<PAGE> 1
WESTCORE,
A Diversified Family of Mutual Funds
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WESTCORE REPORT
September 30, 1995
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[] 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
[] Prime Money Market Fund
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IMPORTANT NOTICE
WESTCORE FUNDS
o are NOT insured by the U.S. Government, FDIC, the Federal Reserve Board or
any other governmental agency.
o are NOT bank deposits or other obligations of or guaranteed, sponsored or
endorsed by First Interstate Bancorp or First Interstate Bank.
o involve investment risks, including the possibility of loss of the principal
amount invested.
There can be no assurance that the Prime Money Market Fund will be able to
maintain a stable net asset value of $1.00 per share.
First Interstate Bank provides investment advisory services and certain other
services for the Westcore Funds. The Funds are sponsored and distributed by
ALPS Mutual Funds Service, Inc., member NASD.
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NOT FDIC
INSURED
<PAGE> 2
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MANAGER'S FUND UPDATE
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GROWTH FUND
The Growth Fund focuses on investing in industries and companies which
the Manager believes will enjoy strong profitability. During the third
quarter, the market favored companies whose earnings would not be impacted by
an economic slowdown or recession. With this in mind, the Fund Manager
continued a strategy of gradual profit taking in the Fund's more economically
sensitive holdings. The Fund has also selectively taken advantage of low
valuations in the general and specialty retailers and media sectors to increase
exposure to these areas and further diversify the Fund. Broad line retail
stocks continued to be undervalued by the market. As a result, the Fund
Manager recently established a position in Home Depot, a major retailer of
building and home supplies.
Equity investors began to focus on earnings visibility toward the end
of the third quarter as they recognized that earnings disappointments are more
likely in this slower growth environment. This environment provides a good
backdrop for high quality, large cap growth stocks. Investors are rewarding
companies that can generate consistent, above average earnings growth. The
Growth Fund is participating in this trend through its holdings of companies
like Sysco Corporation, the nation's largest institutional foodservice
distributor.
Growth Fund Sector Profile
as of September 30, 1995
[PIE GRAPH]
<TABLE>
<CAPTION>
<S> <C>
Intermediate goods & service 17.88%
Capital goods 19.72%
Consumer cyclicals 19.71%
Other 6.88%
Consumer staples 24.31%
Credit sensitive 20.50%
</TABLE>
Comparison of Change in Value of $10,000 Investment in Westcore Growth Fund and
the S&P 500
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[GRAPH]
<TABLE>
<CAPTION>
($'s shown in thousands)
8/93 6/94 5/95 9/96
<S> <C> <C> <C> <C>
Growth Fund Retail Class
Growth Fund Inst'l Class
S&P 500
</TABLE>
Please Note: The Retail class of shares is subject to a 4.5% sales load and
$9,550 is the net investment after the sales load is deducted. For an
explanation of Retail class performance, see page X. Average Annual Total
Returns are for the period ended 9-30-95. Fund inception date is 8/2/93. Past
performance is not predictive of future results.
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Strong earnings growth among technology stocks continued through the
third quarter, and the Manager maintained the Fund's market weighting in this
sector. Capital spending has been the strongest area of the economy, and
corporate America is focusing its spending on productivity improvements and
personnel reductions. The Fund's holdings of Microsoft and Intel are direct
beneficiaries of this secular trend. Microsoft's leadership position in
applications and networking software, combined with
[CHART IN SIDE MARGIN]
TOP 5 HOLDINGS:
1. Goldman Sachs Repurchase Agreement
2. SBC Communications, Inc.
3. Phillip Morris Companies, Inc.
4. Wal Mart Stores, Inc.
5. General Electric Co.
Growth Fund
Average Annual Total Return
<TABLE>
<CAPTION>
1 Year 5 Year Since
incep.
<S> <C> <C> <C>
Retail
Shares 16.86% N/A 9.68%
Inst'l
Shares 22.37% N/A 12.04%
</TABLE>
Return figures are for the period ended 9/30/95 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. Retail result included the
maximum sales load of 4.5% Fund inception date is 8/2/93. Past performance is
not predictive of future results.
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<PAGE> 3
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MANAGER'S FUND UPDATE
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successful new products and strategic acquisitions position the company for
continued growth. Intel, a leading global manufacturer of semiconductor
devices, was purchased in the Fund as the company emerged from product
transition and gross margin erosion in late 1994. 3Com Corporation, a recent
addition to the portfolio, is a leading provider of total system solutions for
upgrading networks and is poised to benefit from rapidly growing demand for
computer networking systems. Another recent addition, First Data Corporation,
provides high volume information processing services to financial institutions.
First Data's largest business, First Data Resources, is the leading provider of
third-party credit card issuing and transaction authorization services in the
U.S. First Data's core businesses continue to grow as consumers increasingly
prefer credit card usage.
The Fund has also added to holdings in the health care sector of the
economy. Hospital supply and pharmaceutical stocks underperformed the S&P
Index early in 1994 as the health care debate in Congress was building
momentum. After the defeat of the Clinton Administration's health care bill,
the Manager felt that drug companies Like Merck and SmithKline Beecham would
perform well. Merck has a broad product line, a strong research program and
commands a leading position in pharmacy benefit management. In the Manager's
opinion, it is well-positioned within the industry to benefit from the demise
of mandated health care reform.
SmithKline Beecham offers a strong research and development program and
several new products are rapidly gaining market share. The Manager feels that
SmithKline's access to a growing participant base of over 11 million should
provide steady growth for its pharmaceutical business. Finally, Abbott Lab's
strong new products and leading market position in each of its key business
segments (pharmaceuticals, medical nutritionals and diagnostics), combined with
its solid financial position, indicate to the Manager that the company should
maintain its impressive return on equity and earnings growth rate.
Strategic sales in the fund include YPF S.A., an Argentinean oil
producer. Analysts estimated YPF's earnings could grow in excess of 20% per
year based on a strong production growth profile, continued cost-cutting, and
improvements in productivity. The stock was sold because YPF had three
consecutive quarters of earnings below expectations, the production growth
story did not play out, and the stock price was impacted by the Mexican
currency crisis. Likewise, Telefonos de Mexico was sold in an effort to reduce
the Fund's exposure to Mexico's economic and currency problems. The Fund's
current exposure to Mexico is limited to the small amount of business done in
that region by well diversified multinational companies like Procter & Gamble,
one of the Fund's core holdings.
SHORT-TERM GOVERNMENT BOND FUND------------------------------------------------
The Short-Term Government Bond Fund is designed for the conservative
investor seeking current income and relative price stability of principal. The
Fund's short maturity has been integral to its ability to maintain a relatively
stable net asset value (NAV) during the roller coaster ride which
ii ----------------------------------------------------------------------------
<PAGE> 4
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MANAGER'S FUND UPDATE
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the fixed income market has experienced over the last twelve months. Despite
this instability in interest rates, the Fund posted a total return over the
last twelve months of 5.04% and 7.27% for the Fund's retail and institutional
classes of shares, respectively.
[PIE GRAPH]
Short-Term Government Bond Fund Sector Profile
as of September 30, 1995
<TABLE>
<S> <C>
U.S. Gov't agencies 13.32%
Other 3.11%
U.S. Gov't Treasuries 83.57%
</TABLE>
The composition of the Fund's portfolio remained relatively unchanged
over the past twelve months primarily due to the conservative nature of the
Fund, which targets short term U.S. Government obligations. During much of
1994, interest rates rose due to tightening by the Federal Reserve. The Manager
used this rising rate evironment as an
Comparison of Change in Value of $10,000 Investment in Westcore Short-Term
Government Bond Fund and the Merrill Lynch Short-Term Government Index
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[GRAPH]
$'s shown in thousands
<TABLE>
<CAPTION>
6/88 5/89 5/90 5/91 5/92 5/93 5/94 5/95 8/95
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Short-Term Government
Bond Retail Class
Short-Term Government
Bond Inst'l Class
Merrill Lynch Short-Term
Gov't Bond Index
</TABLE>
Please Note: The Retail class of shares is subject to a 2.0% sales loan and
$9,800 is the net investment after the sales load is deducted. For an
explanation of Retail class performance, see page X. Average Annual Total
Returns are for the period ended 9-30-95. Fund inception date is 6/1/88. Past
performance is not predictive of future results.
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opportunity to extend maturities within the Fund and to pick up additional
yield. The Fund benefited from the greater appreciation of the longer maturity
bonds purchased and the higher yields offered by these bonds as well.
BONDS PLUS FUND----------------------------------------------------------------
The Bonds Plus Fund is a diversified portfolio consisting primarily of
investment grade fixed income securities including U.S. Treasuries, agencies,
and corporate bonds. For the past twelve months the Fund remained heavily
weighted in U.S. Treasury securities. The term "Plus" in the name of this
Fund refers to the Manager's use of asset allocation to enhance returns by
altering the percent of holdings in various types of bonds to take advantage
of market conditions. Corporate bonds generally pay a higher interest rate
than comparable U.S.
[PIE GRAPH]
Bonds Plus Fund Sector Profile
as of September 30, 1995
<TABLE>
<S> <C>
Corporate bonds 14.62%
U.S. Gov't agencies 4.66%
Other 3.33%
U.S. Gov't pooled mortgages 26.95%
U.S. Gov't Treasuries 51.34%
</TABLE>
[CHART IN SIDE MARGIN]
Short-Term Government Bond Fund - Average Annual Total Return
<TABLE>
<CAPTION>
1 Year 5 Year Since
incep.
<S> <C> <C> <C>
Retail Shares 5.04% 5.93% 6.74%
Inst'l Shares 7.27% 6.41% 7.07%
</TABLE>
Average Annual Total Returns are for the period ended 9/30/95 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. Retail results
include the maximum select load of 2.0%. Fund inception date is 6/1/88. Past
performance is not predictive of future results.
- --------------------------------------------------------------------------- iii
<PAGE> 5
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MANAGER'S FUND UPDATE
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Comparison of Change in Value of $10,000 Investment in Westcore Bonds Plus Fund
and the Lehman Brothers Aggregate Bond Index
- -----------------------------------------------------------------------------
[GRAPH]
$'s shown in thousands
<TABLE>
<CAPTION>
6/88 5/89 5/90 5/91 5/92 5/93 5/94 5/95 9/95
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Bonds Plus Fund
Lehman Brothers
Aggregate Bond Index
</TABLE>
Please Note: The Fund investment is subject to a 4.5% sales load and $9,550 is
the net investment after the sales load is deducted. Average Annual Total
Returns are for the period ended 9-30-95. Fund inception date is 6/1/88. Past
performance is not predictive of future results.
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Government bonds since they entail slightly more risk. But at different
periods in the market cycle, this difference may fluctuate. Generally, when
the spread is wide and the Manager is able to pick up additional yield in
corporate bonds, the Fund will be weighted more heavily in that sector. When
spreads narrow and it is not worth the additional risk to hold corporate bonds,
the Fund will be weighted more heavily in U.S. Government bonds.
In pursuing the Fund's objective of a high level of income consistent
with preservation of capital and maintenance of liquidity, the Manager
maintained an intermediate maturity focus rather than altering the maturity
structure based on interest rate forecasts.
GNMA FUND-----------------------------------------------------------------------
GNMA Fund Sector Profile
as of September 30, 1995
[PIE GRAPH]
Other 3.47%
U.S. Gov't Pooled Mortgage 96.53%
The composition of the GNMA Fund has not changed significantly since
May 31, 1995. Volatile interest rates have resulted in dramatic changes in the
price of mortgage-backed securities. The Fund has benefited from both the
recent decline in interest rates and the decline in prepayments of
mortgage-backed securities.
The Fund continues to be fully invested with a minimal cash position.
The Focus on current coupon pools takes a great deal of volatility out of the
portfolio. By avoiding high coupon pools, the Fund seeks to reduce its
prepayment risk. One of the risks associated with mortgage-backed securities
is an increase in refinancing of existing mortgages. In a declining interest
rate environment, similar to that which we have recently experienced, the
likelihood of increased prepayments is much greater. Essentially, prepayments
give money back to the Fund, forcing the Manager to reinvest this cash in a
lower interest rate environment.
The Manager aims to minimize default risk in this type of fund in an
effort to keep it from being a factor in Fund value. The Manager intends to
[CHART IN SIDE MARGIN]
Bonds Plus Fund - Average Annual Total Return
<TABLE>
<CAPTION>
1 Year 5 Year Since Incep.
<S> <C> <C>
6.90% 7.82% 8.06%
</TABLE>
Average Annual Total Returns are for the period ended 9/30/95 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. Results include
the maximum sales load of 4.5%. Fund inception date is 6/1/88. Past
performance is not prdictive of future results.
iv -----------------------------------------------------------------------------
<PAGE> 6
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MANAGER'S FUND UPDATE
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continue to position the fund in intermediate maturity instruments in order to
further reduce volatility.
Comparison of Change in Value of $10,000 Investment in Westcore GNMA Fund and
the Lehman Brothers Mortgage-backed Securities Index
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[GRAPH]
$'s shown in thousands
<TABLE>
<CAPTION>
6/88 5/89 5/90 5/91 5/92 5/93 5/94 5/95 9/95
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
GNMA Retail Class
GNMA Inst'l Class
Lehman Brothers Mortgage-backed
Securities Index
</TABLE>
Please Note: The Retail class of shares is subject to a 4.5% sales load and
$9,550 is the net investment after the sales load is deducted. For an
explanation of Retail class performance, see page X. Average Annual Total
Returns are for the period ended 9-30-95. Fund inception date is 6/1/88. Past
performance is not predictive of future results.
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OREGON TAX-EXEMPT FUND----------------------------------------------------------
While interest rates dropped to their lowest levels this year, concerns
over the effect of proposed tax reforms on municipal securities kept the tax
exempt bond yield curve steep. The yields on longer maturing bonds rose to over
90% of comparable maturing treasury yields. On a historical basis, yields
greater than 83% have been viewed attractive. It is the Manager's view that tax
reform as currently proposed is unlikely to be enacted. Any federal tax law
changes would come in a watered down form and could only be implemented several
years from now. The current market environment thus offers investors some
opportunities.
[PIE GRAPH]
Oregon Tax-Exempt Fund Sector
Profile as of September 30, 1995
Certificates of participation 3.05%
Special feature revenue bonds 14.05%
Revenue bonds 28.69%
Other 1.72%
General obligation bonds 52.49%
A lack of investor demand for bonds was somewhat offset by an absence of
new issues in Oregon in the third quarter. However, there are several bond
issues on the November ballot, the bulk of which, if approved, would, in the
Manager's opinion, increase supply and cause the yields on Oregon municipal
securities to rise relative to their historical relationship with general market
yields.
Oregon State Higher Education, one of the largest holdings in the fund,
is a general obligation of the state. Oregon carries a Aa/AA-rating by Moody's
and Standard & Poor's respectively. The state has exhibited strong economic
performance and prudent management.
the Washington County and Tri-Met Counties, consisting of Multnomah,
Washington and Clackamas counties, are all in the Portland metropolitan service
area. This area is the strongest in the state. The Tri-Met general obligation
bonds were issued to fund the highly successful light rail project. This credit
continues to improve.
[CHART IN SIDE MARGIN]
GNMA Fund -
Average Annual Total Return
<TABLE>
<CAPTION>
1 Year 5 Year Since
incep.
<S> <C> <C> <C>
Retail Shares 7.22% 7.13% 7.93%
Inst'l Shares 12.44% 8.23% 8.68%
Average Annual Total Returns are for the period ended 9/30/95 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. Retail results
include the maximum sales load of 4.5%. Fund inception date is 6/1/88. Past
performance is not predictive of future results.
</TABLE>
[NOTE IN SIDE MARGIN]
TOP 5 HOLDINGS:
1. State of Oregon
Higher Education
2. Tri-County Metro
Transportation
Dist. (Light Rail
Extn.)
3. Washington
County Criminal
Justice Facility
4. Lane County
School District #4J
5. State of Oregon,
Board of Higher
Education
- ------------------------------------------------------------------------------ v
<PAGE> 7
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MANAGER'S FUND UPDATE
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Lane County School District #45 is a well-run district in Eugene, the
home of the University of Oregon. This city's west central location makes it a
major place of commerce for the surrounding agricultural population and is
representative of the high quality issues favored by the portfolio manager.
[CHART IN SIDE MARGIN]
Oregon Tax-Exempt Fund - Average Annual Total Return
<TABLE>
<CAPTION>
1 Year 5 Year Since incep.
<S> <C> <C>
5.01% 6.71% 6.69%
</TABLE>
Average Annual Total Returns are for the period ended 9/30/95 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. Results
include the maximum sales load of 4.5%. Fund inception date is 6/1/88. Past
performance is not predictive of future results.
Comparison of Change in Value of $10,000 Investment in Westcore Oregon
Tax-Exempt Fund and the Lehman Brothers Municipal Bond Index
- -------------------------------------------------------------------------------
[GRAPH]
$'s shown in thousands
<TABLE>
<CAPTION>
6/88 5/88 5/90 5/91 5/92 5/93 5/94 5/95 8/95
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Oregon Tax-Exempt Fund
Lehman Brothers Municipal
Bond Index
</TABLE>
Please Note: The Fund investment is subject to a 4.5% sales load and $9,550
is the net investment after the sales load is deducted. Average Annual Total
Returns are for the period ended 9-30-95. Fund inception date is 6/1/88.
Past performance is not predictive of future results.
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ARIZONA INTERMEDIATE TAX-FREE FUND---------------------------------------------
The Fund has continued through the third quarter of 1995 to invest in
high quality general obligation bonds issued by local school districts within
the State of Arizona. New issuance has been primarily in these types of bonds
throughout the first nine months of the year. The Fund has purchased a number
of shares of these new offerings, as yields have been attractive in the ten-
to fifteen-year maturity range.
[PIE GRAPH]
Arizona Intermediate Tax-Free Fund
Sector Profile as of September 30, 1995
<TABLE>
<S> <C>
Certificates of participation .54%
Revenue bonds 30.76%
General obligation bonds 64.78%
Other 3.92%
</TABLE>
Through the first three quarters of the year, the Fund has increased
its holdings of bonds with longer maturities, generally using shorter-term
bonds as a source of liquidity. This
TOP 5 HOLDINGS:
1. Maricopa County School Dist. #4
2. Maricopa County School Dist. #11
3. Phoenix Street & Highway User
4. Pima County School District #10
5. Glendale School Improvement UHSD#205
[CHART IN SIDE MARGIN]
Arizona Intermediate Tax-Free Fund - Average Annual Total Return
<TABLE>
<CAPTION>
1 Year 3 Year Since incep.
<S> <C> <C>
4.98% 4.99% 5.84%
</TABLE>
Average Annual Total Returns are for the period ended 9/30/95 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. Results include
the maximum sales load of 3.75%. Fund inception date is 3/2/92. Past
performance is not predictive of future results.
Comparison of Change in Value of $10,000 Investment in Westcore Arizona
Intermediate Tax-Free Fund and the Lehman Brothers Municipal Bond Index
- -------------------------------------------------------------------------------
[GRAPH]
$'s shown in thousands
<TABLE>
<CAPTION>
3/92 5/92 5/93 5/94 5/95 8/95
<S> <C> <C> <C> <C> <C> <C>
Arizona Intermediate
Tax-Free Fund
Lehman Brothers Municipal
Bond Index
</TABLE>
Please Note: The Fund investment is subject to a 3.75% sales load and $9,625
is the net investment after the sales load is deducted. Average Annual Total
Returns are for the period ended 9-30-95. Fund inception date is 3/2/92.
Past performance is not predictive of future results.
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vi ----------------------------------------------------------------------------
<PAGE> 8
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MANAGER'S FUND UPDATE
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investment approach is warranted by the difference in yields between short-term
and long-term maturity bonds, which difference has reached as high as 2% in
recent months.
The average credit quality of the Fund has been maintained at AA, and
many of the holdings are insured.
QUALITY TAX-EXEMPT INCOME FUND-------------------------------------------------
Yields have declined to their lowest levels of the year as fears of
inflation subside. Generally, investors have remained invested in bonds with
the shortest term maturities although most of the new issuances are being made
with longer maturities. Thus, relative to treasuries, long-term municipal
issues are seen by the Manager as inexpensive on a historical basis.
