex-dividend date.
ORGANIZATION COSTS - Costs incurred in connection with the organization,
initial registration and public offering of shares have been paid by the Funds.
These costs are being amortized over the period of benefit, but not to exceed
sixty (60) months, from the Funds' commencement of operations.
ALLOCATION OF INCOME, EXPENSES AND GAINS AND LOSSES - From October 11,
1993 to September 30, 1995 the MIDCO Growth, Small-Cap Opportunity, Growth and
Income and Intermediate-Term Bond Funds allocated income, expenses (other than
the class specific expenses) and gains and losses daily to each class of shares
based upon their relative proportion of net assets represented by each class.
Operating expenses directly attributable to a specific class were charged
against the operations of that class.
OTHER - Investment transactions are accounted for on the date the
investments are purchased or sold (trade date). Dividend income is recorded on
the ex-dividend date. Interest income, which includes amortization of premiums
and accretion of discount, is accrued and recorded daily. Realized gains and
losses from investment transactions and unrealized appreciation and depreciation
of investments are reported on an identified cost basis which is the same basis
the Funds use for federal income tax purposes.
30 -----------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. SHARES OF BENEFICIAL INTEREST
On May 31, 1996, there was an unlimited number of no par value shares of
beneficial interest authorized for each fund. Transactions in shares of
beneficial interest were as follows:
<TABLE>
<CAPTION>
MIDCO Growth Fund
- --------------------------------------------------------------------------------------------------------------------------------
For the Year For the Year
Ended May 31, 1996 Ended May 31, 1995
---------------------------------------------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS:
Shares sold 7,169,895 $142,973,591 7,023,125 $114,412,350
Shares issued in reinvestment of dividends 949,284 18,492,060 698,545 10,911,274
Shares exchanged from retail class into institutional class 1,521,981 30,820,114 0 0
- -------------------------------------------------------------------------------------------------------------------------------
Total 9,641,160 192,285,765 7,721,670 125,323,624
Shares redeemed (4,438,468) (91,040,333) (5,109,370) (84,310,312)
- -------------------------------------------------------------------------------------------------------------------------------
Net increase 5,202,692 $101,245,432 2,612,300 $41,013,312
- -------------------------------------------------------------------------------------------------------------------------------
RETAIL CLASS:
Shares sold 101,559 $1,926,763 807,820 $13,203,520
Shares issued in reinvestment of dividends 0 0 43,618 681,314
- -------------------------------------------------------------------------------------------------------------------------------
Total 101,559 1,926,763 851,438 13,884,834
Shares redeemed (78,351) (1,493,666) (362,309) (5,959,534)
Shares exchanged from retail class into institutional class (1,524,993) (30,820,114) 0 0
- -------------------------------------------------------------------------------------------------------------------------------
Net (decrease) increase (1,501,785) $(30,387,017) 489,129 $7,925,300
- -------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Blue Chip Fund
- ---------------------------------------------------------------------------------------------------------------------------
For the Year For the year
Ended May 31, Ended May 31,
--------------------------------------------------
1996 1995
---------------------- ------------------------
<S> <C> <C>
Shares sold 1,073,492 1,616,124
Shares issued in reinvestment of dividends 333,778 78,963
- ---------------------------------------------------------------------------------------------------------------------------
Total 1,407,270 1,695,087
Shares redeemed (1,059,656) (1,007,962)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase in shares 347,614 687,125
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------------------------------------------------------------------------- 31
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. SHARES OF BENEFICIAL INTEREST (CONTINUED)
<TABLE>
<CAPTION>
Small-Cap
Opportunity Fund
- --------------------------------------------------------------------------------------------------------------------------------
For the Year For the Year
Ended May 31, 1996 Ended May 31, 1995
---------------------------------------------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS:
Shares sold 497,964 $9,077,026 486,557 $7,428,629
Shares issued in reinvestment of dividends 24,014 444,359 6,861 99,590
Shares exchanged from retail class into institutional class 58,947 1,071,652 0 0
- --------------------------------------------------------------------------------------------------------------------------------
Total 580,925 10,593,037 493,418 7,528,219
Shares redeemed (67,659) (1,258,285) (29,115) (438,431)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase 513,266 $9,334,752 464,303 $7,089,788
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
RETAIL CLASS:
Shares sold 2,359 $40,334 40,377 $610,631
Shares issued in reinvestment of dividends 49 886 641 9,286
- --------------------------------------------------------------------------------------------------------------------------------
Total 2,408 41,220 41,018 619,917
Shares redeemed (2,064) (35,334) (15,699) (230,732)
Shares exchanged from retail class into institutional class (58,914) (1,071,652) 0 0
- --------------------------------------------------------------------------------------------------------------------------------
Net (decrease) increase (58,570) $(1,065,766) 25,319 $389,185
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Growth and Income Fund
- --------------------------------------------------------------------------------------------------------------------------------
For the Year For the Year
Ended May 31, 1996 Ended May 31, 1995
---------------------------------------------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS:
Shares sold 497,475 $5,580,398 947,656 $9,727,032
Shares issued in reinvestment of dividends 150,670 1,624,668 160,970 1,558,375
Shares exchanged from retail into institutional class 349,815 3,921,431 0 0
- --------------------------------------------------------------------------------------------------------------------------------
Total 997,960 11,126,497 1,108,626 11,285,407
Shares redeemed (1,511,113) (17,018,539) (2,549,105) (25,540,598)
- --------------------------------------------------------------------------------------------------------------------------------
Net decrease (513,153) $(5,892,042) (1,440,479) $(14,255,191)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
RETAIL CLASS:
Shares sold 13,368 $145,165 137,072 $1,414,084
Shares issued in reinvestment of dividends 1,911 21,221 16,645 161,116
- --------------------------------------------------------------------------------------------------------------------------------
Total 15,279 166,386 153,717 1,575,200
Shares redeemed (34,087) (373,642) (164,093) (1,693,598)
Shares exchanged from retail into institutional class (349,504) (3,921,431) 0 0
- --------------------------------------------------------------------------------------------------------------------------------
Net decrease (368,312) $(4,128,687) (10,376) $(118,398)
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
32 -----------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
2. SHARES OF BENEFICIAL INTEREST (CONTINUED)
<TABLE>
<CAPTION>
Intermediate-Term Bond Fund
- --------------------------------------------------------------------------------------------------------------------------------
For the Year For the Year
Ended May 31, 1996 Ended May 31, 1995
---------------------------------------------------------------
Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS:
Shares sold 1,832,976 $18,925,545 2,870,047 $28,408,983
Shares issued in reinvestment of dividends 401,174 4,126,393 429,337 4,247,744
Shares exchanged from retail class into institutional class 270,324 2,781,631 0 0
- --------------------------------------------------------------------------------------------------------------------------------
Total 2,504,474 25,833,569 3,299,384 32,656,727
Shares redeemed (3,786,468) (39,148,063) (2,669,887) (26,532,507)
- --------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) (1,281,994) $(13,314,494) 629,497 $6,124,220
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
RETAIL CLASS:
Shares sold 39,293 $404,991 133,381 $1,326,611
Shares issued in reinvestment of dividends 4,402 45,023 12,418 122,850
- --------------------------------------------------------------------------------------------------------------------------------
Total 43,695 450,014 145,799 1,449,461
Shares redeemed (23,810) (245,474) (89,216) (887,379)
Shares exchanged from retail class into institutional class (270,061) (2,781,631) 0 0
- --------------------------------------------------------------------------------------------------------------------------------
Net (decrease) increase (250,176) $(2,577,091) 56,583 $562,082
- --------------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Long-Term Bond Fund
- ---------------------------------------------------------------------------------------------------------------------------
For the Year For the year
Ended May 31, Ended May 31,
--------------------------------------------------
1996 1995
---------------------- ------------------------
<S> <C> <C>
Shares sold 628,595 1,114,253
Shares issued in reinvestment of dividends 168,046 183,017
- ---------------------------------------------------------------------------------------------------------------------------
Total 796,641 1,297,270
Shares redeemed (1,570,539) (833,904)
- ---------------------------------------------------------------------------------------------------------------------------
Net decrease in shares (773,898) (463,366)