[PIE GRAPH]
Quality Tax-Exempt Income Fund
Sector Profile as of September 30, 1995
<TABLE>
<S> <C>
General obligation 65.60%
Revenue 34.40%
</TABLE>
Notwithstanding the declining yields, municipal bond prices have been
hindered by investor concerns about how proposed tax reforms would affect the
value of municipal bonds. The Manager, however, believes that tax reform, as
proposed, is not expected to occur within the foreseeable future.
The Fund's average maturity has been increasing over the last quarter.
The Manager has focused on purchasing and holding bonds in the 10 to 15 year
maturity range where the yield curve offers the best yield relative to risk.
By increasing the maturity of the Fund, the Manager hopes to increase tax
exempt income for shareholders of the Fund while continuing to maintain a high
quality investment portfolio.
Comparison of Change in Value of $10,000 Investment in Westcore Quality
Tax-Exempt Income Fund and the Lehman Brothers Municipal Bond Index
- --------------------------------------------------------------------------------
[GRAPH]
$'s shown in thousands:
<TABLE>
<CAPTION>
1/93 5/93 5/94 5/95 9/95
<S> <C> <C> <C> <C> <C>
Quality Tax-Exempt Income Fund
Lehman Brothers Municipal Bond Index
</TABLE>
Please Note: The Fund investment is subject to a 3.5% sales load and $9,650 is
the net investment after the sales load is deducted. Average Annual Total
Returns are for the period ended 9-30-95. Fund inception date is 1/15/93.
Past performance is not predictive of future results.
- --------------------------------------------------------------------------------
The investment focus of the Fund is in general obligation (GO) and
revenue bonds with a strong emphasis in urban renewal and utilities. A large
portion of the Fund's holdings are concentrated in the Northwestern region of
the United States due to the Manager's belief that many quality bonds which
also offer price values are available in this region.
[NOTE IN SIDE MARGIN]
TOP 5 HOLDINGS:
1. Washington Suburban Sanitation District
2. State of Washington
3. Seattle, WA G.O.
4. Leon County, FL School District
5. Spokane, WA Limited tax
[CHART IN SIDE MARGIN]
Quality Tax-Exempt Income Fund
Average Annual Total Return
<TABLE>
<CAPTION>
1 Year 3 Year Since
incep.
<S> <C> <C>
5.55% NA 3.91%
</TABLE>
Average Annual Total Returns are for the period ended 9/30/95 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. Results include
the maximum sales load of 3.5%. Fund inception date is 1/15/93. Past
performance is not predictive of future results.
- --------------------------------------------------------------------------- vii
<PAGE> 9
- --------------------------------------------------------------------------------
MANAGER'S FUND UPDATE
- --------------------------------------------------------------------------------
One of the largest holdings in the Fund is the Washington Suburban
Sanitation District General Obligation Bond, issued by the State of Maryland.
Maryland has had a very limited supply of bonds in general and has been
relatively strong economically, thus adding to the attractiveness of this
security.
Another holding is the South Columbia Basin, Washington, Irrigation
District Revenue Bond which receives revenues from a variety of irrigation
projects in Eastern Washington, where agriculture is the primary trade of the
population. In 1986 the South Columbia Basin completed the construction of a
hydroelectric operation. The district supplies 50% of its power to Tacoma Light
& Power (A1/A+) and 50% to Seattle Light and Power (Aa/AA). The South Columbia
Basin Irrigation District bond was upgraded to a rating of AA based on the
strength of its own revenue-raising ability and credit worthiness.
PRIME MONEY MARKET FUND--------------------------------------------------------
The Prime Money Market Fund invests primarily in money market
instruments including banker's acceptances, certificates of deposit (CDs),
commercial paper and obligations issued or guaranteed by the U.S. Government,
its agencies and instrumentalities. The Fund strives to maintain a constant net
asset value of $1.00 per share and to maintain stability of principal and
current income.
[PIE GRAPH]
Prime Money Market Funds Sector Profile
as of September 30, 1995
<TABLE>
<S> <C>
Bankers acceptance 8.04%
Bank notes 3.90%
U.S. Government agencies 1.73%
Repurchase agreements 37.11%
Commercial paper 49.22%
</TABLE>
During the past fiscal year, the Federal Reserve increased the Fed
Funds rate several times. The most recent increase in rates took place on
February 1, 1995. Following this increase, the Manager began extending
maturities in the portfolio with the belief that the Federal Reserve was at, or
near, the end of its tightening policy. Signs of a slowing economy have begun
to emerge including slowdowns in new home sales, manufacturer orders, auto
sales and lower overall consumer confidence. Slowdowns in the housing and auto
industries have been the most substantial and these indices make up a large
component of consumer spending.
The Manager believes that the longer maturities in the portfolio at
this time will benefit the Fund's overall yield in this economic environment.
[CHART IN SIDE MARGIN]
Prime Money Market Fund
7-Day Yield:
5.62%
This yield is as of 9/30/95. Without the absorption of expenses and fee waivers,
the yield would have been 4.71%.
viii --------------------------------------------------------------------------
<PAGE> 10
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
RETAIL CLASS PERFORMANCE ------------------------------------------------------
The Growth, Short-Term Government Bond and GNMA Funds have a Retail
share class. The Retail class commenced operations on October 11, 1993. The
Retail class is subject to a 12b-1 distrbution fee and/or administrative
service fee. The figures for performance of the Retail class prior to its
inception are based on the performance of the Institutional class, which is not
subject to such fees. These figures would be lower if they reflected the 12b-1
distribution fee and/or the administrative service fee which currently applies
to the Retail class.
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 net capital gains exceed net capital
losses, there may be a capital gain distribution to shareholders.
DIVIDEND
Income generated by securities in a portfolio and distributed after
expenses to shareholders. The Short-Term Government, GNMA, Bonds Plus, Oregon
Tax-Exempt, Arizona Intermediate Tax-Free, Quality Tax-Exempt Income and Prime
Money Market Funds pay monthly dividends and the Growth Fund pays quarterly
dividends.
NET ASSET VALUE (NAV)
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 by 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 the two most prominent rating services: 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 a 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 of the two services are:
<TABLE>
<CAPTION>
Moody's Standard
Investors & Poor's
Services Corp.
Inc. Plus (+) or
minus (-)
--------- -----------
<S> <C> <C>
Prime Aaa AAA
Excellent Aa AA
Good A A
Average Baa BBB
Fair Ba BB
Poor B B
Marginal Caa C
</TABLE>
SEC YIELD
The SEC Yield was created by the Secutities and Exchange Commission in
1988 as a standardized yield calculation intended to put all bond funds with
similar investment objectives on a level playing field. It is calculated by all
bond and money market mutual funds. The SEC formula eliminates income derived
from capital gains, option writing, futures, or return of capital. The formula
also adjusts the income from premium or discounted bonds to reflect the
amortization of that bond.
- --------------------------------------------------------------------------- ix
<PAGE> 11
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
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 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
combination of dividends 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 total annual 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 and assumes the reinvestment of all dividends and capital
gains.
DEFINITION OF INDICES----------------------------------------------------------
The Merrill Lynch Short-Term Government Bond Index is a measurement of U.S.
Government and Treasury issued short-term securities with maturities between 1
and 2.99 years. It is an unmanaged index.
The Lehman Brothers Aggregate Bond Index is made up of the Government/Corporate
Index, the Mortgage-Backed Index and the Asset-Backed Securities Index. The
Aggregate Bond Index is an unmanaged index.
The Lehman Brothers Mortgage-Backed Securities Index includes 15 and 30-year
fixed rate securities backed by mortgage pools of the Government National
Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC) and
Federal National Mortgage Association (FNMA). Graduated payment mortgages
(GPMs) and balloons are included in the index; buydowns, manufactured homes and
graduated equity mortgages (GEMs) are not. This is an unmanaged index.
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.
The Lehman Brothers Municipal Bond Index is a total return performance benchmark
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.
SPECIAL MEETING OF SHAREHOLDERS------------------------------------------------
A special meeting of the Trust's shareholders was held on September 28, 1995 to
consider the following proposals. The proposals voted upon and the votes cast
related to each proposal are as follows:
x -----------------------------------------------------------------------------
<PAGE> 12
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
A majority of shares of the Trust as a whole and of each of the Growth
Fund, Short-Term Government Bond Fund, Bonds Plus Fund, Arizona
Intermediate Tax-Free Fund, Quality Tax-Exempt Income Fund and Prime
Money Market Fund's shareholders voted to approve the Agreement and
Plan of Reorganization between the Trust and Pacifica Funds Trust
("Pacifica") providing for the transfer of assets and liabilities of
each Fund to the corresponding portfolios of Pacifica in the form
attached to the Proxy Statement for the meeting. Each of the Fund's
respective shareholders voted on this proposal as follows:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--- ------- -------
<S> <C> <C> <C>
Westcore Trust(1) 1,198,380,172 16,406,712 2,165,529
Growth Fund 794,250 226 585
Short-Term Government Bond Fund 1,472,818 6,939 10,406
Bonds Plus Fund 3,666,554 0 1,086
Arizona Intermediate Tax-Free Fund 1,823,650 6,337 10,575
Quality Tax-Exempt Income Fund 671,985 1,046 7,347
Prime Money Market Fund 295,545,611 0 0
</TABLE>
The Trust as a whole voted to elect Lyman E. Seely as a trustee of the
Trust. The other trustees of the Trust are Jack D. Henderson, McNeil
S. Fiske, James B. O'Boyle and Robert L. Stamp. The Trust's vote on
this proposal was as follows:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--- ------- -------
<S> <C> <C> <C>
Westcore Trust(1) 1,213,996,265 0 2,976,190
</TABLE>
A majority of each of the Growth Fund, Short-Term Government Bond Fund,
Bonds Plus Fund, Arizona Intermediate Tax-Free Fund, Quality Tax-Exempt
Income Fund and Prime Money Market Fund's shareholders, as sole
shareholders of the corresponding Pacifica Funds immediately prior to
the reorganization, are authorized to approve the Advisory Agreement
between Pacifica and First Interstate Capital Management, Inc.,
("FICM") in the form attached to the Proxy Statement for such funds.
Each of the Fund's respective shareholders voted on this proposal as
follows:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--- ------- -------
<S> <C> <C> <C>
Growth Fund 794,636 226 200
Short-Term Government Bond Fund 1,475,863 4,255 10,044
Bonds Plus Fund 3,667,353 0 1,086
Arizona Intermediate Tax-Free Fund 1,823,142 6,337 11,084
Quality Tax-Exempt Income Fund 670,305 1,046 9,028
Prime Money Market Fund 295,539,054 6,557 0
</TABLE>
A majority of each of the Oregon Tax-Exempt Fund and GNMA Fund and
Retail classes of each of the GNMA Fund, Short-Term Government Bond
Fund and Growth Fund's shareholders present at the meeting voted in
the absence of a quorum to defer voting on the matters to which each
Fund's shareholders were entitled to vote. Each of the Fund's
respective shareholders present voted on this adjournment as follows:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--- ------- -------
<S> <C> <C> <C>
Oregon Tax-Exempt Fund 1,360,472 0 0
GNMA Fund 768,127 0 0
GNMA Fund (Retail Class) 136,179 0 0
Short-Term Government Bond Fund 28,190 0 0
(Retail Class)
Growth Fund (Retail Class) 4,578 0 0
</TABLE>
- ----------------------------------------------------------------------------- xi
<PAGE> 13
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
The special meeting with the Trust's shareholders was reconvened on September
30, 1995 to consider the following proposals. The proposals voted upon and the
votes cast related to each proposal are as follows:
A majority of the Retail class of each of the Short-Term Government Bond
and Growth Fund's shareholders, as holder of one Investor share of the
corresponding Pacifica Fund immediately prior to the reorganization, is
authorized to approve the Distribution Plan for Investor Shares with
respect to the corresponding Pacifica portfolio in the form attached to
the Proxy Statement for the meeting. Each of the Fund's respective
shareholders voted on this proposal as follows:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--- ------- -------
<S> <C> <C> <C>
Short-Term Government Bond Fund 126,457 26 3,224
(Retain Class)
Growth Fund (Retail Class) 5,426 0 498
</TABLE>
A majority of each of the Oregon Tax-Exempt Fund and GNMA Fund
and Retail class of the GNMA Fund's shareholders present at the meeting
voted in the absence of a quorum to defer voting on the matters to
which each Fund's or class's shareholders was to be voting. Each of the
Fund's or class's respective shareholders present voted on this
adjournment as follows:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--- ------- -------
<S> <C> <C> <C>
Oregon Tax-Exempt Fund 1,360,472 0 0
GNMA Fund 768,127 0 0
GNMA Fund (Retail Class) 136,179 0 0
</TABLE>
The special meeting of the Trust's shareholders was reconvened on October 11,
1995 to consider the following proposals. The proposals voted upon and the
votes cast related to each proposal are as follows:
A majority of the Oregon Tax-Exempt Fund's shareholders voted
to approve the Agreement and Plan of Reorganization between the Trust
and Pacifica providing for the transfer of assets and liabilities of
the Fund to the corresponding portfolio of Pacifica in the form
attached to the Proxy Statement for the meeting. The Fund's
shareholders voted on this proposal as follows:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--- ------- -------
<S> <C> <C> <C>
Oregon Tax-Exempt Fund 1,508,671 7,403 75,707
</TABLE>
A majority of the Oregon Tax-Exempt Fund's shareholders, as sole shareholders
of the corresponding Pacifica Fund immediately prior to the reorganization, is
authorized to approve the Advisory Agreement between Pacifica and FICM in the
form attached to the Proxy Statement for such fund. The Fund's shareholders
voted on this proposal as follows:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--- ------- -------
<S> <C> <C> <C>
Oregon Tax-Exempt Fund 1,492,402 20,684 78,695
</TABLE>
A majority of the GNMA Fund and Retail class of the GNMA Fund's
shareholders present at the meeting voted in the absence of a quorum to
defer voting on the matters to which each Fund's shareholders was to be
voting. The
xii ---------------------------------------------------------------------------
<PAGE> 14
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
Fund's shareholders present voted on this adjournment as follows:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--- ------- -------
<S> <C> <C> <C>
GNMA Fund 814,731 0 0
GNMA Fund (Retail Class) 168,017 0 0
</TABLE>
The special meeting of the Trust's shareholders was reconvened on November 15,
1995 to consider the following proposals. The proposals voted upon and votes
cast related to each proposal are as follows:
A majority of the GNMA Fund's shareholders voted to approve the
Agreement and Plan of Reorganization between the Trust and Pacifica
providing for the transfer of assets and liabilities of the Fund to
the corresponding portfolio of Pacifica in the form attached to the
Proxy Statement for the meeting. The Fund's shareholders voted on this
proposal as follows:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--- ------- -------
<S> <C> <C> <C>
GNMA Fund 1,206,664 37,018 126,952
</TABLE>
A majority of the GNMA Fund's shareholders, as sole shareholders of
the corresponding Pacifica Fund immediately prior to the
reorganization, is authorized to approve the Advisory Agreement
between Pacifica and FICM in the form attached to the Proxy Statement
for such fund. The Fund's shareholders voted on this proposal as
follows:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--- ------- -------
<S> <C> <C> <C>
GNMA Fund 1,203,532 35,154 131,947
</TABLE>
A majority of the Retail class of each of the GNMA Fund's
shareholders, as holders of one Investor share of the corresponding
Pacifica Fund immediately prior to the reorganization, is authorized
to approve the Distribution Plan for Investor Shares with respect to
the corresponding Pacifica portfolio in the form attached to the Proxy
Statement for the meeting. The Fund's respective shareholders voted on
this proposal as follows:
<TABLE>
<CAPTION>
FOR AGAINST ABSTAIN
--- ------- -------
<S> <C> <C> <C>
GNMA Fund (Retail Class) 278,253 6,794 26,674
</TABLE>
- -------------------------------------------------------------------------------
(1)The Funds of the Trust included the following portfolios: Arizona
Intermediate Tax-Free, Balanced Investment, Basic Value, Bonds Plus, California
Intermediate Tax-Free, Cash Reserve, Colorado Tax-Exempt, Equity Income, GNMA,
Government Money Market, Growth Fund, Intermediate-Term Bond, Long-Term Bond
MIDCO Growth, Modern Value Equity, Money Market, Oregon Tax-Exempt, Prime Money
Market, Qualtiy Tax-Exempt Income, Short-Term Government Bond, Small-Cap
Opportunity and Treasury Money Market Fund. The shareholders of the California
Intermediate Tax-Free GNMA and Oregon Tax-Exempt Funds deferred the vote on the
reorganization for lack of quorum.
- -------------------------------------------------------------------------- xiii
<PAGE> 15
THIS PAGE INTENTIONALLY LEFT BLANK
<PAGE> 16
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
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 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 and Prime Money
Market Fund (eight of the twenty-two funds constituting the Westcore Trust) as
of September 30, 1995, the related statements of operations for the four month
period 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 September 30, 1995 by correspondence with the custodians. 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 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 and Prime Money Market Fund of Westcore Trust as of September 30, 1995
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.