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Colorado Tax-Exempt Fund
- ---------------------------------------------------------------------------------------------------------------------------
For the Year For the year
Ended May 31, Ended May 31,
--------------------------------------------------
1996 1995
---------------------- ------------------------
<S> <C> <C>
Shares sold 334,258 120,163
Shares issued in reinvestment of dividends 32,305 31,410
- ---------------------------------------------------------------------------------------------------------------------------
Total 366,563 151,573
Shares redeemed (63,463) (146,459)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase in shares 303,100 5,114
- ---------------------------------------------------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
- ----------------------------------------------------------------------------- 33
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
<TABLE>
<CAPTION>
MIDCO Blue Small-Cap Growth and
Growth Chip Opportunity Income
Fund Fund Fund Fund
---- ---- ---- ----
<S> <C> <C> <C> <C>
As of May 31, 1996
Gross appreciation (excess of
value over cost) 234,951,327 16,899,760 5,559,895 5,225,579
Gross depreciation (excess of
cost over value) (10,710,977) (3,649) (412,451) (88,296)
- -----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation 224,240,350 16,896,111 5,147,444 5,137,283
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Intermediate- Long-Term Colorado
Term Bond Bond Tax-Exempt
Fund Fund Fund
---- ---- ----
<S> <C> <C> <C>
As of May 31, 1996
Gross appreciation (excess of
value over cost) 605,558 821,806 269,789
Gross depreciation (excess of
cost over value) (1,536,386) (694,350) (114,103)
- -----------------------------------------------------------------------------------------------------------------------
Net unrealized appreciation (930,828) 127,456 155,686
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
4. INVESTMENT ADVISORY FEES, ADMINISTRATIVE FEES AND OTHER RELATED
PARTY TRANSACTIONS
The Trust has entered into an advisory agreement with Denver Investment
Advisors LLC, ("DIA") for all Funds. DIA succeeded First Interstate Capital
Management, Inc. ("FICM") as investment advisor to the Long-Term Bond and the
Colorado Tax-Exempt Fund on October 1, 1995. The advisory agreements have been
approved by the Trust's Board of Trustees and shareholders and contain terms and
conditions similar to those which were in these Funds' former advisory
agreement.
Pursuant to its advisory agreement with the Trust, DIA is entitled to an
investment advisory fee, computed daily and payable monthly of 0.65%, 0.65%,
1.00%, 0.65%, 0.45%, 0.45% and 0.50% of the average net assets for MIDCO Growth,
Blue Chip, Small-Cap Opportunity, Growth and Income, Intermediate-Term Bond,
Long-Term Bond and Colorado Tax-Exempt Funds, respectively.
First Interstate Bank of Denver, N.A. ("Denver") is the custodian of the
Funds. All custodial fees were waived by Denver for the year ended May 31,
1996. In addition, DIA waived all of its advisory fees and voluntarily
reimbursed some of the expenses of the Colorado Tax-Exempt Fund. DIA also
waived a portion of its advisory fees on the Blue Chip, Small-Cap Opportunity,
Growth and Income, Intermediate-Term Bond and Long-Term Bond Funds.
Certain officers of the Funds are also officers of DIA and ALPS Mutual Funds
Services, Inc., ("ALPS"). All affiliated and access persons, as defined in the
1940 Act, follow strict guidelines and policies on personal trading as outlined
in the Trust's Code of Ethics.
34 -----------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. INVESTMENT ADVISORY FEES, ADMINISTRATIVE FEES AND OTHER
RELATED PARTY TRANSACTIONS (CONTINUED)
Effective October 1, 1995, ALPS and DIA entered into a co-administration
agreement to serve as the Funds co-administrators. ALPS and DIA are entitled to
receive a fee from each Fund for its administrative services computed daily and
payable monthly, at the annual rate of 0.30% of the Funds' average net assets.
For the period ended May 31, 1996, ALPS and DIA voluntarily waived a portion of
their co-administration fee payable by certain Funds.
Expenses for the Funds include legal fees paid to Drinker, Biddle & Reath.
A partner of that firm is secretary of the Trust.
Each of the MIDCO Growth, Small-Cap Opportunity, Growth and Income and
Intermediate-Term Bond Funds had an approved plan of distribution/administrative
services ("the Plan") for the Retail class of each Fund until the exchange from
Retail class shares to Institutional class shares occurred on September 29,
1995. The plan allowed for up to 0.35%, 0.35%, 0.35% and 0.30%, respectively,
of net assets annually to reimburse for costs incurred in distributing Retail
shares of the Funds including amounts paid to brokers, dealers, banks and other
institutions. During the period ended September 29, 1995, the Funds accrued to
participants under the plan 0.25% on an annual basis of the average net asset
value of the Retail shares.