DELOITTE & TOUCHE LLP
Denver, Colorado
November 3, 1995
- ----------------------------------------------------------------------------- 1
<PAGE> 17
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1995
<TABLE>
<CAPTION>
Short-Term Bonds
Growth Government Plus GNMA
Fund Bond Fund Fund Fund
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
ASSETS
Investments, at value (cost-see below)
-see accompanying statements $14,212,149 $37,317,033 $54,887,771 $29,180,722
Cash 61,808 0 0 0
Dividend and interest receivable 29,300 717,345 813,930 177,229
Receivable for shares of beneficial interest sold 11,846 17,458 70,932 5,428
Receivable from investment advisor 6,319 5,888 0 0
Prepaid expenses and other assets 9,087 21,073 10,676 16,621
- -------------------------------------------------------------------------------------------------------------
Total Assets 14,330,509 38,078,797 55,783,309 29,380,000
- -------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable to investment advisor 0 0 23,589 8,646
Cash overdraft 0 362,472 99,158 113,508
Payable for shares of beneficial interest redeemed 0 200 0 400
Other payables 13,705 48,882 32,091 46,607
- -------------------------------------------------------------------------------------------------------------
Total Liabilities 13,705 411,554 154,838 169,161
- -------------------------------------------------------------------------------------------------------------
NET ASSETS $14,316,804 $37,667,243 $55,628,471 $29,210,839
- -------------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
Paid-in capital $12,142,848 $38,316,891 $56,914,020 $30,554,954
Overdistributed net investment income (3,593) (60,883) (73,203) (65,816)
Accumunlated net realized gain (loss)
from investment transactions 21,381 (1,065,540) (2,118,602) (1,017,868)
Net unrealized appreciation (depreciation)
of investments 2,156,168 476,775 906,256 (260,431)
- -------------------------------------------------------------------------------------------------------------
NET ASSETS $14,316,804 $37,667,243 $55,628,471 $29,210,839
- -------------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
Institutional Shares
Net Assets $14,119,807 $34,045,572 $55,628,471 $22,041,872
- -------------------------------------------------------------------------------------------------------------
Shares of beneficial interest outstanding 767,245 2,200,718 3,770,075 1,404,858
- -------------------------------------------------------------------------------------------------------------
Net asset value and redemption
price per share $18.40 $15.47 $14.76 $15.69
- -------------------------------------------------------------------------------------------------------------
Maximum offering price per share
(net asset value plus sales charge of 0%, 0%
4.5% and 0% of offering price, respectively) $18.40 $15.47 $15.46 $15.69
- -------------------------------------------------------------------------------------------------------------
Retail Shares
Net Assets $196,997 $3,621,671 N/A $7,168,967
- -------------------------------------------------------------------------------------------------------------
Shares of beneficial interest outstanding 10,708 234,253 N/A 457,491
- -------------------------------------------------------------------------------------------------------------
Net asset value and redemption price
per share $18.40 $15.46 N/A $15.67
- -------------------------------------------------------------------------------------------------------------
Maximum offering price per share
(net asset value plus sales charge of 4.5%,
2% and 4.5% of offering price, respectively) $19.27 $15.78 N/A $16.41
- -------------------------------------------------------------------------------------------------------------
COST OF INVESTMENTS $12,055,981 $36,840,258 $53,981,515 $29,441,153
- -------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
2 ------------------------------------------------------------------------------
<PAGE> 18
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES (Continued)
September 30, 1995
<TABLE>
<CAPTION>
Arizona Oregon Quality Prime
Intermediate Tax-Exempt Tax-Exempt Money Market
Tax-Free Fund Fund Income Fund Fund
------------- ---------- ----------- ------------
<S> <C> <C> <C> <C>
ASSETS
Investments, at value (cost-see below)
-see accompanying statements $24,246,533 $49,216,449 $14,475,061 $286,912,776
Interest receivable 330,906 976,257 217,477 0
Receivable for shares of beneficial interest sold 53,452 0 25,745 0
Receivable from investment advisor 17,907 0 32,191 102,021
Prepaid expenses and other assets 14,721 3,805 28,528 6,143
- -------------------------------------------------------------------------------------------------------------
Total Assets 24,663,519 50,196,511 14,779,002 287,020,940
- -------------------------------------------------------------------------------------------------------------
LIABILITIES
Payable to investment advisor 0 2,041 0 0
Cash overdraft 0 71,355 200,525 0
Payable for securities purchased 0 0 248,297 0
Payable for shares of beneficial interest redeemed 2,000 0 0 0
Dividend payables 0 0 0 88,692
Other payables 39,801 46,076 25,040 68,758
- -------------------------------------------------------------------------------------------------------------
Total Liabilities 41,801 119,472 473,862 157,450
- -------------------------------------------------------------------------------------------------------------
NET ASSETS $24,621,718 $50,077,039 $14,305,140 $286,863,490
=============================================================================================================
COMPOSITION OF NET ASSETS
Paid-in capital $23,900,997 $49,466,138 $14,241,226 $286,863,490
Overdistributed net investment income (67,269) (26,485) (9,889) 0
Accumulated net realized gain (loss)
from investment transactions 66,888 (258,222) (75,756) 0
Net unrealized appreciation of investments 721,102 895,608 149,559 0
- -------------------------------------------------------------------------------------------------------------
NET ASSETS $24,621,718 $50,077,039 $14,305,140 $286,863,490
=============================================================================================================
NET ASSET VALUE PER SHARE
Institutional Shares
Net Assets $24,621,718 $50,077,039 $14,305,140 $286,863,490
- -------------------------------------------------------------------------------------------------------------
Shares of beneficial interest outstanding 2,298,392 3,057,454 932,728 286,940,224
- -------------------------------------------------------------------------------------------------------------
Net asset value and redemption price per share $10.71 $16.38 $15.34 $1.00
- -------------------------------------------------------------------------------------------------------------
Maximum offering price per share (net asset value
plus sales charge of 3.75%, 4.5%, 3.5% and 0%
of offering price, respectively) $11.13 $17.15 $15.90 $1.00
=============================================================================================================
COST OF INVESTMENTS $23,525,431 $48,320,841 $14,325,502 $286,912,776
=============================================================================================================
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
- ------------------------------------------------------------------------------ 3
<PAGE> 19
- -------------------------------------------------------------------------------
WESTCORE REPORT
- -------------------------------------------------------------------------------
GROWTH FUND
STATEMENT OF INVESTMENTS
September 30, 1995
<TABLE>
<CAPTION>
Shares Market Value*
- ------ -------------
COMMON STOCKS 93.12%
- -------------------------------------------------------------------------------
CAPITAL GOODS 19.72%
- -------------------------------------------------------------------------------
Aerospace & Defense 1.95%
- -------------------------------------------------------------------------------
<S> <C> <C>
6,800 General Motors Corp Cl H $ 278,800
-----------
Computer Hardware 3.84%
- -------------------------------------------------------------------------------
6,000 Intel 360,750
5,500 Silicon Graphics Inc.** 189,062
----------
549,812
----------
Computer Software & Services 4.32%
- -------------------------------------------------------------------------------
3,100 Automatic Data Processing Inc. 211,187
3,500 First Data Corp 217,000
2,100 Microsoft Corp** 190,050
------------
618,237
------------
Electrical Equipment 8.59%
- -------------------------------------------------------------------------------
7,300 General Electric Co 465,375
7,100 General Instrument Corp** 213,000
2,500 Hewlett Packard Co 208,438
4,500 Motorola Inc 343,687
------------
1,230,500
------------
Networking 1.02%
- -------------------------------------------------------------------------------
3,200 3 Com Corp 145,600
------------
TOTAL CAPITAL GOODS
(Cost $2,295,746) 2,822,949
------------
CONSUMER CYCLICALS 10.71%
- -------------------------------------------------------------------------------
Media/Publishing 3.18%
- -------------------------------------------------------------------------------
8,100 Time Warner Inc 321,975
2,000 Tribune Co 132,750
------------
454,725
------------
Restaurants 2.00%
- -------------------------------------------------------------------------------
7,500 McDonalds Corp 286,875
------------
Retail 5.53%
- -------------------------------------------------------------------------------
8,000 Home Depot Inc. 319,000
19,000 Wal-Mart Stores Inc 472,625
------------
791,625
------------
TOTAL CONSUMER CYCLICALS
(Cost $1,466,502) 1,533,225
------------
CONSUMER STAPLES 24.31%
- -------------------------------------------------------------------------------
Food, Beverage & Tobacco 6.15%
- -------------------------------------------------------------------------------
5,500 Coca Cola Co 379,500
6,000 Philip Morris Companies Inc 501,000
------------
880,500
------------
<CAPTION>
Shares Market Value*
- ------ -------------
Food-Distribution 1.81%
- -------------------------------------------------------------------------------
<S> <C> <C>
9,500 Sysco Corp $ 258,875
-------------
Food-Retail 1.43%
- -------------------------------------------------------------------------------
6,000 Albertsons Inc. 204,750
-------------
Healthcare 10.41%
- -------------------------------------------------------------------------------
8,400 Abbott Laboratories 358,050
8,000 Columbia/HCA Healthcare 389,000
6,500 Merck & Co Inc 364,000
7,500 Smithkline Beecham PLC ADR 379,688
-------------
1,490,738
-------------
Leisure 1.86%
- -------------------------------------------------------------------------------
2,500 Disney Walt Co 143,438
7,000 Tele-Communications Cl A 122,500
-------------
265,938
-------------
Personal Care 2.65%
- -------------------------------------------------------------------------------
1,000 Clorox Co 71,375
4,000 Proctor & Gamble Co 308,000
-------------
379,375
-------------
TOTAL CONSUMER STAPLES
(Cost $2,770,922) 3,480,176
-------------
CREDIT SENSITIVE 20.50%
- -------------------------------------------------------------------------------
Banks 4.39%
- -------------------------------------------------------------------------------
7,000 Bank of New York Inc 325,500
6,800 Mellon Bank Corp 303,450
-------------
628,950
-------------
Financial Services 3.34%
- -------------------------------------------------------------------------------
1,400 Federal National Mortgage Assn 144,900
8,000 MBNA Corp 333,000
-------------
477,900
-------------
Insurance 3.95%
- -------------------------------------------------------------------------------
4,000 American International Group Inc 340,000
1,500 General Re Corp 226,500
-------------
566,500
-------------
Utilities-Electric 2.68%
- -------------------------------------------------------------------------------
11,000 NIPSCO Industries Inc 383,625
-------------
Utilities-Telephone 6.14%
- -------------------------------------------------------------------------------
5,000 AT&T Corp 328,750
10,000 SBC Communications Inc** 550,000
-------------
878,750
-------------
TOTAL CREDIT SENSITIVE
(Cost $2,239,022) 2,935,725
-------------
</TABLE>
4 ----------------------------------------------------------------------------
<PAGE> 20
- -------------------------------------------------------------------------------
WESTCORE REPORT
- -------------------------------------------------------------------------------
GROWTH FUND
STATEMENT OF INVESTMENTS
September 30, 1995 (continued)
<TABLE>
<CAPTION>
Shares Market Value*
- ------ -------------
INTERMEDIATE GOODS & SERVICES 17.88%
- -------------------------------------------------------------------------------
Building Materials 1.47%
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
6,000 Sherwin-Williams Co $ 210,000
-------------
Chemical 4.71%
- -------------------------------------------------------------------------------
7,600 Air Products & Chemicals Inc 396,150
6,800 Betz Laboratories 277,950
-------------
674,100
-------------
Energy Services 1.87%
- -------------------------------------------------------------------------------
8,000 Enron Corp 268,000
-------------
Metals 0.51%
- -------------------------------------------------------------------------------
4,000 Worthington Industries 73,500
-------------
Petroleum-Domestic 5.41%
- -------------------------------------------------------------------------------
5,000 Amoco Corp 320,625
3,000 Mobil Corp 298,875
4,500 Tosco Corp 155,250
-------------
774,750
-------------
Petroleum-International 2.32%
- -------------------------------------------------------------------------------
2,700 Royal Dutch Petroleum Co 331,425
-------------
Pollution Control 1.59%
- -------------------------------------------------------------------------------
8,000 WMX Technologies Inc 228,000
-------------
TOTAL INTERMEDIATE GOODS & SERVICES
(Cost $2,403,490) 2,559,775
-------------
TOTAL COMMON STOCKS
(Cost $11,175,682) 13,331,850
-------------
Face Amount
- -----------
REPURCHASE AGREEMENT 6.15%
- -------------------------------------------------------------------------------
$ 876,209 Repurchase agreement with
Goldman Sachs, 6.35%, dated
09/29/95 and maturing 10/02/95
collateralized by U.S. Treasury
Notes, 5.875% due 08/15/98, with
a value of $894,613 (Cost $880,299) 880,299
-------------
TOTAL INVESTMENTS
(Cost $12,055,981) 99.27% $14,212,149
Other Assets in Excess of Liabilities 0.73% 104,655
------------------------------
NET ASSETS 100.00% $14,316,804
==============================
</TABLE>
* See note 1 to financial statements.
** Denotes non-income producing security.
SHORT-TERM GOVERNMENT BOND FUND
STATEMENT OF INVESTMENTS
September 30, 1995
<TABLE>
<CAPTION>
Face Amount Market Value*
- ----------- -------------
U.S. GOVERNMENT AGENCIES 6.72%
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
$1,000,000 Federal Home Loan Bank, 9.75%, 02/09/96 $ 1,013,948
1,500,000 Private Export Funding Corp,
9.00%, 01/31/96 1,518,284
-----------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $2,538,147) 2,532,232
-----------
U.S. GOVERNMENT POOLED MORTGAGES 6.60%
- -------------------------------------------------------------------------------
2,499,011 Federal Home Loan Mortgage Corp, CMO,
5.00%, 08/15/11 (Cost $2,495,887) 2,486,089
-----------
U.S. GOVERNMENT TREASURIES 83.57%
- -------------------------------------------------------------------------------
U.S. Treasury Notes:
1,500,000 5.875%, 05/31/96 1,502,342
2,750,000 7.25%, 11/15/96 2,795,543
5,525,000 8.00%, 10/15/96 - 01/15/97 5,665,214
3,300,000 6.75%, 02/28/97 3,343,313
3,250,000 6.50%, 09/30/96 - 05/15/97 3,281,015
2,500,000 8.50%, 05/15/97 2,602,340
2,750,000 6.125%, 07/31/96 - 05/31/97 2,761,324
1,000,000 5.75%, 10/31/97 999,061
1,000,000 7.375%, 11/15/97 1,028,750
2,850,000 7.875%, 01/15/98 2,971,125
3,300,000 8.25%, 07/15/98 3,495,937
1,000,000 7.125%, 10/15/98 1,033,750
-----------
TOTAL U.S. GOVERNMENT TREASURIES
(Cost $30,987,226) 31,479,714
-----------
MUTUAL FUNDS 2.18%
- -------------------------------------------------------------------------------
400,000 Federated Prime Money Market Fund 401,876
416,881 Lehman Brothers Inc Prime
Money Market Fund 417,122
-----------
TOTAL MUTUAL FUNDS
(Cost $818,998) 818,998
-----------
TOTAL INVESTMENTS
(Cost $36,840,258) 99.07% $37,317,033
Other Assets in Excess of Liabilities 0.93% 350,210
-----------------------
NET ASSETS 100.00% $37,667,243
=======================
</TABLE>
* See note 1 to financial statements.
- ----------------------------------------------------------------------------- 5
<PAGE> 21
- -------------------------------------------------------------------------------
WESTCORE REPORT
- -------------------------------------------------------------------------------
BONDS PLUS FUND
STATEMENT OF INVESTMENTS
September 30, 1995
<TABLE>
<CAPTION>
Face Amount Market Value*
- ----------- -------------
CORPORATE BONDS 14.62%
- -------------------------------------------------------------------------------
Asset Backed 2.16%
- -------------------------------------------------------------------------------
<S> <C> <C>
$ 500,000 Discover Card Master Trust 1 1994-3,
6.085%, 10/15/99 (1) $ 501,824
189,193 Rochester CSB Tst.
5.70%, 12/15/97 188,835
500,000 Sears Credit Account II,
7.00%, 01/15/04 513,264
-----------
1,203,923
-----------
Financial 7.32%
- -------------------------------------------------------------------------------
500,000 ABN Ambro Bank NY,
8.25%, 08/01/09 536,584
450,000 Bank of Boston Corp,
6.625%, 02/01/04 440,481
500,000 Ford Capital, B.V.,
9.125%, 05/01/98 533,056
500,000 General Electric Credit Corp,
8.52%, 12/15/07 (1) 502,647
500,000 General Motors Acceptance Corp,
7.75%, 04/15/97 506,271
500,000 ITT Hartford Group,
8.20%, 10/15/98 522,593
500,000 Nationsbank Corp.
6.875%, 02/15/05 496,793
500,000 NBD Bancorp Inc,
8.10% 03/01/02 535,028
-----------
4,073,453
-----------
Industrial 2.65%
- -------------------------------------------------------------------------------
400,000 International Business Machines Corp,
7.50%, 06/15/13 414,273
500,000 Philip Morris Companies Inc,
9.00%, 05/15/98 530,125
500,000 Willamette Industries Inc,
7.75%, 07/15/02 526,984
-----------
1,471,382
-----------
Insurance 0.71%
- -------------------------------------------------------------------------------
400,000 Kemper Corp,
6.875%, 09/15/03 392,449
-----------
Utility 0.94%
- -------------------------------------------------------------------------------
500,000 National Rural Utilities Inc,
9.50%, 05/15/97 524,270
-----------
Utility-Electric 0.84%
- -------------------------------------------------------------------------------
450,000 Hydro Quebec,
7.375%, 02/01/03 465,259
-----------
TOTAL CORPORATE BONDS
(Cost $7,932,792) 8,130,736
-----------
<CAPTION>
Face Amount Market Value*
- ----------- -------------
U.S. GOVERNMENT
AGENCIES 4.66%
- -------------------------------------------------------------------------------
<S> <C> <C>
Federal Home Loan Mortgage Corp:
$ 750,000 6.375%, 12/23/03, Callable
12/23/96 @ 100.00 $ 737,432
400,000 8.19%, 10/06/04, Callable
10/06/99 @ 100.00 424,442
Federal National Mortgage Assn:
750,000 8.90%, 06/12/00 833,461
325,000 7.73%, 08/26/04, Callable
08/26/99 @ 100 337,878
250,000 8.18%, 09/22/04, Callable
09/22/97 @ 100.00 260,620
-----------
TOTAL U.S. GOVERNMENT AGENCIES
(Cost $2,595,420) 2,593,833
-----------
U.S. GOVERNMENT POOLED
MORTGAGES 26.05%
- -------------------------------------------------------------------------------
Federal Home Loan Mortgage Corp:
187,485 9.00%, 07/01/16 194,749
1,500,000 REMIC, 7.00%, 09/15/21 1,468,858
Federal National Mortgage Assn:
1,266,553 REMIC, 9.00%, 09/25/00 1,273,606
2,000,000 REMIC, 9.25%, 11/25/03 2,113,478
442,985 6.00%, 12/01/08 429,419
1,952,005 REMIC, 8.50%, 03/25/19 1,988,584
500,000 REMIC, 6.50%, 03/25/20 488,294
1,000,000 REMIC, 7.00%, 12/25/22 1,007,569
367,374 6.50%, 01/01/24 354,285
Government National Mortgage Assn:
39,644 11.50%, 04/15/15 44,934
339,023 INTR II, 9.50%, 05/20/16 358,514
337,540 10.00%, 08/15/18 368,340
787,861 9.00%, 09/15/16-08/15/21 830,203
632,668 INTR II, 9.00%, 09/20/16-12/20/21 661,529
280,058 8.50%, 07/15/24 292,046
2,113,876 7.50%, 03/15/23-04/15/23 2,135,583
465,659 INTR II, 7.50%, 11/20/24 478,348
-----------
TOTAL U.S. GOVERNMENT POOLED MORTGAGES
(Cost $14,426,994) 14,488,339
-----------
U.S. GOVERNMENT
TREASURIES 51.34%
- -------------------------------------------------------------------------------
2,550,000 U.S. Treasury Bonds,
10.75%, 02/15/03 3,235,313
U.S. Treasury Notes:
1,000,000 4.625%, 02/15/96 996,561
2,500,000 6.125%, 05/31/97 2,511,715
2,500,000 8.75%, 10/15/97 2,636,715
2,000,000 7.875%, 04/15/98 2,092,500
3,000,000 8.25%, 07/15/98 3,178,125
2,000,000 5.125%, 11/30/98 1,954,372
5,750,000 6.75%, 02/28/97-06/30/99 5,865,073
</TABLE>
6 -----------------------------------------------------------------------------
<PAGE> 22
- -------------------------------------------------------------------------------
WESTCORE REPORT
- -------------------------------------------------------------------------------
BONDS PLUS FUND
STATEMENT OF INVESTMENTS
September 30, 1995 (continued)
<TABLE>
<CAPTION>
Face Amount Market Value*
- ----------- -------------
U.S. GOVERNMENT
TREASURIES (continued)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
$3,800,000 7.50%, 02/29/96-05/15/02 $ 3,952,935
2,000,000 7.25%, 08/15/04 2,138,122
-----------
TOTAL U.S. GOVERNMENT TREASURIES
(Cost $27,912,877) 28,561,431
-----------
MUTUAL FUNDS 2.00%
- -------------------------------------------------------------------------------
200,000 Federated Prime Money
Market Fund 209,384
899,262 Lehman Brothers Inc Prime
Money Market Fund 904,048
-----------
TOTAL MUTUAL FUNDS
(Cost $1,113,432) 1,113,432
-----------
TOTAL INVESTMENTS
(Cost $53,981,515) 98.67% 54,887,771
Other Assets in Excess of Liabilities 1.33% 740,700
-----------------------
NET ASSETS 100.00% 55,628,471
=======================
</TABLE>
* See note 1 to financial statements.
(1) Variable rate security. Reported rate is the effective rate on
September 30, 1995.
GNMA FUND
STATEMENT OF INVESTMENTS
September 30, 1995
<TABLE>
<CAPTION>
Face Amount Market Value*
- ----------- -------------
U.S. GOVERNMENT
POOLED MORTGAGES 96.53%
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Federal Home Loan Mortgage Corp:
$ 2,298,000 REMIC, 7.00%, 09/15/21 $ 2,250,291
Federal National Mortgage Assn:
550,000 REMIC, 9.25%, 11/25/03 581,206
713,538 REMIC, 8.00%, 03/25/17 713,302
500,000 REMIC, 7.75%, 10/25/18 507,640
976,003 REMIC, 8.50%, 03/25/19 994,292
1,500,000 REMIC, 7.00%, 12/25/22 1,511,353
Government National Mortgage Assn:
28,950 INTR II, 12.00%, 01/20/99-04/20/99 30,588
6,675 12.50%, 12/15/99 7,184
1,500,492 INTR II, 6.50%, 02/20/08-07/20/08 1,481,735
333,268 INTR II, 9.50%, 05/20/16 352,429
559,327 9.50%, 11/15/16-11/15/20 597,776
1,581,078 9.00%, 02/15/05-12/15/19 1,666,049
3,403,237 INTR II, 9.00%, 09/20/16-07/20/22 3,562,506
1,272,140 7.00%, 12/15/23 1,257,825
1,973,670 6.50%, 03/15/24-04/15/24 1,904,585
654,416 8.50%, 09/15/19-07/15/24 682,428
10,003,267 7.50%, 03/15/23-06/25/25 10,095,552
----------
TOTAL U.S. GOVERNMENT POOLED MORTGAGES
(Cost $28,457,172) 28,196,741
----------
MUTUAL FUNDS 3.37%
- -------------------------------------------------------------------------------
200,000 Federated Prime Money
Market Fund 202,049
778,131 Lehman Brothers Inc.
Prime Money Market Fund 781,932
----------
TOTAL MUTUAL FUNDS
(Cost $983,981) 983,981
----------
TOTAL INVESTMENTS
(Cost $29,441,153) 99.90% $29,180,722
Other Assets in Excess of Liabilities 0.10% 30,117
-----------------------
NET ASSETS 100.00% $29,210,839
</TABLE>
*See note 1 to financial statements
- ----------------------------------------------------------------------------- 7
<PAGE> 23
- -------------------------------------------------------------------------------
WESTCORE REPORT
- -------------------------------------------------------------------------------
ARIZONA INTERMEDIATE TAX-FREE FUND
STATEMENT OF INVESTMENTS
September 30, 1995
<TABLE>
<CAPTION>
Bond Ratings Market
Face Amount Moody's/S&P+ Value*
- ----------- ------------------------
CERTIFICATES OF
PARTICIPATION 0.54%
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 125,000 University of Arizona
Telecommunication,
6.30%, 07/15/02
(Cost $125,674) A/A+ $ 133,510
-----------
GENERAL OLBIGATION
BONDS 64.78%
- -------------------------------------------------------------------------------
County/City/Special District/
School District 64.78%
- -------------------------------------------------------------------------------
Bullhead City, Arizona
Bullhead Parkway:
520,000 6.10%, 01/01/01 Baa/NR 542,443
130,000 6.10%, 01/01/02 Baa/NR 135,955
170,000 6.10%, 01/01/03 Baa/NR 177,878
405,000 Coconino County
School District #1
(Flagstaff), 5.70%,
07/01/01, AMBAC Aaa/AAA 427,417
650,000 Coconino and Yavapai
County JT USD #9
(Sedona/Oak Creek),
5.40%, 07/01/02 NR/A- 663,202
300,000 Glendale, 5.05%,
07/01/02, FGIC Aaa/AAA 308,265
700,000 Glendale School
Improvement, UHSD
#205, 5.10%, 07/01/05 A1/AA- 706,909
200,000 Maricopa County, 6.25%,
07/01/00, FGIC Aaa/AAA 215,704
560,000 Maricopa County School
District #68 (Alhambra),
6.75%, 07/01/02,
AMBAC Aaa/AAA 629,177
125,000 Maricopa County
School District #97
(Deer Valley), 5.90%,
07/01/03, Callable
07/01/02 @ 101.00,
FGIC Aaa/AAA 134,724
175,000 Maricopa County
School District #41
(Gilbert), 6.375%,
07/01/99, FGIC Aaa/AAA 187,455
495,000 Maricopa County
School District #40
(Glendale), 5.00%,
07/01/10, Callable
07/01/00 @ 101.00
FGIC Aaa/AAA 465,869
1,500,000 Maricopa County
School District #4
(Mesa) 5.55%, 07/01/04,
FGIC Aaa/AAA 1,530,615
<CAPTION>
Bond Ratings Market
Face Amount Moody's/S&P+ Value*
- ----------- ------------------------
County/City/Special District/
School District (continued)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Maricopa County
School District #8
(Osborn):
$ 275,000 5.20%, 07/01/00 A1/A $ 282,073
150,000 6.10%, 07/01/04 A1/A 161,901
Maricopa County
School District #11
(Peoria),
800,000 6.05%, 07/01/03,
Callable 07/01/01 @
101.00, MBIA Aaa/AAA 854,120
500,000 5.50%, 07/01/10,
Callable 07/01/05 @
101.00 A/A+ 482,810
Maricopa County
School District #210
(Phoenix Union):
200,000 5.80%, 07/01/02 Aa/AA 214,144
500,000 5.40%, 07/01/09 Aa/AA 500,385
500,000 5.50%, 07/01/10 Aa/AA 498,950
395,000 Maricopa County
School District #66
(Roosevelt Elementary),
5.50%, 07/01/01,
AMBAC Aaa/AAA 409,129
Maricopa County
School District #3
(Tempe):
250,000 4.90%, 07/01/02,
FGIC Aaa/AAA 254,585
330,000 5.00%, 07/01/03, Aaa/AAA 337,207
FGIC
415,000 Maricopa County,
School District #17
(Tolleson), 5.80%,
07/01/07, Callable
07/01/02 @ 101.00 Aaa/AAA 431,687
150,000 Maricopa County,
School District #214
(Tolleson), 5.45%,
07/01/04, FGIC Aaa/AAA 154,963
300,000 Maricopa County
School District #6
(Washington Elementary),
8.50%, 07/01/98,
AMBAC Aaa/AAA 333,039
200,000 Mesa, 6.00%, 07/01/02,
AMBAC Aaa/AAA 216,324
500,000 Navajo County
School District #32
(Blue Ridge), 5.80%,
07/01/07, Callable
07/01/04 @ 102.00 Aaa/AAA 524,010
</TABLE>
8 -----------------------------------------------------------------------------
<PAGE> 24
- -------------------------------------------------------------------------------
WESTCORE REPORT
- -------------------------------------------------------------------------------
ARIZONA INTERMEDIATE TAX-FREE FUND
STATEMENT OF INVESTMENTS
September 30, 1995 (continued)
<TABLE>
<CAPTION>
Bond Ratings Market
Face Amount Moody's/S&P Value*
- ----------- ------------------------
County/City/Special District/
School District (continued)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 100,000 Navajo County
School District #5
(Snowflake), 6.00%,
07/01/01, Callable
07/01/97 @ 101.00 Baa/BBB $ 102,551
Phoenix:
200,000 6.10%, 07/01/00 Aa/AA+ 214,874
100,000 5.60%, 07/01/01,
Callable 01/01/96
@ 101.00 Aa/AA+ 101,043
Pima County:
50,000 7.25%, 07/01/98 Aa/A+ 53,884
100,000 6.00%, 07/01/02 Aa/A+ 107,891
250,000 6.30%, 07/01/02 Aa/A+ 273,202
325,000 6.20%, 07/01/04,
Callable 07/01/02
@ 100.00 Aa/A+ 353,119
Pima County Flood
Control District:
75,000 5.35%, 07/01/00 Aa/A+ 77,728
75,000 5.65%, 07/01/02 Aa/A+ 79,210
Pima County Unified
School District #10
(Amphitheater):
175,000 5.60%, 07/01/03,
FGIC Aaa/AAA 185,472
100,000 6.85%, 07/01/03,
MBIA Aaa/AAA 113,898
75,000 6.00%, 07/01/04 A/A+ 80,644
250,000 6.50%, 07/01/05 A/A+ 278,035
Pima County School
District #1 (Tucson),
300,000 5.90%, 07/01/05,
Callable 07/01/04
@ 100.00 FGIC Aaa/AAA 319,803
800,000 6.10%, 07/01/12,
Callable 07/01/02
@ 100.00 FGIC Aaa/AAA 825,904
200,000 Sedona Oak Creek
School District #9 of
Coconino & Yavapai
County 6.10%, 07/01/00 Baa1/A- 210,398
250,000 Tucson, 5.80%, 07/01/05,
Callable 07/01/04
@ 100.00, FGIC Aaa/AAA 266,575
500,000 Yuma County School
District #70, 5.70%,
07/01/06, Callable
07/01/02 @ 101.00 Aaa/AAA 523,980
-----------
TOTAL GENERAL OBLIGATION BONDS
(Cost $15,527,323) 15,949,151
-----------
</TABLE>
<TABLE>
<CAPTION>
Bond Ratings Market
Face Amount Moody's/S&P+ Value*
- ----------- ------------------------
REVENUE BONDS 30.76%
- -------------------------------------------------------------------------------
Education 4.51%
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 100,000 Arizona State University
Board of Regents, 5.60%
07/01/01 A1/AA $ 105,827
500,000 Maricopa County
Community College,
5.05%, 07/15/04,
MBIA Aaa/AAA 507,050
100,000 Northern Arizona
University, 6.00%,
06/01/01, FGIC Aaa/AAA 107,480
175,000 University of Arizona,
5.60%, 06/01/99 A1/AA 182,187
100,000 Yavapai County
Community College
District, 5.20%, 07/01/00 NR/A- 102,058
100,000 Yuma & La Paz Counties
Community College
District, 6.00%, 07/01/02,
Callable 07/01/01
@ 100.00 A/NR 105,815
-----------
1,110,417
-----------
Hospitals 1.06%
- -------------------------------------------------------------------------------
100,000 Maricopa County IDA/
Samaritan Health, 4.50%
FRN, 12/01/08, (1) VMG1/A1+ 100,000
150,000 Pima County IDA
Tucson Medical Center,
6.00%, 04/01/01,
MBIA Aaa/AAA 160,186
-----------
260,186
-----------
Public Facilities 0.88%
- -------------------------------------------------------------------------------
200,000 Scottsdale Municipal
Property Corp Lease,
6.10%, 11/01/02 A1/AA 215,704
-----------
Special Tax 2.59%
- -------------------------------------------------------------------------------
Glendale Improvement
District #59:
110,000 6.00%, 01/01/01 A/A- 116,267
175,000 6.00%, 01/01/02 A/A- 185,731
100,000 Peoria Improvement
District #8801, 7.30%,
01/01/99 NR/BBB 107,161
215,000 Phoenix Special
Assessment Central
Avenue Improvement
District, 7.00%, 01/01/99,
Callable 01/01/98
@ 101.50 NR/NR 229,254
-----------
638,413
-----------
</TABLE>
- ----------------------------------------------------------------------------- 9
<PAGE> 25
- -------------------------------------------------------------------------------
WESTCORE REPORT
- -------------------------------------------------------------------------------
ARIZONA INTERMEDIATE TAX-FREE FUND
STATEMENT OF INVESTMENTS
September 30, 1995 (continued)
<TABLE>
<CAPTION>
Bond Ratings Market
Face Amount Moody's/S&P+ Value*
- ----------- ------------------------
Transportation 9.07%
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Arizona State
Transportation Board,
Excise Tax:
$ 200,000 5.00%, 07/01/99,
AMBAC Aaa/AAA $ 204,272
150,000 6.125%, 07/01/01,
Callable 07/01/99 @
101.00 Aa/AA- 159,111
105,000 Gilbert Street &
Highway User, 6.40%,
07/01/01, Callable
07/01/97 @ 101.00 NR/BBB+ 108,734
750,000 Phoenix Street &
Highway User, 6.40%,
07/01/04, Callable
07,01/02 @ 102.00 A1/AA 825,923
Tucson Street &
Highway User:
400,000 5.70%, 07/01/01 A1/A+ 421,476
500,000 5.10%, 07/01/03 Aaa/AAA 514,145
-----------
2,233,661
-----------
Utility 12.65%
- -------------------------------------------------------------------------------
150,000 Gilbert Water & Waste,
5.60%, 07/01/99,
FGIC Aaa/AAA 156,843
235,000 Glendale Water &
Sewer, 9.00%,
07/01/03 Aaa/AAA 299,837
105,000 Pima County Sewer,
7.50%, 07/01/01,
AMBAC Aaa/AAA 120,863
Salt River Project:
500,000 5.30%, 01/01/03 Aa/AA 517,600
250,000 5.625%, 01/01/06 Aa/AA 261,578
500,000 5.75%, 01/01/13 Aa/AA 498,865
Scottsdale Water &
Sewer:
275,000 5.70%, 07/01/00 Aa/AA- 289,086
100,000 6.80%, 07/01/03,
Callable 07/01/99
@ 101.00 Aa/AA- 107,661
170,000 6.90%, 07/01/04,
Callable 07/01/99 @
101.00 Aa/AA- 183,054
Tucson Water System:
100,000 6.10%, 07/01/01 A1/A+ 107,240
100,000 6.00%, 07/01/02 A1/A+ 107,322
250,000 5.30%, 07/01/04 A1/A+ 256,850
200,000 5.90%, 07/01/07,
Callable 07/01/04 @
100.00 A1/A+ 209,012
-----------
3,115,811
-----------
TOTAL REVENUE BONDS
(Cost $7,282,754) 7,574,192
-----------
<CAPTION>
Bond Rating Market
Face Amount Moody's/S&P+ Value*
- ----------- ------------------------
MUTUAL FUNDS 2.40%
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 294,592 Dreyfus Tax Exempt
Money Market $ 294,859
294,592 Provident Institutional
FDS Munifund 294,821
-----------
TOTAL MUTUAL FUNDS
(Cost $589,680) 589,680
-----------
TOTAL INVESTMENTS
(Cost $23,525,431) 98.48% $24,246,533
Other Assets in Excess of Liabilities 1.52% 375,185
----------------------
NET ASSETS 100.00% $24,621,718
======================
</TABLE>
*See note 1 to financial statements.
+Unaudited.
(1)Variable rate security. Reported rate is the effective rate on
September 30, 1995.
10 -----------------------------------------------------------------------------
<PAGE> 26
- -------------------------------------------------------------------------------
WESTCORE REPORT
- -------------------------------------------------------------------------------
OREGON TAX-EXEMPT FUND
STATEMENT OF INVESTMENTS
September 30, 1995
<TABLE>
<CAPTION>
Bond Ratings Market
Face Amount Moody's/S&P+ Value*
- ----------- ------------------------
CERTIFICATES OF PARTICIPATION 3.05%
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 640,000 Multnomah County, Juvenile Justice
Complex, 6.00%, 08/01/12 Aa/A $ 655,597
1,000,000 Portland Oregon, Series B,
4.625%, 04/01/13 Aa/NR 871,870
-----------
TOTAL CERTIFICATES OF PARTICIPATION
(Cost $1,580,055) 1,527,467
-----------
GENERAL OBLIGATION BONDS 52.49%
- -------------------------------------------------------------------------------
State 16.39%
- -------------------------------------------------------------------------------
1,750,000 State of Oregon, Board of Higher
Education, 6.25%, 10/15/12, Callable
10/15/02 @ 100.00 Aa/AA- 1,820,560
1,000,000 State of Oregon, Elderly & Disabled
Housing, 6.375%, 08/01/24, Callable
08/01/04 @ 100.00 Aa/AA- 1,044,140
2,000,000 State of Oregon, Higher Education,
6.30%, 08/01/13, Callable
08/01/04 @ 101.00 Aa/AA- 2,101,500
State of Oregon Veterans Welfare:
175,000 9.00%, 10/01/05 Aa/AA- 232,528
185,000 7.25%, 07/01/07 Aa/AA- 221,095
100,000 7.30%, 01/01/08 Aa/AA- 119,349
1,000,000 6.875%, 12/01/13, Callable
12/01/98 @ 102.00 Aa/AA- 1,098,000
1,000,000 9.50%, 10/01/16, Callable
10/01/95 @ 102.00 Aa/AA- 1,020,300
500,000 7.00%, 12/01/15, Callable
12/01/98 @ 102.00 Aa/AA- 550,840
-----------
8,208,312
-----------
County/City/Special District/
School District 36.10%
- -------------------------------------------------------------------------------
250,000 Chemeketa Community College District,
6.50%, 07/01/07, Callable 07/01/05
@ 100.00, MBIA Aaa/AAA 276,815
500,000 City of Salem, 5.875%, 01/01/07,
Callable 01/01/01 @ 101.00,
Callable 01/01/03 @ 100.00 A1/A+ 516,555
<CAPTION>
Bond Ratings Market
Face Amount Moody's/S&P+ Value*
- ----------- ------------------------
<S> <C> <C> <C>
County/City/Special District/
School District (continued)
- -------------------------------------------------------------------------------
$1,000,000 Clackamas & Washington Counties
School District #3, 5.875%,
10/01/09, Callable 10/01/02 @
101.00, Callable 10/01/04 @ 100.00 A1/AA- $ 1,023,490
250,000 Clackamas & Washington Counties
School District #23J (Tigard-
Tualatin), 5.50%, 06/01/06 A1/NR 260,430
370,000 Clackamas County School District #1
(Canby), 6.50%, 07/01/07, Callable
07/01/01 @ 100.00 A/A 392,677
370,000 Clackamas County School District
#7J (Lake Oswego), 5.70%, 06/15/10 Aa/NR 375,543
565,000 Clackamas County School District
#12, 4.75%, 06/01/06 A/A+ 541,654
1,000,000 Crook County School District, 5.10%,
02/01/14, FSA Aaa/AAA 946,350
1,000,000 Deschutes & Jefferson Counties School
District #2J (Redmond), 5.60%,
06/01/09, MBIA Aaa/AAA 1,014,850
750,000 Lane County Community College
District, 5.20%, 06/01/05 Aa/A+ 770,018
Lane County School District #4J
(Eugene):
250,000 5.375%, 07/01/09 Aa/NR 249,615
2,000,000 5.375%, 07/01/13 Aa/NR 1,932,140
Marion & Polk Counties School
District #24J (Salem):
100,000 5.90%, 10/01/07, Prerefunded
10/01/02 @ 100.00 NR/AAA 107,896
750,000 5.00%, 10/01/12 A1/A+ 699,105
200,000 Medford Series 89a, 6.80%, 03/01/04,
Callable 03/01/99 @ 100.00 A/NR 212,604
500,000 Metropolitan Service District, Oregon
Convention Center, 6.25%, 01/01/13,
Callable 01/01/02 @ 100.00 Aa/AA+ 514,775
Milwaukie Oregon:
425,000 6.25%, 06/01/10, Callable 06/01/01
@ 100.00 A1/NR 441,146
460,000 6.25%, 06/01/11, Callable 06/01/01
@ 100.00 A1/NR 476,118
500,000 Multnomah County Library District,
6.00%, 10/01/10, Callable 10/01/04
@ 100.00 Aa1/NR 521,170
</TABLE>
- ---------------------------------------------------------------------------- 11
<PAGE> 27
- -------------------------------------------------------------------------------
WESTCORE REPORT
- -------------------------------------------------------------------------------
OREGON TAX-EXEMPT FUND
STATEMENT OF INVESTMENTS
September 30, 1995 (continued)
<TABLE>
<CAPTION>
Bond Ratings Market
Face Amount Moody's/S&P+ Value*
- ----------- ---------------------------
County/City/Special District/
School District (continued)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 250,000 Multnomah County School
District #39 (Corbett),
5.75%,12/01/08, Callable
12/01/04 @ 100.00,
MBIA Aaa/AAA $ 259,537
1,290,000 Multnomah County School
District #40, 5.625%
06/01/12 NR/AA- 1,289,884
400,000 New York City GO,
4.60%,08/15/04,
MBIA (1) Aaa/AAA 400,000
2,000,000 Tri-County Metro
Transportation District
(Light Rail Extension),
6.00%, 07/01/12, Callable
07/01/02 @ 101.00,
Callable 07/01/03 @
100.00 Aa/AA+ 2,048,300
2,000,000 Washington County
Criminal Justice Facilities,
6.00%, 12/01/13, Callable
12/01/04 @ 100.00 Aa/AA 2,046,500
725,000 Washington County
School District #88J
(Sherwood), 6.10%,
06/01/12, Callable
06/01/05 @ 100.00,
FSA Aaa/AAA 759,996
-----------
18,077,168
-----------
TOTAL GENERAL OBLIGATION BONDS
(Cost $25,829,120) 26,285,480
-----------
REVENUE BONDS 28.69%
- -------------------------------------------------------------------------------
Education 2.22%
- -------------------------------------------------------------------------------
500,000 Multnomah County
Educational Facility,
6.00%, 04/01/14, Callable
04/01/04 @ 102.00,
Callable 04/01/06 @
100.00 NR/A- 505,820
575,000 State of Oregon Education,
Housing & Cultural Facility,
6.75%, 07/01/21, Callable
07/01/03 @ 100.00 NR/A+ 607,925
-----------
1,113,745
-----------
Hospital 2.84%
- -------------------------------------------------------------------------------
320,000 Benton County Hospital
Facility, Good Samaritan
Hospital, 6.25%,
10/01/09 NR/A 328,634
<CAPTION>
Bond Ratings Market
Face Amount Moody's/S&P+ Value*
- ----------- ---------------------------
Hospital (continued)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 495,000 Clackamas County Health
District Hospital Facility
Authority (GNMA)
(Jennings Lodge), 7.50%
10/20/31, Callable
04/20/00 @ 102.00 NR/AAA $ 536,095
Clackamas County Hospital
Facility (Sisters of Providence),
150,000 9.20%, 10/01/96, Prerefunded
10/01/95 @ 102.00 Aaa/NR 153,042
300,000 6.375%, 10/01/05, Callable