Shareholders holding more than 5% of the Funds constituted 45.62% of MIDCO
Growth, 87.04% of Blue Chip, 74.97% of Small-Cap Opportunity, 62.15% of Growth
and Income, 83.10% of Intermediate-Term Bond, 86.50% of Long-Term Bond and
62.49% of Colorado Tax-Exempt Funds' average net assets.
6. RESTRICTED SECURITIES
The Intermediate-Term Bond and Long-Term Bond Funds own restricted securities
purchased pursuant to Rule 144A of the Securities Act of 1933 (the Act).
Rule 144A securities amount to 3.25% and 4.40% of the Intermediate-Term Bond and
Long-Term Bond Funds Net Assets, respectively, at May 31, 1996 and are listed
below.
<TABLE>
<CAPTION>
Acquisition Cost Valuation per Unit as Fair Value as
Security Date per Unit of May 31, 1996 of May 31, 1996
-------- ---- -------- --------------- ---------------
Intermediate-Term Bond Fund
- ---------------------------
<S> <C> <C> <C> <C>
Bayer Corp, 6.50%, 10/01/02 09/26/95 $99.38 $96.97 $1,648,490
Jet Equipment Trust Ser. 95-B,
7.83%, 02/15/15 07/01/95 $100.00 $98.90 1,049,071
-----------
Total $2,697,561
-----------
-----------
Long-Term Bond Fund
- -------------------
Bayer Corp, 6.50%, 10/01/02 09/26/95 $99.38 $96.97 $533,335
Jet Equipment Trust Ser. 95-B,
7.83%, 02/15/15 07/01/95 $100.00 $98.90 339,977
Principal Mutual Life Insurance, 7.875%, 03/01/24 03/03/94 $99.32 $91.58 228,958
-----------
Total $1,102,270
-----------
-----------
</TABLE>
- ----------------------------------------------------------------------------- 35
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
7. ALLOCATION OF CLASS EXPENSES
<TABLE>
<CAPTION>
Institutional Retail
MIDCO GROWTH FUND EXPENSES Shares(1) Shares(2) Total
--------- --------- -----
<S> <C> <C> <C>
Investment advisory fee $3,496,172 $62,154 $3,558,326
Administrative fee 1,225,892 4,781 1,230,673
Fund accounting 174,730 3,057 177,787
Legal 162,818 1,786 164,604
Audit 13,538 283 13,821
Custodian 129,734 1,665 131,399
Transfer agency 329,185 6,560 335,745
Printing 112,273 5,200 117,473
Distribution/administration assistance
- retail shares 0 21,061 21,061
Insurance 23,266 336 23,602
Registration 47,205 358 47,563
Trustee fee 25,127 390 25,517
Reorganization 146,023 4,428 150,451
Other 64,148 459 64,607
- ------------------------------------------------------------------------------------------------------------------------------------
Total 5,950,111 112,518 6,062,629
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses waived by
Custodian (129,734) (1,665) (131,399)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Expenses $5,820,377 $110,853 $5,931,230
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Institutional Retail
SMALL-CAP OPPORTUNITY FUND EXPENSES Shares(1) Shares(2) Total
--------- --------- -----
<S> <C> <C> <C>
Investment advisory fee $170,199 $3,332 $173,531
Administrative fee 40,695 167 40,862
Fund accounting 31,606 781 32,387
Legal 8,265 97 8,362
Audit 7,655 158 7,813
Custodian 18,707 86 18,793
Amortization of organization costs 17,316 443 17,759
Transfer agency 37,262 1,203 38,465
Printing 9,450 783 10,233
Distribution/administration assistance
- retail shares 0 704 704
Insurance 512 5 517
Registration 19,796 478 20,274
Trustee fee 1,027 22 1,049
Reorganization 4,911 203 5,114
Other 7,638 19 7,657
- ------------------------------------------------------------------------------------------------------------------------------------
Total 375,039 8,481 383,520
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses waived by
Investment advisor (133,369) (3,422) (136,791)
Custodian (18,707) (86) (18,793)
Administrator (1,806) 0 (1,806)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Expenses $221,157 $4,973 $226,130
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) For the year ended May 31, 1996.