04/01/04 @ 100.00 A1/AA- 322,851
75,000 Deschutes County Health
District Hospital Authority
(St. Charles Hospital),
7.50%, 01/01/08,
Callable 01/01/97 @
103.00 A1/NR 80,230
-----------
1,420,852
-----------
Housing 7.74%
- -------------------------------------------------------------------------------
Oregon Housing &
Community Services:
625,000 6.80%, 07/01/13,
Callable 07/01/03 @
100.00 A1/A+ 651,244
1,350,000 6.40%, 07/01/18,
Callable 07/01/04 @
102.00, Callable
07/01/06 @ 100.00 Aa/NR 1,384,641
500,000 6.80%, 07/01/27,
Callable 07/01/03 @
100.00 Aa1/NR 518,185
Oregon Housing Finance
Authority:
220,000 7.05%, 07/01/09, Callable
07/01/03 @ 100.00 Aa1/NR 230,795
250,000 7.375%, 07/01/10, Callable
07/01/02 @ 100.00 Aa1/NR 262,465
180,000 7.45%, 07/01/16, Callable
07/01/02 @ 100.00 Aa1/NR 187,607
Puerto Rico Housing
Finance Authority:
250,000 7.50%, 10/15/12, Callable
09/27/02 @ 102.00 Aaa/AAA 269,472
350,000 7.50%, 04/01/22, Callable
04/01/02 @ 102.00 NR/AA 371,969
-----------
3,876,378
-----------
</TABLE>
12 ----------------------------------------------------------------------------
<PAGE> 28
- -------------------------------------------------------------------------------
WESTCORE REPORT
- -------------------------------------------------------------------------------
OREGON TAX-EXEMPT FUND
STATEMENT OF INVESTMENTS
September 30, 1995 (continued)
<TABLE>
<CAPTION>
Bond Ratings Market
Face Amount Moody's/S&P+ Value*
- ----------- ---------------------------
Industrial Development/
Pollution Control/
Resource Recovery 1.35%
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 200,000 Lincoln County Wyoming,
4.60%, 11/01/14 (1) AAA/AAA $ 200,000
425,000 Puerto Rico Industrial,
Medical & Environmental
Pollution Control Facility
(Upjohn), 7.50%, 12/01/23,
Callable 12/01/98 @103.00 A1/AA- 473,871
-----------
673,871
-----------
Other 0.48%
- -------------------------------------------------------------------------------
250,000 Oregon Municipal Bond
Bank, 5.50%, 01/01/13 A/NR 243,192
-----------
Public Facilities 1.98%
- -------------------------------------------------------------------------------
1,000,000 North Clackamas Parks
& Recreation, 5.70%,
04/01/13 NR/A- 991,250
-----------
Utility 12.08%
- -------------------------------------------------------------------------------
250,000 Eugene Oregon Electric
Utility, 6.40%, 08/01/07,
Callable 08/01/01 @ 100.00 A1/AA 264,917
1,000,000 Metropolitan Service
District, 5.125%,
07/01/11 A/A 944,610
Portland Oregon Sewer
System:
150,000 6.05%, 06/01/09, Callable
06/01/04 @ 101.00,
Callable 06/01/06 @
100.00 A1/A+ 157,824
1,000,000 6.25%, 06/01/15, FGIC,
Callable 06/01/06 @
100.00 Aaa/AAA 1,042,570
1,500,000 5.25%, 03/01/10 A1/A+ 1,470,225
1,000,000 Portland Oregon Water
System, 5.125%, 08/01/08 Aa/NR 986,520
40,000 Puerto Rico Aquaduct &
Sewer Authority, 10.25%,
07/01/09 Aaa/AAA 55,622
1,000,000 Puerto Rico Electric
Power, 6.50%, 07/01/06,
MBIA Aaa/AAA 1,126,180
-----------
6,048,468
-----------
TOTAL REVENUE BONDS
(Cost $14,124,114) 14,367,756
-----------
SPECIAL FEATURE
REVENUE BONDS 14.05%
- -------------------------------------------------------------------------------
$ 140,000 Marion County Solid
Waste/Electric Rev,
8.70%, 10/01/96, Callable
11/06/95 @ 102.00,
AMBAC Aaa/AAA $ 143,525
600,000 Medford Hospital Facility
Authority Rev (Rogue
Valley Health), 6.80%,
12/01/11, Callable
12/01/02 @ 100.00,
MBIA Aaa/AAA 656,772
500,000 New York City Water,
4.60%, 06/15/22,
FGIC (1) Aaa/AAA 500,000
Oregon Department of
General Services COP:
250,000 7.05%, 01/15/06,
Callable 01/15/00 @
102.00, MBIA Aaa/AAA 276,473
1,500,000 6.25%, 09/01/15,
Callable 09/01/02 @
101.00, Callable
09/01/04 @ 100.00,
AMBAC Aaa/AAA 1,561,950
250,000 Port of Portland
International Airport Rev,
6.75%, 07/01/09, Callable
07/01/02 @ 101.00,
MBIA Aaa/AAA 271,675
1,390,000 Portland Oregon Sewer
System Rev, 6.00%,
10/01/12, FGIC Aaa/AAA 1,427,905
1,000,000 State of Oregon Health,
Housing & Cultural
Facility Rev, 6.125%,
10/01/24, MBIA Aaa/AAA 1,037,700
1,040,000 Western Land Hospital
(Sisters of St. Joseph)
Rev, 7.125%, 08/01/17,
Prerefunded 08/01/99 @
102.00, MBIA Aaa/AAA 1,159,746
-----------
TOTAL SPECIAL FEATURE REVENUE BONDS
(Cost $6,787,552) 7,035,746
-----------
TOTAL INVESTMENTS
(Cost $48,320,841) 98.28% $49,216,449
Other Assets in Excess of Liabilities 1.72% 860,590
------------------------
NET ASSETS 100.00% $50,077,039
========================
</TABLE>
* See note 1 to financial statements.
+ Unaudited
(1) Variable rate security. Reported rate is the effective rate on
September 30, 1995.
- ----------------------------------------------------------------------------- 13
<PAGE> 29
- -------------------------------------------------------------------------------
WESTCORE REPORT
- -------------------------------------------------------------------------------
QUALITY TAX-EXEMPT INCOME FUND
STATEMENT OF INVESTMENTS
September 30, 1995
<TABLE>
<CAPTION>
Bond Ratings Market
Face Amount Moody's/S&P+ Value*
- ----------- ---------------------------
GENERAL OBLIGATION
BONDS 65.60%
- -------------------------------------------------------------------------------
STATE 7.51%
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
State of California:
$ 20,000 6.00%, 02/01/01 A1/A $ 21,252
100,000 8.75%, 05/01/04 A1/A 126,238
175,000 State of Hawaii, 5.125%,
02/01/07 Aa/AA 174,913
State of Washington:
100,000 5.25%, 10/01/02 Aa/AA 103,431
500,000 6.40%, 09/01/03,
Callable 09/01/01 @
101.00 Aa/AA 545,105
100,000 State of Wisconsin, 5.10%,
11/01/01 Aa/AA 103,053
-----------
1,073,992
-----------
County/City/Special District/
School District 44.64%
- -------------------------------------------------------------------------------
140,000 Carroll Texas Independent
School District, 4.90%,
02/15/06, Callable
02/15/03 @ 100.00,
PSF Guaranteed Aaa/AAA 137,204
250,000 Chicago Illinois
Metropolitan Water
Capital Improvement,
4.90%, 12/01/01 Aa/AA 253,973
250,000 Cook County Illinois
School District #54-A,
5.70%, 01/01/06, Callable
01/01/03 @100.00,
FGIC Aaa/AAA 257,603
250,000 Detroit Michigan City
School District, 5.125%,
05/01/07 AA/NR 243,910
135,000 Douglas County Colorado
School District Re-1, 5.95%,
12/15/06, Callable 12/15/04
@ 101.00, MBIA Aaa/AAA 145,371
475,000 Douglas County Nebraska
Hospital, 5.10%,
07/01/04 Aa/AA+ 479,636
100,000 Garland Texas Independent
School District, 5.50%,
02/15/09, Callable
02/15/04 @ 100.00,
PSF Guaranteed Aaa/AAA 99,993
250,000 Houston Texas Independent
School District, 5.00%,
08/15/01, PSF
Guaranteed Aaa/AAA 256,640
100,000 Island County Washington,
School District #206 (South
Whidbey), 6.75%,
12/01/07, AMBAC Aaa/AAA 113,743
<CAPTION>
Bond Ratings Market
Face Amount Moody's/S&P+ Value*
- ----------- ---------------------------
County/City/Special District/
School District (continued)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 250,000 King County Washington
School District #411,
5.80%, 12/01/10, Callable
12/01/04 @ 101.00,
Callable 12/01/05 @
100.00 A1/AA- $ 252,000
50,000 King County Washington
Woodland Park Zoo,
6.70%, 12/01/95 Aa1/AA+ 50,242
100,000 Knox County Tennessee,
5.15%, 03/01/00 Aa/AA 101,632
500,000 Leon County Florida,
School District, 6.30%,
07/01/05, Callable
07/01/00 @ 102.00 A1/A+ 535,725
500,000 Maricopa County Arizona
School District #11 (Peoria),
5.50%, 07/01/10 A/A+ 482,810
200,000 Matanuska-Susitna Borough
Alaska School Construction
Bonds 1994-A, 5.60%, 05/01/07,
Callable 05/01/04 @ 102.00,
Callable 05/01/06 @ 100.00,
MBIA Aaa/AAA 205,292
250,000 Milwaukee, Wisconsin,
4.80%, 12/01/00 Aa1/AA+ 254,218
200,000 New York City GO,
4.60%, 08/15/04,
MBIA (1) Aaa/AAA 200,000
125,000 Port Arthur Texas, 8.50%,
02/15/03, MBIA Aaa/AAA 153,439
100,000 San Francisco California,
6.70%, 12/15/07 A1/AA- 106,713
500,000 Seattle Washington, 6.35%,
03/01/06 Aa1/AA+ 537,230
250,000 Snohomish County
Washington Hospital
District #2 (Stevens
Memorial Hospital), 4.90%,
12/01/06, Callable
12/01/03 @ 100.00,
FGIC Aaa/AAA 244,723
250,000 Tulsa Oklahoma, 6.25%,
06/01/12 Aa/AA 257,238
250,000 Washington County Utah
School District (St. George),
5.00%, 09/01/06, Callable
09/01/04 @ 100.00,
FGIC Aaa/AAA 247,708
750,000 Washington Suburban
Sanitation District,
Maryland Water Supply,
5.00%, 06/01/02 Aa1/AA 768,750
-----------
6,385,793
-----------
</TABLE>
14 ----------------------------------------------------------------------------
<PAGE> 30
- -------------------------------------------------------------------------------
WESTCORE REPORT
- -------------------------------------------------------------------------------
QUALITY TAX-EXEMPT INCOME FUND
STATEMENT OF INVESTMENTS
September 30, 1995 (continued)
<TABLE>
<CAPTION>
Bond Ratings Market
Shares Moody's/S&P+ Value*
- ------ ------------ -----------
Special Tax 13.45%
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 100,000 Carson City Nevada School District
Limited Tax, 5.00%, 04/01/06,
Callable 06/01/04 @ 101.00, AMBAC Aaa/AAA $ 98,634
150,000 Clark County Nevada Limited Tax
Revenue, 6.00%, 06/01/03,
Prerefunded 06/01/02 @ 102.00,
AMBAC Aaa/AAA 164,243
250,000 Las Vegas Nevada Limited Tax,
4.90%, 07/01/05, Callable
07/01/03 @ 101.00, FGIC Aaa/AAA 248,067
250,000 Lynnwood Washington LID BANS,
5.15%, 04/01/97 NR/NR 251,212
250,000 Salt Lake City Utah
Redevelopment Agency
Tax Allocation, 6.50%, 10/01/01 A/A 272,762
115,000 San Antonio Texas Limited Tax,
5.125%, 08/01/01 Aa/AA 118,647
150,000 Snohomish County Washington Road
Improvement District #24A, 4.95%,
12/31/96, Callable 01/01/96 @ 100.00 NR/NR 150,454
510,000 Spokane Washington Limited Tax,
4.95%, 08/01/02 Aa/AA- 514,972
100,000 State of Nevada Limited Tax, 6.00%,
05/01/07, Callable 05/01/01 @ 101.00,
Callable 05/01/03 @ 100.00 Aa/AA 104,532
-----------
1,923,523
-----------
TOTAL GENERAL OBLIGATION BONDS
(Cost $9,262,074) 9,383,308
-----------
REVENUE BONDS 34.45%
- -------------------------------------------------------------------------------
Education 3.99%
- -------------------------------------------------------------------------------
150,000 New Mexico State University State
Board of Regents, 5.50%, 04/01/07,
Callable 04/01/04 @ 100.00 A1/AA 151,725
200,000 Southern Utah University, 6.25%,
05/01/09, Callable 05/01/05 @
100.00, AMBAC Aaa/AAA 211,814
<CAPTION>
Bond Ratings Market
Shares Moody's/S&P+ Value*
- ------ ------------ -----------
Education (continued)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 200,000 Utah State University State
Board of Regents, 5.75%, 12/01/07,
Callable 12/01/04 @ 100.00, MBIA Aaa/AAA $ 207,778
-----------
571,317
-----------
Hospitals/Nursing Homes/Health
Care 2.45%
- -------------------------------------------------------------------------------
250,000 Deschutes County Oregon Hospital
Facility (St. Charles Medical
Center), 5.40%, 01/01/05 A1/NR 250,697
100,000 Washington Healthcare Facilities
Authority (Highline County
Hospital), 5.00%, 08/15/03,
Connie Lee NR/AAA 99,865
-----------
350,562
-----------
Housing 0.70%
- -------------------------------------------------------------------------------
100,000 State of Wisconsin Housing &
Economic Development Authority
Ref Ser C, 5.20%, 11/01/04 A1/A 99,923
-----------
Public Facilities 4.60%
- -------------------------------------------------------------------------------
100,000 Austin Texas Hotel Occupancy Tax
Rev, 4.90%, 11/15/07, Callable
05/15/04 @ 100.00, AMBAC Aaa/AAA 97,583
100,000 State of Missouri Regional
Convention & Sports Complex,
5.00%, 08/15/05, Callable
08/15/03 @ 102.00 A1/A+ 98,161
100,000 State of North Dakota Building
Authority, 5.35%, 06/01/02, AMBAC Aaa/AAA 103,274
100,000 State of Wyoming Farm Loan Board
Capital Facility, 5.60%, 10/01/03 NR/AA- 104,119
250,000 Utah State Building Ownership
Master Lease, 6.00%, 05/15/09,
Callable 05/15/04 @ 100.00 Aa/AA 255,437
-----------
658,574
-----------
</TABLE>
- ---------------------------------------------------------------------------- 15
<PAGE> 31
- -------------------------------------------------------------------------------
WESTCORE REPORT
- -------------------------------------------------------------------------------
QUALITY TAX-EXEMPT INCOME FUND
STATEMENT OF INVESTMENTS
September 30, 1995 (continued)
<TABLE>
<CAPTION>
Bond Ratings Market
Face Amount Moody's/S&P+ Value*
- ----------- ----------------------------
Other 4.97%
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 250,000 Commerce City Colorado
Sales & Use Tax, 5.25%
08/01/06, MBIA Aaa/AAA $ 254,987
200,000 Lincoln County Wyoming
Pollution Control, 4.60%,
11/01/14(1) Aaa/AAA 200,000
250,000 State of Maine Municipal
Bond Bank, 5.125%,
11/01/98 Aa/A+ 256,185
------------
711,172
------------
Transportation 2.65%
- --------------------------------------------------------------------------------
100,000 State of Arizona Transportation,
7.80%, 07/01/97, Callable
07/01/96 @ 102.00 Aa/AAA 104,863
250,000 Maryland Department of
Transportation, 6.625%,
08/15/03, Prerefunded
08/15/99 @ 101.50 Aaa/AAA 273,627
------------
378,490
------------
Utility 15.09%
- --------------------------------------------------------------------------------
250,000 Austin Texas Utilities
System, 10.00%,
11/15/96 Aaa/AAA 266,758
285,000 Chicago Illinois Wastewater,
7.20%, 11/15/19,
Prerefunded 11/15/99
@ 102.00, MBIA Aaa/AAA 320,485
250,000 Des Moines Iowa Water
Rev, 5.625%, 12/01/07,
Callable 12/01/01 @
100.00 Aa/AA+ 255,263
250,000 Grant City Washington
Public Utilities District #2,
5.375%, 01/01/09,
MBIA Aaa/AAA 244,532
100,000 Portland Oregon Sewer,
6.05%, 06/01/09, Callable
06/01/04 @ 101.00, Callable
06/01/06 @ 100.00 A1/A+ 105,216
250,000 Puerto Rico Electric Power
Rev, Series W, 6.50%
07/01/06, MBIA Aaa/AAA 281,545
100,000 South Columbia Basin
Irrigation District, 6.00%,
12/01/02 Aa/AA 107,956
350,000 State of Washington Public
Power Supply System Rev,
Project #3, 5.00%,
07/01/05 Aa/AA 338,943
<CAPTION>
Bond Ratings Market
Face Amount Moody's/S&P+ Value*
- ----------- ----------------------------
Utility (continued)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
$ 250,000 State of Washington Public
Power Supply System,
Project #2, 5.25%, 07/01/08,
Callable 07/01/04 @ 102.00,
Callable 07/01/06 @
100.00 Aa/AA $ 237,700
------------
2,158,398
------------
TOTAL REVENUE BONDS
(Cost $4,900,111) 4,928,436
------------
MUTUAL FUNDS 1.14%
- --------------------------------------------------------------------------------
163,117 AIM Institutional Tax-Free
(Cost $163,317) 163,317
------------
TOTAL INVESTMENTS
(Cost $14,325,502) 101.19% $14,475,061
Other Liabilities in Excess of Other Assets (1.19%) (169,921)
-----------------------
NET ASSETS 100.00% $14,305,140
-----------------------
</TABLE>
*See note 1 to financial statements.
+Unaudited.
(1)Variable rate security. Reported rate is the
effective rate on September 30, 1995.
16 -----------------------------------------------------------------------------
<PAGE> 32
- -------------------------------------------------------------------------------
WESTCORE REPORT
- -------------------------------------------------------------------------------
PRIME MONEY MARKET FUND
STATEMENT OF INVESTMENTS
September 30, 1995
<TABLE>
<CAPTION>
Face Amount Market Value*
- ----------- -------------
BANK OBLIGATIONS 11.95%
- -------------------------------------------------------------------------------
Bank Notes 3.90%
- -------------------------------------------------------------------------------
<S> <C> <C>
$6,000,000 Huntington National Bank,
Bank Note, 5.82%, 11/13/95 $ 6,104,741
5,000,000 Nations Bank, Bank Note,
5.90%, 11/6/95 5,094,235
-----------
11,198,976
-----------
Bankers Acceptance 8.05%
- -------------------------------------------------------------------------------
5,000,000 American Express Bank,
5.70%, 10/26/95 4,980,208
BankAmerica Corp.
5,000,000 5.65%, 10/23/95 4,982,736
4,000,000 5.66%, 01/30/96 3,923,904
4,000,000 Nations Bank, 5.60%, 02/26/96 3,907,911
5,300,000 Republic National Bank, New York,
5.64%, 10/04/95 5,297,509
-----------
23,092,268
-----------
TOTAL BANK OBLIGATIONS
(Cost $34,291,244) 34,291,244
-----------
COMMERCIAL PAPER 49.22%
- -------------------------------------------------------------------------------
Asset Backed 3.47%
- -------------------------------------------------------------------------------
5,000,000 Ciesco, 5.60%, 10/19/95 4,986,000
5,000,000 Corporate Asset Funding Corp.
5.65%, 10/30/95 4,977,243
-----------
9,963,243
-----------
Automotive 4.84%
- -------------------------------------------------------------------------------
6,000,000 Daimler Benz, 5.63%, 11/01/95 5,970,912
8,000,000 Ford Motor Credit Corp. 5.64%,
12/01/95 7,923,547
-----------
13,894,459
-----------
Banking 3.10%
- -------------------------------------------------------------------------------
4,000,000 Nations Bank, 5.60%, 12/18/95 3,951,467
5,000,000 Republic National Bank, New York,
5.55%, 12/22/95 4,936,792
-----------
8,888,259
-----------
Electrical Products - Electric 1.74%
- -------------------------------------------------------------------------------
5,000,000 General Electric Capital Corp.
5.67%, 11/02/95 4,974,800
-----------
Finance 3.47%
- -------------------------------------------------------------------------------
5,000,000 Associates Corp. 5.65%, 11/20/95 4,960,764
5,000,000 USAA Capital Corp. 5.69%,
10/18/95 4,986,565
-----------
9,947,329
-----------
<CAPTION>
Face Amount Market Value*
- ----------- -------------
<S> <C> <C>
Food, Beverage & Tobacco 4.52%
- -------------------------------------------------------------------------------
Cargill Financial:
5,000,000 5.74%, 10/11/95 4,992,028
8,000,000 5.70%, 10/16/95 7,981,000
-----------
12,973,028
-----------
Household Products 2.08%
- -------------------------------------------------------------------------------
6,000,000 Unilever, 5.59%, 11/03/95 5,969,255
-----------
Insurance-Life 4.51%
- -------------------------------------------------------------------------------
Safeco Credit Corp:
4,000,000 5.64%, 10/13/95 3,992,480
5,000,000 5.72%, 10/25/95 4,980,933
4,000,000 5.62%, 11/17/95 3,970,651
-----------
12,944,064
-----------
Insurance-Property & Casualty 6.23%
- -------------------------------------------------------------------------------
Transamerica Corp:
6,000,000 5.72%, 10/13/95 5,988,560
6,000,000 5.64%, 11/27/95 5,946,420
6,000,000 5.66%, 12/20/95 5,924,533
-----------
17,859,513
-----------
Office Equipment 5.87%
- -------------------------------------------------------------------------------
Hewlett Packard Co:
6,000,000 5.60%, 10/31/95 5,972,000
5,000,000 5.65%, 12/12/95 4,943,500
6,000,000 Pitney Bowes Inc. 5.65%
12/11/95 5,933,142
-----------
16,848,642
-----------
Paper & Forest Products 4.18%
- -------------------------------------------------------------------------------
Weyerhauser Mortgage Co:
6,000,000 5.72%, 10/04/95 5,997,140
6,000,000 5.71%, 10/25/95 5,977,160
-----------
11,974,300
-----------
Petroleum-Domestic 3.47%
- -------------------------------------------------------------------------------
10,000,000 Chevron Corp, 5.70% 10/24/95 9,963,583
-----------
Utilities-Electric 1.74%
- -------------------------------------------------------------------------------
5,000,000 National Rural Utilities, 5.85%
10/17/95 4,987,000
-----------
TOTAL COMMERCIAL PAPER
(Cost $141,187,475) 141,187,475
-----------
</TABLE>
- ---------------------------------------------------------------------------- 17
<PAGE> 33
- -------------------------------------------------------------------------------
WESTCORE REPORT
- -------------------------------------------------------------------------------
PRIME MONEY MARKET FUND
STATEMENT OF INVESTMENTS
September 30, 1995 (continued)
<TABLE>
<CAPTION>
Face Amount Market Value*
- ----------- -------------
U.S. GOVERNMENT
AGENCIES 1.74%
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
$5,000,000 Federal National Mortgage Assn,
Discount Notes, 5.59%, 10/26/98
(Cost $4,980,590) $ 4,980,590
-----------
REPURCHASE AGREEMENTS 37.11%
- -------------------------------------------------------------------------------
51,316,240 Repurchase agreement with
Goldman Sachs, 6.35%, dated
09/29/95 and maturing 10/02/95
collateralized by U.S. Treasury
Bonds 9.875% due 11/15/15 with
a value of $52,343,448 51,570,703
54,617,993 Repurchase agreement with
Merrill Lynch & Company Inc.
5.75%, dated 09/29/95 and
maturing 10/02/95, collateralized
by U.S. Treasury Bonds, 12.75%
due 11/15/10, 13.875% due
05/15/11, 14.00% due 11/15/11,
10.375% due 11/15/12 with a
value of $55,710,542 54,882,764
-----------
TOTAL REPURCHASE AGREEMENTS
(Cost $106,453,467) 106,453,467
-----------
TOTAL INVESTMENTS
(Cost $286,912,776) 100.02% $286,912,776
Liabilities in Excess of Other Assets (0.02%) (49,286)
----------------------
NET ASSETS 100.00% $286,863,490
======================
</TABLE>
*See note 1 to financial statements
18 ----------------------------------------------------------------------------
<PAGE> 34
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
For the Four Month Period Ended September 30, 1995
<TABLE>
<CAPTION>
Short-Term Bonds
Growth Government Plus GNMA
Fund Bond Fund Fund Fund
-------- ---------- ---------- --------
<S> <C> <C> <C> <C>
INVESTMENT INCOME $113,697 $819,474 $1,296,672 $793,983
- --------------------------------------------------------------------------------------------------------------------
EXPENSES - Note 5
Investment advisory fee 34,878 65,696 94,698 52,756
Administrative fee 2,329 6,570 9,470 5,276
Fund accounting 9,397 10,071 13,537 10,728
Legal 1,082 2,402 4,358 7,361
Audit 2,372 3,219 3,388 2,880
Custodian 4,212 3,926 9,247 8,750
Transfer agency 13,815 17,985 11,489 27,792
Printing 3,957 11,726 5,177 12,837
Distribution/administration assistance - retail shares 147 1,133 0 6,255
Insurance 104 1,012 418 306
Registration 1,965 11,929 3,327 5,160
Trustee fee 238 697 691 722
Reorganization 8,830 17,069 21,303 14,204
Other 646 911 1,218 570
- --------------------------------------------------------------------------------------------------------------------
Total Expenses 83,972 154,346 178,321 155,597
Expenses waived by:
Investment advisor (34,878) (63,250) 0 (15,827)
Custodian (4,212) (3,926) (9,247) (8,750)
Expenses reimbursed by:
Investment advisor (3,016) 0 0 0
- --------------------------------------------------------------------------------------------------------------------
Net Expenses 41,866 87,170 169,074 131,020
- --------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 71,831 732,304 1,127,598 662,963
- --------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain (loss) from
Investment transactions 371,311 (2,125) 364,287 48,599
- --------------------------------------------------------------------------------------------------------------------
Unrealized appreciation (depreciation)
of investments:
Beginning of period 1,555,821 488,733 1,288,773 (240,173)
End of period 2,156,168 476,775 906,256 (260,431)
- --------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 600,347 (11,958) (382,517) (20,258)
- --------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS 971,658 (14,083) (18,230) 28,341
- --------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $1,043,489 $718,221 $1,109,368 $691,304
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
- ----------------------------------------------------------------------------- 19
<PAGE> 35
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS (Continued)
For the Four Month Period Ended September 30, 1995
<TABLE>
<CAPTION>
Arizona Oregon Quality Prime
Intermediate Tax-Exempt Tax-Exempt Money Market
Tax-Free Fund Fund Income Fund Fund
-------------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
INVESTMENT INCOME $427,650 $ 971,994 $242,496 $5,598,905
- ---------------------------------------------------------------------------------------------------
EXPENSES
Investment advisory fee 41,159 84,999 24,173 662,983
Administrative fee 4,116 8,500 2,417 132,597
Fund accounting 16,255 14,222 22,432 27,875
Legal 2,010 3,117 1,197 24,010
Audit 2,880 3,219 2,541 4,575
Custodian 7,670 8,310 4,207 94,712
Transfer agency 12,132 15,182 9,902 13,293
Printing 5,445 9,889 4,468 8,430
Insurance 263 676 188 3,646
Registration 2,538 1,735 4,144 153
Trustee fee 404 757 199 3,119
Reorganization 12,928 19,804 9,920 75,380
Other 3,287 893 4,007 6,755
- ---------------------------------------------------------------------------------------------------
Total Expenses 111,087 171,303 89,795 1,057,528
Expenses waived by:
Investment advisor (41,159) (43,995) (24,173) (662,983)
Custodian (7,670) (8,310) (4,207) (94,712)
Expenses reimbursed by
investment advisor (25,214) 0 (44,494) (115,429)
- ---------------------------------------------------------------------------------------------------
Net Expenses 37,044 118,998 16,921 184,404
- ---------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 390,606 852,996 225,575 $5,414,501
- ---------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS
Net realized gain (loss) from
investment transactions 68,297 13,635 (1,042) 0
- ---------------------------------------------------------------------------------------------------
Unrealized appreciation
of investments;
Beginning of period 640,208 1,174,090 66,630 0
End of period 721,102 895,608 149,559 0
- ---------------------------------------------------------------------------------------------------
Net change in unrealized appreciation 80,894 (278,482) 82,929 0
- ---------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS 149,191 (264,847) 81,887 0
- ---------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $539,797 $ 588,149 $307,462 $5,414,501
- ---------------------------------------------------------------------------------------------------
SEE NOTES TO FINANCIAL STATEMENTS
</TABLE>
20 ----------------------------------------------------------------------------
<PAGE> 36
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Growth Fund
---------------------------------
For the Period Ended
---------------------------------
September 30, 1995 May 31, 1995
------------------ ------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net investment income $371,831 $154,022
Net realized gain (loss) on investments 371,311 (280,050)
Net change in unrealized appreciation 600,347 1,600,315
- ---------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 1,043,489 1,474,287
- ---------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income
Institutional class (120,913) (123,363)
Retail class (1,793) (1,900)
- ---------------------------------------------------------------------------------------------------------------------
Distributions to shareholders from net realized gain on investments
Institutional class (66,055) (33,256)
Retail class (920) (517)
- ---------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS
Net increase in net assets derived from institutional class beneficial interest
transactions - Note 2 648,712 7,597,501
- ---------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets derived from retail class beneficial interest
transactions - Note 2 (15,793) 99,264
- ---------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS 1,486,727 9,012,016
NET ASSETS:
Beginning of period 12,830,077 3,818,061
- ---------------------------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment income of
$(3,593) and $38,452, respectively) $14,316,804 $12,830,077
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
- ----------------------------------------------------------------------------- 21
<PAGE> 37
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Short-Term Government Bond Fund
-----------------------------------
For the Period Ended
-----------------------------------
September 30, 1995 May 31, 1995
------------------ ------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net investment income $732,304 $2,468,672
Net realized loss on investments (2,125) (895,915)
Net change in unrealized appreciation (depreciation) (11,958) 1,452,669
- ------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 718,221 3,025,426
- ------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income
Institutional class (690,271) (2,113,599)
Retail class (71,073) (461,760)
- ------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS
Net decrease in net assets derived from institutional class
beneficial interest transactions - Note 2 (2,947,262) (9,645,734)
- ------------------------------------------------------------------------------------------------
Net decrease in net assets derived from retail class beneficial
interest transactions - Note 2 (893,639) (3,610,909)
- ------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS (3,884,024) (12,806,576)
NET ASSETS:
Beginning of period 41,551,243 54,357,843
- ------------------------------------------------------------------------------------------------
End of period (including overdistributed net investment income
of $60,883 and $48,912, respectively) $37,667,243 $41,551,267
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Bonds Plus Fund
-----------------------------------
For the Period Ended
-----------------------------------
September 30, 1995 May 31, 1995
------------------ ------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net investment income $1,127,598 $3,508,106
Net realized gain (loss) on investments 364,287 (1,412,557)
Net change in unrealized appreciation (depreciation) (382,517) 3,149,425
- ----------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 1,109,368 5,244,974
- ----------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income (1,155,210) (3,758,946)
Distributions to shareholders from net realized gain on investment 0 0
- ----------------------------------------------------------------------------------------------------
Change in net assets derived from investment activities (45,842) 1,486,028
- ----------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS
Shares sold 6,805,043 14,208,619
Shares issued in reinvestment of dividends 795,638 2,638,770
- ----------------------------------------------------------------------------------------------------
7,600,681 16,847,389
Shares redeemed (8,013,618) (20,445,306)
- ----------------------------------------------------------------------------------------------------
Change in net assets derived from beneficial interest transactions (412,937) (3,597,917)
- ----------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS (458,779) (2,111,889)
NET ASSETS:
Beginning of period 56,087,250 58,199,139
- ----------------------------------------------------------------------------------------------------
End of period (including overdistributed net investment income
of $73,203 and $66,894, respectively $55,628,471 $56,087,250
- ----------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
22 -----------------------------------------------------------------------------
<PAGE> 38
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
GNMA Fund
------------------------------------
For the Period Ended
------------------------------------
FROM INVESTMENT ACTIVITIES September 30, 1995 May 31, 1995
------------------ ------------
<S> <C> <C>
Net investment income $662,963 $2,425,480
Net realized gain (loss) on investments 48,599 (817,774)
Net change in unrealized appreciation (depreciation) (20,258) 1,704,888
- -----------------------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 691,304 3,312,594
- -----------------------------------------------------------------------------------------------------------------------
Dividends to shareholders from net investment income
Institutional class (507,946) (1,954,145)
Retail class (170,299) (616,227)
- -----------------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS
Net decrease in net assets derived from institutional class
beneficial interest transactions - Note 2 (2,036,770) (10,704,476)
- -----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets derived from retail class beneficial
interest transactions - Note 2 (1,999,312) 384,301
- -----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS (4,023,023) (9,577,953)
NET ASSETS:
Beginning of period 33,233,862 42,811,815
- -----------------------------------------------------------------------------------------------------------------------
End of period (including overdistributed net investment income
of $65,816 and $64,738, respectively) $29,210,839 $33,233,862
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
23 -----------------------------------------------------------------------------
<PAGE> 39
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Arizona Intermediate Tax-Free Fund
---------------------------------------
For the Period Ended
---------------------------------------
September 30, 1995 May 31, 1995
------------------ ---------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net investment income $ 390,606 $ 1,221,865
Net realized gain on investments 68,297 6,272
Net change in unrealized appreciation 80,894 440,550
- ---------------------------------------------------------------------------------------------------------------
Net change in net assets resulting from operations 539,797 1,668,687
Dividends to shareholders from net investment income (451,893) (1,273,944)
Distributions to shareholders from net realized gain on investments 0 (26,600)
- ---------------------------------------------------------------------------------------------------------------
Change in net assets derived from investment activities 87,904 368,143
- ---------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS
Shares sold 1,568,324 6,231,470
Shares issued in reinvestment of dividends 103,193 282,090
- ---------------------------------------------------------------------------------------------------------------
1,671,517 6,513,560
Shares redeemed (1,719,071) (7,453,357)
- ---------------------------------------------------------------------------------------------------------------
Change in net assets derived from beneficial interest transactions (47,554) (939,797)
- ---------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS 40,350 (571,654)
NET ASSETS:
Beginning of period 24,581,368 25,153,022
- ---------------------------------------------------------------------------------------------------------------
End of period (including overdistributed net investment income
of $67,269 and $18,910, respectively) $24,621,718 $24,581,368
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Oregon Tax-Exempt Fund
----------------------------------------
For the Period Ended
----------------------------------------
September 30, 1995 May 31, 1995
------------------ -----------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net investment income $ 852,996 $ 2,663,326
Net realized gain (loss) on investments 13,635 (239,143)
Net change in unrealized appreciation (depreciation) (278,482) 1,451,939
- ----------------------------------------------------------------------------------------------------------------
Net change in net assets resulting from operations 588,149 3,876,122
Dividends to shareholders from net investment income (885,288) (2,823,513)
Distributions to shareholders from net realized gain on investments 0 (128,294)
- ----------------------------------------------------------------------------------------------------------------
Change in net assets derived from investment activities (297,139) 924,315
- ----------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS
Shares sold 1,376,768 5,706,279
Shares issued in reinvestment of dividends 531,664 1,830,242
- ----------------------------------------------------------------------------------------------------------------
1,908,432 7,536,521
Shares redeemed (3,779,707) (10,061,225)
- ----------------------------------------------------------------------------------------------------------------
Change in net assets derived from beneficial interest transactions (1,871,275) (2,524,704)
- ----------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS (2,168,414) (1,600,389)
NET ASSETS:
Beginning of period 52,245,453 53,845,842
- ----------------------------------------------------------------------------------------------------------------
End of period (including overdistributed net investment income
of $26,485 and $13,997, respectively) $50,077,039 $52,245,453
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
24 -----------------------------------------------------------------------------
<PAGE> 40
- -------------------------------------------------------------------------------
WESTCORE REPORT
- -------------------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Quality Tax-Exempt
Income Fund
--------------------------------------
For the Period Ended
--------------------------------------
September 30, 1995 May 31, 1995
------------------ -----------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net investment income $225,575 $622,957
Net realized loss on investments (1,042) (75,743)
Net change in unrealized appreciation 82,929 376,362
- -------------------------------------------------------------------------------------------------------------
Net change in net assets resulting from operations 307,462 923,576
Dividends to shareholders from net investment income (247,098) (641,019)
Distribution to shareholders from net realized gains on investments 0 0
- -------------------------------------------------------------------------------------------------------------
Change in net assets derived from investment activities 60,364 282,557
- -------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS
Shares sold 624,616 5,682,988
Shares issued in reinvestment of dividends 113,062 287,582
- -------------------------------------------------------------------------------------------------------------
737,678 5,970,570
Shares redeemed (951,240) (5,394,689)
- -------------------------------------------------------------------------------------------------------------
Change in net assets derived from beneficial interest transactions (213,562) 575,881
- -------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASED) IN NET ASSETS (153,198) 858,438
NET ASSETS:
Beginning of period 14,458,338 13,599,900
- -------------------------------------------------------------------------------------------------------------
End of period (including (over)/undistributed net investment
income of ($9,889) and $1.714, respectively) $14,305,140 $14,458,338
- -------------------------------------------------------------------------------------------------------------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
Prime Money Market Fund
--------------------------------------
For the Period Ended
--------------------------------------
September 30, 1995 May 31, 1995
------------------ -----------------
<S> <C> <C>
FROM INVESTMENT ACTIVITIES
Net investment income $5,414,501 $13,979,887
Dividends to shareholders from net investment income (5,491,235) (13,979,887)
- -------------------------------------------------------------------------------------------------------------
Change in net assets derived from investment activities (76,734) 0
- -------------------------------------------------------------------------------------------------------------
FROM BENEFICIAL INTEREST TRANSACTIONS
Shares sold 206,738,848 481,846,431
Shares issued in reinvestment of dividends 1,253 1,954
- -------------------------------------------------------------------------------------------------------------
206,740,101 481,848,385
Shares redeemed (210,282,383) (492,259,778)
- -------------------------------------------------------------------------------------------------------------
Change in net assets derived from beneficial
interest transactions (3,542,282) (10,411,393)
- -------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS (3,619,016) (10,411,393)
NET ASSETS:
Beginning of period 290,482,506 300,893,899
- -------------------------------------------------------------------------------------------------------------
End of period $286,863,490 $290,482,506
- -------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
- ----------------------------------------------------------------------------- 25
<PAGE> 41
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the periods indicated:
<TABLE>
<CAPTION>
Growth Fund
-----------------------------------------------------------------------------
Institutional Shares Retail Shares
---------------------------------- --------------------------------------
For the For the For the For the
Period Ended Year Ended Period Ended Year Ended
September 30, May 31, September 30, May 31,
------------- ----------------- -------------- ---------------------
1995 1995 1994(1) 1995 1995 1994*
------------- ------ -------- --------- -------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value - beginning of period: $17.28 $15.42 $15.00 $17.27 $15.42 $15.39
- ---------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.10 0.25 0.17 0.10 0.25 0.17
Net realized and unrealized gain
(loss) on investments 1.27 1.91 0.38 1.28 1.90 (0.04)
- ---------------------------------------------------------------------------------------------------------------------
Total income from investment operations 1.37 2.16 0.55 1.38 2.15 0.13
- ---------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS
Dividends from net investment income (0.16) (0.24) (0.13) (0.16) (0.24) (0.10)
Distributions from net realized gain
on investments (0.09) (0.06) (0.00) (0.09) (0.06) (0.00)
- ---------------------------------------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (0.25) (0.30) (0.13) (0.25) (0.30) (0.10)
- ---------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $18.40 $17.28 $15.42 $18.40 $17.27 $15.42
- ---------------------------------------------------------------------------------------------------------------------
Total return (3) 25.68%(4) 14.27% 4.43%(4) 25.89%(4) 14.18% 1.27%(4)
- ---------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $14,120 $12,630 $3,738 $197 $200 $80
- ---------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets 0.90%(4) 0.90% .67%(4) 0.90%(4) 0.90% 0.92%(4)
- ---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to
average net assets 1.54%(4) 1.82% 1.20%(4) 1.53%(4) 1.81% 0.95%(4)
- ---------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net
assets without fee waivers 1.79%(4) 2.15% 5.36%(4) 1.99%(4) 2.41% 5.69%(4)
- ---------------------------------------------------------------------------------------------------------------------
Ratio of net investment income (loss)
to average net assets without
fee waivers 0.43%(4) 0.57% (3.49%)(4) 0.64%(4) 0.30% (3.82%)(4)
- ---------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate (2) 51.31%(4) 59.71% 50.90%(4) 51.31%(4) 59.71% 50.90%(4)
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The Fund commenced operations on August 2, 1993.