(2) For the period June 1, 1995 to September 29, 1995.
SEE NOTES TO FINANCIAL STATEMENTS
36 -----------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
7. ALLOCATION OF CLASS EXPENSES (CONTINUED)
<TABLE>
<CAPTION>
Institutional Retail
GROWTH AND INCOME FUND EXPENSES Shares(1) Shares(2) Total
--------- --------- -----
<S> <C> <C> <C>
Investment advisory fee $170,717 $8,478 $179,195
Administrative fee 56,395 652 57,047
Fund accounting 30,473 1,239 31,712
Legal 9,559 269 9,828
Audit 8,487 326 8,813
Custodian 22,600 366 22,966
Transfer agency 58,943 2,921 61,864
Printing 5,150 1,949 7,099
Distribution/administration assistance
- retail shares 0 2,601 2,601
Insurance 1,375 71 1,446
Registration 14,269 754 15,023
Trustee fee 1,432 74 1,506
Reorganization 11,543 1,182 12,725
Other 6,651 75 6,726
- ------------------------------------------------------------------------------------------------------------------------------------
Total 397,594 20,957 418,551
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses waived by:
Investment advisor (49,319) 0 (49,319)
Custodian (22,600) (366) (22,966)
Administrator (4,873) 0 (4,873)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Expenses $320,802 $20,591 $341,393
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Institutional Retail
INTERMEDIATE-TERM BOND FUND EXPENSES Shares(1) Shares(2) Total
--------- --------- -----
<S> <C> <C> <C>
Investment advisory fee $405,357 $3,840 $409,197
Administrative fee 188,478 427 188,905
Fund accounting 42,383 384 42,767
Legal 37,284 238 37,522
Audit 12,218 95 12,313
Custodian 30,638 206 30,844
Transfer agency 41,822 524 42,346
Printing 13,862 234 14,096
Distribution/administration assistance
- retail shares 0 1,677 1,677
Insurance 3,915 23 3,938
Registration 25,619 270 25,889
Trustee fee 4,877 36 4,913
Reorganization 17,582 282 17,864
Other 5,641 40 5,681
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Total 829,676 8,276 837,952
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses waived by:
Investment advisor (58,864) 0 (58,864)
Custodian (30,635) (209) (30,844)
Administrator (10,539) 0 (10,539)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Expenses $729,638 $8,067 $737,705
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) For the year ended May 31, 1996.
(2) For the period June 1, 1995 to September 29, 1995.
SEE NOTES TO FINANCIAL STATEMENTS
- ----------------------------------------------------------------------------- 37
<PAGE>
- --------------------------------------------------------------------------------
WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
8. REORGANIZATION
A special meeting of the Westcore Board of Trustees was held on June 14,
1995, at which an Agreement ("Agreement") and Plan of Reorganization
("Reorganization") with Pacifica Funds Trust ("Pacifica") was approved subject
to shareholder approval. On August 21, 1995, Westcore Trust and Pacifica
entered into the Agreement, which contemplated the transfer to Pacifica of
assets and liabilities of fifteen of the twenty-two funds constituting the
Westcore Trust. The Growth Fund, Short-Term Government Bond Fund, Bonds Plus
Fund, GNMA Fund, Arizona Intermediate Tax-Free Fund, Oregon Tax-Exempt Fund,
Quality Tax-Exempt Income Fund, California Intermediate Tax-Free Fund, Basic
Value Fund, Balanced Investment Fund, Cash Reserve Fund, Treasury Money Market
Fund, Money Market Fund, Government Money Market Fund and Prime Money Market
Fund were included in the Reorganization. A special meeting of the shareholders
was held on September 28, 1995, at which shareholder approval of the
Reorganization was obtained on the Growth Fund, Short-Term Government Bond Fund,
Bonds Plus Fund, Arizona Intermediate Tax-Free Fund, Quality Tax-Exempt Income
Fund, Basic Value Fund, Balanced Investment Fund, Cash Reserve Fund, Treasury
Money Market Fund, Money Market Fund, Government Money Market Fund and Prime
Money Market Fund. On September 30, 1995, shareholder approval was obtained
from shareholders of the California Intermediate Tax-Free Fund. On October 11,
1995, shareholder approval was obtained from shareholders of the the Oregon
Tax-Exempt Fund. On November 15, 1995, shareholder approval was obtained from
shareholders of the the GNMA Fund. The Reorganization resulted in the
conveyance of the assets and liabilities of the fifteen funds to corresponding
portfolios of Pacifica.