(2) 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 September 30, 1995 were $3,146,452 and $2,197,415, respectively.
(3) Sales charges are not reflected in total return.
(4) Annualized.
* For the period October 11, 1993 (inception of offering) to May 31, 1994.
SEE NOTES TO FINANCIAL STATEMENTS
26 ----------------------------------------------------------------------------
<PAGE> 42
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the periods indicated:
<TABLE>
<CAPTION>
Short-Term Government Bond Fund
------------------------------------------------------------------------------
Institutional Shares
------------------------------------------------------------------------------
For the Period
Ended For the Year
September 30, Ended May 31,
--------------- -----------------------------------------------------------
1995 1995 1994 1993 1992 1991
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value - beginning of period $15.49 $15.32 $15.80 $15.78 $15.49 $15.02
- ------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.29 0.78 0.58 0.82 1.01 1.10
Net realized and unrealized gain (loss) on
investments 0.00 0.20 (0.32) 0.07 0.39 0.50
- ------------------------------------------------------------------------------------------------------------------------------
Total income from investment operations 0.29 0.98 0.26 0.89 1.40 1.60
- ------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.31) (0.81) (0.58) (0.74) (1.10) (1.10)
Distributions from net realized gain on
investments (0.00) (0.00) (0.16) (0.13) (0.01) (0.03)
- ------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (0.31) (0.81) (0.74) (0.87) (1.11) (1.13)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $15.47 $15.49 $15.32 $15.80 $15.78 $15.49
- ------------------------------------------------------------------------------------------------------------------------------
Total return(2) 5.66%(3) 6.61% 1.60% 5.79% 9.33% 11.04%
- ------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $34,046 $37,036 $46,277 $51,232 $30,305 $18,006
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets 0.65%(3) 0.65% 0.63% 0.62% 0.62% 0.57%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets 5.57%(3) 4.98% 3.73% 4.62% 6.22% 7.28%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 1.16%(3) 0.95% 0.97% 0.85% 0.92% 0.91%
- ------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net
assets without fee waivers 5.06%(3) 4.68% 3.39% 4.39% 5.92% 6.94%
- ------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 20.28%(3) 100.44% 127.06% 163.74% 100.24% 96.47%
- ------------------------------------------------------------------------------------------------------------------------------
</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 September 30, 1995 were $2,539,766 and $4,601,208, respectively.
(2) Sales charges are not reflected in total return.
(3) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
- ----------------------------------------------------------------------------- 27
<PAGE> 43
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the periods indicated:
<TABLE>
<CAPTION>
Short-Term Government Bond Fund
-----------------------------------------------
Retail Shares
-----------------------------------------------
For the For the
Period Ended Year Ended
September 30, May 31,
------------- --------------------------
1995 1995 1994*
---- ---- ----
<S> <C> <C> <C>
Net asset value - beginning of period $15.49 $15.31 $15.90
- ---------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.29 0.75 0.37
Net realized and unrealized gain (loss) on
investments (0.02) 0.22 (0.43)
- ---------------------------------------------------------------------------------------------------
Total income (loss) from investment operations 0.27 0.97 (0.06)
- ---------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.30) (0.79) (0.37)
Distributions from net realized gain on
investments (0.00) (0.00) (0.16)
- ---------------------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (0.30) (0.79) (0.53)
- ---------------------------------------------------------------------------------------------------
Net asset value - end of period $15.46 $15.49 $15.31
- ---------------------------------------------------------------------------------------------------
Total return(2) 5.38%(3) 6.57% (0.66%)(3)
- ---------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $3,622 $4,515 $8,081
- ---------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 0.74%(3) 0.74% 0.72%(3)
- ---------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets 5.48%(3) 4.84% 3.45%(3)
- ---------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 1.25% 1.04% 1.10%(3)
- ---------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets
without fee waivers 4.97%(3) 4.54% 3.07%(3)
- ---------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 20.28% 100.44% 127.06%
- ---------------------------------------------------------------------------------------------------
</TABLE>
(1) A portfolio turnover rate is, in general, the percentage computed by taking
the lesser of purchases or sales of protfolio 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 September 30, 1995 were $2,539,766 and $4,601,208, 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.
SEE NOTES TO FINANCIAL STATEMENTS
28 ----------------------------------------------------------------------------
<PAGE> 44
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the periods indicated:
<TABLE>
<CAPTION>
Bonds Plus Fund
----------------------------------------------------------------
For the Period For the Year
Ended September 30, Ended May 31,
------------------ --------------------------------------------
1995 1995 1994 1993 1992 1991
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value - beginning of period $14.77 $14.36 $15.72 $15.69 $15.52 $15.08
- --------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.30 0.91 0.99 1.17 1.14 1.25
Net realized and unrealized gain (loss) on
investments (0.01) 0.47 (0.90) 0.40 0.65 0.54
- --------------------------------------------------------------------------------------------------------------------
Total income from investment operations 0.29 1.38 0.09 1.57 1.79 1.79
- --------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.30) (0.97) (0.85) (1.04) (1.41) (1.25)
Distributions from net realized gain on
investments (0.00) (0.00) (0.60) (0.50) (0.21) (0.10)
- --------------------------------------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (0.30) (0.97) (1.45) (1.54) (1.62) (1.35)
- --------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $14.76 $14.77 $14.36 $15.72 $15.69 $15.52
- --------------------------------------------------------------------------------------------------------------------
Total return(2) 6.14%(3) 10.13% 0.35% 10.42% 11.96% 12.36%
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $55,628 $56,087 $58,199 $61,207 $54,203 $54,074
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets 0.89%(3) 0.81% 0.79% 0.76% 0.68% 0.66%
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets 5.94%(3) 6.35% 5.33% 6.01% 7.14% 8.00%
- --------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 0.94%(3) 0.85% 0.83% 0.79% 0.73% 0.71%
- --------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets
without fee waivers 5.89%(3) 6.31% 5.30% 5.98% 7.09% 7.95%
- --------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 54.02%(3) 75.76% 162.91% 145.95% 101.91% 77.97%
- --------------------------------------------------------------------------------------------------------------------
</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 September 30, 1995 were $12,757,969 and $9,531,336, respectively.
(2) Sales charges are not reflected in total return.
(3) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
- ----------------------------------------------------------------------------- 29
<PAGE> 45
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the periods indicated:
<TABLE>
<CAPTION>
GNMA Fund
-----------------------------------------------------------------------------
Institutional Shares
-----------------------------------------------------------------------------
For the Period
Ended For the Year
September 30, Ended May 31,
-------------- -------------------------------------------------------------
1995 1995 1994 1993 1992 1991
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value - beginning of period $15.69 $15.29 $16.39 $16.18 $15.68 $15.27
- -----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.34 1.04 0.95 1.14 1.18 1.26
Net realized and unrealized gain (loss) on
investments 0.01 0.45 (1.05) 0.20 0.61 0.55
- -----------------------------------------------------------------------------------------------------------------------------
Total income (loss) from investment operations 0.35 1.49 (0.10) 1.34 1.79 1.81
- -----------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.35) (1.09) (0.98) (1.08) (1.25) (1.26)
Distributions from net realized gain on
investments (0.00) (0.00) (0.02) (0.05) (0.04) (0.14)
- -----------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (0.35) (1.09) (1.00) (1.13) (1.29) (1.40)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $15.69 $15.69 $15.29 $16.39 $16.18 $15.68
- -----------------------------------------------------------------------------------------------------------------------------
Total return(2) 6.88%(3) 10.33% (0.76%) 8.57% 11.80% 12.42%
- -----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $22,042 $24,072 $34,274 $31,385 $16,329 $10,708
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets 1.18%(3) 1.02% 0.82% 0.90% 0.96% 0.87%
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets 6.33%(3) 6.77% 6.18% 6.66% 7.33% 8.21%
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 1.41%(3) 1.25% 0.95% 0.98% 1.07% 0.94%
- -----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets
without fee waivers 6.10%(3) 6.54% 6.05% 6.58% 7.22% 8.14%
- -----------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 0.00%(3) 11.39% 38.22% 58.42% 16.04% 48.47%
- -----------------------------------------------------------------------------------------------------------------------------
</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 September 30, 1995 were $0 and $3,725,523, respectively.
(2) Sales charges are not reflected in total return.
(3) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
30 ----------------------------------------------------------------------------
<PAGE> 46
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the periods indicated:
<TABLE>
<CAPTION>
GNMA Fund
-------------------------------------------------------
Retail Shares
-------------------------------------------------------
For the For the
Period Ended Year Ended
September 30, May 31,
---------------- ------------------------------
1995 1995 1994*
---------------- ----------- ------------
<S> <C> <C> <C>
Net asset value - beginning of period $15.67 $15.28 $16.47
- ------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.31 0.99 0.74
Net realized and unrealized gain (loss) on
investments 0.03 0.46 (1.27)
- ------------------------------------------------------------------------------------------------------------
Total income (loss) from investment operations 0.34 1.45 (0.53)
- ------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.34) (1.06) (0.64)
Distributions from net realized gain on
investments (0.00) (0.00) (0.02)
- ------------------------------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (0.34) (1.06) (0.66)
- ------------------------------------------------------------------------------------------------------------
Net asset value - end of period $15.67 $15.67 $15.28
- ------------------------------------------------------------------------------------------------------------
Total return(2) 6.65%(3) 10.01% (5.17%)(3)
- ------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $7,169 $9,162 $8,538
- ------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets 1.40%(3) 1.27% 1.13%(3)
- ------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets 6.10%(3) 6.53% 5.86%(3)
- ------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 1.63%(3) 1.50% 1.33%(3)
- ------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets
without fee waivers 5.87%(3) 6.30% 5.66%(3)
- ------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 0.00%(3) 11.39% 38.22%
- ------------------------------------------------------------------------------------------------------------
(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 September 30, 1995
were $0 and $3,725,523, 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.
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
- ----------------------------------------------------------------------------- 31
<PAGE> 47
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the periods indicated:
<TABLE>
<CAPTION>
Arizona Intermediate Tax-Free Fund
------------------------------------------------------------------------------
For the For the
Period Ended Year Ended
September 30, May 31,
------------- ---------------------------------------------------------
1995 1995 1994 1993 1992(1)
---- ---- ---- ---- -------
<S> <C> <C> <C> <C> <C>
Net asset value - beginning of period $10.68 $10.48 $10.64 $10.09 $10.00
- ----------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.17 0.51 0.50 0.49 0.09
Net realized and unrealized gain (loss) on
investments 0.06 0.23 (0.15) 0.55 0.08
- ----------------------------------------------------------------------------------------------------------------------------------
Total income from investment operations 0.23 0.74 0.35 1.04 0.17
- ----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.20) (0.53) (0.50) (0.49) (0.08)
Distributions from net realized gain on
investments (0.00) (0.01) (0.01) (0.00) (0.00)
- ----------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (0.20) (0.54) (0.51) (0.49) (0.08)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $10.71 $10.68 $10.48 $10.64 $10.09
- ----------------------------------------------------------------------------------------------------------------------------------
Total return(3) 6.55%(4) 7.35% 3.28% 10.50% 7.02%(4)
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $24,622 $24,581 $25,153 $22,430 $4,690
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 0.45%(4) 0.40% 0.31% 0.20% 0.68%(4)
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets 4.73%(4) 4.89% 4.72% 4.98% 4.32%(4)
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 1.35%(4) 1.13% 1.00% 1.18% 2.08%(4)
- ----------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets
without fee waivers 3.83%(4) 4.16% 4.03% 4.00% 2.92%(4)
- ----------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(2) 62.10%(4) 13.65% 27.81% 3.96% 0.00%(4)
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Commencement of operations was March 2, 1992.
(2) 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 September 30, 1995 were $5,546,887 and $4,984,866, respectively.
(3) Sales charges are not reflected in total return.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
32 ----------------------------------------------------------------------------
<PAGE> 48
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the periods indicated:
<TABLE>
<CAPTION>
Oregon Tax-Exempt Fund
---------------------------------------------------------------------------------
For the Period For the Year
Ended Ended May 31,
September 30,
------------------- ---------------------------------------------------------
1995 1995 1994 1993 1992 1991
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value - beginning of period $16.47 $16.17 $16.79 $16.07 $15.74 $15.27
- --------------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.28 0.82 0.84 0.86 0.91 0.94
Net realized and unrealized gain (loss) on
investments (0.08) 0.39 (0.43) 0.76 0.38 0.47
- --------------------------------------------------------------------------------------------------------------------------------
Total income from investment operations 0.20 1.21 0.41 l.62 1.29 1.41
- --------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.29) (0.87) (0.82) (0.86) (0.92) (0.94)
Distributions from net realized gain on
investments (0.00) (0.04) (0.21) (0.04) (0.04) (0.00)
- --------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (0.29) (0.91) (1.03) (0.90) (0.96) (0.94)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $16.38 $16.47 $16.17 $16.79 $16.07 $15.74
- --------------------------------------------------------------------------------------------------------------------------------
Total return(2) 3.67%(3) 7.92% 2.33% 10.36% 8.45% 9.58%
- --------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $50,077 $52,245 $53,846 $45,435 $25,002 $14,607
- --------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 0.70%(3) 0.70% 0.62% 0.60% 0.60% 0.55%
- --------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets 5.01%(3) 5.19% 4.90% 5.34% 5.81% 6.27%
- --------------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 1.01%(3) 0.90% 0.84% 0.91% 0.98% 1.03%
- --------------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets without fee waivers 4.70%(3) 4.99% 4.69% 5.03% 5.43% 5.79%
- --------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(1) 56.53%(3) 15.46% 22.10% 5.62% 16.96% 22.89%
- --------------------------------------------------------------------------------------------------------------------------------
</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 September 30, 1995 were $9,296,225 and $9,230,944, respectively.
(2) Sales charges are not reflected in total return.
(3) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
- ---------------------------------------------------------------------------- 33
<PAGE> 49
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the periods indicated:
<TABLE>
<CAPTION>
Quality Tax-Exempt Income Fund
---------------------------------------------------------------
For the For the
Period Ended Year Ended
September 30, May 31,
------------- ------------------------------------------
1995 1995 1994 1993(1)
---- ---- ---- -------
<S> <C> <C> <C> <C>
Net asset value - beginning of period $15.28 $14.98 $15.17 $15.00
- -------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.24 0.68 0.64 0.17
Net realized and unrealized gain (loss) on
investments 0.08 0.32 (0.17) 0.15
- -------------------------------------------------------------------------------------------------------------------
Total income from investment operations 0.32 1.00 0.47 0.32
- -------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.26) (0.70) (0.64) (0.15)
Distributions from net realized gain on
investments (0.00) (0.00) (0.02) (0.00)
- -------------------------------------------------------------------------------------------------------------------
Total dividends and distributions to
shareholders (0.26) (0.70) (0.66) (0.15)
- -------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $15.34 $15.28 $14.98 $15.17
- -------------------------------------------------------------------------------------------------------------------
Total return(3) 6.53%(4) 6.97% 3.07% 5.65%(4)
- -------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $14,305 $14,458 $13,600 $7,457
- -------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets 0.35%(4) 0.35% 0.27% 0.25%(4)
- -------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets 4.65%(4) 4.59% 4.29% 3.88%(4)
- -------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 1.85%(4) 1.51% 1.58% 1.99%(4)
- -------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets
without fee waivers 3.15%(4) 3.43% 2.99% 2.14%(4)
- -------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate(2) 86.11%(4) 23.35% 18.81% 18.30%(4)
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Commencement of operations was January 15, 1993.
(2) 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 September 30, 1995 were $4,847,223 and $4,001,951, respectively.
(3) Sales charges are not reflected in total return.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
34 ----------------------------------------------------------------------------
<PAGE> 50
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest
outstanding throughout the periods indicated:
<TABLE>
<CAPTION>
Prime Money Market Fund
-----------------------------------------------------------------------
For the Period For the Year
Ended September 30, Ended May 31,
------------------- --------------------------------------------------
1995 1995 1994 1993 1992 1991(1)
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
Net asset value - beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.02 0.05 0.03 0.03 0.05 0.05
- ----------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.02) (0.05) (0.03) (0.03) (0.05) (0.05)
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value - end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------------------------------
Total return 5.70%(2) 5.05% 3.21% 2.94% 4.56% 6.48%(2)
- ----------------------------------------------------------------------------------------------------------------------------
RATIO/SUPPLEMENTAL DATA:
Net assets, end of period (000) $286,863 $290,483 $300,894 $74,375 $87,039 $113,141
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average
net assets 0.19%(2) 0.17% 0.18% 0.46% 0.48% 0.69%(2)
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average
net assets 5.70%(2) 5.06% 3.21% 2.94% 4.56% 6.48%(2)
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 1.11%(2) 1.07% 1.02% 1.08% 1.04% 1.08%(2)
- ----------------------------------------------------------------------------------------------------------------------------
Ratio of net investment income to average net assets
without fee waivers 4.78%(2) 4.16% 2.38% 2.32% 4.00% 6.09%(2)
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The Fund commenced operations on September 17, 1990.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
- ----------------------------------------------------------------------------- 35
<PAGE> 51
- -------------------------------------------------------------------------------
WESTCORE 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-end management investment company.
Interests in the Growth, Short-Term Government Bond, Bonds Plus, GNMA, Arizona
Intermediate Tax-Free, Oregon Tax-Exempt, Quality Tax-Exempt Income and Prime
Money Market Funds (the "Funds") are represented by separate classes of
beneficial interest of the Trust, which is organized as a Massachusetts
business trust. Since October 11, 1993, the Growth, Short-Term Government Bond
and GNMA Funds offer both Institutional and Retail classes of shares.
Institutional shares are sold without a front-end sales charge. Retail shares
are generally sold with a front-end sales charge. Shares sold to retail
investors have their own distribution/administrative service plan and certain
expenses are directly allocated to that class.
The following is a summary of significant accounting policies
consistently followed by the Funds in the preparation of their financial
statements. The policies are in conformity with generally accepted accounting
principles.
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 on the basis of amortized cost which
approximates market value.
REPURCHASE AGREEMENTS - A third party custodian takes possession of the
collateral pledged for investments in repurchase agreements. The underlying
collateral is valued daily on a mark-to-market basis to ensure that the value,
including accrued interest, is at least 101% of the repurchase price. In the
event of default on the obligation to repurchase, the Fund has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. Under certain circumstances, in the event of default or bankruptcy
by the other party to the agreement, realization and/or retention of the
collateral may be subject to legal proceeding.