The MIDCO Growth, Blue Chip, Small-Cap Opportunity, Growth and Income,
Intermediate-Term Bond, Long-Term Bond and Colorado Tax-Exempt Funds remain with
the Trust and are advised by DIA.
SHAREHOLDER TAX INFORMATION (UNAUDITED)
Certain tax information regarding the Westcore Funds Trust is required to be
provided to shareholders based upon each Fund's income and distribution for the
taxable year ended May 31, 1996. The information and distributions reported
herein may differ from information and distributions taxable to the shareholders
for the calendar year ended December 31, 1995.
During the fiscal year ended May 31, 1996, 100% of the dividends paid by the
Colorado Tax-Exempt Fund from net investment income should be treated as
tax-exempt dividends and 100% of the dividends paid by the Blue Chip, Small-Cap
Opportunity and Growth and Income Funds from net investment income qualify for
the corporate dividends received deduction.
During the fiscal year ended May 31, 1996, the Westcore Funds paid the following
distributions:
<TABLE>
<CAPTION>
Ordinary Capital Total
Income Dividends Gains Distributions Distributions
<S> <C> <C> <C>
MIDCO Growth Fund
Institutional Class $0.00 $0.72 $0.72
Retail Class 0.00 0.00 0.00
Blue Chip Fund Institutional Class 0.49 1.08 1.57
Small-Cap Opportunity Fund
Institutional Class 0.23 0.27 0.50
Fund Retail Class 0.02 0.00 0.02
Growth and Income Fund
Institutional Class 0.24 0.66 0.90
Retail Class 0.06 0.00 0.06
</TABLE>
38 -----------------------------------------------------------------------------
<PAGE>
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WESTCORE ANNUAL REPORT
- --------------------------------------------------------------------------------
[LETTERHEAD]
INDEPENDENT AUDITORS' REPORT
TO THE BOARD OF TRUSTEES AND SHAREHOLDERS,
WESTCORE TRUST:
We have audited the accompanying statements of assets and liabilities,
including the statements of investments, of the MIDCO Growth Fund, Blue Chip
Fund, Small-Cap Opportunity Fund, Growth and Income Fund, Intermediate-Term Bond
Fund, Long-Term Bond Fund and Colorado Tax-Exempt Fund as of May 31, 1996, the
related statements of operations for the year then ended and the statements of
changes in net assets and financial highlights for each of the periods
indicated. These financial statements and financial highlights are the
responsibility of the Trust's Management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit also includes examining
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. Our procedures included confirmation of securities owned
at May 31, 1996, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of the MIDCO Growth
Fund, Blue Chip Fund, Small-Cap Opportunity Fund, Growth and Income Fund,
Intermediate-Term Bond Fund, Long-Term Bond Fund and Colorado Tax-Exempt Fund of
the Westcore Funds Trust as of May 31 1996, and the results of their operations,
the changes in their net assets and financial highlights for each of the periods
indicated in conformity with generally accepted accounting principles.
/s/ Deloitte & Touche LLP
- ---------------------
DELOITTE & TOUCHE LLP
DENVER, COLORADO
JUNE 28, 1996
- ---------------------
<PAGE>
Westcore Officers
and Trustees:
Jack D. Henderson, CHAIRMAN
McNeil S. Fiske, TRUSTEE
James B. O'Boyle, TRUSTEE
Lyman E. Seely, TRUSTEE
Robert L. Stamp, TRUSTEE
Kenneth V. Penland, PRESIDENT
Mark Pougnet, TREASURER
W. Bruce McConnel, III, SECRETARY
[LOGO]
370 Seventeenth Street, FOR MORE INFORMATION CALL WESTCORE AT
Suite 2700 1-800-392-CORE (2673), DISTRIBUTED BY
Denver, CO 80202 ALPS MUTUAL FUNDS SERVICES, INC., MEMBER NASD.