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, including
any net realized gain on investments not offset by loss carryovers, to
shareholders. Therefore, no federal income tax provision is required. At
September 30, 1995, the Short-Term Government Bond, Bonds Plus, GNMA, Oregon
Tax-Exempt and Quality Tax-Exempt Income Funds had available for federal income
tax purposes unused capital loss carryovers of approximately $1,065,824,
$2,150,699, $1,024,023, $227,940 and $78,887 respectively, which will expire
through 2003.
ALLOCATION OF INCOME, EXPENSES AND GAINS AND LOSSES - The Growth,
Short-Term Government Bond and GNMA Funds allocate income, expenses (other than
the class specific expenses) and gains and losses daily to each class of shares
based upon the relative proportion of net assets represented by each class.
Operating expenses directly attributable to a specific class are charged
against the operations of that class.
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' commencements of operations.
CLASSIFICATION OF DISTRIBUTIONS TO SHAREHOLDERS - Net investment income
is different for financial statement and tax purposes for a variety of reasons
including reorganization costs (see Note 6) which are non-deductible for tax
purposes. As a result, distributions made to comply with tax regulations can
be in excess of net investment income for financial statement purposes. In
accordance with Statement of Position 93-2: Determination, Disclosure and
Financial Statement Presentation of Income, Capital Gains and Return of Capital
Distributions by Investment Companies, all permanent differences result in
reclassifications between paid in capital and undistributed net investment
income.
OTHER - Investment transactions are accounted for on the date the
investments are purchased or sold (trade date). Dividend income and
distributions to shareholders are recorded on the ex-dividend date.
Distributions of net realized gains, if any, are declared at least once each
year. 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.
36 -----------------------------------------------------------------------------
<PAGE> 52
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Continued)
2. SHARES OF BENEFICIAL INTEREST
On September 30, 1995, there was an unlimited number of no par value
shares of beneficial interest authorized for each class of shares. Transactions
in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
Growth Fund
- ------------------------------------------------------------------------------------------------------------
For the Period For the Year
Ended September 30, 1995 Ended May 31, 1995
-------------------------- --------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS:
Shares sold 116,576 $ 2,089,493 592,781 $ 9,247,021
Shares issued in reinvestment of dividends 7,727 140,818 7,795 120,439
- ------------------------------------------------------------------------------------------------------------
Total 124,303 2,230,311 600,576 9,367,460
Shares redeemed (88,173) (1,581,599) (111,889) (1,769,959)
- ------------------------------------------------------------------------------------------------------------
Net increase 36,130 $ 648,712 488,687 $ 7,597,501
- ------------------------------------------------------------------------------------------------------------
RETAIL CLASS:
Shares sold 391 $ 6,910 7,204 $113,201
Shares issued in reinvestment of dividends 145 2,638 148 2,278
- ------------------------------------------------------------------------------------------------------------
Total 536 9,548 7,352 115,479
Shares redeemed (1,392) (25,341) (996) (16,215)
- ------------------------------------------------------------------------------------------------------------
Net increase (decrease) (856) ($15,793) 6,356 $99,264
- ------------------------------------------------------------------------------------------------------------
<CAPTION>
Short-Term Government Bond Fund
- ------------------------------------------------------------------------------------------------------------
For the Period For the Year
Ended September 30, 1995 Ended May 31, 1995
------------------------- ----------------------------
Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS:
Shares sold 79,601 $1,235,539 439,550 $ 6,725,880
Shares issued in reinvestment of dividends 19,478 301,246 61,236 934,422
- ------------------------------------------------------------------------------------------------------------
Total 99,079 1,536,785 500,786 7,660,302
Shares redeemed (288,573) (4,484,047) (1,131,663) (17,306,036)
- ------------------------------------------------------------------------------------------------------------
Net decrease (189,494) ($2,947,262) (630,877) ($9,645,734)
- ------------------------------------------------------------------------------------------------------------
RETAIL CLASS:
Shares sold 9,743 $ 151,249 277,437 $4,259,534
Shares issued in reinvestment of dividends 4,231 65,393 28,344 431,662
- ------------------------------------------------------------------------------------------------------------
Total 13,974 216,642 305,781 4,691,196
Shares redeemed (71,314) (1,110,281) (542,027) (8,302,105)
- ------------------------------------------------------------------------------------------------------------
Net decrease (57,340) ($893,639) (236,246) ($3,610,909)
- ------------------------------------------------------------------------------------------------------------
</TABLE>
- ------------------------------------------------------------------------------37
<PAGE> 53
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Continued)
2. SHARES OF BENEFICIAL INTEREST (Continued)
On September 30, 1995, there was an unlimited number of no par value shares
of beneficial interest authorized for each class of shares. Transactions in
shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
Bonds Plus Fund
- -------------------------------------------------------------------------------------------------
For the Period For the Year
Ended September 30, 1995 Ended May 31, 1995
------------------------ ----------------------
<S> <C> <C>
Shares sold 459,831 1,000,106
Shares issued in reinvestment of dividends 54,095 186,341
- -------------------------------------------------------------------------------------------------
Total 513,926 1,186,447
Shares redeemed (541,307) (1,441,332)
- -------------------------------------------------------------------------------------------------
Net decrease in shares (27,381) (254,885)
- -------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
GNMA Fund
- -------------------------------------------------------------------------------------------------
For the Period For the Year
Ended September 30, 1995 Ended May 31, 1995
------------------------ -------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSTITUTIONAL CLASS:
Shares sold 16,244 $254,940 79,897 $1,211,378
Shares issued in reinvestment of dividends 17,618 275,448 74,625 1,122,846
- -------------------------------------------------------------------------------------------------
Total 33,862 530,388 154,522 2,334,224
Shares redeemed (163,302) (2,567,158) (861,440) (13,038,700)
- -------------------------------------------------------------------------------------------------
Net decrease (129,440) ($2,036,770) (706,918) ($10,704,476)
- -------------------------------------------------------------------------------------------------
RETAIL CLASS:
Shares sold 12,170 $190,907 157,517 $2,377,619
Shares issued in reinvestment of dividends 5,725 89,394 21,177 318,211
- -------------------------------------------------------------------------------------------------
Total 17,895 280,301 178,694 2,695,830
Shares redeemed (145,038) (2,279,613) (152,967) (2,311,529)
- -------------------------------------------------------------------------------------------------
Net increase (decrease) (127,143) ($1,999,312) 25,727 $384,301
- -------------------------------------------------------------------------------------------------
</TABLE>
38 -----------------------------------------------------------------------------
<PAGE> 54
- -------------------------------------------------------------------------------
WESTCORE REPORT
- -------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Continued)
2. SHARES OF BENEFICIAL INTEREST (Continued)
On September 30, 1995, there was an unlimited number of no par value
shares of beneficial interest authorized for each class of shares.
Transactions in shares of beneficial interest were as follows:
<TABLE>
<CAPTION>
Arizona Intermediate Tax-Free Fund
---------------------------------------------------
For the Period For the Year
Ended September 30, 1995 Ended May 31, 1995
------------------------ ------------------
<S> <C> <C>
Shares sold 146,719 597,182
Shares issued in reinvestment of dividends 9,677 27,333
- --------------------------------------------------------------------------------------------
Total 156,396 624,515
Shares redeemed (160,074) (722,419)
- --------------------------------------------------------------------------------------------
Net decrease in shares (3,678) (97,904)
- --------------------------------------------------------------------------------------------
<CAPTION>
Oregon Tax-Exempt Fund
---------------------------------------------------
For the Period For the Year
Ended September 30, 1995 Ended May 31, 1995
------------------------ ------------------
<S> <C> <C>
Shares sold 84,114 360,914
Shares issued in reinvestment of dividends 32,705 116,237
- --------------------------------------------------------------------------------------------
Total 116,819 477,151
Shares redeemed (231,037) (636,342)
- --------------------------------------------------------------------------------------------
Net decrease in shares (114,218) (159,191)
- --------------------------------------------------------------------------------------------
<CAPTION>
Quality Tax-Exempt Income Fund
---------------------------------------------------
For the Period For the Year
Ended September 30, 1995 Ended May 31, 1995
------------------------ ------------------
<S> <C> <C>
Shares sold 40,810 385,307
Shares issued in reinvestment of dividends 7,417 19,534
- --------------------------------------------------------------------------------------------
Total 48,227 404,841
Shares redeemed (61,901) (366,565)
- --------------------------------------------------------------------------------------------
Net increase (decrease) in shares (13,674) 38,276
- --------------------------------------------------------------------------------------------
<CAPTION>
Prime Money Market Fund
---------------------------------------------------
For the Period For the Year
Ended September 30, 1995 Ended May 31, 1995
------------------------ ------------------
<S> <C> <C>
Shares sold 206,738,848 481,846,431
Shares issued in reinvestment of dividends 1,253 1,954
- --------------------------------------------------------------------------------------------
Total 206,740,101 481,848,385
Shares redeemed (210,282,383) (492,259,778)
- --------------------------------------------------------------------------------------------
Net decrease in shares (3,542,282) (10,411,393)
- --------------------------------------------------------------------------------------------
</TABLE>
- ------------------------------------------------------------------------------39
<PAGE> 55
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Continued)
3. UNREALIZED GAINS AND LOSSES ON INVESTMENTS
<TABLE>
<Caption
Short-Term
Growth Government Bonds Plus GNMA
Fund Bond Fund Fund Fund
---- --------- ---------- ---------
<S> <C> <C> <C> <C>
As of September 30, 1995
Gross appreciation (excess of
value over cost) $2,247,317 $492,489 $1,132,733 $232,531
Gross depreciation (excess of
cost over value) (91,149) (15,714) (226,477) (492,962)
- -------------------------------------------------------------------------------------------------
Net unrealized appreciation (depreciation) $2,156,168 $476,775 $906,256 ($260,431)
- -------------------------------------------------------------------------------------------------
<CAPTION>
Arizona Oregon Quality
Intermediate Tax-Exempt Tax-Exempt
Tax-Free Fund Fund Income Fund
------------- ---------- -----------
<S> <C> <C> <C>
As of September 30, 1995
Gross appreciation (excess of
value over cost) $726,930 $1,413,585 $209,873
Gross depreciation (excess of
cost over value) (5,828) (517,977) (60,314)
- ------------------------------------------------------------------------------------------------
Net unrealized appreciation $721,102 $895,608 $149,559
- ------------------------------------------------------------------------------------------------
</TABLE>
40 -----------------------------------------------------------------------------
<PAGE> 56
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Continued)
4. INVESTMENT ADVISORY FEES ADMINISTRATION FEES AND OTHER
RELATED PARTY TRANSACTIONS
The Trust has entered into an Investment Advisory Agreement with the
First Interstate Bank of Oregon, N.A., ("Oregon") with respect to the
Short-Term Government Bond, Bonds Plus, GNMA, Oregon Tax-Exempt and Prime Money
Market Funds. The Trust has entered into an Investment Advisory Agreement with
Oregon and the First Interstate Bank of Washington, N.A., ("Washington") with
respect to the Growth and Quality Tax-Exempt Income Funds. The Trust has
entered into an Investment Advisory Agreement with the First Interstate Bank of
Arizona, N.A. ("Arizona") with respect to the Arizona Intermediate Tax-Free
Fund.
Pursuant to their advisory agreements with the Trust, the Investment
Advisors, (Oregon, Washington and Arizona) are entitled to an advisory fee,
computed daily and payable monthly. Oregon is entitled to an annual fee of
0.50 percent of the average net assets of the Short-Term Government Bond, Bonds
Plus, GNMA and Oregon Tax-Exempt Funds and 0.70 percent of the average net
assets of the Prime Money Market Fund. Oregon and Washington are entitled to
an annual fee of 0.75 percent of the average net assets of the Growth Fund and
0.50 percent of the average net assets of the Quality Tax-Exempt Income Fund.
Arizona is entitled to an annual fee of 0.50 percent of the average net assets
of the Arizona Intermediate Tax-Free Fund. As of September 30, 1995, Oregon,
Washington, Arizona and their affiliated banks possessed on behalf of their
underlying accounts, 90 percent of the Growth Fund, 37 percent of the
Short-Term Government Bond Fund, 92 percent of the Bonds Plus Fund, 67 percent
of the Arizona Intermediate Tax-Free Fund, 13 percent of the Oregon Tax-Exempt
Fund, 49 percent of the Quality Tax-Exempt Income Fund, and 96 percent of the
Prime Money Market Fund shares outstanding.
Oregon is the custodian for the Growth, Short-Term Government Bond,
Bonds Plus, GNMA, Oregon Tax-Exempt, Quality Tax-Exempt Income, and Prime Money
Market Funds. Arizona is the custodian for the Arizona Intermediate Tax-Free
Fund. All custodial fees were waived by Oregon and Arizona for the period
ended September 30, 1995. In addition, Oregon waived a portion of its advisory
fees for the Short-Term Government Bond, GNMA, and Oregon Tax-Exempt Funds.
Oregon waived all of its advisory fees and voluntarily assumed some of the
expenses of the Prime Money Market Fund. Oregon and Washington waived all
their advisory fees and voluntarily assumed some of the expenses of the Growth
and Quality Tax-Exempt Income Funds. Arizona waived all of its advisory fee
and voluntarily assumed some of the expenses of the Arizona Intermediate
Tax-Free Fund.
ALPS Mutual Fund Services, Inc. ("ALPS") serves as the Funds
administrator. ALPS is entitled to receive a fee from each Fund for its
administrative services, computed daily and payable monthly, at the annual rate
of 0.05 percent of the average net assets of the Growth, Short-Term Government
Bond, Bonds Plus, GNMA, Arizona Intermediate Tax-Free, Oregon Tax-Exempt and
Quality Tax-Exempt Income Funds and at an annual rate of 0.14 percent of the
average net assets of the Prime Money Market Fund.
Expenses for the Funds include legal fees paid to Drinker, Biddle &
Reath. A partner of that firm is Secretary of the Trust.
The Growth, Short-Term Government Bond and GNMA Funds have an approved
plan of distribution/administrative services for the Retail class shares and
may expend up to 0.35 percent, 0.25 percent, and 0.30 percent, respectively, on
an annual basis of the average net assets of the Retail class shares, to
reimburse for costs incurred in distributing or providing administrative
services to the Retail class shares, including amounts paid to brokers,
dealers, banks, and other institutions. During the period ended September 30,
1995, the Funds accrued for participants under the plan of distribution 0.21
percent, 0.09 percent and 0.22 percent, respectively, on an annual basis of the
average net assets of the Retail class shares.
- ---------------------------------------------------------------------------- 41
<PAGE> 57
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Continued)
5. ALLOCATION OF CLASS EXPENSES
<TABLE>
<CAPTION>
Institutional Retail
Shares Shares Total
------------- ------ -----
<S> <C> <C> <C>
GROWTH FUND EXPENSES
Investment advisory fee $34,360 $518 $34,878
Administrative fee 2,294 35 2,329
Fund accounting 9,257 140 9,397
Legal 1,066 16 1,082
Audit 2,337 35 2,372
Custodian 4,151 61 4,212
Transfer agency 13,610 205 13,815
Printing 3,898 59 3,957
Distribution/administration assistance
- retail shares 0 147 147
Insurance 103 1 104
Registration 1,934 31 1,965
Trustee fee 234 4 238
Reorganization 8,707 123 8,830
Other 637 9 646
- -------------------------------------------------------------------------------
Total Expenses 82,588 1,384 83,972
- -------------------------------------------------------------------------------
Expenses waived by:
Investment advisor (34,360) (518) (34,878)
Custodian (4,151) (61) (4,212)
Expenses reimbursed by
investment advisor (2,869) (147) (3,016)
- -------------------------------------------------------------------------------
Net Expenses $41,208 $658 $41,866
- -------------------------------------------------------------------------------
<CAPTION>
Institutional Retail
Shares Shares Total
------------- ------ -----
<S> <C> <C> <C>
SHORT-TERM GOVERNMENT BOND FUND
EXPENSES
Investment advisory fee $59,282 $6,414 $65,696
Administrative fee 5,928 642 6,570
Fund accounting 9,088 983 10,071
Legal 2,165 237 2,402
Audit 2,905 314 3,219
Custodian 3,545 381 3,926
Transfer agency 16,222 1,763 17,985
Printing 10,574 1,152 11,726
Distribution/administration
assistance - retail shares 0 1,133 1,133
Insurance 913 99 1,012
Registration 10,775 1,154 11,929
Trustee fee 629 68 697
Reorganization 15,427 1,642 17,069
Other 821 90 911
- ------------------------------------------------------------------------------
Total Expenses 138,274 16,072 154,346
- ------------------------------------------------------------------------------
Expenses waived by:
Investment advisor (57,093) (6,157) (63,250)
Custodian (3,545) (381) (3,926)
- ------------------------------------------------------------------------------
Net Expenses $77,636 $9,534 $87,170
- ------------------------------------------------------------------------------
</TABLE>
42 ---------------------------------------------------------------------------
<PAGE> 58
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Continued)
5. ALLOCATION OF CLASS EXPENSES
<TABLE>
<CAPTION>
Institutional Retail
GNMA Fund Shares Shares Total
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
EXPENSES
Investment advisory fee $38,890 $13,866 $52,756
Administrative fee 3,889 1,387 5,276
Fund accounting 7,906 2,822 10,728
Legal 5,452 1,909 7,361
Audit 2,124 756 2,880
Custodian 6,566 2,184 8,750
Transfer agency 20,483 7,309 27,792
Printing 9,434 3,403 12,837
Distribution/administration assistance -
retail shares 0 6,255 6,255
Insurance 226 80 306
Registration 3,714 1,446 5,160
Trustee fee 537 185 722
Reorganization 10,572 3,632 14,204
Other 416 154 570
- ------------------------------------------------------------------------------
Total Expenses 110,209 45,388 155,597
- ------------------------------------------------------------------------------
Expenses waived by:
Investment advisor (11,667) (4,160) (15,827)
Custodian (6,566) (2,184) (8,750)
- ------------------------------------------------------------------------------
Net Expenses $91,976 $39,044 $131,020
- ------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------- 43
<PAGE> 59
- --------------------------------------------------------------------------------
WESTCORE REPORT
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Continued)
6. REORGANIZATION
A special meeting of the Westcore Board of Trustees was held on June 14, 1995,
in which the Reorganization agreement was approved subject to shareholder
approval. On August 21, 1995, the Westcore Trust and Pacifica Funds Trust
entered into an Agreement and Plan of Reorganization ("Reorganization") with
respect to 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 and Prime Money Market Fund were included in the Reorganization. A
special meeting of the shareholders was held on September 28, 1995, in which
shareholder approval was obtained on the Growth Fund, Short-Term Government
Bond Fund, Bonds Plus Fund, Arizona Intermediate Tax-Free Fund, Quality
Tax-Exempt Income Fund and Prime Money Market Fund effective October 1, 1995.
On October 11, 1995, shareholder approval was obtained on the Oregon Tax-Exempt
Fund. Shares constituting a quorum have been voted with respect to the
reorganization of the GNMA Fund and a meeting of such Fund will be held on
November 15, 1995, to formally obtain shareholder approval. The Reorganization
resulted in the conveyance of the assets and liabilities of the Funds to
corresponding new portfolios of the Pacifica Funds Trust.
7. FEDERAL INCOME TAX INFORMATION (UNAUDITED)
During the four month period ended September 30, 1995, the Growth Fund
distributed long-term capital gains of $.0868 per share and had a corporate
dividend received deduction of 81.80 percent. Also, 100 percent of the
dividends paid by Arizona Intermediate Tax-Free Fund, Oregon Tax-Exempt Fund
and Quality Tax-Exempt Income Fund from net investment income should be treated
as tax exempt dividends.
44 -----------------------------------------------------------------------------
<PAGE> 60
WESTCORE
---------------------------------------- 370 Seventeenth Street
---------------------------------------- Suite 2700
---------------------------------------- Denver, Colorado 80202
A Diversified Family of Mutual Funds
Westcore Officers
and Trustees
Jack D. Henderson,
Chairman
McNeil S. Fiske,
Trustee
James B. O'Boyle,
Trustee
Lyman E. Seeley,
Trustee
Robert L. Stamp,
Trustee
Kenneth V. Penland,
President
Mark Pougnet,
Treasurer
W. Bruce McConnell, III
Secretary
NOT FDIC INSURED [ALPS LOGO]
